If you have been thinking that a CEO of a not-for-profit organization or cahrities gets paid only minimum, or even works for free, your perception of nonprofits is a little outdated. Since 1970, more than 200,000 nonprofits have opened but only 144 of them have reached $50 million in annual revenues. For example, the CEO of Boys and Girls club receives a annual salary of more than 1 million US dollars.

Marketing has become more and more important for those organization because of increase in competition for fund and tax revenues. Those organizations that have the following characteristics must consider more and more marketing strategies for themselves:

1.         They have a need to identify their target groups and better understand their needs, wants, and desires.

2.         They are faced with a continuing increase in tough, smart competitors.

3.         They must confront diminishing markets due to changing demographics or behaviours.

4.         Their customers, constituents, or publics are becoming increasingly needy and/or demanding.

(From website http://smartamarketing.wordpress.com/2012/06/18/undertanding-not-for-profit-marketing/)

Considering its nature, we should not argue that nonprofits focus on sales because, strictly saying, their end-customers do not purchase their services or products. But nonprofits have had all they need to continue their “business” in the past and, most importantly, the need to effectively persuade the publics to use their services has not always existed, said Brian Monger in “Smart Marketing.”

Many people suggest that nonprofits should stop the old traditional lay-back style of business to start acting like real business, profit-seeking companies that feast on money and capitalism.

Marketing is the promotion of the exchange of goods or services at a mutually agreeable price. It involves a tangible, reciprocal transaction between a seller and a buyer . Nonprofits make their funds through mostly tax revenues and user charges. With a good marketing, I believe that those organizations can realize their vision.

-Michael R. Maude