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Nonprofit Sector - Essay Example
Traditional nonprofit organisations focused on the provision of services in the social sector, such as homelessness, poverty, domestic violence, education and healthcare. However, these organizations have recently begun to supplement government services, are contributing towards the creation of innovative social programs, and are increasingly "functioned as vehicles for private citizens to pursue their own visions of the good society independent of government policy" (p…
Secondly, comments have been directed toward nonprofit organizations in regards to their lack of market discipline as a predominant cause of their limited self-sustainability. Other factors involve rising service and administration costs, and the increased competition for limited donations amongst nonprofit organisations. By becoming a commercial enterprise nonprofits are able to leverage former sources of funding. Nonprofits are seeking additional revenue such as setting up peripheral commercial businesses as a way to add to their fee paying programs that do not generate profits. In many cases this is a strategy in which they can raise community awareness of their cause and simultaneously make money. Some nonprofits have sought to commercialize their key programs, relying less on donations and moving to fee payments by beneficiaries, or creating contracts with government organisations or corporations.
Alternatively, nonprofits may charge a corporation, which in turn charges its beneficiaries for a once free service. ...