Both business and not-for-profit organizations should be run effectively and efficiently.
Both have goals or objectives; both wish to be productive in the sense of achieving these
goals with a minimum of input. The measurement issue involved is a relatively easy one
for business organizations - net income is the success indicator. Measuring the success
of not-for-profit organizations has varying degrees of difficulty depending on the nature
of the organization. Fee-for-service organizations are very similar to business
organizations. Service organizations which depend almost exclusively on grants and
donations are on the opposite end of the continuum.
Both have goals or objectives; both wish to be productive in the sense of achieving these
goals with a minimum of input. The measurement issue involved is a relatively easy one
for business organizations - net income is the success indicator. Measuring the success
of not-for-profit organizations has varying degrees of difficulty depending on the nature
of the organization. Fee-for-service organizations are very similar to business
organizations. Service organizations which depend almost exclusively on grants and
donations are on the opposite end of the continuum.