Non-profit organizations are quite widespread in the present world. Multiple social, political, educational, and other entities are considered not-for-profit businesses because if they generate any revenue, it is not taken by private parties but used for the organization’s purposes. That is why management theory draws much attention to this phenomenon, and executives of such institutions should implement specific management practices and approaches to ensure that all operations are adequately performed. In particular, non-profit organizations should develop their strategic planning relying on ethical issues, and collaboration with a local government agency does not seem an appropriate approach.
Strategic Planning and Ethical Issues
Strategic planning is an essential element for every business, and non-profit organizations are no exception. According to Worth (2018), “strategic planning begins with where the organization is, defines some new place where it wants to be, and develops a plan to get there” (p. 367). This information reveals that the phenomenon under analysis is of significance because it demonstrates how an organization should perform and what goals should be achieved. That is why a strategy can result in the necessity to close a particular program that is helpful for some individuals. If such a scenario occurs, a non-profit organization should draw attention to its mission and values to decide on what to do with the given program.
The information above demonstrates that an ethical decision regarding the program can be made if potential outcomes are compared to the strategic planning elements. On the one hand, it is possible to expect that the program should be closed because the organization requires additional resources to launch a new initiative. If this initiative fits the business’s mission and values and aims to serve larger populations, it can be considered ethical and humane to phase out the program under consideration. On the other hand, the organization’s mission statement and values may highlight the needs of the people who rely on the given initiative. In this case, closing the program would be a mistake. Another possible option is to modify a strategic plan to remove the necessity to phase out the initiative if it is vital for individuals. In any case, it is necessary to understand that a single non-profit organization cannot offer assistance to all people in need. That is why it often needs to make choices that can be significant for other people. A suitable approach is to help as many people as possible.
Collaborating with a Local Government Agency?
It is a typical case that non-profit organizations sometimes have to decide whether to collaborate with other businesses to achieve specific goals and meet particular needs. If I were an executive officer of a not-for-profit entity, I would not collaborate with a local government agency because this approach results in many disadvantages. Firstly, such a collaboration almost always results in decreased autonomy (Worth, 2018). In this case, the not-for-profit business and I, as its CEO, could have difficulties implementing specific actions that I would consider reasonable. Secondly, such collaboration can lead to the fact that the organization cannot meet its mission (Worth, 2018). Consequently, I am against this cooperation because it can make the organization rewrite its mission. Finally, such collaboration can imply reputational damage because some donors and funders can be disappointed by this partnership (Worth, 2018). These examples demonstrate what adverse consequences can arise from the given decision.
Nevertheless, it is necessary to admit that collaborating with governmental agencies does not always result in negative outcomes, meaning that advantages are also possible. For example, governments are considered the primary source of revenue for non-profit organizations (Chen & Yang, 2019). Since fundraising is a significant challenge for many entities, it would be unwise to reject the idea of obtaining the funds through a local government agency. In addition to that, the selected strategy can result in an improved capacity and enhanced resources (Worth, 2018). This information demonstrates that collaborating with a governmental agency leads to a better supply of materials, but numerous adverse outcomes are also possible. That is why I would not collaborate with a local governmental agency if I were a non-profit organization’s CEO.
In conclusion, the paper has overviewed a few aspects that govern the performance of non-profit organizations. On the one hand, it has been stated that strategic planning can result in some moral and humane issues for a business. In this case, an ethical decision can be to evaluate potential consequences and choose a scenario where as many people as possible receive assistance. On the other hand, the essay has indicated that not-for-profit entities should be cautious while deciding whether to collaborate with local government agencies. The rationale behind this statement is that such cooperation can imply both advantages and disadvantages, but the negative aspects seem to outweigh the positive ones. For example, government agencies can provide non-profit organizations with increased funds and resources, but reputational and operational issues are more significant. That is why I would not collaborate with a local government entity if I were a chief executive of a not-for-profit business.
Cheng, Y., & Yang, L. (2019). Providing public services without relying heavily on government funding: How do nonprofits respond to government budget cuts? The American Review of Public Administration, 49(6), 675-688.
Worth, M. J. (2018). Nonprofit management: principles and practice (5th ed.). CQ Press.