The size of different non-profit organizations has a significant effect on access of finances from the distinct donors. The larger organizations tend to have more advantage over the small organizations because their size allots them greater resources and positive characteristics which improves their performance and strength. But are the larger non-profit organizations more effective in meeting their objectives, goals and purpose than the Smaller non-profit organizations?
The Lady CPA Network is a non-profit organization looking for grants and sponsorship's to facilitate our goals and mission. However, we are up against some large competitive organizations. To address organizational size vulnerabilities, it is important to look at the relationship between an organization`s size and its innovation. The innovation should be looked from administrative and technological perspective. These innovations are vital in determining the effectiveness of non-profit organizations because they are related to different systems of organization.
Recent studies show that larger organizations have greater control over the environment, growth and promotion which makes them less vulnerable to outside donor variables. Moreover, they have more resources and are therefore able to manage losses due to unsuccessful changes or programs. They not only have a financial advantage but also human capital advantage since they have diverse staff who possess the required skills set for creation and adoption of innovations. From these advantages, it is a fact that size can facilitate innovation adoption.
However, that is not mean that smaller non-profit organizations are not innovative. The same research study also showed that small organizations can also be administratively and technologically innovative. First, they have more flexibility and ability to improve and accept implement change more easily. This is the value of supporting The Lady CPA Network. The one on one attention we are able to provide through mentorship and education assistance is what sets up apart. Further still, smaller non-profit organization also have great potential technological innovations because they are more nimble and have greater flexibility to respond to changed circumstances. Nonetheless, the point is not whether size has any impact on an organization innovation performance. Rather, the larger non-profit organizations have been shown to have greater advantages leading them to be stronger organizations (Jaskyte, “Does Size Really Matter?” 232.)
Non-profit organizations` size also brings about market competition. Oftentimes, most non-profit organizations take charity and politics to be mutually exclusive. This notion is founded by “the optimism of the proponents of NGOs; derived from a general sense of NGO`s as doing good without political interference or the greed of the market. This presents one of the key vulnerabilities of non-profit organization. Most often than not, there are many non-profit organizations fulfilling similar social services creating high competition amongst the organizations. The donors on the other side have low competition making them to be in a good controlling position as the NGOs are fighting for a selected group of donor funds, giving them no choice but to enter into the toxic supply-led contracts.
Non-profit organizations which are able to maintain their autonomy while working with the government on projects that are helping their beneficiaries in a wide range of sectors tends to be the most successful ones. Non-profit organizations are meant to work in concert with the government but not in lieu with them in order to ensure that their beneficiaries needs and right are met when possible and applicable. When the government slowly pull back funds, it creates low competition among the donors and high competition among the organizations. The mentality behind this is that the increased competition among the organizations will improve their accountability and performance. (Parks, “The rise and fall of donor funding,” 220.)
From the supply-led point of view, donor funds tends to favour larger organizations more than the small ones. They look for financial effectiveness in determining the amount funds that will be disbursed to certain organization. Financial efficiency for the non-profit organization is often measured by the extent to which the daily finances are operated. The least amount of funds should be spent raising funds, good management of administrative cost and the majority of funds be used in providing the programs and services aligned with the mission of the NGO. () However, the reality is that most of these organizations put more effort on mastering the complexities of funds management rather than focusing on delivering optimal services to their clients. More still, this argument is weakened by the fact that non-profit organizations` efficiency looks at the budget and numbers rather than larger consequences beyond spreadsheet. Some larger non-profit organizations may prove to have a profound reputation on fund management and still be very ineffective in terms of the change they are making when offering the service or programme they are meant to provide to the masses.( Khaldoun AbouAssi, “Get Money Get Involved? NGO’s Reactions to Donor Funding and Their Potential Involvement in the Public Policy Processes,” International Society for Third-Sector Research 25 (2014): 986.)
It is therefore evident that competition among no-profit organizations brings about negative effects where the organizations are forced to withdraw time and energy from their services and programs. This urge to secure funds is brought about by limited supply of donor funding availabilities and the high number of organizations in the same sector. In the accounting and finance profession for instance, there is AICPA and AFWA both competing with the Lady CPA at offering mentorship and scholarship programmes to female accountants. Apparently, the larger organizations are not bringing about change as it would be expected. The risk is that the larger organizations are put in an awkward situation where securing finances ranks higher than the needs of female accountants. More importantly, recent research shows that in certain contracting situations, competition for scarce resources may cause the non-profit organizations to align their missions with donor preferences, emulate for-profit contractor and abandon their supportive mission in pursuit of financial security. ( Smillie, “NGOs and development assistance” 573.)
Financial fragility seems to be the main issue affecting the performance of non-profit organization. Pressure from Donors seems to favour larger organization more in terms of providing scholarships and grants. However, this does not make the smaller or rather the developing non-profit organizations more or less effective. Offering sustainable services and programmes to their intended candidates is the key issue. it is therefore possible to find smaller organizations yet very effecting in bringing about the theme of change than the larger organizations that you would rather expect to be more magnanimous to their desired audience.
There are, however, proactive measures that organizations can take to reduce the vulnerabilities in their financial relationship with donors. Having a diverse base fund being on the top list of these measures. This will ensure that an organization is not completely reliant on a single international or government donor for majority of their funds. With unrestricted funding, organizations are saved the pressure burden from the donors and are free to offer programmes to their clients in the best manner they deem rational without worrying about financial consequences from the donors. That is to mean, revenue diversification entails both finding different sources for donations and the right type of funds at the expense of minimal or no restrictions.
All the factors affecting the performance of non-profit organizations boils down to organizational size, market competition and targeted finances. It would be much better when organizations are targeting towards achieving high performance and be goal oriented, then they can strengthen their reputation with their donors since they have proved to be reliable entities. It is important o note that donors do not hold the sole responsibility on the performance of any given non-profit organization. There are many non-profit organizations that are not bearing a lot of pressure from the donors yet they are not working at their maximum capacity.
When organizations take it as their responsibility to make the change they desire in the society, funding and other vulnerabilities will not be much of a problem. It is also upon the masses to join the non-profit organizations which are more determined to bring change without considering their size. We are the change we want to see in the society. Joining similar minded individuals makes you to attain nothing but the best at achieving that you desire.
The overall financial fragility is dependency on few sources. Non-profit organization may embrace different measures to avoid this predicament. However, it is a fact that both governmental and international donors look to control finances as a means of gaining greater control over the non-profit organizations; resulting to dramatic consequences such as changed mission or political manipulation. This has been the case in some larger organizations who should be on the leading front in bringing about change to the people they are empowering. Since the motive is the same for both small and larger organization, it would best if these organizations learn to stick to their mission by expounding their financial base to avoid manipulations. More importantly both small and large organizations should support each other in different aspects relating to development.
At the end of the day, we get to realise we are one as humans. Only amicable solutions from the governments, international donors, non-profit organizations and the beneficiaries of these organizations can cause a forward development shift. Each organization must be committed to its objective since the masses are not concerned about the size but rather about the benefits they will reap from being members of selected non-profit organizations. (Maintaining good relations with other agencies)