The purpose of this paper is to explain the generally accepted functional responsibilities of the nonprofit board of directors. Specifically, it will provide an overview of three guiding theories for these governing bodies as presented in the article, “Understanding the Behavior of Nonprofit Boards of Directors: A Theory-Based Approach.” Next, the paper will identify biblical principles that further clarify the functions and theories. Finally, conclusions will be presented for understanding the function and applying the theories.
Functional Responsibilities of the Nonprofit Board of Directors Nonprofit boards of directors are governed by federal and state law, with the primary standards originating in Internal Revenue Service (IRS) policy
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As open systems, nonprofit organizations are dependent on the external environment; and those that are most dependent on external resources are most vulnerable to goal displacement (Worth, 2017) and lack of vital organizational resources (Malatesta & Smith, 2014). Hence, the boards are charged with reducing the risk of decreased resources and increasing opportunity risk through strategic partnerships (Miller-Millesen, 2003). Thus, they should develop relationships that enable agility, protect information while sharing appropriate information, and increase resource flow while decreasing dependencies (Miller-Millesen, 2003). Finally, in application, according to this theory a board might add specific members to affect resource dependency and expand connections between the organization and its environment (Miller-Millesen, …show more content…
Specifically, institutional isomorphism, where like organizations become similar in culture and practices, results due to three types of pressures (Dolnicar, Irvine, & Lazarevski, 2008). These pressures include: coercive, resulting from regulatory requirements; mimetic, or replicating the culture or practices of successful organizations; and normative processes, or pressure to become more business-like to increase legitimacy (Miller-Millesen, 2003). In fact, Miller-Millesen (2003) noted that those in a given category that do not conform often lose influence to gain resources and may fail (Miller-Millesen, 2003). In practice, a board may change in make up to align better with like organizations or emerging mandates to ensure resource stability (Miller-Millesen,
Worth, M. (2014). Nonprofit management: Principles and Practice. 3rd Ed. Thousand Oaks, CA: SAGE Publications, Inc.
The nonprofit sector in America is a reflection some of the foundational values that brought our nation into existence. Fundamentals, such as the idea that people can govern themselves and the belief that people should have the opportunity to make a difference by joining a like-minded group, have made America and its nonprofit sector what it is today. The American "civil society" is one that has been produced through generations of experiments with government policy, nonprofit organizations, private partnerships, and individuals who have asserted ideas and values. The future of the nonprofit sector will continue to be experimental in many ways. However, the increase of professional studies in nonprofit management and the greater expectation of its role in society is causing executives to look to more scientific methods of management.
Along such time, the budget has grown over $2000,000, fact that paradoxically left Youth Haven with a deficit of$20,000. Marcel is in the process to upgrade her mindset of for-profit sector molded to the nonprofit sector environment. In addition, an executive director must consider some other factor, even when a nonprofit departs from the way any for-profit business is. In the textbook, Nonprofit Management Principles and Practices, Worth pointed out, “nonprofit managers are confronted with sorting through an array of options and selecting the measures and methods that meet both their own need for useful management information as well as the expectations of funders, watchdogs, and regulators.” (Wroth, P. 161). It is important to understand that administrators of non profits not only have to handle the management side of things but also to make sure that whatever service they are providing to the community is still running
Over the last 20 years, there has been a significant increase in nonprofit and nongovernment organizations (NGOs) in the United States. With the increase in organizations, also came an increase in scandals and in the 1990’s multiple nonprofit and nongovernment organizations lost the public’s trust due to misuse of funds, lavish spending, and improper advances to protected populations. These charity scandals not only hurt direct organization’s reputation, but also led to the mistrust of nonprofit and nongovernmental organizations as a whole (Sidel, 2005). To combat these reputations, NGOs and nonprofit organizations began to self-regulate through employing morally obligated and altruistic employees, accountability practices, and lastly through
Throughout Dan Pallotta’s TED Talk he argues that the discrimination against nonprofits is limiting their ability to change the world. He believes that nonprofits operate under one rule book, while for-profits operate under another. And the book for-profits are encouraged to operate under, allows them to attract the best talent, spend money to make money, take risks, pay dividends, and take their time returning profits to investors.
Nonprofit Organizations The purpose of this research is to define nonprofit organizations, describe opportunities that are present in nonprofits, outline advantages and disadvantages of working in the nonprofit sector, and explain how you can determine if this is an area for you to consider as a career. WHAT IS THE NONPROFIT SECTOR? "Nonprofit" is a term that the I.R.S. uses to define tax-exempt organizations whose money or "profit" must be used solely to further their charitable or educational mission, rather than distribute profits to owners or shareholders as in the for-profit sector. The term is also used to describe organizations which are not a branch of -- are independent of -- the government and the corporate sector. This term refers to one of the most important uniqueness of a nonprofit organization: it is independent of both the public or government sector and the private or corporate sector.
Meyer , J. W. , and Rowan , B. “ Institutionalized Organizations: Formal Structure as Myth
The biblical worldview is essentially the integration of fundamental biblical teachings to become a meaningful and unified response to the routine opportunities and challenges of modern life. An individual wholly inscribed into a biblical worldview projects a belief system that the core purpose of existence is to love and serve the Lord God alone. Essentially, a Christian worldview is formed in reference of the infallible living Word of God (Tackett, 2014). After a believer fully believes the living Word of God then allows it to form the basis of everything in their life. That implies, for instance, that when a believer chooses to pursue Romans 13 to respect people in authority then must take priority in voting and electing new leaders into power. A bible believing person should lead a life that portrays the biblical teachings and truths. As practical Christians our gut reaction should be limited to the biblical established truths (Wayne, 2014).
Nonprofit and for-profit businesses have multiple similarities and differences. For-profit organizations are very different from non-profit organizations because the driving goal of a for-profit organization is increasing its revenue whereas a non-profit organization will not go out of business if it suffers financial loss or does not have a bottom-line. The marketing process also differs, with the biggest differentiating factor of profit marketing is to encourage customers to buy and while the nonprofit marketing purpose is usually to encourage people to give. This means that the return on investment differs between the two. Although the principles of marketing remain the same, some of the methods must, of necessity, be different. Because of the intense involvement in the community as well as support from government, agencies non-profit firms should not compete in the same markets as for profit companies nor in anyway position their organization in any way to give the impression that their efforts could be commercial based (Nelson, 2002).
Worth, Michael J. Nonprofit Management: Principles and Practice. 3rd Ed. Copyright 2014 by SAGE Publications, Inc.
Throughout this course my paradigms of what a nonprofit organization have been challenged as we have considered the major aspects and leadership challenges of these organizations. Having worked with for profit and nonprofit organizations in the past I was quite confident that I had a clear understanding of the distinctions between the two. I had worked in organizations that regularly used volunteers to accomplish their mission and felt that the management of these processes were simplistic. Despite these misconceptions, I found that I was able to learn a tremendous amount through our reading, peer interactions, group projects and equally important, my volunteer service as part of this course.
With the rise of natural disasters, disease awareness, and social injustices, businesses that raise money to fight these evils have become very prevalent in our society. These are called Non-Profit Organizations (NPOs), and they get a special title because all their funds are charitable, therefore giving them an exemption from having to pay taxes on all the money they acquire. A few general qualifications of a NPO is the obligation to benefit the public, and the cycle of any surplus funds back into the organization. With only a few broad rules in place for NPOs, corruption is rampant in these businesses. This is an injustice to the community it serves, and the donors who are scammed into giving their money to a misleading cause.
Media and politics, seems like a pretty scary combination. When it comes to elections (especially presidential elections) media news outlets will usually be all over it trying to get the scoop on the views of the people running and what their beliefs are. The media outlets can be pretty reliable in spreading the news and making sure people are aware of what’s going on I mean look what happened when the Watergate scandal came into public eyes. As soon as something going wrong with politics you know that the media will have your back in keeping you in the light instead of those politicians who always keep you in the dark. Politicians have had this thing that they show us one side of them, the “good” side of them.
... “The Nonprofit Sector: For What and for Whom?” Working Papers of the Johns Hopkins Comparative Nonprofit Sector Project, no. 37. Baltimore: The Johns Hopkins Center for Civil Society Studies, 2000
Throughout U.S. history the nonprofit and government sectors have addressed needs that are not being met by the marketplace through the provision of a variety of social goods and services ranging from health and human services to environmental conservation. In response to increased demand for these services, the number of nonprofits has grown by 59% over the past 20 years (Powell and Steinberg, 2006; NCCS, 2010). There are now over 1.5 million nonprofit organizations in the U.S. which account for 5 percent of GDP, 8.1 percent of the economy’s wages, and 9.7 percent of jobs (Wing, 2008). Over the same time period, government social programs also rapidly expanded in number and per capita cost (OCED, 2010) .