Hybrid nfp organisations

Should not for profit organisations seek to implement a hybrid model? On the surface this question would be answered with an emphatic yes; the hybrid model where a not for profit seeks to generate a surplus through commercial activities makes economic sense. Under the surface is another matter. NFP's operate on a set of values. These values underpin the ethos and operations of the organisation. They do not operate on a commercial basis where making money for the sake of doing so is considered normal behavior. NFP's have a focus upon service delivery, often to a captive audience. Not only does this philosophy shape their operational structure it also shapes their strategic thinking process. Making money requires a different mindset to one where the focus is entirely upon service delivery. Many governance teams struggle with the concept of making a profit from commercial operations, especially those that have been weaned on Government funding.

The obvious benefit of the hybrid model is the ability to generate funds that in turn can fund programs which would not otherwise be funded by mainstream funding. A greater percentage of self-generated income reduces reliance upon Government funding and can enable the organisation to operate independently and without fear of upsetting funding bodies.

Despite these advantages, overcoming the in-built and traditional fears of committee members, employees, volunteers and clients can prove to be challenge that is to great for even the most imaginative executive officer. The process of changing cultures on such a scale, even for a modest sized organisation is long, convoluted, time consuming and fraught with personal risk.