EFFECTIVE NON-PROFIT MANAGEMENT
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1 American Society for Public Administration Series in Public Administration and Public Policy Advancing excellence in public service.., EFFECTIVE NON-PROFIT MANAGEMENT Context, Concepts, and Competencies SHAMIMA AHMED ( r oc) CRC Press VV^ J Taylor & Francis Group ^ "~" Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Croup, an Informa business
2 Contents Preface Acknowledgments xv xvii 1 Introducing Non-Profit Organizations (NPOs) Non-Profits: The Essential Characteristics Different Categories of Non-Profits Growth of Non-Profits Scope and Significance of Non-Profits Significance of Non-Profits Economic Significance Service Provisions Innovation and Entrepreneurship Policy Making Providers of "Common Goods" Individualism and Plurality Social Mobilization and Advocacy Social Bonding Democracy Preservation Contemporary Issue: The Non-Profit Sector's Identity Crisis 16 Discussion Questions 20 Web Resources 21 End-of-Chapter Review of Terms 21 References 22 Endnotes 24 2 Essential Linkages Non-Profits, Government, and Business Shared Features among Non-Profit Organizations (NPOs), Government, and Business Organizations.'.: The "Publicness" of NPOs: Shared Characteristics with the Public Sector Look-Alike: Shared Characteristics with the Business Sector 29 VII
3 viii Contents 2.2 Cross-Sectoral Relationships Forms of NPO and Government Relationships Non-Profits as a Supplement to Government Non-Profits as a Complement to Government Non-Profits in a Collaborative Relationship with the Public Sector Non-Profits and Government in an Adversarial Relationship Forms of NPOs and Business Relationships Collaborative Relationship Continuum NPOs and For-Profits in an Adversarial Relationship NPOs and For-Profits' Engagement in Each Others' Areas of Operation Collaboration Challenges and Cross-Sectoral Learning Effective Linkages: Collaboration Essentials Cross-Sectoral Learning Contemporary Issue: The Faith-Based Initiative 49 Discussion Questions 57 Web Resources 57 End-of-Chapter Review of Terms 57 References 58 Endnotes 62 Non-Profit Laws and Regulations Tax Exemption and Non-Profit Organizations (NPOs) Types of 501 (c) NPOs Public Charities versus Private Foundations Creating an Incorporated Non-Profit Agency The Process of Incorporation Operating a Non-Profit Organization: The Essential Requirements Reporting Requirements Federal Requirements: Annual Financial Return Form (Form 990) State Requirements Public Document Unrelated Business Income Taxes Legal Restrictions ' Political Campaign Activities Limitations on Private Inurement Lobbying Rights and Restrictions The Sarbanes-Oxley Act (2002) Private Foundations 85
4 Contents ix 3.7 Contemporary Issue: Who Deserves Tax Exemption? 87 Discussion Questions 92 Web Resources 93 End-of-Chapter Review of Terms 93 References ^ 93 Endnotes 94 Non-Profit Governance Non-Profit Governance: Who Governs? The Traditional Approach The Shared Partnership The Situational Approach Boards of Non-Profit Organizations (NPOs) Roles and Responsibilities Legal Responsibilities Functional Responsibilities Board Recruitment, Selection, and Development Recruitment and Selection Board Size and Committees Development and Training Evaluations Ill Important Policy Documents Ill 4.3 Chief Executive Officer (CEO) Common Job Duties and Responsibilities Required Competencies of the CEO Key Leadership Roles Strategic Planning Promotion of Public Interest The Contemporary Notion of NPO Governance Contemporary Issue: Non-Profit Executive Leadership Challenges 122 Discussion Questions 127 Web Resources 127 End-of-Chapter Review of Terms 127 Appendix 4.1: An Example of a Sample Skill Inventory 128 References 129 Endnotes.'. 131 Human Resource Management in Non-Profit Organizations i Laws and Relevant Legal Issues Fair Labor Standards Act (FLSA), The Equal Pay Act (EPA), Civil Rights Act (CRA) of
5 Contents The Age Discrimination in Employment Act (ADEA), 1967 v The Americans with Disabilities Act (ADA), Sexual Harassment Family and Medical Leave Act (FMLA), Volunteer Management Volunteer Management Program Needs Assessment Organizational Preparation for Volunteers Budget.' Written Job Descriptions Recruitment, Selection, Orientation, and Training Retention Formal Policies Volunteer Handbook or Manual Evaluation Risk Management Volunteer Motivation Altruism as a Motivator Instrumental Theory Reinforcement Theory Maslow's Need Hierarchy McClelland's Needs Theory Current Issue: NPO Executive Compensation 152 Discussion Questions 158 Web Resources 158 End-of-Chapter Review of Terms 159 Appendix 5.1: Ideas for Volunteer Recognition 159 References 160 Endnotes 161 Resource Acquisition and Management Non-Profit Organization (NPO) Revenue Sources Fundraising Government Regulations Financial Management { NPO Financial Reporting and Accounting Uniqueness Basic Financial Statements of an NPO Statement of Financial Position Statement of Activity Statement of Cash Flows 181
6 Contents xi 6.4 Financial Leadership Issue: Perils of Government Dependency The Recent Funding Issue with Planned Parenthood 186 Discussion Questions 189 Web Resources 189 End-of-Chapter Review of Terms 190 Appendix 6.1: Code of Ethical Principles, American Fundraising Professionals 191 References 192 Endnotes 193 Non-Profit Organizations and Information Technology Why Information Technology (IT)? v Information Technology and Strategy IT Uses and Applications Online Presentations and Meetings Posting Digital Signs Using RSS (Really Simple Syndication) Text Messaging Cell Phones and iphones Podcasting Blogging Hyperlinks Internet Interactive Functions Twitter YouTube Social Networking Sites Microsites Specific Uses of IT Online Fundraising Recruitment and Management Marketing Disseminating, Affecting, and Monitoring Public Policy Issues Issue Digital Divide in the Non-Profit Sector 211 Discussion Question.'. 214 Web Resources 214 End-of-Chapter Review of Terms 215 References 215 Endnotes 216
7 xii Contents 8 Non-Profit Marketing Non-Profit Marketing Difference between For-Profit and Non-Profit Organization (NPO) Marketing Reasons for Marketing The Strategic Marketing Process Organizational Readiness Market Research Strategic Marketing Plan Marketing Mix Branding Effective Communication Using Social Media in Marketing Issue: Will Marketing Put the Civil Society at Risk? 231 Discussion Questions 235 Web Resources on NPO Marketing 236 End-of-Chapter Review of Terms 236 References Nongovernmental Organizations (NGOs) International Dimension Defining Nongovernmental Organizations (NGOs) Scope and Growth Differences across Countries Formation and Legal Structure Political Activity International Non-Governmental Organization (INGO) Structure and Organization Doctors Without Borders Amnesty International Transparency International NGO Roles Relief Social and Economic Development Political Issues Strategy Accountability, Legitimacy 262 Discussion Questions 265 Web Resources 266 End-of-Chapter Review of Terms 266 References 266 Endnotes 268
8 Contents xiii 10 Non-Profit Effectiveness and Accountability NPO Accountability: Scope and Challenges Accountability to Whom, for What and How? NPO Effectiveness Challenges of Measuring NPO Effectiveness Measurement Methods and Approaches Goal Approach System Approach Multi-Constituency Approach Multidimensional Approach Outcome Assessment Charity Rating Agencies and Watchdogs Issue: Measuring NPOs' Impact on Society 286 Discussion Questions 290 Web Resources 290 End-of-Chapter Review of Terms 290 Appendix 10.1: Common Outcome Framework for Health and Human Services 291 References 292 Endnotes In Conclusion Social: Demographic Changes Economic: Financial Distress or Recession Professional: Increasing Need and Opportunities for Professionalism Changing Nature of Non-Profit Leadership A Unique Style of Leadership '. 300 References 301 The Author 303 Index 305
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