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Recommendations how CRM Can Be Used in a Not-for-Profit Setting

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Tax benefits to nonprofit organizations recognized as exempt from federal income tax under section 501© (3) of the Internal Revenue Code (IRC). It requires that most organizations apply to the Internal Revenue Service (IRS) for that status. ’ 2009 US). There is tremendous pressure on the requirement of resources by the nonprofit organizations for its various projects.   It should be sourced externally, as there is no income from the operations or the services are provided at cost basis with no margin of profit, as in the case of commercial enterprises. The charitable organization is a legal entity, and it can enter into contracts of various types in its dealings. ‘ In the USA, the economy is classified into three areas: commercial, public and non-profit.   Here, the term non-profit is used to denote voluntary organizations and indeed is sometimes known as the voluntary or third sector.   Fine (1990) combines the second and third elements of the US economy and uses the term ‘ social sector’ in his work on social marketing – Convey T’   (Buttle.

F, 1996, p170)The role of the regulatory authorities should be recognized properly.   It is always better to involve them in the activities by their active guidance and participation, rather than considering them as intruders.     After all their opinion carries more weight with the public, and hence their participation an endorsement to the mission.

We have undertaken a sample survey, in respect of the application of CRM in the NFP sector, with reference to ‘ Donor retention’ .  The main focus is on building relationships with members that result in long-term support for Not-for-Profit organizations. The findings are very significant and strengthen the following points.

The donors or resource providers have the tendency to be cause-specific or entity-specific rather than general in nature, in view of the fact that ‘ the means are limited and the demands are unlimited’ .  In fact, this is the foundation for the study, as it is a universal constraint. The donors would like to identify their contributions with the end user.  

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