 As-Salamu Alaikum Khawathina wa s-Sraat. Wasim As-Sin welcomes you to the first lecture of Marketing for Non-Profit Organizations, MKT 628, at the Virtual University of Pakistan. Whenever we talk about a non-profit organization or an NPO in its abbreviated form, we think to ourselves that we are talking about an organization which is not allowed to make any profits as cash-staffed. And because of the shortage of resources, this is not going to be able to fulfill its mission. This is not the case. This is a misconception. And the reason for this misconception lies in the very terminology for such organizations, i.e. non-profit organizations or NPO. The fact is that these organizations do make profits. They do have bank accounts. They do have passive investments. They do have assets and they do make money at the end of the day. Without having done that, these organizations just cannot survive. If that is the feature and the character of non-profit organizations, then the question is where is the difference between a non-profit organization and a commercial organization? Well, let me make a statement. And this statement is like definition of an NPO. A non-profit organization or, for that matter, a not-for-profit organization, another terminology used for such organizations, is an organization which does not distribute its surplus funds to its owners or shareholders. It instead keeps those funds to itself in order to promote its interests or in order to pursue its activities, to implement its programs which basically take place in the area of social welfare. The fact is that most governments and government agencies fall under the same demand but we do not classify governments and government agencies as NPO's. Examples of NPO's are charities and charitable organizations, trade associations, trade unions and arts organizations. Examples of charities and charitable organizations are manyfold in our society. We see dispensaries, hospitals and ambulances applying on the roads of the country, offering human services. These are all examples of charities and charitable organizations. Trade unions basically are meant to safeguard the interests of workers within their industries. Same is the case with trade associations which are basically meant to promote interests of their industries within their respective areas. They are meant to basically facilitate working of the industry in such a way that they achieve high efficiency to the benefit of all the stakeholders and members and players within that particular industry. Examples of the arts organization is museums. We have museums in our country and the fact is that the museums as nonprofit organizations thrive in the western societies. There are so many classical and historical manifestations of these kinds of organizations the world over. Another feature of NPO's is that in most of the countries of the world, if not all, they are exempt from income tax and property taxation. Now another question arises is if NPO's have these kind of features, what is the difference between an NPO and an NGO? Because NGOs could also seem to have similar features. The definition of an NGO by the World Bank is an organization which pursues its activities to relieve suffering of the poor and distressed which promotes interests of the poor which protects environment and which operates to offer some kind of basic social service and which works for community development programs. Now given these features and this definition of NGO, we find striking similarities between NGOs and NPO's. The answer is there's hardly any because of the striking similarities between the two organizations i.e. NPO's and NGOs. The features of NGOs are shared by NPO's and vice versa. So in other words what I have talked about NGOs can be easily put within the framework of NPO's and again vice versa. Common usage for the two organizations varies between countries. For example in America a non-profit organization is known as an NPO. In Australia a similar kind of organization would be known as an NGO. They do not choose the terminology of non-profit organization. However when these organizations go international whether having the source identity of an NPO or an NGO by going international and after having gone international they're known as NGOs. There's reason to that. The reason lies in the host country's government's inability or lack of ability to carry out certain social welfare programs. Because of the fact that NGOs operate within this social area they're out to improve the social welfare and develop communities in terms of those services which are not offered or are offered rather scantily by the host governments. NGOs fill the vacuum and because they share the responsibility with the governments they're known as non-government organizations and not as NPO's i.e. non-profit organizations. There's a growing movement among the non-profit sector to redefine the terminology which characterizes its basic character. Because NPO's seem to think that the very word non-profit is dysfunctional due to at least three factors. The first one is that it does not express the very purpose of the organization and rather it talks about something which it is not. And number two it focuses your mind on the word profit as being something very much opposed to the purpose of the organization. The purpose of the organization is to make profit in order to sustain itself, in order to survive and further implement its programs. Therefore the word non-profit creates a lot of confusion. It does not express the very purpose of the organization. The third reason is that it creates an impression as if the organization is short of financial resources and may not be able to fulfill its mission because it might run out of money anytime, which again is not the fact. There's a tremendous misconception and misperception about the character and about the purpose, about the mission of non-profit organizations due basically to the terminology which really bothers non-profit organizations. And given this fact, many organizations have started using different terminologies. There's a list of terminologies which is beyond the scope of discussion at the moment. However, two terminologies which are getting very popular nowadays are social benefit organizations and civil society organizations. And you will agree with me just like non-profit organization conjures up certain distinct images of an organization which does not generate profits. These terminologies as social benefit organization or civil society organization evoke very distinct images of organizations that are basically meant to create benefit, social benefits for the community at large and serve the civil society. So these are the two terminologies which are getting popular nowadays and replacing the terminology non-profit organization. However, in the context of this course, I'm going to refer to NPO all the time. Now the next question is, what is the role of marketing in NPO's? We know that marketing has started playing a very important role in the development of non-profit organizations. The emerging role owes its significance to certain fundamental developments that have taken place over the last few decades. And those developments are all about competition and emerging non-profit entities all over the world. Non-profits exist not only in the developed world but also in the developing countries. We have a lot of non-profit organizations within our country. So therefore these developments necessitate implementation of marketing programs that are compatible with the growing and changing non-profit environments. We all know that the basic character of marketing in any organization is all about bringing about a change in the behavior of its target audience so that they make more and more purchases of the organization's products. And you also know that we do that with the help of the different concepts and principles of marketing. If we were to summarize all those principles into one huge concept, then we can talk about variables of marketing mix responsible to bring about this kind of a change in behavior. We all have a thought of grounding in marketing and therefore I wouldn't like to go into details as far as the working of these principles is concerned. What is important here is that when you work as the marketing managers in any organization and are just about to launch a new product or introduce a new innovation for a product, you start always from within. In other words, what I'm talking about is the concept of internal marketing. As marketing people or as marketing managers, you have to start with the management of the company, the members of the board, the equity holders, all stakeholders who are going to be affected by introduction of that product. Until the time you can create that buy-in for the concept that you are talking about people within the organization and all those who are responsible for the well-being and the strategic direction of your organization, you just cannot move ahead with your plans and its implementation. And therefore you have to exercise the concept of internal marketing. You have to carry everybody along with you. Determining the strategic direction, implementing the strategies and achieving marketing and overall business goals is the responsibility of marketing department in coordination with other departments, of course. But the fact is that as part of internal marketing, you have to sell the idea to all the people and stakeholders I've talked about in a way that they're convinced about the introduction of that particular product you have plans about and plans for. After you've done that, you also know the next step. I think what you see in the marketplace is the manifestation of the next concept which is known as external marketing. The principles of marketing are the summarized huge concept of the variables of marketing mix come into play. It is because of the design and the features and the character of the product that you are able to convince your customers to buy that. Therefore, you are in a position to bring about a change in their behavior. The behavioral change is either in the form of conversion. They were using some other product and they have converted to yours or they have strengthened their belief into your product. They're more convinced and they have a conviction that your product is superior and therefore they will stick to your product. Then you price the product in order to bring about a change in the behavior. If customers are convinced that you are offering the right price, they will buy that after having made a change in their behavior. The change is either in the form of conversion or reinforcement, like I said earlier. Similarly, you bring about a change in their behavior when you place the product, meaning by view of distribution, by convincing your customers that you are very close to where they are. Then you promote the product again in order to bring about a change in their behavior. This is how external marketing manifests itself in the marketplace. The whole idea is to bring about a change in the behavior of your customers and that is the basic character of marketing, like I said earlier. What happens in nonprofits? The fact of the matter is that the challenges in nonprofit organizations are even greater. Because management people within the nonprofit organizations have to deal with so many different kinds of publics. Those publics are defined as their shareholders or equity holders, the board of directors, the top management of the company, the target market, which is very much concerned about the outcome of the program to which NPOs intend undertaking. They also have to take into confidence governments, governmental agencies. They have to deal with media because they want coverage and they want positive leverage from the media. And given the variables in terms of different publics, the job of a marketing manager within an NPO is full of challenges, which are even greater than that of a commercial marketing manager. A commercial marketing manager is responsible to sell a particular product which is a tangible thing. Whereas the marketing manager of an NPO is responsible to implement a program, the results of which might take years and years. It is very difficult to measure those results and therefore the challenges I've talked about. Marketing therefore has to play a very significant role in nonprofits and people within the nonprofit organizations need to have a thorough grounding in the principles of marketing as they apply to nonprofit organizations. Now this is something which is going to be the content of the whole course. And as against tangible products or services because we are basically going to talk about the programs which nonprofit organizations are supposed to come up with and then implement those for the benefit of the society in order to improve social welfare, in order to bring about a change in their living standards, in order to bring about a change in their social behavior so that they are better citizens, they are responsible citizens and they act in a way which is very much in line with the requirements of modern societies. Marketing and marketing mindset therefore are very critical to the success of nonprofits. The fact is that challenges are enormous and given this enormity of challenges, all the stakeholders within nonprofit organizations have to have thorough grounding in the principles of marketing as they apply to nonprofit environment. So in other words we can say that the growth and dynamics of nonprofit sector demand that managers have got to be highly professional and managerial professionalism should take precedence over just voluntary association of donors. It is not the case that the association of donors as voluntary work is going to suffice. No, it is going to be a teamwork, it is going to be a cooperative effort and it is going to be a total professional initiative which is required in order to make nonprofit organizations a great success. In that light this course is going to seek insights into certain objectives which I am going to talk about one by one. First of all we have to understand the fundamental difference of character between nonprofits and commercial organizations and develop a base for marketing management of the nonprofit sector. I have given you an overview of the fundamentals and the background as nonprofit has emerged on the scene. And I am now going to talk about the details in the coming lectures. As a second objective we have to understand important aspects of the nonprofit sector. There are two important aspects or dimensions known as social marketing and cause marketing. I am going to talk about these two areas in detail because without having developed an understanding of these two areas our understanding of nonprofits is not going to be complete. We are going to look into nonprofits engagement with the governmental and the private sectors. The reason I talk about the governmental and private sectors is because in terms of social marketing NPO's could have to deal with the governments because of the fact that they operate in the social areas and many of the areas are the ones which should be entertained by the governments since nonprofit organizations jump in they have to deal with the governments. I talk about the private sector engagement with the nonprofits because NPO's could have to deal with the private sector when they undertake cause marketing. I will be talking in detail about social marketing and cause marketing the two important aspects because like I said earlier our understanding is not going to be complete without having learned these two areas. The third objective is to develop skills to better influence all the different public's meaning individuals, associations, the corporate sector and the government. The fact is that their behavior is very important for the success of the nonprofit sector and therefore we have to cultivate all these public's. The fourth objective is all about developing an understanding of the fact that nonprofits are at a competitive market stage. This is a very interesting statement that I have made. The fact is that there are so many nonprofits nowadays that there is a lot of competition among them and when I talk about competition among nonprofits you have to look at it from the standpoint of donors and funders. There are so many nonprofits working for so many different noble causes and social welfare programs that the donors and funders have to make a choice who to fund and who not to fund and therefore gone is the stage when nonprofit organizations depended solely on philanthropy. Instead of philanthropy or let's put it this way in addition to that nonprofit organizations have to depend more on competitive marketing strategies in order to generate funds instead of just philanthropy. So this is something which really makes it very clear why in the first place we need to have a grounding in the principles of marketing for nonprofit organizations. To be more effective we also have to have know-how for the marketing research because without marketing research we cannot generate relevant information about our target market. Just like we carry out marketing research in commercial organizations and for commercial products for social welfare programs because we also have to carry out marketing research without which we cannot move ahead. The fact of the matter is that the usage of research in relation to NPOs is at a higher level than it may be in case of commercial organizations. I've not made a statement that is just a way of emphasizing the importance of marketing research in the NPO sector and there's a reason for that. You need to understand the kind of change of behavior you are wanting to bring about. If you were to undertake a program against smoking meaning to convince smokers not to smoke you need to know why smokers think the way they do and why they act the way they do. In order to make decisions about that program you need to have all that information which can be generated only through marketing research. There is no other way. The next objective is to develop an understanding of target markets behavior patterns. Now this is a continuation of the objective which I talked in terms of marketing research. We have to develop ability to understand different segments of the market. The whole public at large cannot be our market. Just like in commercial markets we know what target market we are going after. Similarly in the non-profit sector we also have to be very clear about the segments we want to cover. Going back to the example of anti-smoking campaign you've got to earmark whether you want to deal with people starting with the age of 16 up to 24 or a different segment, a larger segment. Similarly if you were to carry out a program about family planning you've got to earmark very explicitly the segment which you want to approach and you've got to be very clear about the demographics and so many other factors which are going to be helpful in defining the segment and then approaching that particular segment. All this has to be done from the standpoint of customer centeredness and branding. The reason I talk about branding is because your NPO has got to be known for its brand name. Just think about the different human services organizations within Pakistan and you will know what I'm talking about. Just try to look at a couple of hospitals which offer different kinds of healthcare services in Lahore, in Karachi and you will know what I'm talking about. The reason we need to have a thorough grounding in branding is because we are talking about a competitive market stage in which there are so many other players and we've got to approach our donors and funders in a way that because of our strong brand and because of integrity they choose us as an organization they want to donate to. The next objective is to give a strategic context to fund raising. This again owns to the competitive market stage and we've got to approach the whole area as a set of strategies which are going to bring in requisite funds. Of course NPO's nowadays have many ways to generate funds. NPO's do not solely depend upon philanthropy or donations. They get into commercial enterprises as well and that is something I'm going to talk about later but we have to give a strategic context to the whole effort that we undertake as part of fund raising. The next objective is to develop the savvy for generating revenue and yet not deviating from the core mission of the non-profit organization. Let me throw some more light on this statement or this objective. Like I said in the preceding objective or as part of the explanation of the preceding objective that the non-profit organizations also venture into commercial enterprises because they want to generate funds and they want to sustain themselves. Now this is very much a continuation of the very first statement that I made at the beginning of the lecture. Non-profit organizations have to make profits in order to sustain themselves until they make profits they just cannot survive. They are meeting their demise in the absence of profits and is some financial base. So what happens is many non-profits are getting into those ventures which are very closely related to their primary area of operation. There are examples of hospitals getting into fitness centers in the western world in particular. I don't know of any example within our country but this is something which is happening in the United States for example. Museums are selling artwork. They are selling paintings at very high prices because they want to sustain themselves. As a matter of fact foundations which are part of those organizations responsible for running day to day operations of non-profit organizations find this kind of activity profitable in the sense that they can sustain themselves or they can make their operations go on a daily basis in a healthy way. The next objective is to manage the media and attain public advocacy to leverage organizations' marketing effort. Why I say that or why do we need to have an understanding of the media's support and the support of public advocates because we want total leverage and we will not get leverage until the time we have a strong brand name until the time we have a very high level of integrity until the time publics at large, the way I indicated earlier are convinced that we are an NPO to be reckoned with. We are an NPO that has to be sustained for the betterment of the society. The next objective is preparing marketing plan for a non-profit entity with complete strategic framework including strategies on communication, distribution and pricing. This strategic plan is going to consist of different programs. It is not going to consist of different tangible products. It is going to consist of different programs which are meant to bring about betterment of social welfare. Having talked about these objectives I will now move ahead with formal understanding of the course and discussions on different concepts which are going to form the total content of the course. The content of the course is going to be divided into different modules. One module or for that matter one component is going to consist of either one concept or a set of closely related concepts. I am going to talk about objectives for discussing those concepts. Once I have given you the objectives I will go down to the narrative. After having given the narrative for those objectives I will conclude the module or the component and then move on to the next one. This is how the whole understanding of the course is going to take place in 45 lectures and starting with the module one it will be going up to as many modules as it is going to take in terms of the concepts that we are going to learn as part of the total course. Starting with the first module we have got to know some basics about non-profit organizations. Having given you the overall concept let me now talk about the objectives of the module which we want to learn in detail. The first objective is to understand what an NPO is and I think by now we have a pretty good understanding of what an NPO is through the overview that it gives you. The second objective is to know what are the areas in which non-profits operate. The third one is what is the driving force in a non-profit organization. How do non-profits fund themselves is the fourth objective. Are non-profits not supposed to make profits at all? It is the fifth objective and the last one is what happens to profits if non-profits do generate profits. Now having talked about all these areas in the preceding part of the lecture I would be touching upon these objectives in the form of a narrative briefly because I wouldn't like to repeat what I have talked about earlier. What is a non-profit organization is known to all of us an NPO is the one which does generate profit but is not allowed to distribute those profits. That's a mandate to that organization. The organization is supposed to keep those profits to itself because it would be needing to reinforce all the programs which it has initiated for betterment of the social setup and for the success of those programs all those profits are going to be plowed back into the operation. As part of what is an NPO we also have to understand classification of NPO's. How do we classify NPO's? Well, we do that as charities, as foundations and as associations. It is very interesting to note that charities are full of a diverse array of different kinds of organizations. Dispensaries, hospitals, education setups then we have public radios and television then we have religious organizations then we have human services, etc. All these organizations, although very diverse in nature in character and in features are part of charities and charitable organizations. In foundations we have individuals, we have groups, we have corporations. The reason we have foundations is because foundations happen to be the parental setup of the different non-profit organizations and the basic responsibility that foundations and trust upon themselves is the generation of funds. Whether they have staff within the foundation responsible for generating funds or they delegate that responsibility to the marketing people within the NPO which is an extension of that foundation or a part of that foundation is something to be developed as something to be decided by the foundation but the fact remains that the foundations consist of individuals they may consist of families, they may consist of groups and they may consist of corporations or just one corporation. Then we have associations I think I did touch upon associations in terms of trade associations and trade unions. We have the different kinds of associations the basic character of which is to promote the interests of the industry within which they operate. I mean if there is an association within the healthcare area then the basic responsibility of that association to facilitate the working of the particular organization to the organizations which are part of that association not one organization rather the combination of all the organizations or in other words the members of that association in order to facilitate not just the working but creating conditions favorable for the target audience. So this is the classification of NPO's and the different kinds of organizations that you may end up working with is going to fall within the domain of either charities or foundations or associations. The next objective is the areas in which the NPO's could operate as you can see from this slide NPO's operate in the areas of healthcare in education, in human services, in culture and in environment. Just to give you a little bit of explanation of all these areas healthcare consists of dispensaries and hospitals and we have a lot of examples of these kind of entities within our society. If you run your mind through this healthcare sector there are so many hospitals which will immediately pop up into your mind. When it comes to education I think the best example that I can give you of the education sector is this very university of which you are a student a huge non-profit organization. Then we have human services. As part of human services again there are a couple of organizations which operate nationwide in our country and I don't really have to name them to let you know what I'm talking about but immediately you will know the kind of service they provide and the setup they have and the characteristics they are full of. The next area in which NPO's operate is culture. There are so many movements in the name of culture. One example of which is the preservation of old cities or old parts of different cities and international NPO's or NGOs for that matter are the ones which are responsible for certain projects in our country. Then there is the area of environment. The basic responsibility that NPO's take upon themselves is to protect environment and when you hear about certain activists talking against the felling of trees only because the government wants to widen a certain road is an example of NPO's operating in the areas of environment. After having given you an explanation of the areas in which NPO's operate could we now move on to the next objective which is about the driving force in the non-profit organizations. This is a very important objective and the narrative which I can give you is that it is the nobleness of the cause which is at the heart of the purpose of a non-profit organization. So the nobility of the cause is something which drives the certain people to carry out a certain cause and accomplish results in order to achieve a welfare of the community. How does it happen? Well, it all starts within a community. There are certain people who you can call activists and within those activists or among those activists there are certain people who are community leaders. Community leaders along with other activists are the ones who are impassioned with a certain cause. They take the responsibility to undertake that cause as a project and then see to it that their efforts reach the logical conclusion. The meaning, they go for certain programs and they implement those programs in order to achieve their overall goals. Just like commercial managers like to fulfill their commercial goals in terms of the profitability, here it is the accomplishment and fulfillment of the purpose of the NPO or the mission of the NPO. So at the heart of the NPO is the fulfillment of the mission and not the profitability. This is a statement which I would like to make. It is the mission which drives the NPO and not profitability. We're not talking about dividends. We're not talking about different financial ratios which are the main concern of equity holders and the members of the board of any commercial organization. Here in the context of NPO's or NGOs, we are concerned about a mission and fulfillment of a mission might take a number of years. It might not take a very long time but generally it takes a lot of patience, perseverance on part of the activists to reach the logical conclusion, the meaning accomplishment of the mission. Another important thing which I would like to talk about, the ability of the mission is that it does bring with itself a lot of complexities. NPO's deserve a lot of appreciation in terms of being very high on the moral ground and they command a lot of respect for being driven by the nobility of the purpose but the fact is there are a lot of complexities which they have to face. One of the complexities is the size of the NPO. If the size of the NPO is small, it becomes quite very difficult for the organization to operate very efficiently. For the simple reason that however the level of funding they have, they may be short on human resource because of being small on size, they may not have the kind of human resource commercial organizations have. The many responsibilities and jobs that may be carried out by the members of the board are the activists who started the NPO or the NGO and therefore proposing greater challenges to the members of the organization than their counterparts on the commercial side. If an NPO happens to be large, it certainly is organized and its movements and plans executed according to the principles and philosophy exercised among their counterparts on the commercial side. So what I'm saying is just like a commercial organization is a collection of different resources which are put together to accomplish different sets of overall business goals, different kinds of efforts and resources are also put together in a coordinated manner and fashion and non-profit organizations for the accomplishment of their mission. So what I'm saying is if an NPO happens to be large, it is planned, organized and its activities are executed in just about the same way as those things are done in commercial organizations, which again is a big challenge. But this challenge is not just the challenge of management and execution. This is accompanied by the challenge of generating funds to which people within an NPO have to do side by side. It is not a commercial organization to where the marketing and sales people are responsible for selling products and thereby generating funds to which automatically are transferred to company accounts. This is a question of delivering a certain service for betterment of society and a question of accomplishment of the mission which takes a long time and the amount of money that you need for doing all that does not come to you by selling something that money comes to you from the funders, from the donors and I said earlier as part of the objectives which I was talking about one by one that generation of funds also has to be a very, very strategic formulation because unless we have a very strategic mindset to generate funds we may not be able to generate the amount of funds or the level of funding which is required in order to accomplish our mission. The next objective or the question which I talked about as part of the module module number one is how do NPO's fund themselves? I did talk about funding a lot just a moment ago but there has to be a method to this funding exercise or this funding process. We know that it has to be a very strategic exercise but the question is what are the kind of moves and what are the kind of strategies which NPO's could have at their disposal. Well NPO's deal with international agencies, the deal with federal and local governments and the deal with the corporate sector in order to raise funds. Last but not the least the deal with foundations which I talked about earlier. Foundations being the parental entity of NPO's in case NPO's are controlled and monitored by certain foundations. International agencies could come into play because there are certain causes which are addressed and supported by international agencies the world over. So if an international agency is supporting a certain cause in other countries there is every chance that that international agency will support the same cause in our country as well. So that is how international agencies come into play. The next one in the list is federal and local governments. Governments offer financial assistance in areas that are primarily their responsibility. So in other words the responsibilities that NPO's shared with the governments are the ones in which they find contributions from the government side because they know that basically it should have been their responsibility and since NPO's are sharing the burden let us offer contributions and help them accomplish their objectives. Then we have foundations and associations that did talk about this earlier. Foundations get involved basically because of purely altruistic purpose. They are impassioned with certain causes and they want to see to it that all those causes get addressed and they accomplish their mission. Then we have the corporate sector as the one contributing to financial matters to NPO's. This area is the one I hinted upon earlier and NPO's get involved with the corporate sector when they are collectively addressing a certain cause. This falls within the domain of cost marketing which I am going to talk about in detail in one of the following lectures but the fact is that the corporate sector gets involved to its own benefit. When they get involved they are known as entities that undertake social responsibility and they want to appear as socially responsible citizens. The non-profit sector also gains through contributions made by the corporate sector. So there are four sources of funding which I have talked about and to summarize the one is the international agencies, the second one is the governments, the third one is the foundations and the fourth one is the corporate sector. It's a combination of the different financial sources which are provided to the non-profit sectors. The reasons for which these contributions are made are very, very clear to us there is a certain social mission for which everybody is working and anybody who contributes towards that contributes on the basis of a certain rationale and that's what we have learnt. The next two objectives as part of the module are what happens to profitability meaning our non-profits are not supposed to make profits at all and if they do generate profits what happens to them. That is why I said what happens to profitability. Well we all know that any organization at the end of the day has to make certain profits because if it does not make profits it will go into red and when it goes into red it will not survive. That will be the beginning of its demise. So we have to keep in mind that non-profits can have to make profits in order to sustain themselves. The question here is not whether they should or can make profits or not. The question here is what happens to those profits and I think you know the answer by now. The profits are withheld. Those are plowed back into the operation in order to reinforce their programs. Distribution of profits is prohibited. That is something that we have to keep in mind. NPOs we also have to keep in mind have no limitation on the areas they operate in and therefore they can choose an area in which they can price their services and that is why you see many dispensaries and hospitals where there are certain services which are free of charge and there are certain services which are charged. The services could be a combination of free and charged services but the point to note here is that pricing at an NPO is not worked out in the traditional way of the pricing methods. In other words, there is nothing like the cost plus pricing kind of a traditional model. The prices are subsidized and the subsidies are compensated by funding which you get from the sources that I just talked about. So this is something that we have to keep in mind. After having talked about all these five or six objectives as part of the module and having given you the narrative of these objectives I am all now set to give you the conclusion which is going to wrap up module number one. The first and the foremost important thing that we have learned is that a non-profit organization is not the one which is not allowed to make profits. It is the one which should make profits but profits are not meant to be distributed among equity holders or shareholders. The profits are supposed to be kept back within the company for further programs. Another thing that we have learned is and which is of very high importance that non-profits are all about mission accomplishment and not about profitability. They need to generate profits to sustain themselves but mission accomplishment is the purpose of the organization. The mission is always directed at doing something good to the society. It generally seeks a behavioral change for example working against smoking against abuse of child labor or creating awareness of traffic rules in a bid to change driving habits to selling products and services with concentration on the mission to serve. This is something very important about the non-profit organizations. Classified as charities, foundations, associations, trusts and corporations etc. Non-profits offer services in the areas of education, healthcare, human services, environment and culture. Another conclusion that we can draw from this discussion is that the NPOs are driven by the nobility of a cause. There are people within communities who take upon themselves to undertake a cause and then work for it. They try to generate funds for that particular cause and make the contribution by themselves and get contributions from others and the sources of those contributions we also have learned are international agencies, governments. Then we have foundations and then the corporate sector. This nobility of purpose by itself is not enough to sustain an organization however small it may be, NPOs are organized on the lines and philosophy their commercial counterparts are organized. Meaning that there is a coordinated effort in terms of putting together different resources to run the organization. Keeping NPOs solvent is a great challenge and it is for that challenge that the people, the meaning sponsors of NPOs are busy all the time not only implementing their programs but also generating funds for the purpose. This is all I had to say about module number one in the hope that it has made a lot of sense to all of us. I look forward to seeing you in the next lecture. Thank you very much and hudahafiz.