Nonprofit Organizations

526 Words2 Pages

The hierarchy within nonprofit organizations may vary according to the organizations size, type of service they provide, and industry. The board of directors, CEO, and executive director all work together to meet the strategic objectives and the mission of nonprofit organizations. In the following paper, it will briefly examine the board of directors, CEO, and executive director’s role within nonprofit organizations. It is important to develop and maintain internal controls inside nonprofit organizations because they assist in maintaining ethical standards. According to the National Council of Nonprofits (NCN) internal controls are financial management practices which are systematically used to prevent misuse and misappropriation of assets …show more content…

They may accomplish this by thoroughly evaluating the organizations balance sheet, ensuring the organization is following all federal and state laws, managing financial risk, and communicating financial transparency. For example, if there is an oversight by state or federal regulators the board have a responsibility to report or correct any misinformation. One of the ways financial transparency for the organization may be communicated is by making financial statements accessible to the public. The financial risk of the nonprofit may be managed by evaluating the profitability, liquidity, days receivables, cash flow, and operating managing. The financial risk may be examined annually, throughout the fiscal year or semi-annually. The board of directors and executive director would work together to ensure the organization is meeting their financial objectives to efficiently maintain operations and meet the organizations mission. Nonprofit leadership should also have an accountability measure of their performance which many be done in the form of an assessment. The board members should conduct a formal written assessment of the CEO/Executive director each fiscal year to provide feedback on strengths and weaknesses. Also, the board should complete a self-assessment of their performance to assist with ensuring they are meeting the organizations needs from a leadership

Show More
Related

  • Internal Control Case Study: Raven's Head Ranch

    760 Words  | 2 Pages

    Internal controls is defined as a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance

    Read More

  • Discussion Board Forum 1

    660 Words  | 2 Pages

    Worth, M. (2014). Nonprofit management: Principles and Practice. 3rd Ed. Thousand Oaks, CA: SAGE Publications, Inc.

    Read More

  • The History of Nonprofit Organizations in America

    1378 Words  | 3 Pages

    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.

    Read More

  • Nonprofit Case Study

    1368 Words  | 3 Pages

    For example, since they are not organized to pursue profits, nonprofits are more worthy of trust and therefore more reliable. Moreover, nonprofit comprise vast and growing sector of the national economy, and they are a vital partner with government to provide a wide range of social and human services. The American public will continue to value and support the nonprofit sector as long as it satisfies recognized needs not addressed by government or the for-profit sector. During the years, nonprofits sector provided historically valued services that public and private sectors failed to provide, and promoted new ideas, theories and policies to society. And finally, effective and appropriate use of technology is critical to maintaining a nonprofit organization 's accountability and relevance. A nonprofit should manage information with regard for confidentiality, safety, accuracy, integrity, reliability, cost-effectiveness, and legal compliance. A nonprofit should take the opportunity in incorporating the appropriate technology into its work to improve its efficiency, efficacy, and accuracy in the achievement of its

    Read More

  • Youth Haven Case Study

    974 Words  | 2 Pages

    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

    Read More

  • The National Trust Organization

    845 Words  | 2 Pages

    The national trust was founded in 1895. It protects over 350 historic houses, gardens and ancient monuments. This organisation is a charity which does not rely funds from government but depends on membership fees and donations from members.

    Read More

  • The Role Of Ethics In Nonprofit And Non-Profit Organizations

    1352 Words  | 3 Pages

    Although codes of ethics encourage better practice, higher standards, and attempt to hold NGOs and nonprofit organizations accountable, they do not include incentives or consequences (Sidel, 2005). However, they do include suggestions and most importantly resources. For example, the National Council of Nonprofits, Ethical Fundraising includes resources for how to handle gifts appropriately, suggestions for transparency, how to decline conditional gifts appropriately, and more. Since one of the largest issues in NGOs and nonprofit organizations includes funding and expenditures, finances are the main focus for codes of ethics. Therefore, one of the key tools for gaining trust and accountability in NGOs and nonprofit organizations is be transparency. The National Council of Nonprofits

    Read More

  • Analysis Of Dan Pallotta's TED Talk

    816 Words  | 2 Pages

    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.

    Read More

  • Non Profit Organizations

    2412 Words  | 5 Pages

    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.

    Read More

  • Nonprofit Analysis Project

    785 Words  | 2 Pages

    Worth, M. (2014). Nonprofit management: Principles and Practice. 3rd Ed. Thousand Oaks, CA: SAGE Publications, Inc.

    Read More

  • Transformational Leadership

    1366 Words  | 3 Pages

    Worth, Michael J. Nonprofit Management: Principles and Practice. 3rd Ed. Copyright 2014 by SAGE Publications, Inc.

    Read More

  • My Reflection Of Working With For Profit And Nonprofit Organizations

    771 Words  | 2 Pages

    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.

    Read More

  • Charity Water Nonprofit Organization

    551 Words  | 2 Pages

    charity: water is a nonprofit organization that brings clean and safe water to developing nations. Founder Scott Harrison discovered that 42% of people do not trust charities. Which led to charity: water’s commitment to a trustworthy, transparent fundraising and project accountability model. One hundred percent of public donations directly support clean and safe water. In 2016, $23.9 million in donations funded 3,100 new clean water projects and the installation of remote sensors to monitor wells. A separate group of donors called “The Well” provide finances for all operational costs. In 2016, $10.7 million was raised to fund events, travel expenses, staff salaries, credit card charges, rent and utilities, office equipment, professional fees, and marketing.

    Read More

  • Social Innovation and Organisational Form

    2786 Words  | 6 Pages

    ... “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

    Read More

  • The Charity Organization Society

    2233 Words  | 5 Pages

    The Charity Organization Society was based in the scientific movement of organizations. Workers believed that charity work needed more definition and organization and that charity should be focused more on individual need rather than as a whole population. Focusing on individual need was intended to improve relief operations while making resources more efficient. They also intended to eliminate public outdoor relief. With the promotion of more organization and efficiency the new Charity Organization Societies were born. Trattner states that these new requirements for organization and efficiency spread so “rapidly that within 6 years 25 cities had such organizations and by the turn of the century there were some 138 of them in existence” (Trattner, 1999).

    Read More

More about Nonprofit Organizations

Open Document