Nonprofits Impact

The nonprofit sector in America is a reflection some of the foundational values that brought our nation into existence. Fundamentals, such as the idea that people can govern themselves and the belief that people should have the opportunity to make a difference by joining a like-minded group, have made America and its nonprofit sector what it is today. The American "civil society" is one that has been produced through generations of experiments with government policy, nonprofit organizations, private partnerships, and individuals who have asserted ideas and values. The future of the nonprofit sector will continue to be experimental in many ways. However, the increase of professional studies in nonprofit management and the greater

When Zoot Velasco looks at American nonprofits, he sees a sector that is struggling, in spite of limitless potential for innovation and impact. Noting that 22.3% of the country’s GDP is in the nonprofit sector, yet only 20% of such organizations have a budget exceeding $1 million, Velasco hopes to lead a transformation in the industry.

Net assets are defined as “the difference between an organization’s assets and liabilities.” For nonprofit organizations, net assets are related to an organization’s ability to borrow funds. Tuckman and Chang (1991) found nonprofit organizations less likely to alter their programs and mission, following a financial shock, if they can leverage their net assets. An operating margin, or surplus, is “the difference between an organization’s revenue and expenses, divided by its total revenue.” A Nonprofit organization holding a great surplus can readily operate at a reduced surplus following a financial shock – allowing it not to alter any programs. The third factor for nonprofit financial vulnerability is revenue concentration. Revenue concentration is “the proportion of income an organization receives from its various sources of revenue.” Nonprofit organizations who receive many sources of revenue can better withstand the impact of a financial shock than those with little sources of revenue. After a financial shock, nonprofit organizations, along with all businesses, will try to cut down expenses. Woronkowicz (2016) states “administrative costs are preferred to those to program

The Alliance for Better Nonprofits (ABN), located in the Regas building in Downtown Knoxville, exists to provide resources, training, consulting, networking, and standards of excellence for nonprofit organizations in the 25 counties of Upper East Tennessee (What We Do, 2017). The remainder of this paper will discuss the personal interaction I had with Alliance employees during a visit, as well as the services and opportunities the Alliance offers the nonprofits in the community.

Over the years, the government has given more responsibility through subcontracts for nonprofits to carry out a range of services for communities. Consequently, nonprofits face major challenges in a constantly changing environment. This type of environment has created a battle amongst other nonprofits as they struggle to obtain similar resources. In this memorandum, the topic of strategy formulation in the not-for-profit area and its application to nonprofits are touched on.

When considering a budget, it is said that the value of money must play a significant role in this dialog. As money of one sum today will rise to a greater value tomorrow. Even if the nonprofit organization does not look at things from a stand point of inflation which is always in effect. Money is a tool that if we use it and the sooner we do in a productive way. The nonprofits money will produce value in the future. It is not by coincidence that the most successful nonprofit watches their finances very carefully. And often look at the progress of their financial goals (McLaughlin, T.A. 2002).

\footnote{A 2009 report to congress lists top problems for tax-payers, one is relevant information about impacts and needs of nonprofits; accessed March 23, 2014. \url{www.irs.gov/pub/irs-utl/1_09_tas_arc_vol_1_preface_toc_msp.pdf}}

Nonprofit organizations survive essentially on the various resources they are able to obtain. Money is obviously an enormous resource, as any organization needs money to survive. Money can come from various sources such as state and federal government funding and/or grants, donor cash, fundraising methods, donated products or services, and most importantly: volunteers. Volunteer labor makes up a total of one-third of the national income attributable to nonprofit organizations in the United States (Young, 2007).

Let’s help give back to nonprofit organizations!! Nonprofit, also called not-for-profit corporations, do not supply their own money. Nonprofit corporations are created according to state law. They must file a statement of corporate purpose with the Secretary of State, pay a fee, create articles of incorporation, conduct regular meetings, and fulfill other obligations to achieve and maintain corporate status. Different things go into running a nonprofit organization. The leader of the organization needs to make sure that all requirements needed to run a nonprofit organization are met, also dealing with outside contributors. Contributors play a big part in a nonprofit organization. There are multiple options involving funding a nonprofit organization. They can get funding for multiple reasons and in multiple ways; for example, sponsorship, corporate giving, grant funding, donations, and fundraising are ways to fund a nonprofit organization.

These nonprofits work in a variety of public contexts human services, education, health, societal benefit, cultural, environmental, and religious organizations being some of the principle areas of nonprofit work. While a full accounting of the impact of nonprofit organizations is beyond the scope of this paper, there is nevertheless a need to consider the impact of nonprofits in crisis and disaster situations generally, to acceptably situate our analysis of the Minot response and recovery and the role of faith based and nonprofit groups

In our great nation, nonprofit organizations have played a critical role in helping people in need by providing education, training, residences, counseling, and in‑kind and cash support. Our nations has called upon nonprofit agencies, to take the leading role in American society in addressing social problems. Their belief in the efficacy of nonprofits combined with the current political and financial constraints on government spending, suggests an even larger service role for nonprofit organizations. We know that politics is complexed in its operating environment. There is a real danger when we choose to ignore the complexity of government and how it

Social entrepreneurship is gaining such strong interest in nonprofit world because of the economic challenges that have plagued this sector with cuts in philanthropic and government funding. According to Nash (2010) not only are there cuts, there are many organizations vying for the limited funding. Studies support, the attitudes in capitalistic America, and the ease of nonprofits to embrace this concept; evidenced by their ability to sell their once free services, to meet the demands of the consumer. According to the IRS (2010) nonprofits have increased their selling power on unrelated business income, to the tune of 184% increase, in a sixteen-year time frame. This writer, believes these numbers are evidence which support this trend is

The nonprofit sector has been one of the largest share of the United States economy. According to a report of THE NEW YORK TIMES, in the period of 2001-2011, the growth number of nonprofit business was 25%, while the growth of for-profit business was only 0.5%. In 2010, 1.6 million nonprofits provide 10% working position for contour and accounted for 5% of GDP (ANNA BERASEK, For Nonprofits, a Bigger Share of Economy 1). In year 2012, nonprofit sector contributes 5.5% of GDP for USA. By June 2014, there are 1,429,801 tax-exempt organizations in United States, which including 966,599 public charities and 96,584 private foundations (NCCS, Quick Facts about Nonprofits 1). With the greater demand for health care services, the number of

Financially healthy nonprofits use income-based, rather than budget-based spending which allows them to have income projections that are realistic and helps to determine realistic costs (Zietlow, Seidner, 2014). The most successful nonprofit should have an operating reserve to finance shortfalls and hopefully allows them to have a positive cash flow at the end of the year (Zietlow, Seidner, 2014). However, most nonprofit organizations fight to manage cash flow due to how income and the expenses often may occur at different times, so that there may not be enough cash to pay for the expenses as they become due and payable (Zietlow, Seidner, 2014).

This paper reflects on how my philosophy about the nonprofit sector has changed over the course of the class. As a detailed guideline, my reflection will draw on evidence from the course readings and the case studies. The paper will identify at least one concept I have learned, and how my thinking has changed this quarter. The conclusion will highlight my curiosity, and which questions to carry alongside as I invigorate my graduate studies.