Institute on Aging: When Non-Profits Operate Like For-Profits

Case Solution

James Pike, Vijay Sathe
Ivey Publishing ()

In 2012, the Institute on Aging, an American nonprofit serving the elderly in San Francisco, appointed a new CEO. His mission was to save the bankrupt organization. His strategy was to consolidate services and drive geographic expansion. Thanks to these efforts, net income increased steadily and gross sales increased from $ 28.7 million in 2012 to $ 45.2 million in 2017. However, not all results were positive. Line worker morale had suffered and management was asking questions about the long-term business model the organization should adopt. What else could the CEO do to help the Institute on Aging, an organization that spans the public and private sectors?

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