Comments on: News flash: Managing a non-profit organization is real business http://maffulli.net/2007/12/06/managing-non-profit-organization-is-real-business/ about open communities, source of freedom and good software Thu, 04 Dec 2008 06:34:56 +0000 http://wordpress.org/?v=2.6 By: Free Software Foundation Europe: The strange case of Certified Open | Commercial Open Source Software http://maffulli.net/2007/12/06/managing-non-profit-organization-is-real-business/#comment-32349 Free Software Foundation Europe: The strange case of Certified Open | Commercial Open Source Software Wed, 30 Apr 2008 12:07:58 +0000 http://maffulli.net/2007/12/06/managing-non-profit-organization-is-real-business/#comment-32349 [...] Maffulli’s post “managing a non-profit organization is real business” let me wonder about the importance of transparency within free software organizations here [...] [...] Maffulli’s post “managing a non-profit organization is real business” let me wonder about the importance of transparency within free software organizations here [...]

]]> By: Marcello http://maffulli.net/2007/12/06/managing-non-profit-organization-is-real-business/#comment-31653 Marcello Mon, 10 Dec 2007 09:17:07 +0000 http://maffulli.net/2007/12/06/managing-non-profit-organization-is-real-business/#comment-31653 I think that transparency is the best way to show 'good intentions', even if it is not easy to do. And yes by forcing this process organizations will be also more 'financially ordered'. I understand what you mean. Donations are made for trust, and trust is created with a good use of donations, and the best way to show this good use is with a public balance sheet. But also this means to open dialogs with supporters about the use of this money, when is not wasted, and I think that most of these small organizations is scared by this point. When you try to do your best, in a small context and by personal motivations, every critic is a wall to overtake, and the fear that sooner or later you'll probably give up if these critics (maybe made for gelosy or what else..) become too many, or because of stress, is bigger than the fear to remain without money. Anyway, without courage nothing happens, so in the end transparency can be a really useful tool. (sorry, maybe I got too philosophic [smile] ) I think that transparency is the best way to show ‘good intentions’, even if it is not easy to do. And yes by forcing this process organizations will be also more ‘financially ordered’.
I understand what you mean. Donations are made for trust, and trust is created with a good use of donations, and the best way to show this good use is with a public balance sheet.
But also this means to open dialogs with supporters about the use of this money, when is not wasted, and I think that most of these small organizations is scared by this point. When you try to do your best, in a small context and by personal motivations, every critic is a wall to overtake, and the fear that sooner or later you’ll probably give up if these critics (maybe made for gelosy or what else..) become too many, or because of stress, is bigger than the fear to remain without money.
Anyway, without courage nothing happens, so in the end transparency can be a really useful tool.
(sorry, maybe I got too philosophic [smile] )

]]> By: Stef http://maffulli.net/2007/12/06/managing-non-profit-organization-is-real-business/#comment-31652 Stef Mon, 10 Dec 2007 08:07:09 +0000 http://maffulli.net/2007/12/06/managing-non-profit-organization-is-real-business/#comment-31652 Marcello: publishing a balance sheet is the best tool to keep the finance under control. If a small non-profit organization can publish a detailed balance sheet, income/expense report and cash flow report with a breakdown of program expenses then it shows the public that it is an organization that takes its mission seriously. Every donation is an investment: the donor is betting on the organization to create <b>social</b> value for the whole society in the long run. It's exactly like buying shares of a public company, investing in the hope that its management will create economic value in the long run for the investors. Would you invest in a company whose books are not visible or poorly maintained? Marcello: publishing a balance sheet is the best tool to keep the finance under control. If a small non-profit organization can publish a detailed balance sheet, income/expense report and cash flow report with a breakdown of program expenses then it shows the public that it is an organization that takes its mission seriously.

Every donation is an investment: the donor is betting on the organization to create social value for the whole society in the long run. It’s exactly like buying shares of a public company, investing in the hope that its management will create economic value in the long run for the investors. Would you invest in a company whose books are not visible or poorly maintained?

]]> By: Marcello http://maffulli.net/2007/12/06/managing-non-profit-organization-is-real-business/#comment-31648 Marcello Sun, 09 Dec 2007 12:46:45 +0000 http://maffulli.net/2007/12/06/managing-non-profit-organization-is-real-business/#comment-31648 Penso tu abbia ragione, soprattutto perché suona un po' strana questa mancanza di trasparenza se paragonata al supposto atteggiamento 'aperto' delle organizzazioni che si occupano di FLOSS. Insomma, aperti nel prodotto e chiusi nel bilancio? Però penso anche questo: possiamo costringere piccole associazioni culturali magari non riconosciute a fare un bilancio annuale delle loro spese? c'è da chiedersi se ne abbiano le competenze. Io penso che si dovrebbe, in nome della trasparenza e del fatto che non possiamo pretenderlo da alcune e da altre no, ma mi chiedo quante davvero sarebbero in grado di farlo. You're right, also if you compare this lack of transparency with the 'open' behavior of the FLOSS organizations.. it sounds a little strange I think. But really we should also think about this: can we force a small unofficial cultural association to report a balance sheet every year? I think we should, because of this lack of transparency, but how many of the associations can really afford this rule? Penso tu abbia ragione, soprattutto perché suona un po’ strana questa mancanza di trasparenza se paragonata al supposto atteggiamento ‘aperto’ delle organizzazioni che si occupano di FLOSS. Insomma, aperti nel prodotto e chiusi nel bilancio?
Però penso anche questo: possiamo costringere piccole associazioni culturali magari non riconosciute a fare un bilancio annuale delle loro spese? c’è da chiedersi se ne abbiano le competenze. Io penso che si dovrebbe, in nome della trasparenza e del fatto che non possiamo pretenderlo da alcune e da altre no, ma mi chiedo quante davvero sarebbero in grado di farlo.

You’re right, also if you compare this lack of transparency with the ‘open’ behavior of the FLOSS organizations.. it sounds a little strange I think.
But really we should also think about this: can we force a small unofficial cultural association to report a balance sheet every year? I think we should, because of this lack of transparency, but how many of the associations can really afford this rule?

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