Nonprofit Management: Principles and Practice

2021·10.98 MB·English

by  Michael J. Worth

Preface Page: xix
Acknowledgments Page: xxiv
PART I Understanding Nonprofit Management, the Nonprofit Sector, and Nonprofit Organizations Page: 1
Chapter 1 Nonprofit Management as a Profession and a Field of Study Page: 2
A Revolution in Management Page: 4
A Distinct Profession Page: 5
Nonprofit Management as a Field of Study Page: 8
Toward a Balanced Approach Page: 12
Proceeding With Realism and Pride Page: 14
Chapter Summary Page: 15
Key Terms and Concepts Page: 16
Questions for Discussion Page: 16
Appendix Case Page: 16
Suggestions for Further Reading Page: 16
Books Page: 16
Articles Page: 17
Websites Page: 17
Chapter 2 Overview of the Nonprofit Sector Page: 18
America’s Nonprofit Sector: A Historical Overview Page: 21
Searching for a Common Vocabulary Page: 23
Alternatives to Nonprofit Page: 24
Size of the U.S. Nonprofit Sector Page: 25
Differentiating the Nonprofit Sector Page: 26
National Taxonomy of Exempt Entities Page: 27
IRS Classifications Page: 27
Salamon’s Anatomy Page: 36
The Spectrum of Organizations Page: 37
Emerging New Models Page: 39
The Commercialization Debate Page: 42
Commercialization and Tax Exemption Page: 43
Implications for Nonprofit Managers Page: 44
Chapter Summary Page: 44
Key Terms and Concepts Page: 49
Case 2.1 The Chan-Zuckerberg Initiative Page: 49
Case 2.2 A Double Bottom Line: Ben & Jerry’s Page: 49
Case 2.3 Burning Man Page: 49
Questions for Discussion Page: 49
Appendix Cases Page: 50
Suggestions for Further Reading Page: 50
Books Page: 50
Articles/Book Chapters Page: 51
Websites Page: 51
Chapter 3 Theories of the Nonprofit Sector and Nonprofit Organizations Page: 52
Explaining the Nonprofit Sector Page: 53
Nonprofit Theory Across the Disciplines Page: 53
The Failure Theories Page: 55
Market and Government Failure Page: 56
Nonprofits as Gap Fillers Page: 57
Supply-Side Theories Page: 58
Theories of Altruism and Giving Page: 59
Theory of the Commons: An Interdisciplinary Approach Page: 59
Changing Definitions of Private, Public, and Common Page: 60
Explaining Nonprofit Organizations Page: 62
Characteristics of Nonprofit Organizations Page: 62
Nonprofits as Open Systems Page: 65
Resource Dependence Page: 66
Isomorphism Page: 69
Explaining Nonprofit Organizational Structures Page: 70
Organizational Culture Page: 71
Chapter Summary Page: 72
Key Terms and Concepts Page: 77
Case 3.1 The Smithsonian Institution and the Catherine B. Reynolds Foundation Page: 77
Case 3.2 The National Trust for Historic Preservation Page: 77
Questions for Discussion Page: 77
Appendix x Page: 78
Suggestions for Further Reading Page: 78
Books Page: 78
Articles Page: 78
PART II Governing and Leading Nonprofit Organizations Page: 79
Chapter 4 Nonprofit Governing Boards Page: 80
Types of Governing Boards Page: 82
Elected Boards Page: 82
Self-Perpetuating Boards Page: 84
Appointed and Hybrid Boards Page: 84
Advisory Councils Page: 85
The Governing Board’s Responsibilities Page: 86
The Governing Board’s Legal Responsibilities Page: 87
The Governing Board’s Functional Responsibilities Page: 91
The Board and the CEO Page: 94
Carver’s Policy Governance Model Page: 95
Chait, Ryan, and Taylor: Governance as Leadership Page: 97
Herman and Heimovics: Psychological Centrality and Board-Centered Leadership Page: 98
Explaining Board Behavior Page: 99
Managing Nonprofit Boards Page: 100
Role of the Chair Page: 100
Governance Committee Page: 101
Board Professionals Page: 101
Nonprofit Board Effectiveness Page: 102
Critics of Board Performance Page: 102
Diversity, Equity, and Inclusion Page: 103
The Search for Best Practices Page: 104
The Challenge of Nonprofit Governance Page: 106
Chapter Summary Page: 107
Key Terms and Concepts Page: 109
Case 4.1 Sweet Briar College Page: 109
Case 4.2 The Hershey Trust Page: 111
Questions for Discussion Page: 113
Appendix Cases Page: 113
Suggestions for Further Reading Page: 113
Books/Reports Page: 113
Websites Page: 114
Chapter 5 Executive Leadership Page: 116
The CEO’s Job Page: 117
Management and Leadership Page: 119
Overview of Leadership Theories Page: 120
An Evolution in Thinking Page: 121
Transformational Leadership Page: 123
Charismatic Leadership Page: 125
The Effective Nonprofit CEO Page: 127
Focus on Mission Page: 128
Focus on the Board Page: 129
Focus on External Relationships Page: 129
Share Leadership and Empower Others Page: 129
Focus on Key Roles and Priorities Page: 129
Use the “Political Frame” Page: 130
Right Person, Right Place, Right Time Page: 131
Founder Syndrome Page: 132
Executive Transitions Page: 134
Leading Change Page: 135
Chapter Summary Page: 137
Key Terms and Concepts Page: 138
Case 5.1 A Change in Leadership at Habitat for Humanity Page: 138
Case 5.2 Challenge and Change at United Way Page: 139
Questions for Discussion Page: 141
Appendix Cases Page: 142
Suggestions for Further Reading Page: 142
Books/Book Chapters Page: 142
Articles Page: 142
Websites Page: 142
PART III Managing the Nonprofit Organization Page: 143
Chapter 6 Ensuring Accountability and Measuring Performance Page: 144
Defining and Ensuring Accountability Page: 145
Mechanisms for Accountability Page: 147
Requirements of Law Page: 147
Self-Regulation: Standards and Accreditation Page: 149
Transparency Page: 157
Measuring and Managing Performance Page: 159
Financial Ratios Page: 160
Benchmarking Page: 163
Outcomes Page: 164
Balanced Scorecard Page: 169
Social Return on Investment Page: 171
Blended Value Page: 172
Performance Measurement: The Continuing Debate Page: 174
Chapter Summary Page: 176
Key Terms and Concepts Page: 177
Case 6.1 The Wounded Warrior Project Page: 177
Case 6.2 Youth Villages Page: 177
Questions for Discussion Page: 177
Appendix Cases Page: 181
Suggestions for Further Reading Page: 181
Books Page: 181
Articles/Reports Page: 183
Websites Page: 183
Chapter 7 Developing Strategy, Building Capacity, and Managing Risk Page: 184
Understanding Strategy Page: 185
Strategic Planning and Strategic Management Page: 186
The Strategic Planning Process Page: 187
Planning to Plan Page: 188
Defining Mission, Vision, and Values Page: 190
Assessing the Situation Page: 192
Identifying Strategic Issues Page: 194
Setting Goals Page: 194
Developing Strategies Page: 195
Setting Objectives Page: 198
Writing the Strategic Plan Page: 198
Developing an Operational Plan Page: 199
Benefits and Limitations of Strategic Planning Page: 199
Building Organizational Capacity Page: 200
Defining and Understanding Capacity Page: 201
Capacity Building in Action Page: 202
A Model for Capacity Building Page: 203
Capacity and Organizational Life Cycles Page: 204
Capacity Building Evaluated Page: 206
Managing Risk Page: 207
Chapter Summary Page: 209
Key Terms and Concepts Page: 210
Case 7.1 Generation Hope Strategic Plan 2021 Page: 210
Questions for Discussion Page: 210
Appendix Cases Page: 215
Suggestions for Further Reading Page: 215
Books/Reports Page: 215
Articles Page: 217
Websites Page: 217
Chapter 8 Collaborations, Partnerships, and Mergers Page: 218
Growing Interest in Collaboration Page: 221
A Continuum of Relationships Page: 222
Exploring Collaborations and Mergers Page: 223
Drivers of Collaborations and Mergers Page: 224
Obstacles to Collaboration and Merger Page: 225
Culture Page: 227
Egos Page: 228
Brand Identity Page: 228
Community or Political Objections Page: 228
Costs Page: 228
Conditions for Success Page: 229
Driven by Mission Page: 229
Commitment From Top Leadership Page: 229
Trust Page: 229
Relatedness Page: 230
Process Page: 230
Collaborations and Mergers Within National Nonprofits Page: 231
Cross-Sector Collaboration Page: 232
A Continuum of Cross-Sector Collaboration Page: 232
Advantages and Disadvantages of CSCs Page: 234
Obstacles and Conditions for Success Page: 235
Achieving Collective Impact Page: 235
Chapter Summary Page: 238
Key Terms and Concepts Page: 239
Case 8.1 N Street Village and Miriam’s House Page: 239
Questions for Discussion Page: 239
Appendix Cases Page: 243
Suggestions for Further Reading Page: 243
Books Page: 243
Articles/Reports Page: 245
Websites Page: 245
Chapter 9 Managing Staff and Service Volunteers Page: 246
Human Resources Management Page: 248
Requirements of Law Page: 248
Diversity, Equity, and Inclusion Page: 249
An Overview of Management Theories Page: 250
Understanding Human Motivations Page: 251
Maslow’s Hierarchy of Needs Page: 251
McGregor: Theory X and Theory Y Page: 253
McClelland: Three Needs Theory Page: 253
Myers and Briggs: Personality Types Page: 254
Herzberg: Motivators and Dissatisifiers Page: 254
Motivations of Nonprofit Staff Page: 255
Life Cycles and Generations Page: 257
Applying Theories to Managing the Nonprofit Workforce Page: 258
Managing Volunteers Page: 261
Types of Volunteers Page: 261
Motivations of Volunteers Page: 263
Volunteer Program Practices Page: 264
A Contingency Approach to Volunteer Stewardship Page: 269
Volunteer Management as a Career Field Page: 270
The Future of Volunteerism Page: 271
Chapter Summary Page: 271
Key Terms and Concepts Page: 273
Cases 9.1–9.4 Staff and Volunteer Issues Page: 273
Questions for Discussion Page: 273
Appendix Cases Page: 277
Suggestions for Further Reading Page: 277
Books/Book Chapters/Journals Page: 277
Websites Page: 277
Chapter 10 Marketing and Communications Page: 278
Defining and Understanding Marketing Page: 279
Marketing Serves the Mission Page: 281
Marketing Means Action Page: 282
Marketing as a Process Page: 283
The Marketing Mix Page: 283
Product Page: 284
Place Page: 285
Promotion Page: 285
Market Segmentation Page: 286
Price Page: 287
Defining the Exchange Page: 289
Building the Brand Page: 289
Integrated Marketing Communication (IMC) Page: 292
Crafting an Effective Message Page: 294
Crisis Communications Page: 295
Social Media Page: 296
From Gatekeepers to Connectors Page: 297
Social Media Planning Page: 297
Operational Questions Page: 298
Evaluating Marketing and Communication Page: 299
Chapter Summary Page: 300
Key Terms and Concepts Page: 301
Case 10.1 Rebranding 4-H Page: 301
Case 10.2 Susan G. Komen Foundation Page: 303
Questions for Discussion Page: 304
Appendix Cases Page: 304
Suggestions for Further Reading Page: 305
Books/Journals Page: 305
Articles Page: 305
Websites Page: 305
Chapter 11 Advocacy and Lobbying Page: 306
Basic Distinctions Page: 308
Overview of Lobbying Law Page: 309
Option I: Substantial Part Test Page: 311
Option II: 501(h) Expenditure Test Page: 311
Political Campaign Activity Page: 313
Implementing an Advocacy Program Page: 314
Using Social Media Page: 316
Creating Movements for Social Change Page: 317
Continuing Issues and Concerns Page: 318
Chapter Summary Page: 319
Key Terms and Concepts Page: 321
Case 11.1 Mothers Against Drunk Driving (MADD) Page: 321
Case 11.2 Housing First Page: 322
Case 11.3 National Audubon Society Page: 323
Questions for Discussion Page: 324
Appendix Case Page: 325
Suggestions for Further Reading Page: 325
Books Page: 325
Articles Page: 325
Websites Page: 325
PART IV Obtaining and Managing Resources Page: 327
Chapter 12 Financial Management Page: 328
Definitions of Key Concepts Page: 330
Understanding Nonprofit Finances Page: 331
Nonprofit Financial Statements Page: 335
Statement of Financial Position Page: 335
Statement of Activities Page: 337
Statement of Cash Flows Page: 339
Statement of Functional Expenses Page: 339
Required Disclosures and Notes to Financial Statements Page: 342
Audits Page: 343
Using Financial Ratios Page: 344
Managing Endowment Funds Page: 346
Developing and Managing the Budget Page: 349
Financial Policies and Controls Page: 351
Chapter Summary Page: 352
Key Terms and Concepts Page: 354
Case 12.1 Hull House Page: 359
Case 12.2 The Newseum Page: 359
Questions for Discussion Page: 359
Appendix Cases Page: 361
Suggestions for Further Reading Page: 361
Books Page: 361
Newsletters Page: 361
Websites Page: 362
Chapter 13 Philanthropic Fundraising Page: 364
Definitions and Distinctions Page: 366
Motivations for Giving Page: 368
Understanding Corporate Philanthropy Page: 368
Foundation Giving Page: 369
Motivations of Individual Donors Page: 370
The Fundraising Process Page: 372
Identifying Priorities and Developing the Case Page: 372
Identifying and Qualifying Prospects Page: 374
Cultivating Prospects Page: 375
Soliciting the Gift Page: 376
Acknowledging and Recognizing Donors Page: 379
Stewarding the Gift and the Relationship Page: 380
Individual Donor Life Cycles Page: 380
Planned Giving Page: 382
Campaigns Page: 385
Managing Fundraising Programs Page: 387
Advancement Services Page: 387
Prospect Management Page: 388
Fundraising Efficiency and Effectiveness Page: 388
Staff Performance and Accountability Page: 389
Ethics and Professional Standards Page: 390
Tainted Donors and Tainted Money Page: 391
Association of Fundraising Professionals Code Page: 392
Chapter Summary Page: 393
Key Terms and Concepts Page: 395
Cases 13.1a–g Fundraising Ethics Page: 396
Questions for Discussion Page: 396
Appendix Cases Page: 397
Suggestions for Further Reading Page: 398
Books/Book Chapters Page: 398
Articles/Reports Page: 398
Websites Page: 398
Chapter 14 Social Enterprise and Earned Income Page: 400
Defining Social Enterprise and Earned Income Page: 401
Why Earned Income? Page: 403
Partnerships With Business Page: 405
Licensing Page: 406
Sponsorships Page: 407
Cause Marketing Page: 408
Integrated Relationships Page: 411
Operational Relationships Page: 411
Putting Partnerships Together Page: 412
Nonprofit Business Ventures Page: 413
Identifying Business Opportunities Page: 413
Feasibility Analysis and Business Planning Page: 414
Earned-Income Strategies: Issues and Decisions Page: 417
Sorting Out the Issues Page: 417
Evaluating Opportunities Against Mission Page: 418
A Continuing Debate Page: 420
Chapter Summary Page: 421
Key Terms and Concepts Page: 422
Case 14.1 The National Geographic Society Page: 425
Case 14.2 Aspire CoffeeWorks Page: 425
Questions for Discussion Page: 425
Appendix Cases Page: 426
Suggestions for Further Reading Page: 426
Books Page: 426
Articles Page: 427
Websites Page: 427
Chapter 15 Government Grants and Contracts Page: 428
Changes in Sources and Patterns of Support Page: 430
Grants, Contracts, and Fees Page: 431
Government Support: Opportunities and Challenges Page: 434
Seeking Government Support Page: 436
Identifying Grant Opportunities Page: 436
Evaluating Grant Opportunities Page: 437
Preparing and Submitting an Application or Proposal Page: 438
Nonprofits in the Policy Arena Page: 439
Chapter Summary Page: 439
Key Terms and Concepts Page: 440
Case 15.1 SEED Foundation Page: 441
Questions for Discussion Page: 441
Appendix Case Page: 442
Suggestions for Further Reading Page: 442
Books Page: 442
Articles Page: 442
Websites Page: 442
PART V Special Topics Page: 443
Chapter 16 Social Entrepreneurship and Innovation Page: 444
Defining and Understanding Social Entrepreneurship Page: 445
Social Enterprise School Page: 446
Social Innovation School Page: 446
History of Social Entrepreneurship as a Field Page: 447
Theories of Social Entrepreneurship Page: 448
Social Entrepreneurship Across Fields and Around the World Page: 450
Building High-Impact Nonprofits Page: 452
Sustaining Innovation Page: 453
The Future of Social Entrepreneurship Page: 456
Chapter Summary Page: 460
Key Terms and Concepts Page: 460
Case 16.1 KaBOOM! Page: 460
Case 16.2 Harlem Children’s Zone Page: 460
Questions for Discussion Page: 460
Appendix Case Page: 460
Suggestions for Further Reading Page: 460
Books Page: 460
Journals Page: 460
Websites Page: 461
Chapter 17 Governing and Managing International and Global Organizations Page: 462
Definitions and Scope of International Organizations Page: 464
International Philanthropy and Fundraising Page: 466
International Giving Page: 467
Global Fundraising Page: 467
International Nonprofit Governance and Management Page: 469
Managing Across Cultures Page: 470
Governing International and Global Organizations Page: 470
Structuring International NGOs Page: 471
Chapter Summary Page: 473
Key Terms and Concepts Page: 477
Case 17.1 Médecins Sans Frontières/Doctors Without Borders Page: 477
Case 17.2 Haitian Earthquake Relief and Recovery Page: 477
Questions for Discussion Page: 477
Suggestions for Further Reading Page: 478
Books Page: 478
Articles Page: 478
Websites Page: 478
Conclusion Page: 479
Appendix: Cases for Discussion Page: 482
1. New York City Opera Page: 482
2. Share Our Strength/No Kid Hungry Page: 488
3. The Y Page: 496
4. The Girl Scouts of the United States of America Page: 502
References Page: 510
Index Page: 540
About the Author Page: 567