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Chap 1 - Management of Nonprofit Organizations - An Overview
Chap 1 - Management of Nonprofit Organizations - An Overview
Chap 1 - Management of Nonprofit Organizations - An Overview
Management of nonprofit
organizations – an overview
Karabi C. Bezboruah and Heather L.
Carpenter
THEORETICAL BACKGROUND
Table 1.1 Comparative global perspectives (NACC guideline 1.0) and scope and significance of the nonprofit sector
(NACC guideline 2.0)
Graduate Undergraduate
1.1 Relationship of global social, economic and political trends on the role, 1.1 Structure – both formal and informal, individual and collective – of civil
function and impact of voluntary action, civil society, the nonprofit society and philanthropy across cultures and global contexts.
sector and philanthropy.
1.2 Theoretical frameworks for societal value and socioeconomic dynamics 1.2 How individual philanthropy, voluntary behavior and volunteerism is
in philanthropy and volunteering in a global context. expressed in different cultural and global contexts.
1.3 How individual philanthropy, voluntary action and volunteerism is 1.3 Role of civil society, voluntary action and nonprofit/nongovernmental
expressed in different cultural and global contexts. organizations in social movements and social change.
1.4 Structure and regulation of philanthropic and voluntary behavior within 1.4 Role of various religious traditions in shaping civil society and
different political contexts, including formal, informal and alternative philanthropy.
associational forms.
1.5 Role of various religious and cultural traditions in shaping philanthropy -
and voluntary behavior.
Teaching nonprofit management
2.1 Evolving role and function of philanthropic, nonprofit, voluntary and 2.1 Size, impact and trends in philanthropy, nongovernmental organizations
civil society organizations in relation to other sectors including the and associational development in a global context.
emergence of new forms of social enterprise.
2.2 Size, impact of, and global/cultural contextual influences on 2.2 Diversity of forms of philanthropic action and the diversity of fields of
philanthropy, voluntarism and the nonprofit/nongovernmental sector. activity.
2.3 Diversity of types, forms and language that is used to describe voluntary 2.3 Relationship and dynamics among the governmental, nonprofit, for-profit
action within society. and household sectors and evolving forms of social sector forms.
nonprofit/nongovernmental forms.
3
of welfare service organizations, this project found that the nonprofit sector
had a considerable economic impact on each country. In 2013, Salamon and
colleagues found that the nonprofit sector is a major employer overall, with
variations among countries, thus maintaining a significant economic clout.
More recently, Salamon et al. (2017) argue that the social origins theory
can best be used to compare variations in civil society across countries. Social
origins theory explains that civil society across countries varies due to the
various power relations among groups of individuals and institutions within
each country (Salamon et al., 2017). Salamon and his colleagues developed
a framework called the structural operational definition of the nonprofit sector,
which includes five dimensions: (1) Organized; (2) Private; (3) Self-governing;
(4) Nonprofit distributing; and (5) Non-compulsory (Salamon and Anheier,
1997; Salamon et al., 2004; 2017).
Casey (2016), who also studies civil societies in various countries, puts
forth the cultural frames concept that identifies the nonprofits sector based on
collective data corresponding to economic, political, and social regimes. This
frame or template reflects the patterns of development within the nonprofit
sector across countries as a response to the change in the relationships between
public and private sectors as well as philanthropy. The template is based on
the following: “the relative dominance of the state versus civil society and …
the level of economic development of the country” (Casey, 2016, p. 204). The
frames are liberal, corporatist, social democratic, emerging, developing, and
authoritarian (see Casey, 2016 for a detailed discussion).
In addition to comparison studies of civil societies across countries, more
recent studies of the nonprofit sector education opportunities in various coun-
tries have been covered in several issues in the Journal of Nonprofit Education
and Leadership (Mirabella et al., 2019; Mirabella and Hvenmark, 2015).
Moreover, there have been studies that focus on various nonprofit and philan-
thropic topics within countries. For example: Corporate Philanthropy in China,
or Volunteering in Malawi, in which many peer-reviewed articles are pub-
lished in the International Journal of Voluntary and Nonprofit Organizations
(Voluntas). Finally, this chapter cannot begin to cover the various perspectives
and studies about nonprofit management, voluntary action, and philanthropy
from various cultural, religious, and social lenses, which scholars have access
to through many nonprofit management textbooks and journals. The authors
provide a list of these books and journals in Appendix 1.A that nonprofit man-
agement education educators can use.
The size and scope of the nonprofit sector has also increased significantly
since the Revenue Act of 1954 which established modern-day 501c nonprofit
organizations. Most of the studies of the size and scope of the nonprofit sector
in the United States have focused on the number of nonprofits and types of
nonprofits. The annual data provided by the National Center for Charitable
Statistics and more specifically the annual Nonprofit Sector in a Brief states
that “Approximately 1.56 million nonprofits were registered with the Internal
Revenue Service (IRS) in 2015, an increase of 10.4 percent from 2005”
(McKeever, 2018).
With more than 30 types of nonprofit organizations, people are most famil-
iar with the 501c3 organizations, also known as public charities. There are ten
sub-sectors within the nonprofit sector, these sub-sectors include:
Healthcare and Education are the largest sub-sectors. The majority of public
charities report less than $500 000 in expenses; 501c3 nonprofits reported
$1.84 trillion in expenses and nearly $3.67 trillion in total assets for 2015
(McKeever, 2018). Nonprofit Workers comprise 10 percent of the USA work-
force. Nonprofit employment is scattered across a wide variety of fields, from
information and scientific services to religion and civic affairs. The bulk of this
employment, however, is in human services, and within that broad category, in
health services (Salamon and Newhouse, 2019).
Although the US nonprofit sector size and scope have been defined and
described, there has been more emergent research explaining the scope of the
nonprofit sector. Casey (2016) attributes it to a multitude of factors: “bottom-up
growth in social action, activism, and civic participation,” “top-down develop-
mental policies by governments that see nonprofits as instruments for achieving
their own objectives, by the for-profit business sector seeking to demonstrate
its adherence to corporate social responsibilities, and by the growing nonprofit
sector that seeks to perpetuate and expand its activities” (Casey, 2016, p. 188).
The growth within this sector is also an output of the changing needs of the
society and their diminishing reliance on the governmental sector that tradi-
tionally provided for the welfare of the people.
There are many theories used to compare the nonprofit sector to the other
two sectors (public and for-profit) as well as there are theories to describe
how nonprofits operate. Educators typically pick and choose which theories
to use based on their academic discipline. Many of these theories are included
throughout this book. The theories explain why nonprofits exist in society as
well as the challenges and opportunities of running “for the public good”.
The depth and breadth of NACC guidelines 1.0 and 2.0 are vast. There are
many directions in which educators can go in teaching an overview of non-
profit organizations, voluntary actions, philanthropy and civil society. An
introductory nonprofit management and/or philanthropic studies course intro-
duces students to the role and purpose of civil society and the nonprofit sector
and the various theories that explain the sector. The introductory course also
explains the interdisciplinary nature of the nonprofit and philanthropic sector,
which is influenced by sociology, economics, political science, public policy,
and other various social science disciplines.
There have been a variety of nonprofit management textbooks published in
the past ten to fifteen years, which are listed in Appendix 1.A. (This list is not
meant to be comprehensive but provides examples that instructors can use in
teaching about the nonprofit and philanthropic sector and nonprofit manage-
ment in general.)
In teaching about NACC guideline 1.0, the comparisons of civil society
across country borders, it is helpful to have robust discussion questions pre-
pared so students can explain and understand the complexity of civil society
perspectives. Sample teaching activities and discussion questions are provided
below:
1. Pick two countries that are described in Salamon et al. (2017), Casey
(2016), and Mirabella et al. (2019), and any other scholarly articles that are
found that describe civil society in those countries.
a. What are the similarities in descriptions?
b. What are the differences in the descriptions?
2. Identify three nonprofits (or NGOs) that are incorporated in three different
countries.
In teaching about NACC guideline 2.0, there are a variety of exercises included
in most textbooks. Here are a few examples:
1. Provide a list of organizations and ask students to check the ones that are
501c3 public charities. Then discuss why the ones on the list are public
charities. (Adapted from Golensky, 2015.)
2. Describe the attributes or key features of each sector within the United
States or another country. What are the positives and what are the
challenges?
3. Compare and contrast the features of a for-profit, nonprofit and
government-run healthcare organization.
4. Read “6 easy ways to make your nonprofit more transparent” (Fritz, 2019).
Pick a nonprofit and go through the list; does it have all of the characteris-
tics listed?
1. Pick two countries that are described in Salamon et al. (2017), Casey
(2016), and Mirabella et al. (2019) and any other scholarly articles that
are found that describe civil society in those countries.
a. What are the similarities in descriptions?
b. What are the differences in the descriptions?
2. Identify three nonprofits (or NGOs) that are incorporated in three dif-
ferent countries.
a. Use the Structural-Operational Definition of the Nonprofit
Sector framework to compare these three nonprofit organizations
(Salamon and Anheier, 1997; Salamon et al., 2004).
3. Provide multiple articles about civil society and national perspectives
of civil societies within various countries throughout the world.
4. Pick a religious or cultural tradition in your country. Conduct an
internet search and discuss how nonprofit organizations (or NGOs, or
voluntary associations) have played a role in either establishing those
traditions or maintaining the tradition.
5. Provide a list of organizations and ask students to check the ones that
are 501c3 public charities. Then discuss why the ones on the list are
public charities. (Adapted from Golensky, 2015.).
6. Describe the attributes or key features of each sector within the
United States or another country. What are the positives, what are the
challenges?
7. Compare and contrast the features of a for-profit, nonprofit and
government-run healthcare organization.
8. Read “6 easy ways to make your nonprofit more transparent” (Fritz,
2019). Pick a nonprofit and go through the list; does it have all of the
characteristics listed?
REFERENCES
Casey, J. (2016). Comparing nonprofit sectors around the world: What do we know and
how do we know it? Journal of Nonprofit Education and Leadership, 6 (3), 187–223.
Fritz, J. (2019). 6 easy ways to make your nonprofit more transparent. Accessed 30
June 2019 at https://www.thebalancesmb.com/ways-to-make-your-nonprofit-more
-transparent-2502303.
Golensky, M. (2015). Strategic Leadership and Management in Nonprofit
Organizations: Theory and Practice. Chicago, IL: Lyceum Books.
APPENDIX 1.A
Textbooks
In addition, there are several books that are helpful in providing context in
teaching nonprofit management and the voluntary sector.
-2018#the-nonprofit-sector-in-brief-2018-public-charites-giving-and
-volunteering;
• Guidestar by Candid https://www.guidestar.org/;
• Foundation Center https://foundationcenter.org/;
• National Council of Nonprofits https://www.councilofnonprofits.org/
(Lists all the state associations);
• Independent Sector https://independentsector.org/;
• Council on Foundations https://www.cof.org/;
• Grantmakers for Effective Organizations https://www.geofunders.org/;
• Foundation Center by Candid https://foundationcenter.org/;
• Idealist https://www.idealist.org/en/?searchMode=true&searchType=MAI
N_SEARCH&type=JOB;
• Nonprofit Speak 101 https://idealistcareers.org/nonprofit-speak-101/.
Nonprofit Networking
• Upswell https://upswell.org/;
• State Association Conferences https://www.councilofnonprofits.org/;
• Association for Research on Nonprofit Organizations and Voluntary
Action https://www.arnova.org/;
• International Society for Third Sector Research https://www.istr.org/;
• Busse, M. (2008). The Idealist Guide to Nonprofit Careers for First Time
Job Seekers. 249 pp. Hundreds of Heads Books. Idealist;
• Cryer, S. (2008). The Nonprofit Career Guide: How to Land a Job That
Makes a Difference. American Humanics;
• Gassner Otting, L. (2007). Change Your Career: Transitioning to the
Nonprofit Sector. 270 pp. Kaplan;
• Harris, T. and Thurman, R. (2011). How to Become a Nonprofit Rockstar:
50 Ways to Accelerate Your Career. Nonprofit Rockstar Publishing;
• Joiner, S. and Busse, M. (2008). The Idealist Guide to Nonprofit Careers
for Sector Switchers. 249 pp. Hundreds of Heads Books;
• Lowell, S. (2000). The Harvard Business School Guide to Careers in the
Nonprofit Sector. Harvard University Press;
• Wilson, A., Barham, A. and Hammock, J. (2008). Practical Idealists:
Changing the World and Getting Paid (Studies in Global Equity). Publisher
unknown.
APPENDIX 1.B
• A Board Manual;
• Marketing Plan;
• Social Media Plan;
• Employee Training and Development Plan;
• Fundraising Plan;
• Financial Management Policies;
• Volunteer Recruitment and Management Plan;
• Advocacy Materials.
• Should be a 15+ page double-spaced report, not including the appendix and
include the following components:
• Executive summary
• Table of Contents
• Background
• Methodology
• Findings
• Implications that inform the implementation plan
• Conclusion
• References
• Appendix
• Interview and/or survey questions.
• You will also conduct a 12-minute presentation to the class about all the
steps you took in the consulting project. This presentation will not include
the results of the client assessment (e.g., one slide on proposal, two slides
data gathered, three slides implementation plan, one side conclusion/next
steps).
Consent Letter
Date
TO:____________________________(organization contact person)
________________________________(organization)
________________________________(phone # & email address for contact)
[Consent letter adapted from Institute for Nonprofit Education and Leadership
at the University of San Diego]
The student will complete a consulting plan project of your choosing. This
entails completing a project proposal that outlines the expectations and time-
line of the project, collecting data (through structured interviews or a survey)
and then submitting a data report. After the data is collected, the student will
provide recommendations and an implementation plan. In return, the student
will request you to evaluate the quality of their work.
Totals
that he/she can successfully carry out the assigned tasks and complete his/her
applied-learning project.
Signed,
_______________________
Organizational Representative
_____________Organization.