Nonprofits as business

After reading Harvey’s post, and looking over the article she linked about Nonprofit/Philanthropy Trends in 2007, I thought I would add some of my thoughts about the article. In particular, I was interested in the section that pointed out how more and more fund raisers are recognizing that there is a business side to nonprofit organizations.

"3. Wider recognition that there is a business side to nonprofits.
Miller elaborated: "We see encouraging signs of an understanding taking
root that nonprofits need comprehensive funding that includes
infrastructure, replacement and organizational growth needs. These needs
are often overlooked by the currently pervasive practice of 'restricted'
funding, which will continue to be a major impediment to the financial
stability of all too many nonprofits."

I believe that people who are interested in working in the nonprofit sector should be fairly business savvy because it is more efficient. If you run a nonprofit in a similar way you would a business, you are trying to create a profit while cutting unnecessary costs along the way. The real difference that I see is that in a business, you get to keep the profits, while in a philanthropy the extra profits are going to a cause. I’m not saying that I believe nonprofits should forsake their core values to try and make a few extra dollars for their cause, but I do believe that now nonprofits are often competing with for profit businesses more than ever. I also see how many of the larger nonprofit organizations are changing and growing to be able to stay afloat and continue furthering their work with whatever cause they support.