This post is aimed at analyzing the advantages and disadvantages of ways of financial profit for non-profit organizations. The author rightly notes the lack of a philanthropic donation for the giver of money, due to the fact that one cannot find out exactly what needs the money is spent on. However, the arguments regarding both the positive and negative role of the state in the functioning of non-profit organizations seemed to me not convincing enough. Grant systems always work in a fairly strict regulation with reporting requirements, so it cannot be argued that the state will deliberately ignore the rules set by itself. The argument about government protection of invested money refers to the fundamental functions of the state, and not just to the charitable side of its activities. The claim that philanthropy builds emotional intelligence also requires further clarification. The moral benefits that philanthropy brings to society could be more fully expressed.
The author also quite accurately describes direct and indirect prices and their role in the life of the organization, however, without concentrating on their specifics in the non-profit sphere. I would like to note that the author’s thoughts about which ones they would like to interact with costs are not placed in the context of the activities of a non-profit organization. It should be noted that as the head of such an organization one should not underestimate the indirect costs, since they usually turn out to be associated with social programs and campaigns (Barnard, 2018). This money can only be accurately calculated after it has been put into use and distributed by the experts. In my opinion, the strategy proposed by the author is not entirely correct, since it involves spending one large amount of money received. Finances, especially in non-profit organizations, require constant turnover and contributions in order to continue to receive them in the future.
References
Barnard, C. (2018). Allocating direct and indirect costs for nonprofits. Aronson LLC. Web.