The Ethics Of Nonprofit Management

The nonprofit board and its governance are critical to an organization’s success. Brown (2007) stresses the need for governing boards to be informed, effective, and engaged, especially because the current environment (i.e. increasing competition for resources, etc.) demands high-quality board performance. The purpose of this paper is to examine existing literature as it relates to nonprofit board governance and performance. This analysis includes an examination of nonprofit boards’ roles, responsibilities, and functions along with a review of best practices. In addition, board roles and best practices, and their correlation to board performance is emphasized. Finally, a discussion of the practical implications of the literature as it relates to DavidsonWorks’ board ties the literature to real-world application.

The elements of a board as a defining factor in the self-governance character of a nonprofit is affirmed by Worth (2014). For example, the “control of the nonprofit lies with a board of directors…who have overall responsibility to [care for and oversee] the organization” (Worth, 2014, p. 57). Big Brothers Big Sisters exemplifies volunteerism in both its history and present service practices. For example, the organization currently utilizes “400,000 volunteer mentors and families” (Big Brothers Big Sisters of America, 2016a, para. 3) to work with youth and facilitate the organizations critical programs and relationships (Big Brothers Big Sisters of America, 2016a). Big Brothers Big Sisters history is also reflective of volunteerism is critical role. To illustrate, in 1904 Ernest Coulter founded the Big Brothers movement with 39 volunteers, who each agree to befriend and mentor an individual youth (Big Brothers Big Sisters of America, 2016a). The statistical data from Big Brothers Big Sisters reveals that the organization have a tremendous impact on community individuals and therefore provides a public benefit through

Moreover, this case study analysis focuses on AMC and the challenges that the nonprofit faces during the restructuring of a club that operated primarily by volunteers to a professional managed organization. This case study analysis will provide the following: descriptions of the problems AMC is challenged with, an identification of AMC’s major players using a stakeholder analysis, and finally, provide recommendations and strategies to solve AMC’s challenges. After conducting this case analysis, one will understand how an organization can experience significant challenges as it transitions so that an organization can stay competitive in the nonprofit sector.

The diversity of nonprofit organizations, services provided and the problems faced shows that nonprofits require leadership with an in-depth understanding of the multifaceted nonprofit landscape. Understanding the culture of nonprofit work is also crucial and much easier to understand once you have been through a nonprofit management program. My career interests lead me towards an avocation of a deeper knowledge of strategic management/planning, legal structure and standards, increase my skills in quantitative analysis of policy, financial governance and developing fundraising strategies. These areas allow for macro management within the nonprofit

I believe this number is not a result from a single cause, and I do think that numerous scandals in the nonprofit sectors caused larger negative influence than a general decline in confidence. When asked people what kind of spending they consider unwise, the biggest portion answered salaries and administration cost, which demonstrated that the public were still lack of knowledge about the nonprofit sectors. Nonprofit organizations, like for-profit organizations, also need to hire professionals to maintain service to the public, so it makes no sense that the leader of a nonprofit sector should not be paid with good money. If people do not have a clear understanding about how nonprofit sectors work, it will be easy for them to have a bad impression

The board wanted the new Executive Director to advance the organization in the future by turning the Center into more of a business-like operation instead of a family run business atmosphere. Within this organizational structure, the Executive Director’s role had more responsibilities than it should, while the board members role was very inept. Traditionally, the role of fundraising consists of the board providing their own gifts and actively engaging in the act. (Worth, p.71) The fundraising attempts before the new Director arrived were done on an as-needed basis and then it only accrued for 20% of the annual funding. The lack of funding could lead to salaries not being paid and the budget not being balanced.

From the perspective of this author, both types of organizations have a critical need for the right manager that focus on the right areas. Therefore, both would have to pay close attention to their stakeholders and their motivators regardless of organization type. Case in point,

It is so difficult for nonprofit organizations to deal with the withdrawal of a major gift. In order to illustrate what ABC Nonprofit should be aware of and how to successfully navigate the complexities that it is facing, I selected the case of the Central Park Children’s Zoo as an example. I suggest that ABC Nonprofit should get to know more about the new major donors before reaching agreements, handle the major gift wisely, and have good relationships with both major donors and individuals or communities that have involved in.

During your training if you have any suggestions to add or have ethical situations you’d like to discuss please do not hesitate to bring it up with the trainer. We understand that everyone has had experiences in personal life and when working with other companies. Those experiences can help us expand and improve upon on our existing training and update our Code of Conduct as required.

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

This paper was originally written for Financial Management for Nonprofits 380, taught by Professor Zelhart.

The image of the organization in the public eye is also very important to whether the organization will be successful or not. From this article, it seems as if both the management and the image of the Center for Building Hope need improvement. From the huge deficit the Center is facing to the missing money from retirement plans, jumping into risky business establishing another nonprofit, as well as the raise in salary for their CEO Carl Ritter, the Center is in dire need of positive results to keep their nonprofit organization viable. For success, the management team including CEO Carl Ritter need to make sure they are on the same page. They need to ensure they have a well-defined mission, a long-range plan, focus on lessening their deficit and making a profit, as well as refraining from engaging in any more risky

I enjoyed reading Chapter 11 especially what the author writes on page 281 as it summarizes the importance of a message. It keys on the relevance of accessibility, accountability, education, interaction, and empowerment. I think that is the key element of fundraising. I also believe that from a theory to reality there are some gaps. Nonprofits are often under tremendous pressure to perform with very little resources. Some nonprofits can navigate the process successfully and grow, while others do not.

Grundner was effected first hand but what his nonprofit is serving. He still believes that passion alone is not enough. We cannot compromise simply because of being a nonprofit. He believes that the nonprofit board governance needs passion for our cause, standards for our work, diversity for different perspective, and transcendent leadership for potential new leadership. Lastly, Grundner states that nonprofits need to raise the bar of expectations, the board members need to hold organization accountable, and that before joining a board one must be “all in”. Management of a nonprofit is not an easy task, and passion is simply not enough.

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).