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As such, we know that in order to be successful, businesses need to figure out how to best structure “manufacturing” to produce the exact results their “clientele” is willing to support. What if we focus on the other beneficial components of a business framework? Is it possible that perhaps a revitalization of the nonprofit rationale will begin to surface, and we can reaffirm the importance of an entity undistracted by the burdens of profit? As an example of a business framework without a focus on profit, we need to look at some of the structural differences between NFPs and businesses. However, for this business framework, forget about the “for-profit” or even “revenue-generation” side for a moment, as there was a reason the sector was called “nonprofit” in the first place, and there is more to a business approach than just profit. This approach is different from creating a business in conjunction with a NFP’s activities (e.g., social enterprise), as the NFP activities themselves are being framed and delivered in a more business-like fashion. One option to accomplish this would be to adopt a business framework while still fostering environments of passion, dedication and volunteerism, which originally differentiated NFPs from traditional businesses anyways. By concentrating on the delivery of their vision, mission and goals in new and creative ways, NFPs can reimagine their roles and redefine their relationships within society. This will allow the leaders in the sector to surface, providing funders the opportunity to distinguish true NFP mandates from others merely seeking to justify their ongoing existence. NFPs need to stop creating “businesses” and start performing better as NFPs in order to maintain their differentiating focus on efficacy over profit. I believe if this is not amended, the result will likely lead to a watered-down sector with nothing more than superficial tax incentives and a bad case of nostalgia. However, this evolution is being triggered by fear, rather than innovation. NFPs are being forced to defend their purpose and evolve to meet the rising expectations of society. Many NFPs are willing to attempt any prospective financial-alternative that presents itself right now, just in an effort to survive. So why are so many NFPs starting up social enterprises? It is because they are afraid. This is because most NFPs are ill equipped to address the challenges of starting up a new business, which is effectively what a social enterprise is to a NFP. Though this may have produced returns for some NFPs, I would argue that the majority probably end up spending more money than they make. The primary response of the NFP sector to this pressure has been to create arms-length social enterprises to subsidize the associated costs of their NFP activities (rather than adjusting the more internal structures of the organization). It is also rather fitting that Martin compared the NFP sector to the retail, mining, oil and gas industries, as these are for-profit businesses, which NFPs have recently been under pressure to act more like. Now, when a sector employs millions of people, spends billions a year, and is responsible for a sizeable portion of a nation’s GDP, perhaps it is a secret worth talking about. The Right Honourable Paul Martin even referred to the NFP sector as “Canada’s secret, hidden truth,” contributing “more than the retail industry,” and “more than mining, oil and gas together.” By 2007, the gross domestic product (GDP) of the NFP sector amounted to $35.6 billion, accounting for 2.5% of the total Canadian economy. For example, in 2003, the two million people employed by Canada’s 161,000 NFPs spent over $112 billion. However, this research can still serve as a cornerstone to the often baffling numbers associated with the sector. The data available for the Not-For-Profit (NFP) sector in Canada is somewhat antiquated, as little comprehensive research has been completed since the National Survey of Nonprofit and Voluntary Organizations in 2003.
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