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Title: The business model canvas of NGOs
Authors: Sanderse, J
Keywords: Business models
business model canvas
social business
case study research method
Issue Date: 25-Mar-2014
Publisher: Open Universiteit Nederland
Abstract: The business model canvas of NGOs Judith Sanderse (837572403), Faculteit Managementwetenschappen, Open Universiteit, Heerlen, Nederland Abstract Background The Sustainability report (2003) stated that in 1999 the global non‐profit sector with a turnover of $ 1 trillion was equivalent to the eight largest economy. In 2008 Lambell, Ramia, Nyland and Michelotti mentioned that the profile of non‐governmental organisations (NGOs) has increased over the past two decades, but has been relatively absent from mainstream management and literature. Research focus The importance of the NGO sector and the desire to better understand their business models was the inspiration for this research – the development of a business model canvas for NGOs, a tool useful for NGOs, academics and practitioners. Research methods A business model canvas for NGOs was conceptualised utilising Osterwalder and Pigneur’s (2010) third party funded business model as the foundation, with its building blocks and definitions based on the business, social business and NGO literature. Using the literature review and the case study research method the conceptual model was tested for relevance and practicality. Results Feedback from case study interviews led to the adaptation of the original conceptual model and the development of two separate business model canvasses. One canvas, a slight adaption from Osterwalder and Pigneur’s (2010) third party funded model, is for Foundations and implementing NGOs with a single income stream. The other canvas is applicable, principally, for international NGOs, that have multiple income streams and implement multiples of projects / programmes. The building block definitions within the business model canvas have been adapted to the NGO terminology based on interviews, annual reports and academic literature. Conclusions The two business model canvases are easy to complete and are useful for understanding, communicating, analysing and supporting change processes. This research has expanded academic knowledge on the matter of business model canvas. It is, also, of practical application given the canvas has been tested on Foundations and international NGOs.
Appears in Collections:MSc Management Science

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