Management of NOn Profit Organisation - BAsed on Pune University Syllabus

1. Management of Non
Profit Organisation
DR. PRACHI AJIT

2. Fundamentals of Non-profit organization:
Introduction of Non- Profit Sector & Non- Profit Organizations,
Define the Non- Profit Organization and describe its dimensions.
Key concepts in Non-Profit management including board of governance, staffing, regulation, and
volunteer management.
Concept of Non-Profit leadership and governance and the functions of boards in organizational
governance, the Board's Role and Responsibilities, responsibilities of Non-Profit Organizations.
Elements of board behaviour for effectiveness of organization.
Developing Leadership and Improving Governance in Non-Profit Organizations,
Improving the Effectiveness of Boards of Directors and the tools used to facilitate assessments of
board performance. (5+1)
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3. Introduction of Non- Profit Sector & Non-
Profit Organizations
Non Profit Sector - Simply put, a nonprofit is a tax-exempt organization that benefits the broad
public interest. ...
The most common nonprofit is classified as a 501(c)(3), which includes public charities or private
foundations. The majority of Independent Sector members are 501(c)(3) organizations.
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4. Introduction of Non- Profit Sector & Non-
Profit Organizations
Non Profit Organization - A nonprofit organization is a business that has been granted tax-exempt status by the Internal
Revenue Service (IRS) because it furthers a social cause and provides a public benefit.
Pages in category "Non-profit organisations based in India"
A.P.J. Abdul Kalam Centre.
Aadiwasi Janjagruti.
Adhya Educational Society.
Aeronautical Society of India.
Agaram Foundation.
Agastya International Foundation.
Ahmedabad Education Society.
Akancha Srivastava Foundation.
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5. Emergence of the Non-Profit Sector and the
Implications for Governance
With the increase in the numbers of NGO’s, there has been a perception that the government
should be kept on its toes because of the watchdog like function that the NGO’s are supposed to
perform.
Indeed, many governmental schemes like the MNREGA (Mahatma Gandhi National Rural
Employment Guarantee Act) are subject to social audits and vetting by the NGO’s which is a
positive development.
These social audits are useful to assess the efficacy of the schemes launched by the government
and hence act as deterrents against corrupt practices and leakages of funds.
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6. Define the Non- Profit Organization and
describe its dimensions
A non-profit organization (NPO) is one which
is not driven by profit but by dedication to a
given cause that is the target of all income
beyond what it takes to run the organization.
Non-profit organizations are often used for
trusts, cooperatives, advocacy, charity,
environmental and religious groups.
Dimensions –
◦ Twenty brands across five broad NPO categories
of Community Development,
Education/Children, Culture, International and
Environment were chosen.
◦ Four key purpose dimensions
emerged: CHANGE, SUPPORT, EMPOWER, and
FIGHT.
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7. Key concepts in Non-Profit management
The key aspects of nonprofits are accountability, trustworthiness, honesty, and openness to
every person who has invested time, money, and faith into the organization. Nonprofit
organizations are accountable to the donors, founders, volunteers, program recipients, and the
public community.
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8. Board of governance, staffing, regulation,
and volunteer management
In Short the Management of NPO
By definition, the nonprofit sector operates in the humanitarian goals and objectives space.
This means that many nonprofits are loosely structured and are often volunteer driven without formal
hierarchies and patterns of management.
1. Need for Management Structures
The first and foremost requirement for a nonprofit is to have a board of directors who provide the
high level monitoring and control. The board members can be drawn from all walks of life and must
have enough experience in the social sector. Further, the members of the nonprofits should be on the
board as executive members.
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9. Accountability and Regulatory Requirements
The next aspect as far as the management of nonprofits is concerned relates to the need for
them to have people who can be held accountable for the actions of the nonprofits.
Final Thoughts
Finally, the nonprofits need to have management structures that can be advertised to the
external world as the single point of contact between the nonprofits and society lends itself to
easy access to the nonprofits and helps in recruiting more volunteers for the cause.
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10. Concept of Non-Profit leadership and governance
and the functions of boards in organizational
governance, the Board's Role and Responsibilities,
responsibilities of Non-Profit Organizations.
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11. Concept of Non-Profit leadership
The nonprofit leader has to engage people to not only create a positive “profit or financial bottom
line” for the corporation but must also work equally hard with people to show a measurable “social
bottom line or social profit” resulting from the work.
The following should be a part of the leadership equation for leaders across all sectors:
Methodical processes
Clear goals
Fair compensation and recognition
Clear communication and respect
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12. Concept of Non-Profit governance
Nonprofit governance is defined as the process of providing strategic leadership to a nonprofit
organization.
It entails the functions of setting direction, making policy and strategy decisions, overseeing and
monitoring organizational performance, and ensuring overall accountability.
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13. Roles and Responsibilities of Board
members of NPO
Nonprofit Board of Directors' Basic Roles and Responsibilities
◦ Determine the Organization's Mission and Purpose. ...
◦ Select the Executive Director. ...
◦ Provide Proper Financial Oversight. ...
◦ Ensure Adequate Resources. ...
◦ Ensure Legal and Ethical Integrity and Maintain Accountability. ...
◦ Ensure Effective Organizational Planning.
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14. Responsibilities of Non-Profit
Organizations.
They provide services, goods and resources to meet community needs.
They are businesses, most often charitable, that assist other businesses in the community to
drive economic development, the arts, cultural awareness, education, health and spirituality —
in virtually every sector of society.
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15. Elements of board behaviour for
effectiveness of organization
A significant relationship between board performance and organizational effectiveness was
found, and the board activities most strongly correlated with organizational effectiveness are
reported, including policy formation, strategic planning, program monitoring, financial
planning and control, resource development
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16. Developing Leadership and Improving
Governance in Non-Profit Organizations
Group Name NPO Developing Leadership Developing Governance
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17. Improving the Effectiveness of Boards of
Directors and the tools used to facilitate
assessments of board performance
How can you improve the effectiveness of a board of directors?
Reflect the culture of the organization and its board. Are championed by a chairman or other
board leader who participates actively in the process. Have shared support among all directors.
Begin with clearly stated objectives for the board assessment process.
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18. What makes an effective nonprofit board?
The effective board understands how the organization creates social impact; ensures that there
are clear indicators for tracking progress and that action is taken when the organization is not on
track; participates appropriately in business planning; and provides operational support to the
senior team as needed.
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19. Tools used to facilitate assessments of
board performance
Assessment tools can be simple and quick, yet powerful. Here are two FREE NAO assessments
that each take less than ten minutes to complete:
https://nonprofitoregon.org/helpline_resources/Board-Assessment-Tool
Board Assessment assesses the functioning of the Board as a whole. It is anonymous, and can
be completed, tallied, and the results reviewed in one Board meeting.
Download: PDF / Word Document
Board Member Self-Assessment also anonymous, gives Board members the opportunity to
reflect on their own performance and experiences serving on the Board. If Board members are
comfortable sharing, the answers to questions seven through nine can help the Executive,
Nominating, or Governance Committee identify strategies to improve Board member
effectiveness and satisfaction.
Download: PDF / Word Document
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20. References
https://www.managementstudyguide.com/emergence-of-non-profit-sector.htm
https://thirdsectorcompany.com/importance-leadership-nonprofit-organizations/
https://getfullyfunded.com/the-10-roles-and-responsibilities-of-a-nonprofit-board-of-directors/
https://nonprofitoregon.org/helpline_resources/Board-Assessment-Tool
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