Nonprofit Organizationsand Social Institutions

Nonprofits have become essential aspects of “institutional life” in that they fulfill basic functions necessary for our

social way of life.Chapter 2, pp 44-64

The mission of the nonprofit organization manager:

• Fulfilling the institutional role of the nonprofit organization:– Nonprofits allow individuals to foster their

passion to benefit others.– To pull people together to make collective

meaning out of actions important to them.– To link their organization in myriad ways to

the world outside it.pp. 44-45

Roles played by nonprofit executive

• Directing• Motivating• Coordinating• Innovating• External

spokesperson• “Gladiator”• Crisis managingp. 45

Societies create institutions to provide for basic social needs.

• 1. Family and community structures develop to meet basic needs for meaning and support.

• 2. Political institutions emerge to define and articulate public goals.

• 3. Economic institutions exist to develop resources.

• 4. Social institutions exist to harmonize the various actions of organizations.

pp. 46-47

Institutions that respond to these needs are thought of as sectors.

We divide our institutions into four major sectors to accomplish our

societal tasks.

The First Sector

• Corporations and businesses.

• Makes most of our products.

• Hires most of our labor.

• Provides jobs that amount to 80% of payrolls

Second Sector

• Government• Provides military

capacity.• Ancillary regulatory

services.• Welfare services.• Meets about 13% of

national payroll.

Third Sector

• Voluntary and nonprofit organizations.

• Address number of educational, charitable and membership purposes.

• Meets about 7% of national payroll.

• Supplemented by MUCH valuable voluntary effort.

Fourth Sector

• Households• Informal community

organizations.• Performs

– Home management– Child care

• Functions performed without any transfer of cash.

The Environment of Nonprofit Management

Nonprofits are institutions capable of solving human problems when we distrust government and business.

Nonprofit management must take following into account:

• The family• Religion• Education• Social and Demographic

Conditions.– Poverty and Economic

Malaise– Racism– Alienation– Incapacitypp. 46 - 56

• Government, Politics and Law.– Welfare Mix– Certification– Regulation

• Nonprofits and Economy– Productivity– Distribution– Globalization. Including

Mass Media

Nonprofits and family

• Current issues related to interpretations of “family values” have impacted nonprofits’ approaches to their work.

• Post-modern family changes interpretations of what is appropriate.

• The “Moral Majority” has become a force that complicates the mission of some nonprofits.

Nonprofits and Religion

• Religious organizations impose their version of truth on what is appropriate for nonprofits.

• Issues like “choice” and birth control are critiqued by religious positions.

• The examples such as the American Boy Scouts and the Salvation Army limiting activity by sexual preference show the impact of religion on nonprofits.

Nonprofits and Education

• Education is a cultural force that shapes the “learning society.”

• The battle over public and private education shapes the nonprofit environment.

• The educational initiative of “service learning,” internships, and shared community responsibility impact the nonprofits.

Social and Demographic Conditions: Poverty and Economic Malaise

• The economic condition of citizens will shape the kind of problems with which nonprofits have to deal.

• Structural unemployment, unemployment rate shapes life chances and life struggles.

• Consider what it means for nonprofits when one in five American children live in poverty.

Social and Demographic Conditions: Racism

• Nonprofits need to focus on racism as it increases or decreases.

• As government decreases its focus on affirmative action, nonprofits must take up the slack.

• Conservative social policy calls for more effort from non-government organizations when it comes to fighting racism

Social and Demographic Conditions: Alienation

• Alienation is a structurally caused condition that makes it difficult to find meaning and connection in everyday life.

• Our democracy can’t work when people believe “what I think doesn’t matter.”

• Those expressing disaffection with community/social life increased from 29% to over 60% in the 25 years 1966-1989.

Social and Demographic Conditions: Incapacity

• The political and social definition of “disability” will influence the amount and type of effort directed toward this issue.

• Both physical and mental disability has been compensated for by nonprofit efforts.

• When governmental policy is more conservative fewer resources are directed toward assisting individuals in their struggle with disability.

Government, Politics, and Law

• The approach to social policy; more conservative (it is up to the individual) or more liberal (society as a service provider to the individual) will have dramatic effect on the need for specific types of nonprofits.

• Government decides on tax deduction eligibility and which services are needed.

The Welfare Mix

• Government chooses degree to which it will provide services and to whom.

• We have seen dramatic shifts in aid to the poor, the provision of child care, support for education, and unemployment compensation.

• The approach to policy supporting housing, higher education, health care, job training, etc. will impact nonprofits.

Government certification

• The nonprofit environment is impacted by the decisions to certify certain service areas as tax exempt.

• The deductibility of a donation to a nonprofit is of significant help in nonprofit fundraising.

• The power to certify also carries restriction of the independence of the nonprofit.

Government and regulation

• Governmental regulation can make a nonprofit venture much easier or much harder.

• Government contracts add a large degree of control over the nonprofit effort.

• Government can direct the kind and quality of services through regulation.

Nonprofits and the Economy

• When the economy is productive people feel hopeful and optimistic. When it stagnates people feel powerless and left behind.

• In a “bad” economy fewer people give support to nonprofits while more people feel the need for the services nonprofits have to offer.

Distribution of wealth

• How a political administration chooses to distribute wealth will have a critical affect on nonprofits.

• Since 1980s (the Ragan revolution) social policy has fostered a “reverse Robin Hood” pattern.

• Nonprofits have had to contend with an attitude of hard hearted individuality.

Globalization

• Globalization: One world – one economy – one information system.

• Globalization offers reduced prospect for world war.

• It creates a single market and makes all economies interdependent.

• It creates the possibility of international problem solving.

Major Players on the Nonprofit Stage

• Givers: more than ½ of American population volunteer service, financial contributions make nonprofits possible, altruism is rewarding and has a humanizing affect.

• Intermediaries: Foundations provide resources for problems of special import.

• Regulators: 1. State agencies of taxation, 2. nonprofit sector monitors, 3. program evaluators, 4. congressional subcommittees.

p. 56-61

Nonprofits and Charitable Organizations: We all benefit!

• Over a million nonprofits in the U.S. employ about 10% of total number of workers.

• Work of nonprofits directed at service, advocacy and member benefit.

• Involved in all aspects of American life: Boy and Girl Scouts, the Catholic Church, the Brookings Institution, Blue Cross, Mayo Clinic, Yale and Amherst, the Ford Foundation, the National Football League, the Motion Picture Academy of America, the Red Cross, Habitat for Humanity…