Question

What are the objectives of not-for-profit firms?

Answer 1

Answer: The following are the objectives of not for profit / non profit organisations:

1) Strategic Objectives: A non profit organisation's strategic objectives focus on services provided. It includes identifying the needs of relevant market and geared the projects or programmes to fulfilling those needs.

2) Financial Objectives: Non profit firms do not need to show surplus or profit but they need to maintain the retained earnings to fulfill strategic plan and to cover fixed expense such as rental of premises, utility bills. The primary objective is to break even and maximize cash flow, while avoiding excessive financial risk.

3) Operational Objectives: Operational objectives of non profit firms relates to the management of funds and resources to achieve the specific task. It includes quantitative measurement of performance such as type and frequency of activities and number of people served.

4) Governance Objectives: Governance Objectives include establishment of sound policies for issues such as purchases , procurement, human resource mabagement , funds management and risk management. Non profit organisations need to follow stringent policies as they are accountable to donor or funds granter as well as to public as their taxes go towards funds granting.

5) Partnership Objectives : Partnership Objectives identify external parties with which non profit organisations could be partner and would be beneficial for both and also ensure that potential partner's philosophy and principles are in accordance with the organisation's work.