KIMEP University, Spring 2015
Background and Overview
Nowadays government and businesses have critical impact on public and society itself.
Moreover, there are nonprofit organizations that create and contribute public value as a vital
force of civil society. This type of entities is mostly voluntary and self-governing, may not
distribute profits, and serve public purposes as well as the common goals of their members.
As United Nations gives definition, which defines nonprofit entities as “organization that do
not exist primarily to generate profits, either directly or indirectly, and that are not primarily
guided by commercial goals and considerations. They may accumulate surplus in a given year,
but any such surplus must be plowed back into the basic mission of the agency and not
distributed to the organization’s owners, member, founders or governing board (2003).”
Nonprofits play prominent social, economic, and political roles in society as service
providers, but they are also employers and advocates. Nonprofit sector includes religious
congregations, universities, hospitals, environmental groups, art museums, youth recreation
associations, labor unions, political parties, social clubs and many more, which have significant
contributions on economics, politics and society. They also foster community engagement and
civic participation, and promote and preserve civic, cultural and religious values.
The term “sustainability” encompasses both: financial sustainability – the ability to generate
resources to meet the needs of the present without compromising the future, and programmatic
sustainability – the ability to develop, mature, and cycle out programs to be responsive to
constituencies over time.
Problem Definition
Nonprofit entities do not distribute gain within its founders; however their day–to-day
activities affect social issues and national lifestyles. Success of nonprofit organizations is mostly
identified by their financial and programmatic sustainability, influencing economic, political and
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