Apparently not-for-profit organizations are popping up all over the place - so many, in fact, that philanthropists are having a hard time keeping up. So these non-profits are starting to seek out ways to be sustainable, like merging with other non-profits, and sometimes even merging with for-profit organizations.

I'm a bit suspicious of non-profit to for-profit merger to begin with. I mean, what if the shareholders suddenly decide that the non-profit has to help the people the shareholders tell them to. They could, especially when the for-profit is providing the large majority of their operating capital.

I'm sure the smart non-profits have systems in place to ensure that kind of thing doesn't happen. For one, the non-profit actually has most of the power in that relationship. Most have worldwide brand recognition, and most importantly, the people's trust. You have seen me give more credibility to non-profits than for-profits just because of that one simple fact.

However, I recently ran across an article in Policy Innovations that sent alarm bells running through my head.

One step would be shifting the focus of the organization from the recipients of the service to the donors who fund the service. It's a radical concept, but think what could happen if NGOs viewed their donors as their customers and the recipients of their services as secondary. - source: article at Policy Innovations

I beg to differ. Business-ifying non-profits could mean disaster for the industry! If non-profits become more interested in funding themselves than helping those in need, all those safeguards that make sure the non-profit is in charge of the driving decisions could melt away.

Why should non-profits make the same mistake every other social sector business has made?! This just doesn't make any sense to me.