- 10 Marks
Question
Emani World is a not-for-profit and non-partisan organization established in Ghana to offer various services, including corruption prevention campaigns, social justice, election observation, and environmental protection. Like any other not-for-profit organization, Emani World is confronted with numerous challenges in its operations as a not-for-profit organization.
Required:
Explain FIVE (5) challenges that come with operating as a not-for-profit organization.
Answer
i) Funding: The issue of obtaining money to facilitate the operations of a not-for-profit organization is a crucial challenge. This is because such organizations do not offer services that are sold to the public. They obtain funding from donors, which may not be received on a regular basis.
ii) Attraction of Expertise: Not-for-profit organizations such as Emani World are confronted with the challenge of attracting highly qualified personnel. This is because people with the needed expertise might perceive that they would not be adequately remunerated if they work in such organizations.
iii) Political Tagging: Not-for-profit organizations (such as Emani World) are confronted with the challenge of being affiliated with one political party or another. This is manifested in how political leaders attack such organizations, especially when they release reports that do not favor certain political parties.
iv) Public Perception: Most not-for-profit organizations are often perceived as being elements of certain political parties, which may lead the public to dismiss their reports and opinions, even if they are credible.
v) Operational Challenges: Most not-for-profit organizations have difficulties streamlining the directions of their operations due to inadequate financial and non-financial resources.
vi) Unpredictable Environments: Not-for-profit organizations operate in highly uncertain environments in terms of political interference and economic decline, which negatively impact the sustainability of these organizations.
- Tags: Expertise Attraction, Funding, Not-for-profit, Political Tagging, Public Perception
- Level: Level 1
- Topic: The Business Organisation and its Stakeholders
- Series: MAY 2021
- Uploader: Theophilus