Why should financial managers in a nonprofit organization be compensated equally to their counterparts in profit seeking firms?
Answer The world of non-profit organizations has under gone change. Non-profit supporters are expecting the non-profit to be managed in a similar capacity as a regular business. Sound business practices are a requirement for all non-profits. Without financial profits, a non-profit cannot achieve its social mission. Creating the proper plan for operating successfully and obtaining funding will include: -an outcome to achieve -limited resources -operational constraints -community expectations to meet -generate revenue [ resource development ] -cashflow management etc FOR THE NON PROFIT BUSINESS THE BUSINESS PLAN [ BOTH SHORT TERM/MEDIUM TERM] HELPS -to set up strategic direction -to set up strategic objectives -to meet community expectations -to develop strategic planning -to develop plans for resource development -to develop operating plan -to develop organization plan to man the services -to develop cash flow plan etc THE MARKETING PLAN [ BOTH SHORT TERM/MEDIUM TERM] HELPS -to position
