...in sum, course contents: learning objectives have an educational and training component 1. educational component: getting an understanding of the nonprofit sector, its history and present status in the economy, society, and politics 2. training component: involves management issues how to create a well managed npo = WHY DO WE HAVE A THIRD SECTOR? SECTOR ANALYSIS Providers A B C D Types of Goods or Public Sector For-profit Household/ Nonprofit Services Provided Sector Family Sector 1. national defense 2. food 3. housing 4. national parks 5. state parks 6. health care = WHY DO WE HAVE NONPROFITS? - economic explanations/sector analysis o each of the four sectors has certain strengths and constraints in delivering goods and services 1. public sector strengths: * power of taxation, i.e. can compel us to pay in the form of taxes, * provider of public, common, or collective goods * public goods are services from which nobody can be excluded, e.g. national defense * no free-rider problem by coercing payment through taxes * provider of individual, but necessary services for which recipients cannot pay, e.g. K-12 education, some housing, food, medical care * service ethic, promotion of public interest, preservation of human dignity * lack of profit motive limits: * government spending limited by opposition from...
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...Financial Disclosure Management by Nonprofit Organizations1 Ranjani Krishnan, Michelle H. Yetman, Robert J. Yetman* Eli Broad College of Business, Michigan State University, East Lansing, MI 48824. Tippie College of Business, The University of Iowa, Iowa City, IA 52240 ______________________________________________________________________________ Abstract This paper examines how nonprofit organizations respond to incentives to manage their publicly available financial information. Prior research identifies two operating ratios donors commonly use to evaluate the efficiency and effectiveness of nonprofits (i.e., the program service ratio, defined as the fraction of total expenses committed to advancing the charitable mission of the organization, and the fundraising ratio, defined as the ratio of fundraising expenses to donations revenue). Nonprofit managers have an incentive to over-report the expenses classified as program services and under-report the expenses classified as administrative and fundraising in order to improve these ratios. We examine whether nonprofits respond to these incentives, and we find evidence consistent with opportunistic cost shifting to improve the program service and fundraising ratios. Additional analysis finds that smaller nonprofits that are more reliant on donations revenue manipulate their operating ratios to a greater extent. JEL classification: M4; L3 Key words: Nonprofit organizations, earnings management, disclosure, hospitals. __...
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...Anymore! The economic downturn in the United States has been intensifying every month since September 2008, and it is having significant impacts on numerous nonprofit organizations (NPOs). It is now clear that this financial crisis is more severe than anything we have experienced in over 50 years; it is affecting every sector of the economy. Managers of NPOs are facing numerous obstacles while having to face an increase in the vital services they provide to the public. The most critical issue is the lack of funding. The effects of the economic recession are spurring NPO leaders and their funders to create and apply innovative fundraising projects, collaborate together and to deeply analyze federal packages and plans for support. Although raising funds in today's tight economy is a challenge, some nonprofits are doing better than others. Organizations that are doing well have numerous amounts of revenue sources and many ways for donors to give, they spend more time and personal effort in building relationships with their donors, have refocused on the importance of developing staff, resources, and programs, and are simply looking to do more, not less (Borning, 2010). NPOs have suffered from the downturn in 2008 and 2009 but the fact is even tougher financial times have come since then for many nonprofit organizations, especially larger organizations that rely heavily on government grants and contracts (Kerr, 2010). Fifteen regional NPO agencies were surveyed...
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...directed teams, which include members from several functional areas creating less boundaries” (Daft, 2010, p.31). In a learning organization there are different departments and the roles within the department can continually change. Information within a learning organization provides communication with staff as well as the population it is serving. A learning organization promotes change, improvement, involvement, and awareness. Chapter 1: What are some differences that one might anticipate among the expectations of stakeholder for a nonprofit organization versus a for-profit business? Do you believe nonprofit managers have to pay more attention to stakeholders than business managers? The most fundamental difference between a for- profits versus a nonprofit organization is the reason they operate the way they do. For-profit organizations are usually founded to generate income. Nonprofit organizations serve...
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...INTRUDUCTION We have a good number of various types of disabled people in our society. If they are properly trained, they can substantially contribute instead of becoming burden to others. In developed and developing countries, Government takes the responsibility for training and rehabilitating these people. In Bangladesh, our Government has also taken many measures of this kind but those are not enough. To multiply the effort, like many other countries, there are some organizations established and run by the parents and guardians of disabled people. Autism is a kind of disability usually identified in children at the age between 18 months to 3 years. The affected children suffer from mainly 3 difficulties. These are: Verbal or non verbal communication, Impaired social inter-action and limited activities/interest with rigidity in thinking and repetitive behaviour. These children may improve and live a close to normal life if appropriate intervention and proper training is imparted in time. Though we have many organizations in Bangladesh working with various fields of disability but there is hardly any quality institute developed exclusively for the autistic children. The problem further aggravated with the unavailability of any training centre to train trainers or teachers to work with autistic children. Similarly, there is no facility available for the training or motivation of parents or caregivers of autistic children. We neither have any centre for caring a child for the...
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...purpose, helps integrate perspectives from multiple stakeholders, and provides the steps to develop goals and objectives that will move the organization’s forward. (b) The specific issues would be various due to different standards and analysis techniques which applied to strategic planning. However, generally it is critical to cover these aspects as follows. Identifying the nonprofit organization's direction and mission. What’s the reason of the organizations exist? What do the organizations try to accomplish? How do the organizations to do to achieve their goals? What are the organization’s guiding principles? Evaluating the Internal and External Environment, Clarifying Critical Issues An assessment of internal environment Strengths and weaknesses An assessment of the external/market environment All organizations are under the operations with complex political, social and macroeconomic changes, so a sensible plan must reflect the assumptions that management people makes about the external environment under their study in various factors, such as economic and demographic trends, policy changes, technical updates, so that enable the management to find the challenges and opportunity nonprofit organization faced. Formulating the nonprofit organization's Strategy and Setting Long-term Objectives Strategy is the method used to achieve the mission of the organization, and these methods may be included in the organization's mission statement. Strategy planning...
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...Satisfaction The American Red Cross (ARC) is an emergency response organization dedicated to providing relief to the victims of some 70,000 disasters each year (American Red Cross, 2011). They also contribute to community services that help the needy and provide support and comfort for military members and their families. The American Red Cross collects, processes, and distributes blood and blood products. They offer compassionate services to educational programs that promote health and safety and international relief and development programs. Founded in 1881 by Clara Barton, the American Red Cross has become the nation’s premier emergency response organization (American Red Cross, 2011). Quality management and customer service are among the highest ranked aspects of the organization. This is apparent in the SWOTT analysis of the organization as well as in the mission and vision statements, and the American Red Cross’s strategic planning. The American Red Cross has more than half a million volunteers and 35,000 employees and they are dedicated to providing quality relief to victims while offering excellent customer service. SWOTT Analysis Strengths Weaknesses Opportunities Threats Trends Strategic Position The American Red Cross is a national brand that demands global attention due to its global humanitarian efforts. According to The American Red Cross website (2011) “The American Red Cross helps vulnerable people and communities around the world prepare for, respond to, and...
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...CAREERS IN MARKETING ★ ★ ★ ★ ★ INDUSTRY TRENDS AND RANKINGS POSITIONS AND RESPONSIBILITIES WORKPLACE CULTURE AND COMPENSATION THE RECRUITING PROCESS ★ INSIdER SCoop: FRoNT-LINE REpoRTS ★ GuIde Careers in Marketing 2008 EDITION InsIder Careers in Marketing WETFEET, INc. The Folger Building 101 Howard Street Suite 300 San Francisco, CA 94105 Phone: (415) 284-7900 or 1-800-926-4JOB Fax: (415) 284-7910 Website: www.wetfeet.com carEErs IN markETINg 2008 Edition ISBN: 978-1-58207-759-8 PhOTOcOPyINg Is PrOhIbITED Copyright 2008 WetFeet, Inc. All rights reserved. This publication is protected by the copyright laws of the United States of America. No copying in any form is permitted. It may not be reproduced, distributed, stored in a retrieval system, or transmitted in any form or by any means, in part or in whole, without the express written permission of WetFeet, Inc. The publisher, author, and any other party involved in creation, production, delivery, or sale of this WetFeet Insider Guide make no warranty, express or implied, about the accuracy or reliability of the information found herein. To the degree you use this guide or other materials referenced herein, you do so at your own risk. The materials contained herein are general in nature and may not apply to particular factual or legal circumstances. Under no circumstances shall the publisher, author, or any other party involved in creation, production or delivery of this guide be liable to...
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...Valley of the Sun United Way was founded in 1925, an Arizona nonprofit organization whose mission is to improve lives. For more than 80 years Maricopa County’s community has used their caring power to address human care needs. In 2005 Valley of the Sun United Way Foundation was organized to help engage in activities for the benefit of the VSUW. Each fall VSUW conducts a campaign that helps to offset the following year. Along with the campaign contribution there are three options for donors. The first is the Results That Matter Fund that is invested into health and human services programs, the second is the Impact Areas that identify the community needs, and third is a specific nonprofit agency or program. Cash flow and functional expenses are exampled at in all nonprofits and profit organizations. To identify properly the organizations’ strengths, weaknesses, and areas of threat the internal and external factors must first be analysis. An audit was conducted for 2008 and 2009 in accordance with the Government Auditing Standards. This audit was conducted to make sure that the statements are free of material misstatement. VSUW reported a combined statement of financial position statement for two years, 2008 and 2009 with the end of the fiscal year being June 30. Beginning with their current assets, cash and cash equivalents between 2008 and 2009, they are showing an increase of more than two million dollars has occurred. The reports showed that the contributions or pledges...
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...Role of Nonprofit Enterprise [The book version] by Andreas Ortmann* & Mark Schlesinger** Abstract In this chapter we examine the trust hypothesis: the proposition that information asymmetries between providers and consumers of services can explain the existence of nonprofit enterprise in certain markets. We argue that this hypothesis, in order to be viable, has to meet three challenges: (1) the de jure inability of nonprofits to distribute profits to shareholders and/or management must affect incentives within the nonprofit firm in ways that are compatible with trustworthiness (Aincentive compatibility challenge@), (2) nonprofit behavior must not be adulterated by individuals taking advantage of the perceived trustworthiness (Aadulteration challenge@), and (3) nonprofit status must be treated as a reliable predictor of organizational behavior by consumers, when the reputation of individual firms is not seen as reliable (Areputational ubiquity challenge@). We propose that the trust hypothesis stands on shaky ground. It can be sustained only under particular conditions that have been neither carefully described in theory nor subject to empirical assessment. The available evidence, patchy and inadequate as it is, seems to suggest that there are ownership-related differences in the organizational behavior of non-profits and for-profits. However, there is little evidence that these differences can be connected to trust per se or provide a rationale for the existence of nonprofit ownership...
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...Economics Economics can be defined as the science concerned with the production, distribution, and consumption of goods and services. In essence, it is the study of the material welfare of humankind (Apollo Group, 2010). Economics in health care is concerned not only with the financial aspects of the system, but how those financial elements impact patient care. Supply and Demand Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how much (quantity) of a product or service is desired by buyers. Supply represents how much the market can offer and the correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. The demand for health care is limitless as is evidenced by the number of people who use health care services on a day to day basis. Supply, however, is limited by the availability of medical resources and the skill to administer care effectively. Macroeconomics Macroeconomics studies the economy as a whole. Macroeconomic analysis studies the roles of the government, exports and imports, consumption, investment, government taxes, and other factors in an economy. In health care, the macroeconomic market is the entire country’s health care system including the way that it performs in terms of profit, loss and efficiency. Macroeconomics of health is concerned with parallel sets of large scale system issues...
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...Chapter 1 Information Sharing The sharing of information across any organization is essential in the mode of communication. The manner in which information is shared can be detrimental depending on the type of organizational structure. An efficient performance organization and a learning organization are two different types of organizational structures. The learning organization is open to constant adaptation and improvement to better change the organizations structures, processes and working practices (Antonoaie & Antonoaie, 2014). In a learning organization, everyone in the organization engages in continuous learning from the individual to the teams (Antonoaie & Antonoaie, 2014). The values and decision making is informed by all information that can be shared (Antonoaie & Antonoaie, 2014). This type of organization will function optimally in an organic design. Having an organic design typically means that the organization adapts to a changing environment, an adaptive culture, and has an innovation strategy (Daft, 2013). In a learning organization with everyone receiving information from all areas, empowered roles are better suited than tasks that are narrowly defined to a person (Daft, 2013). The strategic emphasis is on innovation instead of efficiency as is the case in an efficient performance organization. The efficient performance organization is focused on labor productivity and ways to improve efficiency (Daft, 2013). This type of organization focuses on a centralized...
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...Contract Design Decisions: An Empirical Analysis of Federal Contract Characteristics by Craig R. Smith Assistant Professor School of Public Administration & Policy Eller College of Management University of Arizona Tucson, AZ & Deanna Malatesta Assistant Professor School of Public and Environmental Affairs IUPUI Indianapolis, IN As American government expanded from its relatively humble origins, public administrators and managers had to seek out and employ additional methods to meet citizen demands. As a result, in recent decades contracting out services to nongovernmental organizations has emerged as the primary alternative to direct provision by public employees and become an indispensible tool of governance. Moreover, the private, for-profit and nonprofit sectors have been progressively more active in public service delivery to enable governments to meet the changing demands of their constituencies while facing the external challenges imposed by politicians, federal regulations, and reform movements (Milward and Provan 2000). In fact, the term governance is often used to evoke a broad, multi-dimensional approach to service delivery, which stretches beyond the “lonely” public organization (Pierre and Peters 2000; Lynn et al. 2001). Indeed, governmental and nongovernmental organizations often develop mutual dependency in a service delivery or policy domain, which has been conceptualized in various ways including public sector networks, alliances, partnerships, and...
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...could be completed because it takes a lot of time and resources to learn how and to build a car, computer, house, and so forth. Time and resources are scarce, and people have to make choices about how they spend them. Because business is present in the economy, we are able to consume and enjoy many more goods and services than we otherwise could if we had to produce everything on our own. You eat food that is grown and often prepared by someone else. Your clothes are sewn by someone else. Your car, MP3 player, computer, and cell phone were produced by someone else. The movies you watch and the music you listen to were all created by someone else. If you produced everything on your own, you would have little access to medical and dental care. These items are a part of everyday life and would not be available if not for markets and business. For-profit and nonprofit organizations play important roles in the economy. For-profit organizations produce goods and services, and provide employment with the primary goal of generating financial gain, whereas nonprofits are not in the businesses of financial goal. They employ people, take in revenue, and provide goods and services with the fundamental goal of serving humanitarian or environmental needs. For-profit organizations help raise the standard of living through taxes, which the government spends for providing the facilities to the people, and for the well-being of...
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...emotional connection with the customers seems most difficult task at hand. In the market place where customer and societal expectations are changing rapidly requiring constant innovation of new ideas, products and services, strategy and social responsibility provide the shortest route to an organization’s success. Therefore, cause branding provides an effective alternative to enhance brand equity by associating brand with an appealing cause. This project explores effectiveness of cause related marketing strategy and tries to find the answer to the question “How it impact to brand building?” It gives brief introduction to the concept of cause branding, its definition and difference between cause marketing and corporate philanthropy and corporate sponsorships. Then, it tells about the inception of cause marketing, its evolution into cause branding and need for cause related marketing, collected primary data analysis and secondary data examples which benefited from this marketing strategy. Introduction Creating brand equity is the most powerful weapon in a company’s armor to beat the competition. In the fiercely competitive market place of today where customer and societal expectations are changing rapidly requiring constant innovation of new ideas, products and services, strategy and social responsibility provide the shortest route to an organization’s success. In recent times, corporate social responsibility has gained lot of importance among companies because of its long-term...
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