Quantitative methods for nonprofits management
The substantial increase in the scope of activities of nonprofit organizations is very challenging to their staff and management. Scarce resources and the increasing demand for accountability put pressure on nonprofit organizations to become more professional and more efficient. Nonprofit organizations are expected to adopt modern management tools that are common in the business sector. A recent study found out that 40% of the average donation in the US is determined by factors that are not related to the organization's mission. These factors are: efficiency, financial stability and the scope and quality of reports to donors. On the other hand, nonprofit organizations have several unique characteristics that sometimes preclude a simple adoption of business models. Moreover, in many cases the nonprofit activity, which by its nature is multidimensional and strives to achieve several goals at the same time, is more complex than the business activity which focuses only on the maximization of profit. Thus, there is a need to develop and implement quantitative methods for planning, budgeting and control that are adapted to the unique needs of nonprofit organizations.