Not-For-Profit Organization Analysis

1512 Words 6 Pages
Arts organizations often operate in a not-for-profit environment. In brief, not-for-profit organization is an organization that does not seek profit. It is obvious that not-for-profit organizations cannot be operated without “profit” and most of the not-for-profit organizations do commercial activities. However, any profit must return to the organization to support their mission in a not-for-profit organization. The goal of a not-for-profit organization may be its mission, not just money. The organization should serve the mission and contribute to the public and its society. The only reason to make money is to continue serving the mission and operating the organization. For example, an organization makes money by offering programs or selling …show more content…
The first step of planning is to develop a mission statement. In general, a mission statement is a guiding statement of purpose of the organization that describes its charitable mission. A mission statement should be clear, concise, and easy to remember. A good mission statement should satisfy two questions, “What do we do?” and “For whom do we do it?” (Rosewall, 2014, p. 50). Another statement for a not-for-profit organization is a vision statement. A vision statement is a description of what an organization would like to ultimately achieve in the future (What is a vision statement? definition and …show more content…
According to John Schermerhorn, organizational structure means “a system of tasks, reporting relationships, and communication linkages” (Schermerhorn, 2011, pp. G-6). These relationships and tasks can be illustrated by an organizational chart. The organization chart helps to clarify the lines of communication, group of work, and managerial relationships (Byrnes, 2015). Fundraising is part art and part science, and it is an integral part of the not-for-profit organization. If the organization does not have enough money to operate, it will be a serious problem and a board of directors has to shoulder responsibility for the fault. Fundraising is a major role of the board, but both the board and staff must have responsibility and ability to raise funds for the smooth operation of the organization (Fundraising Ideas). Not-for-profit organizations are highly dependent upon contributions, grants, and fundraising. Successful fundraising campaign will be a good chance to identify its target audience and create a goal. People who would invest the most or have a strong belief in the products or services for the organization will be the target audience. They are willing to participate in the fundraiser and pay for the products or services. It is essential to consider the needs of the funder because they expect something as much as they

Related Documents