Lesson 2: Shaping the Sector

When I read the article about Oprah’s school, I initially thought if I had the money to support a school like this, would I want someone to question my motives or provide input on what they thought was better? I should be able to spend my money the way I see fit and I am accountable for the outcome. But I am not the only person impacted by my actions. In fact there are many forces that shape a nonprofit.

As non-profits are generally reliant on individual donors and government grants, these stakeholders appear to have the greatest ability to exert influence. Their monetary donation alone enables the non-profit to operate and carry out their mission. Influential donors like celebrities and politicians often help to bring awareness to their cause and the positive activities that they plan. But in addition to their investment, a donor may expect to gain control within the organization, modifying its mission to suit their own goals. This can be both positive and negative. Stakeholders may hope to leverage their influence for political or economic gains, while others may use that influence to guide the non-profit in a direction that may be more suitable for assisting the community.

Less obvious, but equally as influential are horizontal lines of influence, non-management staff, volunteers, constituents and the community. These are stakeholders who are involved in the day to day operations and those who benefit from them. Gathering feedback from this group will influence a non-profits’ activities, giving insight into what a social group needs, molding activities to better suit the cause.

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