Analysis of competition for funding of non-profit organizations in Finland: Case company Irti Huumeista Ry
Jokitalo, Neera (2015)
Jokitalo, Neera
Haaga-Helia ammattikorkeakoulu
2015
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2015052811163
https://urn.fi/URN:NBN:fi:amk-2015052811163
Tiivistelmä
This thesis studies competition for funding in the non-profit sector in Finland, with a specific focus on the competitive position of case company Irti Huumeista Ry. The competitive environment of the non-profit sector in Finland is analysed, available sources of funding are determined, the competitive position of the case company and its direct competitors are researched, and conclusions are drawn as to how Irti Huumeista Ry can secure their competitive position and funding in the future.
The thesis topic is relevant and current, because new amendments have been proposed to the Finnish Money Collection Act 255/2006, which are assumed to increase the amount of non-profit organizations in Finland, therefore increasing competition for funding. The thesis strives to provide a valid conclusion and suggestions to the case company on how they can sustain or improve their competitive position, and secure funding for the future.
The thesis is furthermore important to the academic field of finance, because it highlights the effects of government regulation on funding, which is an international issue. Also, the pro-posed amendments to Money Collection Act 255/2006 put an emphasis on internal control and auditing of finances in non-profit organizations, which is often a heatedly discussed topic in the international community.
The theoretical framework for the thesis is provided by Michael Porter’s theory on the five forces of competitive advantage. The theory is suitable for the research, however it has been adapted to the non-profit industry, whereas normally the theory is applied to traditional for-profit industries.
The research methods used include desktop research, interview, and questionnaire. The non-profit sector in Finland and sources of funding are researched using appropriate secondary sources, and the competitive position of Irti Huumeista Ry and their direct competitors are studied using a questionnaire and by interview.
The results show that the case company has a stable competitive position, due to specialized services, good reputation, and low existing rivalry between competitors in the industry. Furthermore, the case company currently has very concentrated revenue streams and no marketing actions. In order to secure their stable competitive position, and to secure and increase their yearly funding, Irti Huumeista Ry should diversify their revenue streams by implementing a marketing plan, using multi-year contracts with donators, as well as maintaining their specialized staff and services.
The thesis topic is relevant and current, because new amendments have been proposed to the Finnish Money Collection Act 255/2006, which are assumed to increase the amount of non-profit organizations in Finland, therefore increasing competition for funding. The thesis strives to provide a valid conclusion and suggestions to the case company on how they can sustain or improve their competitive position, and secure funding for the future.
The thesis is furthermore important to the academic field of finance, because it highlights the effects of government regulation on funding, which is an international issue. Also, the pro-posed amendments to Money Collection Act 255/2006 put an emphasis on internal control and auditing of finances in non-profit organizations, which is often a heatedly discussed topic in the international community.
The theoretical framework for the thesis is provided by Michael Porter’s theory on the five forces of competitive advantage. The theory is suitable for the research, however it has been adapted to the non-profit industry, whereas normally the theory is applied to traditional for-profit industries.
The research methods used include desktop research, interview, and questionnaire. The non-profit sector in Finland and sources of funding are researched using appropriate secondary sources, and the competitive position of Irti Huumeista Ry and their direct competitors are studied using a questionnaire and by interview.
The results show that the case company has a stable competitive position, due to specialized services, good reputation, and low existing rivalry between competitors in the industry. Furthermore, the case company currently has very concentrated revenue streams and no marketing actions. In order to secure their stable competitive position, and to secure and increase their yearly funding, Irti Huumeista Ry should diversify their revenue streams by implementing a marketing plan, using multi-year contracts with donators, as well as maintaining their specialized staff and services.