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Topic: Student Questions

Do Non-profit Organizations Have Competitiors?

Posted by Anonymous on 7/13/2004 at 3:30 PM ET 250 Points
Do non-profit organizations have competitiors? If not how do they differentiates themselves?
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  • Posted by Peter (henna gaijin) on 7/13/2004 at 4:16 PM Member
    Yes, they do have competitors. The primary marketing that non-profits do is for funds, and they are competing with other non-profits for funding (and also competing with people deciding not to donate money).

    The primary differentiation is in the service they provide with the funds. This lets people decide if they want to donate to the non-profit that is trying to save the endangered hairy snail of Portugal or the non-profit that is trying to save the endangered hairy snail of Brazil.

    In the States, I have heard of some differentiating through the way they collect funds. One method often used here is to allow people to donate cars, which the non-profit will then sell and keep the funds of (the donator gets the benefit of reduced income taxes, as they can write off the care's value). Some non-profits have now started advertising that they will give the donator a percentage of the value of the car in cash, differentiating themselves from other non-profits. This improves the result for the person making the donation, and gets more cars for the non-profit.
  • Posted by Deremiah *CPE on 7/13/2004 at 8:08 PM Accepted
    agrotzky,

    I mentor boys at Glenwood School and there use to be another non-profit residential program that was primarily federally funded. They were one of Glenwoods primary competitors when it came down to non-profit organizations that offered educational and residential facilities on the same campus. Before they closed down the primary customer (which was single family mothers) always had this other organization to go to if they were looking for an alternative program that was slightly different than ours. Well once they closed down what Glenwood found out was this: Not only do non-profit organizations have outside competitors but Glenwood also found out that they have inner organizational competition because they have two campuses a single family mother can take their son to. One is a south campus and the other is a west campus 35 - 40 miles away from one another.

    Some parents choose one campus over the other primarily because of location. However there are times when a parent might choose the one that's further away because they liked the chemistry or even the appearance of the campus. You see one campus is less than 10 years old while the other has been in it's community for well over 60 years (and of course the architecture is different). One defining decision may have to do with a parent choosing the more nostalgic campus over the contemporary recently built campus. But yes their is competition in the non-profit market. I hope I have helped you to also see how differentiation comes into play. Is there anything else I can do for you?

    Your Servant, Deremiah, *CPE
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