I have often heard business executives, after volunteer stints with charities, lament that it is more difficult to run a non-profit than a for-profit company. The most commonly cited reason is that objectives are not as obvious as they are with businesses, where profit and shareholder value are always the goal. In addition, it is often difficult for nonprofits to market their uniqueness or effectiveness, because their “product” is intangible, incremental, and personal. Finally, charity employees can be harder to motivate, because they expect more personal needs to be met by their jobs. Nonprofit employees usually seek fulfillment, service, and fellowship…and are willing to sacrifice money and prestige as tradeoffs.
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