9: The Business of the Non-Profit Sector

Conversations with Randi Shubin Dresner

You’ll want to hear this CONVERSATION about the business side of the non-profit sector; should there be profits at the end of the year? Why don’t funders cover administrative costs? Should the entire organization be volunteer run? What IS the difference between a for-profit and non-profit enterprise? There are major differences: when a business delivers a service, there is income. The completion of their mission provides a profit. When a nonprofit delivers a service, and effectively deliver on their mission, they have spent their dollars, they have less dollars than they started with. As we move into the holiday season where giving typically increases, this is a good time to understand how this sector operates. Contributions are investments and in this sector, it supports a mission rather than a corporate bottom-line.