Non-profits, sometimes referred to as “the third sector,” share some similarities with both the public and private sectors, as listed below (because of the diversity of non-profits in terms of size and mission, some generalities will have to be made):
similar to public sector	
•	they are not as motivated by profits but strive more to achieve important non-financial goals (social justice, environmental benefits, human services)
•	they are sometimes the only provider of a given service in a given geographic location
•	they often fulfill tasks that are highly subject to rules and regulations (social services)
	
similar to private sector
•	they can come into existence and go out of business more easily than government agencies, as they share a similar risk/reward response to innovation as businesses
•	they can more nimbly develop specialized competencies and attract skilled workers, like for-profit businesses
•	they can compete for and fulfill contracts like the private sector
Certainly, non-profits have an important role to play in our economy and society.  But should governments pattern themselves after the non-profit sector?  Of course, the answer to that question is “it depends,” as there are a number of benefits and limitations to government agencies operating like non-profits:
benefits	
•	a more mission-driven approach would have benefits in agency effectiveness, staff recruitment, and public relations
•	many non-profits are exemplary in their innovativeness and commitment when it comes to serving their customer
•	non-profits tend to engage their communities and constituencies in their actions, creating collaborative partners rather than dependent clients
	
limitations
•	there are good reasons why governments tend to be rule-oriented rather than mission-oriented, including considerations of safety, equity, and stability
•	too much risk-taking can threaten a government’s ability to offer services that are too acute and vital to lapse
•	governments cannot mimic non-profits’ flexibility in terms of geographic focus and overall mission, for they exist to serve certain places and perform certain functions
click here to go back to my home page
="/pictures/icons/lines/wave_thin_gray_1.gif">
MY CONTACT INFORMATION
215 895-4014 (work)
lh@theenterprisecenter.com (email) 
theenterprisecenter.com (work URL) 
leehuang.cjb.net (personal URL) 
� 2002-2003lh@theenterprisecenter.com