PART I. UNDERSTANDING NONPROFIT MANAGEMENT, THE …



Discussion QuestionsPART I. UNDERSTANDING NONPROFIT MANAGEMENT, THE NONPROFIT SECTOR, ANDNONPROFIT ORGANIZATIONSChapter 1. Nonprofit Management as a Profession and a Field of Study Should preparation for a career in the nonprofit sector emphasize management skills or a broader understanding of civil society and the role of nonprofit organizations?Potential Answer: In my opinion, individuals interested in a career in the nonprofit sector should major in the field of nonprofit organizations and minor in sociology. The nonprofit major should include management studies. 2. If nonprofit management challenges are as complex as those in business, should nonprofit managers be compensated at the same levels as managers at comparably large companies? Why or why not?Potential Answer: In my opinion, managers of nonprofit organizations should have the same levels of pay as managers at comparably large companies, because having a sense of purpose may not be enough to keep talent within an organization. 3. Should nonprofit organizations be viewed principally as businesses with a social purpose, or are they inherently different from for-profit companies?Potential Answer: The answer to this question depends on whether the leadership of the nonprofit organization embraces a social institution or a social enterprise perspective. Leaders embracing a social institution perspective would focus on preserving the social values of the organization. This perspective would be different from for-profit companies. Leaders who embrace a social enterprise perspective would share views similar to for-profit companies because their focus is on achieving results. 4. Should philanthropic foundations change their current focus of funding nonprofit organizations based on the results of the programs provided to one of funding organizations that best demonstrate an ability to build capacity and sustainability?Potential Answer: Yes, because achieving successful results for the program provided doesn’t mean the organization will be able to continue that success if the organization can’t fund its growth.5. Read Yusuf (Wie) J. & Sloan, M.F. (2015). Effectual Processes in Nonprofit Start-Ups and Social Entrepreneurships: An Illustrated Discussion of a Novel Decision-Making Approach by Juita-Elena (Wie) Yusuf and Margaret F. Sloan. (See Articles.) Why does the theory of effectuation appear to be a more fitting decision-making approach than causation for social entrepreneurs?Potential Answer: The authors write that the differences between the effectuation and the causation decision-making approaches are “in the set of choices: choosing between means to create a particular effect, versus choosing between many possible effects using a particular set of means” (p. 423.) The authors argue that effectuation is a more effective approach for social entrepreneurs because appears to be a better approach for making decisions because it focuses on real environments social entrepreneurs work within increase sing the organization’s ability to be successful. 6. Read the article “Effectual Processes in Nonprofit Start-Ups and Social Entrepreneurships: An Illustrated Discussion of a Novel Decision-Making Approach” by Juita-Elena (Wie) Yusuf and Margaret F. Sloan. (See Articles.) How did the Innovation Center of Indiana apply effectual decision-making during its start-up process?Potential Answer: The leaders of this initiative made their decisions based on the resources they already had at hand. These resources included human and social capital such as network connections and leadership expertise. 7. Read “The Nonprofit Clinic at the University of Pittsburgh: preparing students for transition to professional settings” by K. Kearns. (See Articles.) What were some of the risks that students and instructors had to take when creating and participating in the nonprofit clinic capstone seminar? Potential Answer: Students and instructors had to be flexible because there were many unknowns during the piloting of this seminar. They had to risk whether:they could devote the time required to the project,the students had the communication skills and subject matter expertise needed,clients understood the purpose of the student involvement and their learning objectives, andensure they didn’t violate any ethical or legal standards.8. Read “The Nonprofit Clinic at the University of Pittsburgh: preparing students for transition to professional settings” by K. Kearns. (See Articles.) What were some of the benefits achieved through the creation of this capstone seminar?Potential Answer: The instructor of the course found the benefits of developing the capstone seminar to be:The opportunity to involve other academic programs from the university in the course, The ability to apply the full-range of Bloom’s learning objectives,An opportunity to practice peer teaching, and the experiential experience gained by participating in professional practices.Chapter 2. Overview of the Nonprofit Sector1. If you had $25 to give today to any nonprofit organization, which one would it be? Now, imagine that you are 75 years old and have $1,000,000 to give to an organization at the event of your death—that is, through your will. Which one would it be? Do your answers reflect a difference between charity and philanthropy?Potential Answer: I would give the $25 to an organization that is easily within my reach and not require much effort on my part. Examples would be to my church or an office fundraising drive or to my church. I would put much more effort in identifying an organization to receive my $100,000,000 because this gift is being given in remembrance of my life and represent a cause that I cared about. The $25 gift would be considered charity because it is meeting a present need. The $100,000,000 gift would be considered philanthropy because it is for the long-term.2. If you were the president of a private college or university, what things would you consider in making a decision on a possible tuition increase, which might enhance your bottom line but possibly work against your mission of providing educational opportunity?Potential Answer: I would have to consider the effect the increased cost could have on recruiting new students from lower-income families. I would also have to consider the effect an increase could have on faculty and staff morale. They could begin to perceive the institution is no longer interested in pursuing its mission.3. Should gifts made by individuals to a nonprofit organization that receives the largest portion of its revenues from fees for services be fully tax deductible, partially tax deductible or not deductible at all? Explain your answer.Potential Answer: It is my opinion that gifts given to organizations that charge fees for service should be fully tax deductible. Many individuals need some type of incentive to motivate them to give. A tax deduction provides this incentive.4. Read the article, Exploring Religious Congregations’ Registration With the IRS by Christopher Scheitle, Erica Dollhop-f, and John McCarthy. (See Articles.) Explore the regional, religious, and administrative patterns among the congregations registered with the IRS. Discuss why congregations would choose to register their tax-exempt status from the federal government. Why do some congregations decide not to register?Potential Answer: Congregations choosing to register with the IRS may believe that doing so will make members more comfortable about donating to the congregation and/or reinforce the legitimacy of the congregation. Congregations not choosing to register may not want to associate themselves with any type of government activity.5. Read the article, Exploring Religious Congregations’ Registration With the IRS by Christopher Scheitle, Erica Dollhop-f, and John McCarthy. (See Articles.) Discuss the role New Institution Theory may play in a congregation deciding whether or not to register with the IRS.Potential Answer: New Institution Theory posits that “organizations tend to imitate other organizations, particularly those perceived as successful or at least normative, to gain legitimacy, which is essential for garnering resources” (p. 10).Chapter 3. Theories of the Nonprofit Sector and Nonprofit Organizations1. Should higher education be considered a private good, to be paid for by those who benefit from it? Or should it be considered a public good, available as a right to all citizens (like K-12 education)?Potential Answer: The answer to this question could depend on one’s political ideology. Conservatives may lean toward considering higher education a private good and K-12 as a public good. Liberals may consider both higher education and K-12 as a public good.2. Should health care be considered a public, private, or common good?Potential Answer: If the health care is provided by a public organization it could be considered a public good. Health care provided by a private organization could be considered a private good. Health care organizations with a mission to provide for the needs of the poor, regardless of the sector, could be considered as a common good. 3. If you were responsible for placing an older family member in an assisted living community, would you prefer to select one that is nonprofit or one managed by a for-profit company? Or would it not make any difference to you? Why?Potential Answer: I would make my decision based on the performance outcome measures of the community not on its nonprofit or for-profit status. Performance measurements would provide data regarding the organization’s ability to meet its mission. 4. Read the article, “Preserving the Publicness of the Nonprofit Sector: Resources, Roles, and Public Values” by Stephanie Moulton and Adam Eckerd. (See Articles.) Explain the Nonprofit Role Index and how it is used to measure the relationship between organizational values and public funding. Potential Answer: The Nonprofit Role Index was developed by the article’s authors as a tool to aid their study of relationships between roles nonprofit organizations perform and the revenue streams supporting those roles. The authors’ data indicates that there may be a relationship between a nonprofit organization’s values and the public funding. 5. Read the article, “Nonprofit Governance and Accountability: Broadening the Theoretical Perspective” by Tracey M. Coule. (See Articles). Critique the author’s perspective that governance theories (agency, steward, and principal-agent relationship) are not morally defensible or socially sustainable models of organization. Potential Answer: The author writes that agency, steward, and principal-agent relationships are often used to study the behaviors of nonprofit workers, volunteers, and donors. Coule argues that these theories are not fully developed and place too much emphasis on principals trying to control the work behavior of agents and not enough emphasis on developing social relations. 6. Read the article “The Governance of Nonprofit Organizations: Integrating Agency Theory with Stakeholder and Stewardship Theories” by Stijn Van Puyvelde, Ralf Caers, Cind Du Bois, and Marc Jegers. (See Articles.) Examine agency theory and stewardship theory and their relationship to principal agent–agent theory. Explain how these theories may be applied to study organizational effectiveness.Potential Answer: To answer this question each theory needs defining. The authors define principle-agent theory as: a contract under which one or more persons (the principal[s]) engage another person (the agent to perform some service on their behalf which involved delegating some decision-making authority to the agent (p. 432).Agency theory suggests that conflict may occur in this principle-agent relationship and that the agent may not work in the best interests of the organization. Stewardship theory, on the other hand, suggests that while conflict may (or may not) occur both parties will work together to achieve results that are in the best interest of the organization.7. Read the article “The Governance of Nonprofit Organizations: Integrating Agency theory With Stakeholder and Stewardship Theories” by Stijn Van Puyvelde, Ralf Caers, Cind Du Bois, and Marc Jegers. (See Articles.) Compare and contrast agency theory and stewardship theory.Potential Answer: Both agency theory and stewardship theories have their roots in studies from psychology and sociology, focus the relationships between principles and agents, and take into consideration that conflict can occur between both parties. The theories differ in their view of agents. Agency theory suggests that agents will have a low identification with the organization and will seek to avoid blame for any problems while stewardship theory suggests agents will have a high relation with the organization and that the organization’s success will reflect back on them positively. 8. Read the article, “Preserving the Publicness of the Nonprofit Sector: Resources, Roles, and Public Values” by Stephanie Moulton and Adam Eckerd. (See Articles.) Describe resource dependency theory and identify the role it may play on leadership behavior.Potential Answer: Resource dependence theory argues that organization leaders may modify their behavior to ensure they support donors’ interests at the expense of accomplishing the organization’s mission.9. Read the article, “Preserving the Publicness of the Nonprofit Sector: Resources, Roles, and Public Values” by Stephanie Moulton and Adam Eckerd. (See Articles.) Explain how open systems theory is used to study how the nonprofit sector may identify public values.Potential Answer: Moulton and Eckerd applied an open systems theory perspective to study how leaders of nonprofit organizations work with external stakeholders to obtain the resources needed to main the organization. To sustain these relationships, the authors argue that leaders of nonprofit organization may ultimately adopt values that result in undermining the organization’s mission. The authors write that core public values that serve the nonprofit sector include “service provision, innovation, individual expressions, social capital creation, political advocacy, and citizen engagement” (p. 675).10. Read the article, “Nonprofit Governance and Accountability: Broadening the Theoretical Perspective” by Tracey M. Coule. (See Articles.) Explore the author’s Typology of Nonprofit Governance and Accountability and explain why the author refers to agency theory and stewardship theory as unitary logic.Potential Answer: The author writes that unitary logic occurs when the organizational goal is to have “harmonious, consensual entities that exist for common purposes” (p. 84). She writes that unitary logic supporting agency and stewardship theories is their primary focus on being accountable to their resource providers and regulatory requirements. PART II. GOVERNING AND LEADING NONPROFIT ORGANIZATIONSChapter 4. Nonprofit Governing Boards1. If you were a nonprofit CEO, how would you describe the ideal board for which to work?Potential Answer: I would prefer to work for a nonprofit organization that has an elected governing board. I prefer this type of board because I believe it would help avoid cronyism from infiltrating the board.2. If you were the chair of a nonprofit board, how would you describe the ideal relationship between the board and the CEO from your perspective?Potential Answer: I would prefer a partnership relations that includes the board members, the CEO and the members of the nonprofit’s staff. The collaboration of these three key set of stakeholders could help ensure much information is provided for decision making.3. Should boards be held responsible for the results achieved by the organizations they governor is that primarily the responsibility of the CEO and staff?Potential Answer: I believe the board should be held responsible for the results achieved by the organization because the board is responsible for all of the organization’s welfare. 4. Read “The Effect of an Online Self-Assessment Tool on Nonprofit Board Performance” by Harrison and Murray. (See Articles.) What types of governance issues did the respondents perceive as most problematic in their boards? Potential Answer: The survey respondents identified three issues of board effectiveness as the most problematic. These are as were clarity of board governance roles and responsibilities, the problem of adequate resources, and the need for strategic planning. 5. Read “The Effect of an Online Self-Assessment Tool on Nonprofit Board Performance” by Harrison and Murray. (See Articles.) What changes in governance behavior and practices were reported by the survey respondents after they completed the assessment tools?Potential Answer: The researchers found that most of the respondents reported little to no change had been taken in their organizations as a result of using the self-assessment tool.6. Read “Board Oversight of Patient Care Quality in Large Nonprofit Health Systems” by Prybil, Bardach, and Fardo. (See Articles.) What do studies conducted by the Institute of Medicine, The Commonwealth Fund, and other authorities show?Potential Answer: Studies conducted by these organizations show that the overall quality of clinical services provided by America’s health institutions continues to be uneven and need improvement. The studies also indicate that the nonprofit leaders and CEOs are aware of this need to improve quality.Chapter 5. Executive Leadership1. Discuss the contrast between leadership and management. In your opinion, do nonprofits needs good leaders or good managers?Potential Answer: Leadership is about leading people to want to accomplish the leader’s vision. Management is about performing the tasks needed to be done to accomplish the vision. Nonprofit leaders definitely need good managers but having good leaders excites the people working for the organization. 2. Could one individual be a great leader in government, a corporation, or a nonprofit? Why or why not?Potential Answer: Yes. Many large organizations hire people who know nothing about the organization’s products or services but who are great leaders. People who can create a vision and motivate others to get the work done.3. Read “Alternative Organizing and (In)Visibility: Managing Tensions of Transparency and Autonomy in a Nonprofit Organization” by Peter Jensen and Rebecca Meisenbach. (See Articles.) Why do some nonprofit organizations choose to resist pressures to manage transparently? Potential Answer: Some organization managers may choose to maintain a low profile in their communities due to their having unpopular or stigmatized causes. Another reason some organizations may prefer to maintain a low profile is because the management distrust government-mandated forms of transparency. 4. Read “Alternative Organizing and (In)Visibility: Managing Tensions of Transparency and Autonomy in a Nonprofit Organization” by Peter Jensen and Rebecca Meisenbach. (See Articles.) According to Jensen and Meisenbach, can managers of nonprofit organizations successfully operate without adopting market and bureaucratic values? Potential Answer: The authors write that their research indicates managers may successfully adopt alternative models for organizing that are not based on capitalist principals by applying carefully crafted communication strategies that can skirt the edges of transparency. 5. Read “Founding New Nonprofit Organizations: Syndrome or Symptom?” written by Joanne Carmen and Rebecca Nesbit. (See Articles.) What theoretical perspectives may influence individuals to found new nonprofit organizations? Potential Answer: The authors suggest that leaders choose to start new nonprofit organizations due to government, market, and contract failures to address the needs of society. They write that individuals found nonprofits to express freedoms of speech, assembly expression. 6. Read “Founding New Nonprofit Organizations: Syndrome or Symptom?” written by Joanne Carmen and Rebecca Nesbit. (See Articles.) According to Carmen and Nesbit, what leadership strengths are founder’s most likely to have?Potential Answer: Carmen and Nesbit argue that founders of nonprofit organizations are likely to have influential powers and privileges. 7. Read “Founding New Nonprofit Organizations: Syndrome or Symptom?” written by Joanne Carmen and Rebecca Nesbit. (See Articles.) Why do founders tend to find new nonprofit organizations that duplicate the services already provided by other nonprofit organizations?Potential Answer: Carmen and Nesbit discuss that founders start duplicate organizations because they want to provide services to specific groups of people based on their own particular interests and preferences. Duplicate organizations may not share the same perspectives as the individuals leading the new organization. 8. Read, “Advocating for Policy Change in Nonprofit Coalitions” by Rachel Fyall and Michael McGuire. (See Articles.) Explain how individuals from nonprofit organizations attempt to influence public policy.Potential Answer: Members of nonprofit organizations wanting to influence public policy may participate in lobbying activities, join professional organizations, and organize coalitions. PART III. MANAGING THE NONPROFIT ORGANIZATIONChapter 6. Ensuring Accountability and Measuring PerformanceBelow are statements excerpted from three organizations’ websites, describing their purposes.The SEED Foundation is a national nonprofit that partners with urban communities to provide innovative educational opportunities that prepare underserved students for success in college and beyond.The District of Columbia College Success Foundation is a nonprofit organization created in 2006 to expand the pipeline of low-income and underrepresented students who complete a baccalaureate degree by providing students the educational and financial incentives, mentoring, and other supports necessary to gain admission to the colleges and universities of their choice.College Summit is a national nonprofit organization that partners with schools and districts to strengthen college-going culture and increase college enrollment rates, so that all students graduate career- and college-ready.Based on these statements:1. How are their missions different?Potential Answer:The SEED Foundation’s mission is to provide innovative opportunities to underserved students. The District of Columbia College Success Foundation’s mission is to provide support and scholarships for underserved students seeking education.The College Summit’s mission is to transform the live lives of low income youth by connecting to colleges and careers using a variety of initiatives: peer leadership, custom curricular, and real-time performance data and technology.All three organizations seek to provide assistance to underserved students by providing career and college assistance. However, there methods to achieve this end differ.2. What metrics would you use to measure their effectiveness? Potential Answer:A measure of effectiveness for The Seed Foundation could be the number of innovative opportunities identified and implemented. A measure of effectiveness for The District of Columbia College Success Foundation could be the number of underserved students the organization supports.A measure of organizational effectiveness for The College Summit could be the number of underserved clients that actually graduated from a college. 3. Could some or all use common indicators, or would the indicators need to be varied in light of their distinctive missions?Potential Answer: All three organizations could use common indicators such as the number of clients serviced or the number of programs offered. Some measures could be varied in light of the organizations’ distinctive missions such as the types of programs and services offered. Chapter 7.Developing Strategy and Building Capacity1. One organization that all students will have some knowledge about is their own college or university. What are the strengths, weaknesses, opportunities, and threats that you see facing your college or university? What strategic issues do you suggest for your institution?Potential Answer: The SWOT analysis for my college could look like this:Strengths: Internal leadership, faculty, staff, student moraleWeaknesses: Too many paperwork requirementsOpportunities: To increase the number of graduate school programs and international student enrollmentsThreats: Declining number of high school graduates in the region, declining state fundingThis college could pursue a strategic initiative to increase international student enrollment.2. Suppose a nonprofit organization’s strategy requires that it phase out a program on which few people rely, but those people are vulnerable and no good substitute exists. How might the organization proceed with its plan in an ethical and humane manner?Potential Answer: This organization could hold a public hearing to obtain citizens’ suggestions for alternative options to address the needs of the vulnerable people involved.3.Select an organization that you know well—maybe you work there, have been a volunteer, or just follow it on Twitter. What do you think is the organization’s strategy, as that term is discussed in this chapter?Potential Answer: My community United Way has an incremental approach strategy to provide educational programs that help clients meet local workforce needs. This approach is incremental because it involves push-pull effort requested by its constituencies.4. Read Lee, C. and Nowell. B. (2015).“A Framework for Assessing the Performance of Nonprofit Organizations.” (See Articles.) Why do the authors suggest that organizational capacity development be included in a nonprofit’s performance measurement plan?Potential Answer: Lee and Nowell write that nonprofit managers may use capacity performance measures to identify and implement innovative strategies for improving organizational processes that can increase value for customers and reduce overhead costs.5. Read Lee, C. and Nowell. B. (2015). “A Framework for Assessing the Performance of Nonprofit Organizations.” (See Articles.) Why do Lee and Nowell argue that commercial funding models can improve capacity? Potential Answer: Lee and Nowell write that nonprofit organizations receive their funding from different types of sources. The authors recommend that performance measures be designed to assess if the nonprofit is spending their funds on resources that funders value. Meeting funders’ value can enhance the organization’s ability to increase its funding capacity. 6. Read “The Impact of Capacity-Building Programs on Nonprofits: A Random Assignment Evaluation.” (See Articles.) What five critical areas did the federal government’s Compassion Capital Fund (CCF) Demonstration Program provide funding for?Potential Answer: The CCF program was designed to fund capacity-building training, technical assistance and financial assistance in five critical areas: organizational development, program development, revenue development, leadership development and community engagement.7. Read “The Impact of Capacity-Building Programs on Nonprofits: A Random Assignment Evaluation.” (See Articles.) What were the results of the Impact Evaluation performed by the authors to assess capacity? Potential Answer: The Impact Evaluation showed that the participating agencies demonstrated significantly higher levels of capacity in each of the five critical areas. Chapter 8. Collaborations, Partnerships, and Mergers 1. In deciding whether to recognize the tax-exempt status of a new nonprofit, should the Internal Revenue Service consider whether or not it will duplicate the services of other, existing organizations in its community? Why or why not?Potential Answer: In my opinion, the IRS should not consider if their approval of an application for non-profit status duplicates services already being provided within the organization. I believe the IRS should determine if the organization meets the existing criteria of approval. It will be the responsibility of the new non-profit organization to establish viability within the community.2. If you were a nonprofit CEO and were approached by another nonprofit CEO about the possibility of collaborating, what are some of the first questions you might have?Potential Answer: When considering a collaboration I would want to know why the asking organization is inviting my organization to join the collaboration. I would also want to know the inviting organization’s mission, vision, and values statements; image within the community, and its financial viability.3. If you were a nonprofit CEO, what concerns might you have about collaborating with a local government agency?Potential Answer: Government money always comes “with strings attached.” Therefore, I would want to know what the government agency would want in return for my organization joining the collaboration.4. Read the article, “Nonprofit – Public Collaborations: Understanding Governance Dynamics” by Cornforth, Hayes, and Vangen. (See Articles.) What do the authors mean by the term “collaborative windows”? Explain. Potential Answer: The authors explain that a “collaborative window” occurs when the political, social, economic, and organizational stream converge creating an opportunity for policymakers to work together to resolve an issue (pp. 778–779)5. Read the article, “Nonprofit – Public Collaborations: Understanding Governance Dynamics” by Cornforth, Hayes, and Vangen. (See Articles.) Describe what the authors have to say about the governance of networks.Potential Answer: The authors write that networks are a type of “legally autonomous” collaboration or partnership. They write that it is difficult to study the governance of networks because they do not have formal structure of author or ownership (p. 778). 6. Read the article “Hybridity and Nonprofit Organizations: The Research Agenda” by Smith. According to Smith, what environmental factors are encouraging nonprofit organizations to consider merging? Potential Answer: Smith found that nonprofit organizations are considering merging (become hybrids) due to “shifts in the social and political environments, including rising competition for funding, increased scarcity of funding, and enthusiasm for innovation and social enterprise among funders” (p. 1504).7. Read the article “Hybridity and Nonprofit Organizations: The Research Agenda” by Smith. According to Smith, what are types of hybrid structures are nonprofit organizations considering in current times?Potential Answer: Smith writes that common types of contemporary hybrid structures are “public corporations and authorities, nonprofits ‘spun off’ from the public sector, government contracting with nonprofits, and nonprofit/for-profit partnerships” and public corporations (p. 1505).Chapter 9. Managing Staff and Service Volunteers1. Think about your most rewarding (or unrewarding) experience as a volunteer or nonprofit staff member. Which of Herzberg’s satisfiers and dissatisfiers were present in the environment?Potential Answer: I was a member of an informal group of people wanting to start a non-profit organization that would provide training and consulting services to other non-profit organizations. My satisfiers were the opportunity to offer this type of service those organizations in need and to obtain community service experience for work advancement purposes. The dissatisfiers in this relationship was the fact that others in the group were not interested in developing the type of interpersonal relations I was looking for.2. Think about the best (or worst) supervisor you have had, either as a volunteer or a nonprofit staff member. Do you think that individual subscribed to McGregor’s Theory X or Theory Y? What do you think were his or her predominant needs, as described by McClelland?Potential Answer: I participated in a volunteer event where the leader claimed to be a Theory Y leader but was really a Theory X leader. She did not like to delegate control of the project. I believe her management style, not to delegate, was a result of a need for power. 3. In your opinion, is human nature closer to McGregor’s Theory X or Theory Y? Or somewhere in between?Potential Answer: I believe it is human nature for individuals to be Theory Y workers. I believe workers want to work, be creative, and be part of a team. I don’t believe Theory X happens until a worker becomes a supervisor.4. Read “Partnerships among Lebanese Nonprofit Organizations: Assessing the Impact on Human Resource Capacity” by Khaldoun Abou Assi and Jo Suyoen. (See Articles.) What did the authors’ research reveal about the impact of partnerships on organizations’ human capacity—include staff, volunteers, and professional development?Potential Answer: The authors discovered that collaborative partnerships resulted in stronger financial capacity that can be used to hire and train staff. At the same time, they found that as an organization increases its number of paid employees its number of volunteers decline. 5. Read “Leadership and Volunteer Motivation: A Study Using Self-Determination Theory” by Jeannette Oostlander, Stefam Gimtert, Susan van Schie and Theo Wehner. (See Articles.) Explain how the authors’ define partnerships and conclude when they should be used?Potential Answer: The authors defined partnerships as “the formal arrangement between multiple organizations to implement a specific project with a defined scope, time frame, and budget” (p. 1). They concluded that partnerships are best used when there are comparative advantages between collaborating organizations (p.1). Chapter 10. Marketing and Communications1. Below is a list of some well-known nonprofit organizations and a list of attributes. Look at each nonprofit and identify up to three attributes that you would use to describe your impression of the organization. Don’t think too long; just write down the first three words that come to mind when you read the organization’s name. (If you’ve never heard of the organization, just leave it blank.) When you are done, consider these questions:How do your results compare with those of your classmates?What do the results suggest about attributes of the brand in each case?Why do you think each organization has the image that it does, either positive or negative? American Red Cross ___,___,___ (a) innovativeSalvation Army ___,___,___ (b) well-managedNature Conservancy ___,___,___ (c) caringGreenpeace ___,___,___ (d) greedyBoy Scouts ___,___,___ (e) unresponsiveTeach for America ___,___,___ (f) dependableNational Geographic Society ___,___,___ (g) high qualityCity Year ___,___,___ (h) patrioticUnited Way of America ___,___,___ (j) untrustworthyDoctors Without Borders ___,___,___ (k) cold-heartedHabitat for Humanity ___,___,___ (l) friendlyChildren’s Defense Fund ___,___,___ (m) radicalBoston Symphony Orchestra ___,___,___ (n) excitingYale University ___,___,___ (o) prestigiousYMCA ___,___,___ (p) traditionalPotential answers may vary. 2. Identify a local nonprofit organization. What is its product/service mix?Potential Answer: I chose ABC Hospice to analyze. I found its product/service mix to be:Products/Services: Home care, spiritual care; and bereavement carePlace: Services are product in the patients’ home and at the hospice’s operating headquarters.Promotion: Print advertisements in community publications, physician’s’ offices, and radio announcements.Price: Charge fees for services. Costs vary based on patients’ ability to pay and insurance availability.3. Read the article, “Twitter as a Communication Tool for Nonprofits: A Study of Sport-for-Development Organizations,” by Svensson, Mahoney, and Hambrick. (See Articles.) How did sport-for-development nonprofit organizations used Twitter to disseminate information?Potential Answer: The authors found that the studied nonprofit organizations used Twitter as a as a one-way communication tool to send written messages, pictures, news articles, reports, musical playlists, update reports.4. Read the article, “Twitter as a Communication Tool for Nonprofits: A Study of Sport-for-Development Organizations,” by Svensson, Mahoney, and Hambrick. (See Articles.) How did the authors’ suggest that nonprofit organization improve their use of Twitter as a communication tool?Potential Answer: The authors write that the organizations studied did not take full advantage of using Twitter to invite followers to participate, donate, or otherwise support the organization. They also suggest that nonprofit organizations study ways to increase two-way communication channels in order to build a community of stakeholder dialogue.5. Read “Nonprofit Collaboration with Luxury Brands: Positive and Negative Effects for Cause-Related Marketing” written by Boenigk and Schuchardt. (See Articles.) Did the authors’ find the use of luxury brand partners to be beneficial for nonprofit organizations? Potential Answer: The authors’ research indicated that luxury brand can positively contribute to an organization’s ability to raise donations, improve the image of their brand, and increase the chances of attracting wealthy donors. 6. Read “Nonprofit Collaboration with Luxury Brands: Positive and Negative Effects for Cause-Related Marketing” written by Boenigk and Schuchardt. (See Articles.) What precautions did the authors recommend that nonprofit managers take prior to partnering with a luxury brand provider? Potential Answer: The authors suggest that managers ensure that the brand partner organization should have similar missions, values, target audiences and brand attributes. In addition, managers should ensure the nonprofit’s volunteers and staff are comfortable partnering with a high-profile brand.PART IV. OBTAINING AND MANAGING RESOURCESChapter 11. Advocacy and Lobbying1. Should the law be changed to permit charitable nonprofits to endorse or oppose political candidates and provide financial support to political campaigns? Why or why not?Potential Answer: In my opinion the law should not be changed to allow charitable nonprofits to endorse or oppose a political candidate and provide financial support to political campaigns. I base my opinion on the possibility of the nonprofit organization losing existing donors who do not share the same political view as the nonprofit organization.2. Do you think that nonprofits that receive government funds may feel inhibited from lobbying? If so, do you think such concerns are realistic or not? Potential Answer: Yes, I believe that nonprofits that receive government funds may be reluctant to participate in lobbying efforts. I think this is a realistic concern because changes in interests of political parties could influence my programs funding. 3. Read “Advocating for Policy Change in Nonprofit Coalitions” by Fyall and McGuire. (See Articles.) According to the authors, what themes are emerging in the research regarding nonprofit advocacy? Potential Answer: Fyall and McGuire identify two major themes regarding nonprofit advocacy. Researchers find that “measuring advocacy based on lobbying expenditures is problematic” and that service provider organizations are “rarely the driver of political engagement” (p. 1282).4. Read “Advocating for Policy Change in Nonprofit Coalitions” by Fyall and McGuire. (See Articles.) What did the authors’ research reveal about the relationship between coalitions and policy change?Potential Answer: The authors write that coalition-building was “the only possible path for influencing policy change” (p. 1287) 5. Read “Tweeting Social Change: How Social Media Are Changing Nonprofit Advocacy” by Guo and Saxton. According to the authors, how do nonprofit organizations use social media to advocate for social causes? Potential Answer: Guo and Saxton write that the nonprofit organizations they studied used social media to educate the public more than to mobilize people for a cause. 6. Read “Tweeting Social Change: How Social Media Are Changing Nonprofit Advocacy” by Guo and Saxton. What is the authors’ three-stage pyramid model of social media-based advocacy?Potential Answer: Stage one of the authors' model is to reach out and make the public aware of the cause. Stage two involves moving from awareness to building a network of supporters. Stage three is to encourage supporters to mobilize to action. Chapter12. Financial Management1. Some people argue that nonprofit organizations should not have endowments at all. One of their arguments goes something like this: Putting money aside in endowment means depriving today’s generation of the use of those resources so as to benefit future generations, who will receive services supported by income from the endowment. But there are many people in great need of services today. Why are tomorrow’s needy more deserving than today’s? The funds should be spent now to meet current needs. Let future generations of donors support the needs of people in the future. Since the economy is growing, giving will increase over time, and there should be enough philanthropy to meet those future needs. It is thus especially unjust to provide for the future at the expense of people alive today, who live in less affluent times. Do you agree? Why or why not? What arguments would you make on the other side of this issue? Would your views be different with regard to different types of nonprofits, for example, homeless shelters, universities, museums, or environmental organizations?Potential answers will vary.2. Look up the Form 990 of a nonprofit organization that interests you. (It is likely available on Guidestarat .) Go through the financial data and develop your own analysis of the organization’s finances. Questions you might think about include the following: Does it appear to have diversified sources of revenue? How vulnerable or unpredictable are these sources likely to be? What were its major categories of expenses for the year shown? What unforeseen expenses could arise? What kinds of assets does it hold? Does it have debt? What produced its cash flow for the year shown? Does it have endowment or other permanently restricted assets?Potential answers will vary.3. The following items were reported in the Chronicle of Philanthropy. In each case, what types of controls that might have prevented the incident were either not in place or did not work?“A former financial officer at a New York-based nonprofit that supports research into genetic illnesses was arrested … on suspicion of embezzling more than $1.8-million from the organization … [The individual] served for more than eight years as controller of the Hereditary Disease Foundation, exercising primary responsibility for paying the charity’s bills and delivering grant funds for medical studies. A federal criminal complaint … alleges [that the individual] disguised transfers to bank accounts she controlled as grant payments in the foundation’s accounting software.” (“Ex-official at medical charity accused,” 2014).“Eighteen months after the Milwaukee Public Museum, one of the largest natural history museums in the country, shocked the city by revealing that it was in a financial crisis, one of its top executives appears to be the only one to face criminal charges in the museum’s near collapse. [The chief financial officer], who left his job?.?.?.?after [the] problems became public, was charged by Milwaukee’s district attorney with using money from the endowment to cover operating expenses as the museum sank into a financial crisis, and lying about his actions in board meetings to hold onto his job, according to criminal charges filed this month. He did not profit personally from his actions, according to the complaint.” (Gose, 2006, p. 17)Potential answers will vary. 4. Read “Fiscal Leanness and Fiscal Responsiveness: Exploring the Normative Limits of Strategic Nonprofit Financial Management” by G. Mitchell. (See Articles.) What did the author describe as one of the most important features of a nonprofit’s economic environment? What is the mathematical formula used to determine this feature?Potential Answer: Mitchell writes that one of the impost important features of a nonprofit’s economic environment is the cost of obtaining charitable contributions. The formula for computing the costs of raising contributions is: fundraising expenses divided by the total contributions, gifts, and grants. (p. 5).5. Read “Fiscal Leanness and Fiscal Responsiveness: Exploring the Normative Limits of Strategic Nonprofit Financial Management” by G. Mitchell. (See Articles.) What did Mitchell’s study of the application of lean practices to fundraising efforts reveal?Potential Answer: Mitchell’s study revealed that nonprofit organizations that practice lean management processes “generate inefficiencies” such as less flexibility to respond to changes in the external environment. 6. Read “Two Approaches to Nonprofit Financial Ratios and the Implications for Managerial Incentives” by A. Eckerd. (See Articles.) According to the article author, what is the relationship between the charity watchdogs the Better Business Bureau (BBB) Wise Giving Alliance and the Charity Navigators? How do their evaluation standards differ?Potential Answer: The author writes that the Better Business Bureau (BBB) and the Charity Navigators (CN) relationship is competitors. The BBB uses standards that compare whether a nonprofit meets or does not meet each of the standards. The CN standards use an interval scaled rating system that rewards nonprofit organizations that achieve high ratios (p.438).7. Read “Two Approaches to Nonprofit Financial Ratios and the Implications for Managerial Incentives” by A. Eckerd. (See Articles.) What are the three expense ratios used by the Better Business Bureau?Potential Answer: The BBB applies three expense ratios to measure program efficiency: program (program expenses/total expenses), fundraising (fundraising expenses/public contributions), and administrative (administrative expenses/total expenses) (p. 445). Chapter13. Philanthropic Fundraising1. Do you think that people give primarily for altruistic reasons or in order to receive benefits for themselves, including warm feelings, recognition, and social approval? Might the motivations differ among various types of gifts? Explain your answer and provide examples.Potential Answer: I believe that people give for altruistic reasons. I understand that altruism is defined as a selfless desire to help others but I believe any reason to give is done with some self-interest in mind. This self-interest may be more latent in some than it is in others. For example, a person may provide a financial gift to an organization due to feelings of guilt for past actions.2. Some people argue that donors should receive a more generous tax deduction for gifts to organizations that serve the poor, such as homeless shelters, than they receive for gifts to institutions that primarily serve the affluent, such as symphony orchestras. Do you agree or disagree? Why?Potential Answer: I disagree. Gifts to nonprofits are tax deductible to encourage individuals to give to causes that they care about. Giving to a homeless shelter is noble but so is contributing to the gift of music is society.3. If a friend asks you to sponsor his or her participation in a charity event, such as a run or walk, do you usually give a positive response or not? Why? Would your response be different if that friend asked you to do something similar the next month? Why?Potential Answer. I frequently provide support to friends raising funds for a charity event as a show of friendship. However, I would not want to be approached monthly for a contribution. Frequent request could send a perception of one wanting to take advantage of my friendship. 4. Identify and define four different types of individual motivations for giving.Potential Answer: Michael Worth identifies seven reasons that individuals are motivated to give. These motivations are categorized as:Communitarians – give to better the community quality of life;Devout – give to support their religious beliefs;Investors – give to receive tax and estate benefits;Socialites – give to be involved in social relations;Altruists – give for no self-interest;Repayers – give in gratitude for benefits they received; andDynasts – who give due to family tradition.5. What are the advantages and disadvantages of holding special events as a means for soliciting gifts?Potential Answer: Michael Worth writes that special events may provide a high degree of visibility for the nonprofit and attract new donors. However, special events are usually expensive in terms of time and money and may ultimately cost the organization more money than they raise. Another danger behind holding special events is the risk of holding a type of event that may fund current and potential donors. An example of a risky special event could be sponsoring a casino night.Chapter 14. Earned Income Strategies1. Some well-known nonprofit–corporate partnerships are listed below. In each case, what do you think is the logic behind the relationship; in other words, why does this relationship make sense? What may be the principal benefits that each party receives as a result of the partnership? Do you see any possible issues/problems related to each of these relationships?Neutrogena sells sunscreen with the American Cancer Society logo.The Sierra Club endorsed a new line of environmentally friendly cleaning products from Clorox, called “Green Works,” in exchange for a fee (Jensen, 2008). Microsoft created technology centers at Boys & Girls Club locations.Christmas in April is a nonprofit that renovates homes for the elderly and disabled. The Home Depot has provided the organization with training for its volunteers, assistance from The Home Depot employees, and lines of credit for merchandise at its stores, as well as cash gifts.In 2010, Susan G. Komen for the Cure, a nonprofit organization that works to fight breast cancer through research, community health outreach, and advocacy, and restaurant chain KFC [formerly Kentucky Fried Chicken] initiated a promotion called “Buckets for the Cure.” KFC agreed to give Komen 50 cents for every special pink bucket of chicken purchased by the operators of their restaurants from April 5, 2010 - May 9, 2010. (Huget, 2010)Potential answers may vary.2. Some well-attended exhibits at art museums have included collections of automobiles, motorcycles, and photographs of rock stars. Are these appropriate subjects for exhibition in a nonprofit art museum? Why or why not? Do they put the museum’s mission at risk—in the short term or long term? Why or why not?Potential Answer: To apply for a commonly known phrase, “Art is in the eye of the beholder.” Unless the nonprofit art museum’s mission addresses a specific form of art, I do not believe offering a variety of exhibits would put a museum’s mission at risk. 3. The Cystic Fibrosis Foundation invested $150 million in a small biotechnology company to support development of new drugs to treat the deadly lung disease with which the Foundation is concerned. In 2014, the Foundation announced that it would receive $3.3 billion from selling the right to royalties related to the new drugs that were developed, an amount twenty times its annual budget. Some people said the investment helped produce needed new drugs and also fund future research. They said it should be a model for other disease-fighting nonprofits. Other people noted that use of one new drug would cost a patient $300,000 per year and said that the Foundation should have done more to push for lower prices. Critics argued that charities should support academic research but that it is a conflict of interest for an organization like the Cystic Fibrosis Foundation to invest in research by a company when it stands to gain financially. What is your opinion? (Source: Pollack, 2014)Potential answers will vary.4. In your opinion, should nonprofit organizations spend their time and other resources helping for-profit organization increase their profits?Potential Answer: No. I believe nonprofits should invest all their time, money, and other resources directly on the nonprofit’s mission and not worry about corporate profits.5. According to your author, what issues should nonprofit boards of directors consider when deciding to participate in a partnership with a for-profit organizations. Potential Answer: Michael Worth writes that boards of directors should consider the organization’s mission, values, and levels of public relations and financial risks before deciding to partner with a for-profit organization.PART V. SPECIAL TOPICSChapter 15. Government Grants and Contracts1. If you were a government official, would you prefer to contract with a small community-based nonprofit organization or with a for-profit company that might have greater resources? Potential Answer: As a government official, it would be my responsibility to contract with the organization who’s application for the contract offered the ability to meet the need in the most effective and efficient manner, regardless of sector status. 2. If you were a nonprofit CEO, how would you summarize the advantages and disadvantages of the three primary sources of nonprofit revenue—philanthropy, earned income, and government?Potential Answers may vary.3. If given the option, would you prefer that your nonprofit organization receive a government grant or a contract? Why?Potential Answer: I would prefer my organization seek government grants instead of contracts. I prefer grants because they usually offer an organization more flexibility, have less stringent reporting and risks associated with programs that did not achieve the desired outcomes. 4. What are the differences in direct and indirect costs to a nonprofit organization? Would you want a government grant or contract that provided funds for direct or indirect costs?Potential Answer: Direct costs may be defined as short-term expenses that a nonprofit CEO may control. An example of a direct cost could be the monthly electric bill. Indirect costs are expenses that are not as fixed or tangible as direct costs. Examples of indirect costs could include overhead costs such as administrative time spent on a task. I would prefer to apply for a government grant or contract that helped pay direct costs. Direct costs would be more easily explained to the granting organization.Chapter 16. Social Entrepreneurship and Innovation 1. Are social entrepreneurs born or made? In other words, can individuals be educated or trained in a way that will result in entrepreneurial behavior?Potential Answer: Social entrepreneurs are people who care about creating change in society that improves peoples’ quality of life. These entrepreneurs are people are a special group of are born with ambition, commitment, vision, and creativity. They also are not afraid to take risks. These are traits that must be part of an individual’s natural personality and are very difficult to teach. 2. Which of the two schools of thought, or definitions of social entrepreneurship, do you find most satisfactory? Explain.Potential Answer: The two schools of thought about social entrepreneurship are the “social enterprise school” and the “social innovation school.” The social enterprise school of entrepreneurship are for-profit organizations that apply business processes to fulfill a social need. The social innovation school of entrepreneurship also exists to fulfill a social need but the innovation school applies many methods of organization, management, and funding to fulfill its goals. I find the social innovation school of entrepreneurship more satisfactory because it is more flexible than the social enterprise school.3. In 2014, Malala Yousafzai, a Pakistani activist who achieved fame as an advocate for the rights of girls, was awarded the Nobel Peace Prize. Is Malala a social entrepreneur? Why or why not? Potential Answer: Ms. Yousafzai applies the concepts related to the social innovation school of entrepreneurship because she was involuntary placed in a position to create change that she embraced. She works to achieve her purpose of rights for girls due to circumstances not to achieve a profit. 4. Go back and read the case regarding the Minnesota Public Radio in Chapter 14. Was William Kling a social entrepreneur? Why or why not?Potential Answer: Mr. Kling applied the concepts of the social enterprise school of entrepreneurship because he applies business practices to achieve profit in support of his cause.5. Nonprofit partnerships with business, discussed in Chapter 14, provide a nonprofit with earned income. Are such partnerships examples of social entrepreneurship? Why or why not?Potential Answer: Nonprofit partnerships with business are an example of the social enterprise school of entrepreneurship because they apply business practices to raise funds for nonprofits and profits for for-profit organizations.Chapter 17. Governing and Managing International and Global Organizations.1. Thinking back on the discussion in Chapter 13 about the importance of developing a case for philanthropic support, how do you think an organization’s case might need to be tailored to cultural differences? In other words, do you think people around the world are motivated by similar values and emotions? Why or why not?Potential Answer: A nonprofit organization does need to consider cultural differences when attempting to gain support for a social cause. It is important to understand the traditions, values, and practices of the country one is working in so as not to offend individuals by violating traditions and laws. 2. If you had the financial capacity to be a significant philanthropist, would you focus your giving on reducing world poverty or on addressing social problems in the United States? Explain your answer.Potential answers will vary based on students’ personal experiences.3. Should governments be the principal sources of assistance for economic development and poverty reduction, or should philanthropy play the leading role? What are the advantages and disadvantages of each type of action? What should be the relationship between private and government efforts? Explain.Potential answers will vary.4. Define the terms “global” and “international” to explain their differences. Potential Answer: A global organization applies a decentralized decision-making structure that involves many individuals, from areas throughout the world, in the decision-making process. An international organization has a centralized headquarters and decision-making structure even though it has locations in several places throughout the world. ................
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