Romney Institute Of Public Management

Certainly, these are uncertain times for many nonprofit organizations. It didn’t take long for the weak economy to trickle down and impact (in many cases devastate) the one sector almost entirely dependent on the generosity of others for success (whether that means through donations, grants, volunteers or corporate sponsorship). Scarcity replaced abundance as the guiding principle among the giving sector and many charitable organizations were left scrambling for survival.

Although the concept of social entrepreneurship is gaining momentum (using traditional free-market ideals and strategies in order to fund humanitarian or other philanthropic ventures), for the most part, a majority of charitable endeavors rely on the traditional nonprofit model and may find it to be an outdated paradigm in the (soon-to-be) post-recession landscape.

The traditional nonprofit model looks something like this: a need in a community exists whose solution falls outside the scope of the free-market, supply and demand, revenue-generating formula; a charitable organization is consequently devised; its leadership does its best to convince others to support it.

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