‫י‬'/‫אדר‬/‫תשפ‬"‫ה‬ 1 Understanding NonProfit Organizations Dr. Lior Naamati- Schneider What is a Non-Profit Organization? A Non-Profit Organization (NPO) is an organization that operates for a social, educational, or healthcare mission, rather than to generate profit. Mission-Driven – Focused on social impact, not financial gain Revenue Usage – Profits are reinvested into the organization, not distributed to owners. Common Sectors Healthcare, education, human rights, environmental causes. Why Are NPOs Important? The Role of Non-Profits in Society: Fill critical gaps in services where governments and businesses fall short. Provide healthcare, education, and social welfare for underserved communities. Promote volunteerism and community engagement. Contribute to economic growth by creating jobs and funding social programs. Advocatefor human rights and social change. 1 2 3 ‫י‬'/‫אדר‬/‫תשפ‬"‫ה‬ 2 Key Characteristics of NPOs What Makes an Organization "Non-Profit"? Often rely on volunteers & community support. Volunteerism → May qualify for tax exemptions. Tax-Exempt Status → Focus on social impact rather than profit. Mission-Driven → Surplus funds are reinvested in services. Reinvestment → Non-Profit vs. For-Profit Organizations Feature Non-Profit Organization For-Profit Business Purpose Social impact & mission Profit & shareholder returns Revenue Donations, grants, fundraising Sales, investments, services Profit Use Reinvested into the mission Distributed to owners or shareholders Tax Status Often tax-exempt Subject to corporate tax Governance Board of directors & donors Owners, shareholders, executives Non-profits focus on social impact, while for-profits prioritize financial gain. Legal and Regulatory Frameworks Non-Profit Legal Structures: Legal and Regulatory Frameworks Non-Profit Legal Structures: Registration & Compliance – Must register as a legal entity. Tax-Exempt Status – Often qualify for tax benefits based on regulations. Transparency & Reporting – Must report finances and operations to the government and donors. Fundraising & Ethical Regulations – Governed by laws to ensure accountability. 4 5 6 ‫י‬'/‫אדר‬/‫תשפ‬"‫ה‬ 3 Vision & Mission Statements Mission Statement: The Purpose Defines the organization’s core purpose – Why does it exist? Focuses on the present – What does it do today? Answers: What impact do we want to make? Example: Doctors Without Borders (MSF) → “To provide lifesaving medical care where it’s needed most.” Mission A mission statementdefines what an organization does today, while a vision statementdescribes what it wants to achieve in the future. Vision & Mission Statements Vision Statement: The Future Goal Defines the long-term aspiration – What does the organization hope to achieve? Focuses on the future – What is the big picture goal? Answers: What do we want to become? Example: World Health Organization (WHO) → “A world where everyone can live a healthy life.” Vision Key Differences: Mission vs. Vision Feature Mission Statement Vision Statement Focus Present & Purpose Future & Aspiration Answers Why we exist? What we do? What we aim to achieve? Timeframe Short-term Long-term Example "Provide free healthcare to underserved communities." "A world where no one suffers due to lack of healthcare." Why It Matters? • Without a clear mission and vision, strategy lacks focus. • Ensures that resources, time, and funding go toward activities that align with organizational goals. • Helps leaders and managers make consistent and mission-driven decisions. 7 8 9 ‫י‬'/‫אדר‬/‫תשפ‬"‫ה‬ 4 Organizational Values How Values Shape Mission & Vision in Non-Profit Organizations Core beliefs that guide decision-making and behavior. What Are Organizational Values? Roadmap To Vision Strategic Goals → The Action Plan to Achieve the Mission & Vision Define Organizational Mission & Goals Measure Impact & Improve Operations Develop Strategic Partnerships & Secure Funding Implement Healthcare Programs & Digital Transformation The Three-Step Connection: 1️⃣ Mission → Defines what the organization does today. 2️⃣ Vision → Defines what the organization wants to become. 3️⃣ Values → The principles that shape how the mission is carried out and how the vision is pursued. 3️⃣ Strategy → Provides the roadmap to get from mission to vision. Strategicplanningensureslong-termsustainability. How Values Influence Strategic Planning Decision-Making: Values help prioritize initiatives that align with the mission. Organizational Culture: Values create a strong internal culture that supports the vision. Stakeholder Engagement: Values guide interactions with donors, employees, and beneficiaries. Ethical Leadership: Ensures transparency and accountability in operations. Strong organizational values ensure that mission-driven actions remain ethical, sustainable,and aligned with long-term goals. 10 11 12 ‫י‬'/‫אדר‬/‫תשפ‬"‫ה‬ 5 What is a Strategy Pyramid? The strategy pyramid is a framework that helps organizations align their actions with their overall vision and mission. The pyramid starts with the vision and mission at the top, which provide a clear and overarching direction for the organization. The next level is values, the guiding principles that shape the organization's culture and behavior. Why use the StrategyPyramid for StrategicPlanning? The Strategy Pyramid is helpful for strategic planning because it visually organizes and prioritizes different aspects of a plan. It helps to break down the overall strategy into smaller, more manageablecomponents, making it easier to implement and measure progress. Strategic Framework for Healthcare Non-Profits Strategy Objectives Goals Vision, Mission and Core Values Purpose Expanding telemedicine services for remote care. Investing in AI-driven healthcare solutions to improve patient care. Increasing patient outreach, securing new funding sources, or training healthcare professionals in digital health. Improving healthcare accessibility, enhancing digital transformation,or strengthening financial sustainability. Providing accessible and equitable healthcare for underserved populations. Mayo Clinic •Vision: “Mayo Clinic will provide an unparalleled experience as the most trusted partner for health care.” •Mission: “To inspire hope and contribute to health and well-being by providing the best care to every patient through integrated clinical practice, education and research.” •Values: Respect, Compassion, Innovation, Integrity, Teamwork, and excellence Mayo Clinic Mayo Clinic is internationally renowned for its quality of care, which is mirrored in its wording of these statements. The mission strikes a nice balance of aspirational and practical, with phrases like “hope” and “best care” grounded by the mentions of the clinic’s three operational focuses that will help it achieve its aims. The vision manages to address both patient experience and clinic reputation, while still being highreaching and forward-thinking. How They Connect: These values ensure that every action aligns with the mission of providing quality healthcare and the vision of being the most trusted healthcare partner. 13 14 15 ‫י‬'/‫אדר‬/‫תשפ‬"‫ה‬ 6 Analyzing Real NPOs Analyze how real healthcare non-profits align their mission, vision, and strategy. Group Task: 1️⃣ Each group is assigned one NPO case study (e.g., WHO, Red Cross, Mayo Clinic). 2️⃣ Analyze the mission & vision statements & values – Are they clear and actionable? 3️⃣ Discuss strategic priorities – How does the organization implement its goals? 4️⃣ Present findings to the class. Example Cases for Analysis: Mayo Clinic → Focuses on integrated healthcare & research. Doctors Without Borders (MSF) → Focuses on global crisis response. World Health Organization (WHO) → Focuses on global public health initiatives. Analyzing Real NPOs Czech Republic Rare Diseases Czech Republic (Česká asociace pro vzácná onemocnění) About us - Česká asociace pro vzácná onemocnění z.s. Center for PalliativeCare (Centrum paliativní péče) InternationalAssociation for Hospice & PalliativeCare Israel Enosh – The Israeli Mental Health Association https://www.mhinnovation.net/organisations/enosh-israeli-mental-health-association Magen David Adom (MDA) – Israel’s National Emergency Medical Service Padlet Activity Instructions Post Your Analysis → Create a new post on Padlet that includes: Mission Statement – What is their stated purpose? Vision Statement – What future do they aim to create? Core Values – What principles guide their work? Strategic Priorities – How do they implement their mission? Your Insights – Are their mission, vision, and values aligned and effective? MVSO-JMC International-Non-Profit Healthcare Organizations – Mission, Vision & Strategy 16 17 18 ‫י‬'/‫אדר‬/‫תשפ‬"‫ה‬ 7 Wrap-Up & Key Takeaways Non-profits serve public needs, not profit goals. Mission & vision & Values guide all decision-making processes. Strategic planning ensures long-term sustainability. 19