The purpose of non-profit organizations is clear from the name, and they are engaged in activities not directly aimed at making a profit. Non-profit organizations in Saudi Arabia are most often engaged in educational and outreach activities, scientific work, and charitable projects. The main research questions for today are:
- What are the role and functions of non-profit organizations in Saudi Arabia?
- Which problems in communication with community in the non-profit sector in Saudi Arabia should be solved?
- What role does charity play in Saudi Arabia’s non-profit sector?
- What financial problems do non-profit organizations face?
- What type of challenges facing non-profit organizations in Saudi Arabia?
- What are the expectations of non-profit organizations from the community and the authorities?
- How can non-profit organizations achieve sustainability in the long-run?
The Relevance of Research
A modern mixed economy is a holistic mechanism based on the optimal combination of material, spiritual and social values, market, and non-market management methods. As (Treinta et al., 2020, p. 2) put it, “Non-profit organizations (NPOs) are an alternative approach to address collective needs of specific groups in the community and represent many types of organization.” The non-commercial sector, designed to implement social, cultural, educational, and charitable goals, plays a significant role in the economy of any country.
Non-profit organizations have taken a major interest in Saudi Arabia in the last few years, which has led to the establishment of the National Center of Non-Profit Sector in Saudi Arabia to support and governs that type of organizations in the kingdom (NCNP, n.d.). However, from personal experience and observations, many NPOs in Saudi Arabia are facing challenges to perform well, and some of them had to shut down. More research may be needed on this topic to explore all aspects of the impact of non-profit organizations on Saudi Arabian civil society as well as on the relationship between the commercial and non-commercial sectors.
Role and Functions of Non-profit Organizations
The main subject of the non-profit sector is non-profit organizations. The economy of the non-profit sector is, in fact, a mixed economy, though they still have to “maintain productive relations with multiple stakeholders, including government and business” (Zheng et al., 2019, p. 2). The essence of the non-profit sector is that its activities aim to achieve public benefit and meet socially significant and public needs.
If the organization is not for profit, this does not, however, exclude that it needs the right organization of directors to “obtain multiple perspectives, situation, event, or process at a point in time or over some time” (Cooper & Schindler, 2013, p. 165). It is worth clarifying the main economic, social, and institutional functions.
Charity as a Type of Non-profit Organization
Charitable organizations are one type of non-profit organization but differ in several features. For example, Oxfam is an international association with 21 different organizations active on all continents (How we are organized, n.d.). However, thousands of much smaller charities are run entirely by volunteers. Not surprisingly, the majority of Oxfam entities are limited companies.
Problems in Communication with Community
Most non-profit organizations are created to solve specific social problems. In addition, as a rule, people whose personal and professional interests are directly related to solving the problem go to work in social activities. For proper legal supervision of the activities of non-profit organizations, the National Center for the Non-Profit Sector was established. It has legal personality and independence and is directly linked to the prime minister. The center’s purpose is to organize, revitalize and expand the role of non-profit sector organizations in developing regions, and work to unite the efforts of governments to provide licensed services to these organizations.
Challenges Facing Non-Profit Organizations in Saudi Arabia
There are a number of reasons why this question is important in this topic. Very few companies of this type have enough funds to implement their programs. Many non-profit organizations cease to exist due to lack of material support, formally continuing to be listed in the register of the Ministry of Justice. NPO resource centers play an important role in supporting registered and unregistered associations of citizens. Among the possible barriers for NCOs to enter the market of social services, the following are distinguished: personnel problems (lack of staff), infrastructure problems, inconsistent policy of the authorities, possible emotional difficulties for NCO staff.
The Expectations of Non-Profit Organizations From The community and The Authorities
This question will help to find out what non-profit organizations lack for systematic development and eliminate these factors. Barriers to the development of NPOs in Saudi Arabia are the weak involvement of the state in helping non-profit organizations, for example, in disseminating information about social services provided by NPOs; underdeveloped legislation relating to non-profit organizations; lack of resources for NGOs to implement their own programs and difficulties in finding funding. There are not enough proposals from the state or the commercial sector due to the non-profitability of non-profit organizations. The state is expected to provide financial support for such organizations, as well as help people find non-profit companies that would satisfy their needs.
Ways for Nonprofits to Achieve Long-Term Sustainability
This question will help people to understand the main advantages of non-profit organizations that can assist them achieve sustainable work. One of the most important advantages of non-profit organizations is the flexibility of socially oriented activities, which consists in the awareness of employees and management of the company about the social needs of the population. This could potentially help achieve long-term stability for such organizations. It includes the ability to quickly respond to changing demand for social services and the ability to offer a convenient mechanism for their provision.
References
Cooper, D. & Schindler, P. (2013). Business research methods (12th ed.). McGraw-Hill Education.
How we are organized. (n.d.). Oxfam International. Web.
NCNP, (n.d.). About the center. Web.
Treinta, F. T., Moura, L. F., Almeida Prado Cestari, J. M., Pinheiro de Lima, E., Deschamps, F., Gouvea da Costa, S. E., Van Aken, M., E., Munik, J. & Leite, L. R. (2020). Design and implementation factors for performance measurement in non-profit organizations: A literature review. Frontiers in Psychology, 11, 1799. Web.
Zheng, W., Ni, N., & Crilly, D. (2019). Non‐profit organizations as a nexus between government and business: Evidence from Chinese charities. Strategic Management Journal, 40(4), 658-684.