Diversification of Revenue Strategies in Non-profit Organizations. Evolving Resource Dependence

Essay from the year 2017 in the subject Business economics - Business Management, Corporate Governance, grade: 29/30, , language: English, abstract: This paper deals with the management of non-profit organizations. What task should an NPO undertake to sustain its longevity and stability? Is stability possible and what leads to attaining it? Before coming to detailed analysis of different revenue sources of non-profit organizations and its diversification it is of vital importance to mention the base theory mentioned my wide array of scholars who take into consideration the topic of revenue acquiring which is "Resource Dependence Theory".

The "Resource Dependence Theory" states, that the key to organizational survival is the ability to acquire and maintain resources. At the same time, it is crucially important to notice that this task is quite problematic because of the conditions of our environment. This means scarcity and uncertainty. Existing resources are by no means adequate, assured or stable. That is why the resource imperative implies the adaptation of organizations to all the requirements of the important providers of resources.

Currently, International Non-Profit Organizations are more and more often in a spotlight. People want to give money to Charities, but at the same time they want to know where their revenue is spent. In general revenue on NPOs quite a widely discussed topic. How do Organizations get their Profit? What are the sources of their income?