One of my favourite business gurus is Peter Drucker. He was and still remains one of the most important thinkers of business management in history. Many of the approaches that are common today where born in part due to Prof. Drucker’s early work. 

If you need to understand the basics of management, your must read “Management” by Peter F. Drucker.  

The purpose of a business

According to Drucker, the purpose of any business is simply to get and keep customers. 

The customer is the foundation of a business and keeps it in existence. He alone gives employment. To supply the wants and needs of a consumer, society entrusts wealth-producing resources to the business enterprise

Isn’t that simple. Well, it’s not. Most people believe that businesses are there to make money for the owners. But that is the outcome. The owner does not make money/profit with a customer. You can make all the widgets you can, but the bank won’t give you money for an equipment loan until you can demonstrate that you have acquired or have a high potential to acquire customers. 

The purpose of any business is to gain and retain profitable customers. 

The purpose of a not-for-profit

Now, let’s adapt that to not for profits. 

The purpose of a not-for-profit is gain and keep funders. 

I know what you are thinking… “What? The purpose of my organization is to help people, improve society, have a social impact”.  Those are great outcomes. Outcomes are what you do with the funds you receive. That is what let’s you exist and thrive. Without funders/resources, there is no social impact, no improvement of society, no helping people in your community. 

Your funders/resource providers are the foundation of your organization and keeps it in existence. They alone makes social impact. To supply the needs and wants of the less fortunate, society entrusts discretionary funds to the not-for-profit enterprise. 

Look, I know it is not that simple, not that black and white. However, consider it for a second. How does your organization change if you make acquiring funds/resources your purpose? 

In order to make a positive, long lasting impact, you need to get fundraising and resource development. Without them, your team won’t have a chance of achieving its mission. 

Make fundraising and resourcing your organization’s purpose. Then achieving your mission becomes more achievable.