Social Organization Vs Profit Margins

Non-Profit Organization, formed for the bettermentof society. How much profit margins it should have and what is the measure of its  target accomplishment. Earlier, as the name says it, “Non-Profit” meant  no profit. But, in any establishment the sponsors can not be the only source for the running/ growth of the set up.

The social or health causes for example, cancer, AIDS, homeless children and so on and so forth the list continues and so does the number of socially oriented organization. The returns versus investments for generating funds , has a limitation usually based on impatience of those who expects work to result fast. But, speed is not a factor of concern if the returns surpass the contributions that maybe possible by sponsors fund .

So, let us return to main focuss. How much profit should be for the organization and where should it be used. The over head or the people who are involved with the organization must get a renumeration competitive with the normal organization pay scale, for making the work force of a high calibre.And also, they must have adequate budget for the projects undertaken.

One main aspect is accoutability. If suppose an organization onvolves rural women in engaging them for handicraft work, pays them 1% and keep 99 % for the organization development, this sharing makes the very aim for the inception of the organization a mockery. It shows that the label ” enpowerment of women” is to use for making higher profits for those  involved in the running of the project.

Social work or charity  based organization is not a penance for those minting money, but it is also not to be an organization that uses the vulnerable group and doesn’t channel the fund for the goals. Advertisement for promotion is good for more people means better support, however, signing off huge amount of money in name of promotional work doesn’t sound great.

In the end of the day, we want honesty and transparency of the social organization. A free and easy access to its accounts and see how it effects or helps the cause it was made for in the beginning.

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