endowments

If we look at an organization Internal Revenue Service (IRS) non-profit organizations reported on their IRS Form 990, many of the distinctions between profit and nonprofit companies are operationally meaningless. As Peter says the printer. "The differences between managing a chain of retail stores and management of a Catholic diocese surprisingly less than the retail executives and bishops have to realize the differences are mainly the use of principles." Manythe timeless principles that the indicators of financial performance and financial performance for high-profit companies can also non-profit organizations are used to produce continuously, as described by Collins in his monograph, Good to Great and the social sectors. Contrary to what is taught in schools of many firms, recent studies such as Collins and Porras' Good to Great have demonstrated that income and wealth are the driving force or primary objective of truly visionary companies for profit.Rather, for-profit companies have a bigger goal in life, and to this end, attention to the horizon of business, which drives every decision they make. revenue generation for a means to an end for real visionary company for profit, not an end in itself.

The Breckenridge Institute ® has two types of non-profit organizations to make powerful and defining the culture of an organization as they generate most of their revenue identified. Thisincludes:

Type-1 Non-profit
Type 2 non-profit organizations.

While such a non-profit foundations can generate some of their financial resources, fundraising, membership fees and donations from donors whose revenue comes mostly from the supply of products and services to customers and organizations Fellow has worked for the authority regulation, and how to apply the results of clinical trials, R & D, basic research or development of new technologies. Operationally, workjust like their counterparts at for-profit - are standard business processes and business functions, proposal writing, marketing and sales goals, suppliers, inventory, customer or client satisfaction, and competitors in both the nonprofit and for -profit arenas. Examples of such a non-profit organizations include: hospitals, clinics, care facilities, rehabilitation, agricultural organizations, retail (Good Will has more than 1,900 outlets), contract research organizations, researchThe institutions that make the R & D and education applied.

While non-profits type 2, companies can generate some of their financial resources by offering products and services to you, their income is beyond the majority of scholarships, awards, funding organizations, foundations , fundraising, membership fees and donations from donors. Operationally and culturally, these organizations are much more complex than their counterparts in for-profit and function very differently. ToInstead, for example, clients or customers in the traditional sense of the word, type 2 non-profit organizations to serve two main divisions: a) the needs of the public and society, science and promoting the arts and sciences as a legacy for generations future, and b) the requirements, donors, grantors, sponsors, partners and donors for the programmatic and fiscal responsibility. The ultimate responsibility for compliance with the requirements of federal, state and local public relations,Fundraising, and general fiscal and programmatic effectiveness and management of type 2 is for the device and / or a Board of Directors. The institution's administrative staff uses standard business processes and work to a scientific, technical and craft that are often the events in collaboration with other institutions or universities, working together, so that the people that the vital contribution of the purposes of type- two strategic objectives of the organization and can not produce must be full-timeThe employees of this institution. Examples of type 2, non-profit organizations are: a) institutions and universities, research in the physical, biological, ecological, political, social and Computing Sciences, b) organizations, medical care and food for the needy, distribute c), museums, art institutions and music schools, the creation and preservation of artistic expression and culture.

The revenue for most organizations, federal, state, county and municipalLevels comes from funds provided by the legislative bodies (such as the U.S. Congress), and this source of income appropriate forms strong and defining the culture of government organizations. Because the basis for the increase or reduction in revenues from budgetary funds is driven largely by political, not the actual performance of the State organization. One of the best ways is to characterize these differences, the most important factors driving the comparison for-profit companyin the field, with the authorities. More specifically, there are four drivers in the non-profit organizations: a) performance, b) customer satisfaction, c) the consequences for performance (good and bad) and d) adopt the necessary leadership and management, energy in the first three. Like the wind in the sails of a boat, business performance and customer satisfaction are the driving forces for the company for profit, the business environment outside the organization. Implications for thePerformance drivers are essential for managers to monitor day to day under the organization, systems, structures and culture. The consequences are the equivalent of responsibility and authority.

Our experience working with government organizations to the Secretary of State-level has shown that there is no equivalent to the real business results, customer satisfaction and the consequences for performance (good or bad) in most agencies government. L 'A notable exception is "hybrid" organizations that receive a portion of their revenue from products and services to customers. For example, in whether a company is not profitable, it should be out of business. exist in agencies, organizations and projects to continue even after the end times is questionable, often for political reasons. In industry, customer satisfaction as a bastion of business results and process improvement. If customers are not satisfied,buy elsewhere, the profits to the company, and eventually the company goes out of business. In many government agencies have managers and employees interminable debates that they themselves have different customers the ephemeral "taxpayer" or "future generations". In industry, if an employee's performance is exemplary, are rewarded, and if the power is not enough, the company can fire. There are consequences for the performance - good and bad. In most authorities,Difference between increases and the rewards are high performance and observation of low-wage jobs often cast a couple of dollars per month. An unwritten rule in many cultural administrations is that it fails to meet for operators of marginal votes for fear that even the incompetents takes revenge after filing complaints against a manager who dares to speak the truth about their level of performance . More importantly, the other industrialized driving driverand management will be compromised if top managers do not openly show that the performance impact because the system which are not incorporated in their responsibilities and authority.

Assessors should note that in the absence of sources of income, which is connected to the actual performance of an organization, the currency, the "business" in the bodies of state power-through-visibility. In other words, if a government agency or a managerinvolved with an "initiative" or "program" that is received by agency leaders, the media or the public, which creates a positive view of the coin. If the organization or the operator of actions and interactions that are frowned upon by the leaders of the agencies, the media or is assigned to the public, which creates a negative view of the coin. In general, all sectors of the government under increasing pressure, the applicability and value-added results show theirand services to meet the needs of the public of this control produces positive or negative currency effects in sight. But if an organizational unit within a state responsibility for the active control laws and regulations, the purpose, strategic goals, objectives and day to day interaction with the public often under close scrutiny by the public and Media with questions associated with the power of view are more intense, because these districtsFunction more like real customers. Government agencies are also under constant pressure to demonstrate that their operations are efficient and that the use of public funds generated responsibly, despite the absence of the four factors that determine the importance of creating the currency Increased positive visibility. The implicit, unexamined taken for granted in the currency of power-through-visibility is one of the most powerful forces in the world of public authority, andimportant to recognize this reality and actively manage through performance indicators.

The bottom line when you try to create an intentional ™ culture in a non-profit, and / or government organizations, focusing on revenue structures and governance. Gain a clear understanding of: a) the vitality of nature and sustainability of a company's revenue and funding streams, b) the expectations and pressures that are exerted on the customer organization,Competitors, suppliers, governments, taxpayers and other forces in the external environment, and c) the nature of the governance structure of the main factors for the creation of culture ™ intentional.

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