Business Policy of Non Profit Organizations- Case of Akhuwat; Empowering Society through Interest Free Loans

Abstract

The foremost motivation behind this study was the fact that most non-profit organizations operating in Pakistan lack a definite business policy, to follow. This not only results in the organization suffering financially, but also leads to organizational ineptitudes and many operational flaws, effecting the organization, at large. The study uses the case example of the organization, Akhuwat, which operates as one of the premier non profit organizations, operating with the purposes of poverty alleviation through interest free microfinance and provision of basic services such as education and healthcare. Akhuwat operates on its unique model, throughout the country and has helped more than one million families by disbursing loans of almost PKR 2 billion. Moreover, a comparative analysis between Akhuwat and other major microfinance organizations, confirms the presence of several parallels but shows that the Akhuwat Model is unique and one of its kind. The study examines the financial and operational procedures of the organization in detail and dissects the deficiencies in them. Furthermore, it presents a thorough analysis, both SWOT and PEST, to understand the changes that may be required, and the possible improvements that those may bring to the organization.