With the passing of the Australian Charities and Not-for-profits Commission Act 2012 and with greater community expectation on Not-for-profit organisations and government funding expectations, the Not-for-profit sector is increasingly being called upon to assess how it may meet its objectives.
This has led to the formation of partnerships and alliances between and among NFP’s and businesses.
Matters that may influence the formation of a partnership and/or alliance include:-
- Enhanced service delivery
- Security of funding
- Sharing of resources
- Sharing overheads
- Sharing management capability and expertise
- Leveraging of membership; and
- Adoption of best practices.
The nature and form of partnerships and/or alliances is varied just as it is with main stream business and a one size fits all approach is contra indicated.
It is foreseeable that NFP’s as part of their good governance will determine if their current business model is best suited to achieving the organisation’s objectives or whether a different business model involving other parties may deliver better results.