This document provides an overview of nonprofit management and organizations. It discusses that nonprofits conduct affairs to assist others, have a cause but no shareholders, and are exempt from some taxes. Nonprofits include daycares, schools, hospitals, museums and more. They meet public needs through private enterprise and efforts. Nonprofits are also categorized into charitable organizations, advocacy groups, social/recreational groups, and membership groups. Nonprofits have customers rather than businesses, including donors, volunteers, clients, and the general public. Providing good customer service is important for a nonprofit's reputation and success.
1. Nonprofit Management
Ellen C. Stokes, MBA, PHR, CSSGB
Director of Finance and Administration, People For People, Inc.
Associate Professor, University of Phoenix
Prospective Faculty, Southern New Hampshire University
C.A.M.P. Mentor, Delaware County Community Coillege
December 2, 2014
2. Nonprofit Organizations
Conduct Affairs with the Sole Purpose
of Assisting Others
Have a Cause
Have No Shareholders
Do not Benefit Key Stakeholders
Privately
Receive Exemption from Various Taxes
in Recognition of Its Contributions to
Society.
3. Nonprofits on a Typical Day
Daycare
School
Hospital
YMCA
College
Museum
Job-Training Center
4. Nonprofit Sector
“The essence of voluntary action is that it is
not directed or controlled by the State and
that in the main it is financed by private, in
contradistinction to public, funds. It
embodies the sense of responsibility of
private persons towards the welfare of their
fellows; it is the meeting by private
enterprise of a public need” (Nathan, 1952,
p. 12).
5. Charitable Organizations
Institutions involved in the Realms of Poverty Assistance, i.e., soup
kitchens, counseling centers, homeless shelters, etc.
Religious Institutions, i.e., churches, radio stations, cemeteries,
etc.
Science, i.e., research institutions, universities, etc.
Health, i.e., hospitals, clinics, nursing homes, treatment centers
Education, i.e., libraries, museums, schools, colleges and
universities
Philanthropy, i.e., preservation of natural resources, and the
performing arts.
6. Advocacy Organizations
Organizations that
attempt to influence
the legislative or
political processes.
Champions of a
Particular Position
Not all Lobbying is
Political or Political
Campaigning
Activity.
7. Social & Recreational Organizations
Country Clubs
Hobby and Garden Clubs
College & University Fraternity and Sorority Organizations
Sports Tournament Organizations
8. Membership Groups
Business Associations
Veterans’ Groups
Fraternal Organizations
Employee Benefit Funds* (EBF)
9. Beneficiaries and Customers
Those who directly receive services from nonprofit
organizations.
Those who advocate in the name of the nonprofit
organization.
Members who receive benefits from nonprofit
organization.
Staff members employed by the nonprofit
organization.
Members of the general public.
10. Customer Service - Nonprofit Sector
Businesses = Customers
Nonprofits = Clients
Same need for meeting and exceeding customer
expectations.
Employees are expected to be courteous, helpful, and
friendly.
Nonprofits have more types of people to please.
11. Customer Expectations
Donors – Trust the agency to use their contributions to
achieve a positive impact – Efforts To Outcomes (ETO)
Volunteers – Do meaningful and work, and receive
intrinsic feelings of positive self-worth.
Clients – Seek assistance, but may be uncomfortable,
defensive. Courtesy and respect helps to alleviate
trepidations.
13. Benefits
The success of a nonprofit agency depends on
its reputation in the community.
Customers can enhance or damage this
reputation depending on his or her level of
satisfaction with received services.
Exceeding expectations of donors, volunteers,
and clients result in increased donations both
financial and in human capital.
14. Errors Nonprofit Groups Make
Not listening to donor
expectations is the No. 1
error that nonprofits
make.
17. Ellen C. Stokes, MBA, PHR, CSSGB
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Notes de l'éditeur
NONPROFIT ORGANIZATIONS:
Are institutions that conduct their affairs for the purpose of assisting other individuals, groups, or causes rather than garnering profits for themselves. Nonprofit organizations are tax-exempt businesses that benefit the good of the public. Nonprofit groups have no shareholders; do not distribute profits in a way that benefits members, directors, or other individuals in their private capacity; and (often) receive exemption from various taxes in recognition of their contributions to bettering the general social fabric of the community.
On a typical day, our lives are touched repeatedly by the world of nonprofit organizations.
E.g., daycare center, school, hospital, YMCA, college, museum, job-training center, nursing home, environmental protection group, Girl Scouts
“The essence of voluntary action is that it is not directed or controlled by the State and that in the main it is financed by private, in contradistinction to public, funds. It embodies the sense of responsibility of private persons towards the welfare of their fellows; it is the meeting by private enterprise of a public need” (Nathan, 1952, p. 12).
CHARITABLE ORGANIZATIONS:
These include a wide variety of institutions involved in the realms of poverty assistance (soup kitchens, counseling centers, homeless shelters, etc.); religion (churches and their ancillary possessions, such as cemeteries, radio stations, etc.); science (independent research institutions, universities); health (hospitals, clinics, nursing homes, treatment centers); education (libraries, museums, schools, universities, and other institutions); promotion of social welfare; preservation of natural resources; and promotion of theatre, music, and other fine arts.
ADVOCACY ORGANIZATIONS:
These groups attempt to influence the legislative process and/or the political process, or otherwise champion particular positions,“ They may call themselves 'social welfare organizations' or perhaps 'political action committees.‘ Not all advocacy is lobbying and not all political activity is political campaign activity. Some of this type of program can be accomplished through a charitable organization, but that outcome is rare where advocacy is the organization's primary undertaking.
SOCIAL/RECREATIONAL ORGANIZATIONS:
Country clubs, hobby and garden clubs, college and university fraternity and sorority organizations, and sports tournament organizations all can qualify as nonprofit organizations, provided that they adhere to basic guidelines of net earnings distribution, etc. Unlike other tax-exempt organizations, however, their investment income is taxable. "SATELLITE" ORGANIZATIONS : Hopkins pointed out that "some nonprofit organizations are deliberately organized as auxiliaries or subsidiaries of other organizations.“ Such organizations include cooperatives, retirement and other employee benefit funds, and title-holding companies.
MEMBERSHIP GROUPS:
This kind of nonprofit organization includes: business associations, veterans' groups, and fraternal organizations.
EMPLOYEE BENEFIT FUNDS: Some profit-sharing and retirement programs can qualify for tax-exempt status.
Jus Fidus Libertatum – Law is the Safeguard of Freedom (To Protect and Serve)
BENEFICIARIES AND CUSTOMERS:
Those who directly receive services from the nonprofit organization. Those in whose name the nonprofit organization advocates. Members of the nonprofit organization who receive direct membership benefits. Staff members employed by the nonprofit organization. Those who enjoy the benefits of the nonprofit organization as consumers and customers. Members of the general public who find a higher quality of life available to them as a result of the work of the nonprofit organization
Customer Service in the Non-Profit Sector:
Businesses call them customers and non-profits call them clients, but the techniques of meeting and exceeding customer expectations are the same. Employees are expected to be courteous, helpful and friendly in any organization, but non-profits have more types of people to please.
Customer Expectations:
Donors, volunteers and clients are all non-profit customers, since they all contribute to and expect something from the agency. Donors trust the agency to use their contributions to achieve a positive impact, while volunteers expect to do meaningful work and to be appreciated for it. Clients seeking assistance may be uncomfortable and defensive; courtesy and respect can help put them at ease.
Customer Service Techniques:
The golden rule applies to customer service: Treat others as you want to be treated. Staff and volunteers should smile and greet customers courteously, listen attentively and respond appropriately. The agency should develop procedures for handling complaints that promote quick and courteous resolution of conflicts, and staff and volunteers should be trained in following these procedures.
BENEFITS:
The success of a non-profit agency depends on its reputation in the community. Customers can enhance or damage this reputation, depending on their level of satisfaction with the service they receive. Meeting and exceeding the expectations of donors, volunteers and clients ultimately results in increased donations of financial and human resources to the agency.
Errors that nonprofit groups make:
Not listening to donor expectations
Unwarranted assumption of a donor's willingness to contribute
Lack of follow-up after initial contact Inadequate research on potential donors and their ability to contribute Inability to close presentation with donor commitment
Neglecting to establish rapport with potential donors prior to solicitation
Framing solicitation as "begging" rather than as a reasonable request for help with a worthy cause
Neglecting to tailor solicitation to individual donors
Approaching potential donors without knowledge of how donations impact them in the realms of tax deductions, etc.