| Summary: | Non-profit organisations are a niche sector of the service industry, which is increasing worldwide. This entails more competition for funding and a need for such organisations to adopt a management approach that is more akin to business, in order that the organisation will operate as effectively and efficiently as possible. Unlike business whose goal is to be profitable, the aim of non-profit organisations is to render a service to the community. Therefore, incorporating business principles into the management of the organisation is often in conflict with its aims. Furthermore, while the organisation’s donors want sound management, they want funding to be used for the recipients of the service and not for administration and salaries that help to ensure good governance. This study involved one such non-profit organisation that has been compelled to conform to management criteria as prescribed by the South African, Department of Social Development, in order to continue receiving the annual subsidies for salaries and running costs. This has meant various adjustments to the organisation’s operations including increased administration, the completion of an annual business plan and a change in emphasis to the service delivery. Through increased communication, the interviewees achieved greater consensus as to what business features were important for the effective management of the organisation. In addition, the development of a business model for a non-profit organisation was viewed as relevant, as it could assist in showing the stakeholders how the organisation operates. This would be particularly appropriate to its donors from business, who themselves use and understand such models and would see this development as a further move towards managing the organisation according to business principles.
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