When profits do not count Very hot summers in Pakistan have become even harsher due to budget shocks and aftershocks. The ever rising inflation rate and lurking fears of ever increasing taxes have muffled all citizens alike. In such a stressful and unpredictable environment, it becomes more challenging for nonprofit organizations to continue their services at the same pace because they rely mainly on donations and charity for their functioning.
When the financial situation is unstable, it negatively impacts the donation inflow, making things difficult for nonprofits. This is why in recent times, measuring and reporting success of an NGO to stakeholders and donors becomes all the more crucial. Before we discuss the success parameters for an NGO, it is important to understand that management and functioning of nonprofits is significantly different from for profit organizations.
Corporate entities are basically concerned with manufacturing products, making consumers satisfied and generating profits. On the contrary NGOs are concerned with extending services, addressing social issues and advocating for the unrepresented. Their goal is to achieve the highest level of services to the disadvantaged population in the most efficient and transparent way.
In corporate entities the efficiency of executives is measured in terms of sales and profits. Usually, they also have a share in the profit in the form of bonuses or incentives, therefore they put in their best efforts to increase the .
