Helping others in needs is one of the greatest virtue, and it offers you such mental satisfaction that no materialist thing could buy. Some people are passionate about helping others in terms of performing various social works voluntarily. However, they develop nonprofit organizations in order to amplify the impact of their efforts. The swot analysis of nonprofit organizations would offer us a deep insight into whether Nonprofit Organization works or not.
The nonprofit organization is a legal entity developed to serve the public interests and issues. They’re such types of organizations completely separated from other types of businesses and companies. However, charities and nonprofit organizations use the earned money for the development of the organization, meeting public interests, and meeting the expenses of the organization.
Unlike private businesses and companies, owners and managers can’t keep the profit to themselves in the NPO. It could be in any form like social clubs, churches, schools, or a political party. There are some special types of tax exemptions for NPOs. They can attain tax exemptions by filing relevant departments of the government. Some nonprofit organizations pay taxes to the government.
Some NPOs are very popular among the public and they gather a lot of funding based on their reputation, and people love to join their cause. Monetary funding is the main source of their earnings for carrying out various social and public welfare works. However, some of their funding sources are government institutions, personal investments, and sponsorships.
The swot analysis of nonprofit organizations would discuss internal strengths and weaknesses, and external available opportunities and threats that the company has to face. The swot analysis of nonprofit organizations and charities is as follows;
Table of Contents
Nonprofit Organization Strengths
Long-Lasting
Nonprofit organizations could last for a very long time like the impact of the nuclear attack or even longer. If the owner or the founder of the NPO dies, then the managing authority would transfer to those people that are running the organization. If the NPO maintains its popularity and publicity well in the public, then it would keep on going. Otherwise, it would stay behind.
Open to Funding Sources
The good thing about charities and nonprofit organizations is that it’s open to various types of funding. People that share the same values and vision of the organization, and donate a certain amount based on their affordability. However, when companies and people donate their funding to the NPO, then it’s tax-deductible. It offers a very big edge to the corporation for donating to the NPOs.
Tax Exemption
The goal and objective of nonprofits and charities organizations are not to make profits, and its sole focus is on the welfare of people. That’s governments offer them tax exemption. However, it’s a huge edge for NPOs and they can save a plethora of money and use it for better purposes.
No Personal Liability
One of the main advantages of NPO is that it doesn’t levy any personal liability in case of bankruptcy, lawsuit, or crashing of the organization. If anything happens, then your personal assets would remain safe.
Volunteer Work
NPO would attract a lot of volunteer workers that believe in the cause and mission of the company. They would be willing to perform the manual work and labor for the company, and the organization won’t have to pay them anything for their services. It saves a lot of NPO’s resources.
Nonprofit Organization Weaknesses
Low Salaries
NPO relies on volunteers because their budget is very tight and limited, that’s why they hire a few people to run their organization. The employees they hire, pay them very limited salaries and they have to take extra jobs to meet their expenses. Limited employees have got a lot of work pressure on their shoulders. In short, NPO doesn’t offer a full-time suitable job to establish a career.
Difficult to Raise Funds
Just look and Google nonprofit organizations in your area, then you would a lot of them. They all are dependent on public funding and donations, and that’s why it’s very difficult for NPOs to raise funds. However, people are already making donations to established NPOs in order to support the cause that they believe in.
Volunteers
Having volunteers is a double-edged sword. They can help you a lot and save your resources, and they would quit and leave at any time if you put extra pressure on them. The volunteers don’t have the precise skillset that you’re looking for in order to address a particular issue. You can’t control them because they aren’t your employees, and it’s becoming a very complicated situation.
Expenses
Running and managing NPO may seem very simple and easy, but establishing and making it operational is very expensive. It’s a very lengthy procedure of filing and making it official by getting it approved by various government departments.
Nonprofit Organization Opportunities
Targeting Young Audience
Many established organizations rely on older people for funding. The younger generation is a new set of people and they hold a major portion of the consumer market. If the new NPO could target the younger audience for fundraising, then it holds great potential.
Using Technology
Siri and Alexa are some of the most commonly used software and applications among NPOs. Organizations should approach tech companies and request them to donate such tech software, instead of asking them for money. They can also request them to make a similar type of application compatible with their work.
Employees’ benefits
If NPOs could offer better salaries and benefits to their employees just like other profiteer organizations, then they can attract a lot of skillful talented candidates. Once qualified people join your organization, then they would improve growth and productivity.
Machine learning & data analytics
Machine learning and data analytics have become significant for every type of business and company. Charity and nonprofit organization should consider using tech methods, and they would help you to reach a much bigger audience and present a better image.
Nonprofit Organization Threats
Competitors
Choose any cause or mission that you believe in, and then you would find a lot of NPOs in that category. Every big organization is targeting a different type of cause, and they all have powerful and wealthy sponsors. They have earned a great name and reputation in the market, and they’re fighting the same battle whatever you plan to. Making a successful entry into the NPO field is very difficult.
Limited investors
Wealthy sponsors are a few, and you can count on your fingertips. They have got a limited budget allocated for donations, and they have already made an alliance with top NPOs. In such circumstances, it becomes very difficult for the new organizations to attract heavy donations, so that they could do the public work.
Lack of trust
When it comes to donating your money for the cause that you believe in, then people are highly cautious about their money. They think 10 times before making an investment. However, if your NPO is showing any irregularity and non-serious attitude of your staff would cost you lower funding. If you and your organization don’t have a proper record, then people won’t trust you with their money.
Cyberattack
As we know that charities and nonprofit organizations rely on volunteers and temporary workers. It means giving access to the people you barely know, and it puts your organization at great risk for cyber attacks. However, if hackers hack your system once, then people won’t trust you with their money and information.
