Editing Nonprofit organization (section)

== Management ==
Most nonprofits have staff that work for the company, possibly using volunteers to perform the nonprofit's services under the direction of the paid staff. Nonprofits must be careful to balance the salaries paid to staff against the money paid to provide services to the nonprofit's beneficiaries. Organizations whose salary expenses are too high relative to their program expenses may face regulatory scrutiny.<ref>Simkovich, D. (2017). How to Run a Non-Profit Organization. Retrieved from https://www.donateforcharity.com/nonprofit/a-nonprofit-you-pick-later/</ref>

A second misconception is that nonprofit organizations may not make a profit. Although the goal of nonprofits is not specifically to maximize profits, they still have to operate as a fiscally responsible business. They must manage their income (both grants and donations, and income from services) and expenses so as to remain a fiscally viable entity. Nonprofits have the responsibility of focusing on being professional and financially responsible, replacing self-interest and [[profit motive]] with mission motive.<ref>Anheier, K. H. (2005). ''Nonprofit Organizations: An Introduction'', New York, NY: Routledge.</ref>

Though nonprofits are managed differently from for-profit businesses, they have felt pressure to be more businesslike. To combat private and public business growth in the public service industry, nonprofits have modeled their business management and mission, shifting their reason of existing to establish sustainability and growth.<ref>{{Cite journal | doi=10.1177/0899764006295996| title=An Investigation of Innovation in Nonprofit Organizations: The Role of Organizational Mission| journal=Nonprofit and Voluntary Sector Quarterly| volume=36| issue=2| pages=256–281| year=2007| last1=McDonald| first1=Robert E.| s2cid=144378017}}</ref>

Setting effective missions is a key for the successful management of nonprofit organizations.<ref name=":0" /> There are three important conditions for effective mission: opportunity, competence, and commitment.<ref name=":0" />

One way of managing the sustainability of nonprofit organizations is to establish strong relations with donor groups.<ref name=":0">{{Cite book|title=Managing the Non-profit Organization: Principles and Practices|last=Drucker|first=Peter|publisher=HarperBusiness|year=2006|isbn=978-0060851149|url-access=registration|url=https://archive.org/details/managingnonprofi0000druc}}</ref> This requires a donor marketing strategy, something many nonprofits lack.<ref name=":0" /> Nonprofit organizations need to motivate staff, maintain and communicate a vision and set a strategic direction, manage change effectively, and provide a safe working environment for employees, volunteers and visitors. These issues are comparable to those affecting a commercial business but factors which place a nonprofit organization at risk have been identified such as lack of direction or clear purpose, over-centralized management and decision-making, and lack of engagement with staff.<ref>[[National Council for Voluntary Organisations]] (NCVO), [https://www.oneeastmidlands.org.uk/sites/default/files/library/ncvo-workforce-wheel.pdf Workforce Wheel: An outcomes tool to help you support and measure change in people management], first published (pilot edition) in June 2008, accessed online on 3 March 2025.</ref>