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Midterm nonprofit

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Midterm nonprofit

  1. 1. CHAPTER 20 Nonprofit Organizations
  2. 2. BASIC NEEDS OF NONPROFITS  To create campaigns and programs such as: special events, websites, brochures, radio/T.V. appearances to stimulate public interest in the organizations goals.  To Develop strong staff to handle all the work. Volunteers are essential in nonprofits because the amount of work needed is too much for a small professional/paid staff.  To Establish a realistic fundraising goal, and plan.
  3. 3. NONPROFITS BREAK DOWN IN 3 GROUPS  Membership Organizations  Advocacy Groups  Social Organizations
  4. 4. MEMBERSHIP ORGANIZATIONS  Trade Associations  Labor Unions  Professional Associations  Chamber of Commerce
  5. 5. TRADE ASSOCIATIONS  The membership of a trade association usually consists of manufacturers, wholesalers, retailers, or distributors.  Examples are:
  6. 6. LABOR UNIONS  Unions must seek to build their memberships, protect members’ job security, and improve their public image.  Examples:
  7. 7. PROFESSIONAL ASSOCIATIONS  Members of a profession or skilled craft organize for mutual benefit. Their goals resemble those of labor unions in that they seek improved earning power, better working conditions, and public acceptance of their role in society.  Examples:
  8. 8. CHAMBER OF COMMERCE  A Chamber is an association of businesspersons, often joined by professionals, who work to improve their city’s commercial climate and to publicize its attractions.  The chamber of commerce is the public relations arm of the city government. The staff produces the maps and brochures sent to individuals who seek information about visiting or moving to the area.
  9. 9. ADVOCACY GROUPS  Environmental Groups such as:  Other Activist groups such as:  Social Issue Organizations such as:
  10. 10. METHODS OF OPERATION The principle ways in which advocacy groups work to achieve their goals include:  Lobbying  Litigation  Mass demonstrations  Boycotts  Reconciliation
  11. 11. SOCIAL ORGANIZATIONS For the purposes of identification, nonprofit social organizations and their functions may be grouped into seven categories:  Social Service agencies  Health agencies  Hospitals  Religious organizations  Welfare agencies  Cultural organizations  Foundations
  12. 12. PUBLIC RELATIONS GOALS Emphasis on goals will vary, but in general, nonprofit organizations should design their public relations to achieve the following objectives:  Develop public awareness of the purpose and activities.  Induce individuals to use the services  Create educational materials  Recruit and train volunteer workers  Obtain funds to operate the organization
  13. 13. WAYS TO MEET THOSE GOALS  The news media provide well-organized channels for stimulating public interest.  Free medical exams, family counseling, offers of scholarships are some ways to get individuals to use the services.  The quickest way to inform a person about an organization is to hand out a brochure. Written and audiovisual materials are basic to any organizations program.
  14. 14. MORE WAYS TO MEET GOALS  The sense of making a personal contribution to society is a primary factor in motivating people to volunteer.  An understanding of what motivates individuals and companies to give money is important to anyone involved in fund-raising. Fund-raising however, involves risks as well as benefits.
  15. 15. FUND-RAISING  The risks of fund-raising result when companies disclose that only a small portion of the money raised was applied to the cause, with the rest consumed by solicitation expenses and administration overhead.  The National Charities Information Bureau sets a standard that 70% of funds raised by a charity should go into programs.  Another risk is the Competitive Factor
  16. 16. THE COMPETITIVE FACTOR  The competitive factor is when the public feels or becomes overwhelmed with solicitations for contributions. This is why the United Way of America exists: to consolidate solicitations of numerous important local service agencies into a single unified annual campaign.  The money collected from an annual campaign is distributed among participating agencies according to a percentage formula determined by the United Way budget committee.
  17. 17. TYPES OF FUND-RAISING  Corporate and foundation donations  Structured capital campaigns  Direct mail  Sponsorship of events  Telephone solicitations  Use of telephone numbers with “800” and “900” area codes for contributors  Commercial enterprises
  18. 18. 2009 CONTRIBUTIONS BY TYPE OF RECIPIENT ORGANIZATION Religion $100.95 billion Education $40.01 billion Gifts to Foundations $31.0 billion Human Services $27.08 billion Public-Society Benefit $22.77 billion Health $22.46 billion Unallocated $28.59 billion International Affairs $8.89 billion Arts, Culture & Humanities $12.34 billion Environment & Animals $6.6 billion Foundation Grants to Individuals $3.51 billion
  19. 19. Source: Giving USA 2010 Footnote: *Unallocated contributions included deductions carried over multiple tax years, gifts to new organizations and government agencies, and foundation grants to international recipients.
  20. 20. THE ROLE OF PUBLIC RELATIONS  The crucial point is that nonprofit organizations is that they are tax exempt.  The government grants them this status because they enhance the well-being of their members or enhance the human condition in some way.  Many nonprofit organizations could not survive if they were taxed.  Public relations task to raise money and awareness to pay for expenses and finances their projects.

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