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Chapter 1 Defining The Nonprofit Sector and Civil Society Outline:, 8 cat…

- - - - N.P. sector regard as distinct sector b/c of attributes: Being mission-directed, community-governed, and reliance on charitable donations and voluntary resources.
        
        Mission-Directed
        
        Formed in order to fulfill particular mission/ "mission-directed"- mission serves as anchor for org. activities and decision-making. "mission-driven rather than profit-driven"
        Implies false dichotomy: b/c N.P. must also make money to fulfill mission.
        For-profit: May value social responsibility but objective is generating profits.
        Public:
        Public serving and mission-driven-putting public-serving mission ahead of making profits.
        However some N.P. provide specific benefits/members of N.P.-requires payment.
        Public and social benefit N.P.:
        Provide collective benefits for society.
        Mutual membership organizations:
        Provide selective benefits: Limtited to members only.
        Summary:
        Gov, and N.P. both put mission above profits. N.P. ability to exclude members.
        
        Voluntary Governance
        
        Governed by board of directors-Members carryout duty as volunteers. Without compensation.
        Serve on board: b/c of personal experience related to organization mission or commitment to cause.
        Are asked or volunteer b/c have particular skill that can contribute to organizations.
        Board of directors: Composed of volunteers key characteristic of of voluntary governance.
        Board: 1.)Made up of members of community in which org. located.
        2.)Also require board to be compressed of community members.
        3.)Also board representation of members N.P. in serving.
        Pros: Increased diversity and community representation.
        Con: Volunteers may not have adequate time to devote to board roles, lack expertise needed to provide effective oversight of organization.
        
        Reliance on Voluntary Resources
        
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      - Nonprofit Similarities with For-Profit and Public Organizations
        
        1.)N.P. share the social and public-serving missions of gov. org.-seeking to provide goods ands services to the general public or those in our society who need extra support.
        2.)Other ways N.P. org. can operate like For-profit-individuals can choose who belongs to the org-limit membership to their groups, provide services to specific set of people or redefine N.P. without general public opinion.
        3.) Similarities between public, For, and N.P. apparent when N.P. are joined in financial partnership with gov. or For-profit.-tend to absorb characteristic of their funding partners.
        4.)N.P. that rely mostly on service fees for income may behave like for-profit firms by placing a premium on customer service and satisfaction, in attempt to maximize market share.
        
        Similarities with Public Organizations
        
        1.) N.P. must make money to have capacity to fulfill mission. Also true for Public.
        Exception: However N.P. and Public diff. from For-profit org. b/c are legally prohibited from distributing profits to employees or board members.
        Result: Lack incentive to generate profits.
        Characterize of N.P. and Public known as "non-distribution constraint"
        2.)N.P. and public similar in that both provide public goods that For-profit cannot or will not provide. b/c inappropriate or unprofitable.
        Cases exemplify ways in which Public and N.P. org. might seek the same provision of public goods and services for society. Yet also case that not all N.P. provide public goods-some selective benefits to set members.
        3.)N.P. and Public org. alike in level of transparency and accountability to public.
        N.P. must disclose financial statements, lists of board members, salaries of 5 highest paid employees, and basic org. info.
        Info. made public: Guidestar, National Center for Charitable Statistics business master files.
        Availability of info. from public org.: Depends on level of gov. and type of org.
        Most info. for state and local: Visiting website.
        The Freedom of Information Act (FOIA)-Enables citizens to request info. from public org. when not available. Also applies to N.P. that funded by gov.
        Financial info, and personal info. of For-profit org. is property:-the public does not have claim to it nor does For-profit org. have to disclose it.
        Result of funding for N.P. org. and reliance on gov. org. help explain how similar or dissimilar they are to public org.
        
        Similarities with For-Profit Organizations
        
        1.)Innovation and Characteristics. These 2 similar characteristics become more common with N.P.
        b/c N.P. growing and traditiontional sources of revenue(gov. funding) have not kept up with pace. N.P. have found new tactics to become more competitive.
        2.) N.P. improving quality of service to attract and retain new clients, members, and customers, publicizing performance outcomes, marketing their services, expanding into new markets, and developing profit-making ventures.
        Profit-making ventures of N.P. org. called "social enterprises"
        Social enterprises and hybrid organizational models such as the low-profit, limitied-liablity (L3)-serve as ex. of way traditional boundaries between for-profit and nonprofit forms are blurring.
        N.P. greater efficiency but raise new questions.
        
        Summary:
        
        Distinguishing features of N.P.: Relying on volunteers and donations, being community governed
        Public organizations, N.P. provide public goods, are mission-driven, and seek to drive the public interest above profit-making.
        When N.P. org. rely heavily on public funding-become subject to public sector standards of accountability to population.
        But Public org. remain distinct from N.P. in they are owned and operated by the gov. and can levy taxes to obtain resources
        N.P. org. similar to for-profit in entrepreneurship and innovation-enabling them to respond to market pressures.
        There are org. that sit at the borders of these sectors or in the overlapping zones, and as the sectors become more intertwined and financially interdependent in their efforts to address social problems.
        
        1.) All sectors depend on resources for survival.2.) All need to manage and remain responsive to multiplestakeholder. 3.)Growing reliance on technology to conduct-day-to-day business.-Reliance on tech, evolved from internet web. for displaying info. and conducting transactions, to multi-communication through social media. New tech. has new possibilities for engaging and sustaining the attention for stakeholders. Reliance on tech. presents both new challenges and opportunities for organizations.
        
        Similarities with all sectors