Int. J. Society Systems Science, Vol. 1, No. 4, 2009 307 Copyright © 2009 Inderscience Enterprises Ltd. Non-profit and for profit convergence: are non-profits increasingly adopting private sector practices? Andres Ramirez* Bryant University, 1150 Douglas Pike, Smithfield RI 02917, USA E-mail: aramirez@bryant.edu *Corresponding author Kelly Janiga Ross School of Business, University of Michigan, 724 E. University, Wyly Hall Ann Arbor, MI 48103, USA E-mail: janigak@umich.edu Abstract: The role of the non-profit has traditionally been thought to create social value, while for-profit organisations have been held responsible for economic value creation. However, we now see this dichotomy blurring and organisations marrying social interest and market mechanisms to create both social and economic value (Alter, 2006). In this paper, we examine whether some of the strategic decisions and actions made by non-profits are converging with those being made by for-profits, particularly with regard to four important strategy issues: money, management, mission maximisation and metrics, which we frame as the four Ms. We hypothesise that if the convergence is occurring, non-profits would, overtime, be making decisions and implementing subsequent actions increasingly similar to those being made in the for-profit sector. Through the use of a literature review and empirical evidence we show that non-profit decisions and actions are, in fact, becoming increasingly similar to those of for-profit organisations. Keywords: convergence of sectors; non-profit sector; social enterprise; financial leverage; financial management; social innovation; endowments. Reference to this paper should be made as follows: Ramirez, A. and Janiga, K. (2009) ‘Non-profit and for profit convergence: are non-profits increasingly adopting private sector practices?’, Int. J. Society Systems Science, Vol. 1, No. 4, pp.307–324. Biographical notes: Andres Ramirez is Assistant Professor of Finance at Bryant University, where he teaches International Finance and Business in Latin America classes. He obtained his PhD in International Finance at the University of South Carolina. His research deals with the impact of sociological factors on corporate financial decisions as well as non-profit financial management and planning. A native of Chile, he pursued a career as a treasurer, controller and ERP manager before joining the academe. As a member of a Chilean multinational firm, he worked with subsidiaries in Argentina, Venezuela, Brazil and Mexico.