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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.
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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.
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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.
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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.
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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.
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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
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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.
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