Skip to main content

What if Associations Were For-Profit?

One more Big Idea question from me - What if Associations Were For-Profit entities? What would change in your organization? Would your organization change at all?

A colleague of mine used to say, "Non-profit is a tax designation, not a business model." I have to agree. And I would be willing to bet that associations that run themselves more like a for-profit are doing better than those that don't.

Comments

David M. Patt, CAE said…
It depends how you define "like a for-profit." It was for-profit companies that made decisions based on greed and plunged the world into a depression.

The bottom line for not-for-profits is more and better service for customers, not more money for investors.

The not-for-profit business model is a good one. The managers, not the model, may be the problem.
December 17, 2009 at 4:44 PM
Peggy Hoffman said…
Bravo for posing the what if ... we've asked the question over the years many times and have seen first hard successful for-profit assn. We're not alone either as plenty of others including Bruce Butterfield of Forbes Group who has launched association incubation division to create and manage for profit associations is wondering if this makes sense. Of course its not a 1-size-fits-all or best for all, but so for some at least, taking away the tax designation will free their minds and their decision-processes ...
December 19, 2009 at 10:58 AM
Kevin H said…
Matt, I started writing a comment and it got really long, so posted to my blog at http://www.associationinc.com/656
December 20, 2009 at 9:32 AM
Joe Rominiecki said…
Hi Matt. I've never been able to make a definitive decision myself on what I think about this debate, but I do want to pass along a resource that will at least stir some thought for you and any other readers on how associations and nonprofits should be structured.

In the Sept. issue of Associations Now, Dan Pallotta wrote an article titled "Rethink Charity," and Dan also blogs for Harvard Business Review at http://blogs.hbr.org/pallotta/.

His viewpoint is very much that nonprofits are very constricted by their current structures, but he writes so eloquently and intelligently on the topic that I can't resist sharing. Definitely worth checking out.

Thanks for posing the question. As far as big ideas go, this is one of the biggest.
December 22, 2009 at 2:29 PM
Matt Baehr said…
Thanks for all the comments everyone. Kevin, great follow up post. Joe, thanks for the article.
December 22, 2009 at 2:35 PM
Liane Sebastian said…
Working equally with profits and nonprofits in the publishing arena, the biggest difference between them is best exemplified in the decision-making structure. With nonprofits, there are a lot more people involved in each strategic direction. It slows down progress. Conversely, sometimes profit organizations with amore streamlined process can make decisions too quickly! Every organization needs a check and balance system. Perhaps the two sides best learn from each other, meeting in the middle with a better system for both!
From the publishing side, I reflect on these concerns on my blog www.wisdomofwork.wordpress.com and my LinkedIn Group for Nonprofit Publishing.http://www.linkedin.com/groups?gid=1825096&trk=anetsrch_name&goback=.gdr_1235923365634_1 Thanks for the discussion! Liane
January 12, 2010 at 2:40 PM
Post a Comment

Popular posts from this blog

Apathy vs. Lack of Proper Training

I, like many, worked at a grocery store in high school. First a bagger, then a cashier, then the produce department. Each job required training on how to do it. I usually spent several shifts shadowing someone, then several on my own but with supervision. This method seemed to work just fine. I see it employed places other than the grocery store. Lately, I have been amazed at how poorly grocery bags are packed by store employees. I know that you have to adjust to the bag type, cloth or plastic these days, but I can't tell if the employees are lazy or just didn't get proper training. I even go as far as emptying my cart strategically to try to help - put all the cold stuff together, bread and eggs last so they can go on top, etc. But it doesn't seem to matter. I think there is a fine line between apathy and lack of training, at least trying to identify which situation it is. Anyone have any great ideas for identifing and then fixing either situation?
2 comments
Read more

I have a new job

I am so very excited to announce that as of Oct. 13, I will be the new Executive Director of the Arlington Soccer Association . This is the perfect opportunity for my to combine my work experience and my education (I have a Masters in Sports Administration) with one of my true passions, soccer. I played in college and still play several times a week (which may change since I will most likely be a touch busier.) I still plan on writing this blog. My guess is that you will see the topics change slightly to focus less on membership and more on overall association management areas. Thank you to all who have helped me along the way. I don't want to list names for fear of leaving anyone out, because Lord knows there are a lot. Wish me luck!
7 comments
Read more

10 Thoughts on #ASAE10

Ok, so I could have spelled out the title, but chose the hashtag - #asae10. Supposedly there were over 8,000 tweets with the hashtag, but probably countless more direct messages of messages that left out the hashtag but were conference related. Two years ago, we were using twitter as a backchannel to talk about speakers. Now, over 800 people sent conference related tweets. If you aren't on Twitter, you are already late to the party. Anyway, on with the post... In no particular order, my thoughts on this years ASAE Annual Conference: 1. LA was a good venue. Lots to do. Hotels close by. Only downside was the rooms were a bit of a hike. 2. I missed Sunday because of family obligations. That really put me behind the 8 ball. Since I led a session, that meant I only got to go to 3 true sessions. Sorry, I don't count Joy Behar and the closing session. Although Marshall Goldsmith was good, I probably wouldn't have gone to see that speech as a Learning Lab. 3. Based on #
11 comments
Read more