Saturday, June 11, 2011

Real Business Decisions by Nonprofits? Who Would of Thought It Possible?

The Daily Star, a small newspaper located in upstate NY, recently reported that the local Girl Scout offices in Oneonta and Norwich will close June 30. As the article states: The decision comes after a 21-member task group of volunteers and staff spent nine months gathering data, holding membership forums and reviewing the properties and office spaces held by the council after its merger of five smaller councils in 2009. GSNYPENN now serves girls in 24 counties in New York and two in Pennsylvania.

Feedback: Although for some this may seem a negative, especially in the local rural region, nonprofits need to increase efficiencies and strengthen their business operations to maintain services and be viable in the today's environment. These kinds of difficult decisions are needed and should be expected. Of course, there are implications here around rural versus more urban areas, but ultimately what needs to be remembered is that the bottom line is just as important in the nonprofit sector as in the for profit. People will disagree and take issue with decisions like this, especially anytime local ownership and presence is impacted, but with the economic downturn and significant competition for contributed revenue, this is now a regular part of doing business. "Businesses" lay off people everyday, and nonprofits have been forced to make the same, painful decisions. The difference is that unlike for profits that are truly focused on maximizing revenue for profit, nonprofits are making decisions, in most cases, that will allow them to maintain services, strengthen their organizations, enable them to fulfill their mission and most importantly, best serve their constituents with the programs and services they want and need. So, politicians, communities and consumers of nonprofit services, please remember these are business decisions, and they are taken with careful thought and due diligence by board members and staff that are your peers, neighbors and voters.

1 comment:

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