This chapter defines the concept of social marketing and provides some of the common areas for the use of social marketing by nonprofit organizations. The term “social marketing” has been used for several decades to refer to a systematic process of using marketing strategy to influence current behaviors of a target population into a desired behavior in order to positively change a social or community issue. The chapter describes the contents of a social marketing plan. A social marketing plan is a document that justifies the needs for a social marketing campaign, as well as the process of implementation by outlining a SWOT (strength, weakness, opportunity, threat) analysis, a description of the target population, the goals and objectives, an impact statement, the marketing mix strategies, an implementation plan, an evaluation plan, and a budget. The chapter establishes the relationship between social marketing and financial sustainability.
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This chapter defines the term “budget” and explains the importance of the budget for a nonprofit organization. It describes the different types of budgets and provides the most common budget approaches. The most common types of budgets are an operating budget, a cash budget, and a capital budget. The chapter also describes the process of developing a budget in a nonprofit organization and presents the relationship between the budget and financial sustainability in nonprofit organizations. Budget techniques are central to the successful operation of all organizations. A budget enables organizations to allocate scarce resources, control operations, and manage performance. A budget is the translation of an organization’s plans and priorities. The chapter helps the readers to learn the basic concepts and practices of budgeting in nonprofit organizations. It also explains the essential role played by budget approaches and techniques in the successful and sustainable operations of a nonprofit organization.
This chapter describes a financial sustainability plan and explains the importance of a financial sustainability plan for nonprofit organizations. It discusses the elements of a financial sustainability plan. A financial sustainability plan should include an executive summary, financial sustainability analysis, financial ratios analysis, strategic goals and objectives, action plan, benchmark and outcomes, continuing quality improvement strategies, and budget. Many nonprofit organizations are faced with a constant challenge to match financial sustainability with their vision and mission statements. Some of the challenge may have to do with how much money they can successfully raise. This aspect can be manipulated by greater fund-raising efficiency and effectiveness. The chapter suggests approaches and best practices in developing a financial sustainability plan for a nonprofit organization. It includes a step-by-step process to use to develop a financial sustainability plan.
This chapter explains the concept of needs assessment and the relationship between the individual and the community. It identifies the different steps involved in conducting a needs assessment and shows how needs assessment can contribute to the financial sustainability of a nonprofit organization. The chapter emphasizes how financial sustainability is rooted in the investigation and analysis of the needs of a target community. It discusses the theories about the needs-assessment process, as well as action steps toward the development of a community needs-assessment report. The chapter explores facets of financial needs-assessment of a nonprofit that can help chart a course to further the vision and mission statements. It helps the readers to learn how to use primary and secondary data to conduct a targeted needs assessment that is linked to the financial sustainability of a nonprofit organization.
This book provides leaders and managers of nonprofit organizations with theoretical and conceptual frameworks, approaches, and strategies that will enable them to manage organizations that are financially sustainable. The book aims to equip students and nonprofit leaders with the information and conceptual frameworks needed to do financial analyses, manage budgets, and conduct various operations for organizational and financial sustainability. People have a tendency to think of financial sustainability almost exclusively in financial terms. The book argues that financial sustainability involves both financial and nonfinancial facets. To that end it provides a systemic conceptual framework. The chapters are articulated around four sections. The first part introduces the concepts of nonprofit organizations and financial sustainability. The second part is about key aspects of organization and planning for sustainability in a nonprofit organization. The third part discusses issues that are vital to the financial sustainability of a nonprofit organization. The last part emphasizes the contributions of management and leadership practices to the financial sustainability of nonprofit organizations. The book may serve as an introductory textbook for future leaders of nonprofit organizations, as well as students in schools or programs of nonprofit leadership, human service leadership, social work, public and community health, organization management, public administration, education, and other similar fields.
This chapter defines the concept of program evaluation and also defines the term ‘logic model’. A program evaluation design is a document outlining principles and procedures to assess the achievement of a program’s goals. The logic model is one of the most common program design frameworks used in program evaluation. Program evaluation can be a needs assessment, a formative or process evaluation, a summative or outcomes evaluation, or an impact evaluation. The chapter identifies the items in a logic model and explains the benefits of a logic model for a nonprofit organization. It describes the process used to conduct a program evaluation and also explains the term ‘performance measurement in a nonprofit organization’. Program evaluation includes performance measurement to assess overall organizational effectiveness. The chapter examines the relationship between program evaluation and financial sustainability.