Nonprofit Management Guide by Ellen C. Stokes
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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.
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Nonprofit Management Guide by Ellen C. Stokes
- 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.
- 12. Customer Service Techniques Whether a business or a nonprofit entity The Golden Rule applies:
- 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 Please join me on Social Media: @ellenn181 or ellenn181@gmail.com
Editor's Notes
- 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.
- 5 Nonprofit Myths
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