You are the recently appointed Budget Director of a nonprofi

You are the recently appointed Budget Director of a nonprofit agency that provides assistance to the community. The Director has asked for your input on how to raise additional revenue for the Organization. You have narrowed your recommendation to two choices. One: A user fee for individuals who currently request assistance. These fees would be for individuals in predominately lower income areas and are currently without charge. Two: Plan a fundraiser dinner targeting a more affluent population including many politically influential individuals and several members of the state government. Considering all the budgetary, political, public, and ethical implications which option would you recommend and why? Be sure to cite to applicable theoretical and conceptual sources to support your line of recommendation.

Solution

Plan a fundraiser dinner targeting a more affluent population including many politically influential individuals and several members of the state government.

The basic issue in nonprofit organizations is that value generation is rarely linked with the disposition (or capability) of receptors (not customers) to pay for the services provided.In a regular business if you are able to create value you will find someone capable to pay for it, and this is it all about it, to make happy customers and to earn money by the way, in nonprofit enterprises, it is not ever true.

There are two recognized authors whom have developed this paradox: Prof. J. Gregory Dees from the business school of Duke University and Clara Miller, who is a top rated CEO in nonprofit field. They propose: \"the donor value proposition and the recipient value proposition\", they explain that to manage nonprofit organizations is like to deal with \"two businesses; one related to their program activities and the other related to raising charitable subsidies”.

Starting from there, I think that if the recipient value is high, but they are from a low income community and they have receipted this service without charge until now, maybe is worth to try to raise funds from donors with better political and economic status, to keep the service free, much time as be possible, if the nonprofit leader is capable to show the recipient value and to promote then donors value.