Nonprofit Organizations Essay

During economic downtimes, just as the individual’s incomes reduces and few people are inclined to invest, the nonprofit organization do experience a worse situation. The reason being, the nonprofit organization customarily relay on donations that emanate from individuals, companies, charitable trusts and foundations. During the economic downtimes, the private, individual, corporation’s contribution reduce, and foundation donors are less willing to donate. In addition the government funding is likely to decline or be taken away. Because these times are unpredictable, nonprofit organizations should always be ready to handle or know how to deal with such difficult circumstances. The board of director of the nonprofit organization who has fiduciary

Anther way to generate the income is by rendering services or sales, for example the girl’s scouts cookie sales whereby if you purchase a box of cookies you contribute to the earned income. Merging two nonprofit organization is another way to save to a nonprofit organization in times of economic distress, this is common within an organization that is rendering the same service for example taking care of children where they have the same mission in the same geographic region. According to Kate, “The reason that nonprofit mergers continue to languish isn’t that they don’t make sense. Quite the contrary. Nonprofit mergers and acquisitions are often an effective way to deliver more and better services at lower cost. Take Arizona’s Children Association (AzCA), a child and family services agency. This nonprofit has seven acquisitions under its belt, each cutting costs up to 40 percent and increasing the number of beneficiaries as much as 100 percent.3 In the process, AzCA grew revenue threefold, from $12 million in 1998, before it began its acquisitions, to $36 million in 2012” (Smith Milway Kate, Orozco Maria, & Botero Cristina, 2014). This indicates how beneficial the mergers can