The convergence of not-for-profit services and the social enterprise

Abstract

Not-for-profit services are facing challenges in the form of decreased governmental funding, declining donor and volunteer retention, and difficulty in effectively implementing technological changes and social media. In response, many are turning to the strategies and operations of for-profit companies to remain competitive in an increasingly complex marketplace. This chapter outlines the history of not-for-profit services in the U.S. to demonstrate the development of not-for-profit organizations in tandem with the increasing ethical and charitable pressures placed on for-profit companies, highlighting the use of cause-related marketing to bring consumer transactions into the not-for-profit sector. This overview culminates in a discussion of the social enterprise, which is a hybrid organization that combines not-for-profit values with for-profit strategies. The chapter concludes with a discussion of five trends occurring in not-for-profit services based on this development: digital fundraising, redefining donors into consumers, operating like a for-profit business, fostering sustainability, and investing in strategic and innovative partnerships.

Department(s)

Marketing

Document Type

Article

DOI

10.4324/9781351245234-23

Publication Date

1-1-2020

Journal Title

Routledge Handbook of Service Research Insights and Ideas

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