This document discusses several topics related to the future of non-profit and voluntary sectors, including commercialization, faith-based social services, and social entrepreneurship. It also addresses issues facing non-profits like frivolity, politicization, and salaries. Additionally, the text covers privatization in human services, the growth of corporate involvement through human service corporations in areas like nursing homes, HMOs, childcare, and more. The role of unions and corporate social responsibility are mentioned. Finally, students are assigned a group discussion on addressing a social issue through a non-profit or business model approach.

2. NOT-FOR-PROFITS
Week 6 Continued

3. The Future of the Voluntary Sector
• Commercialization
– Particularly important for nonprofit agencies
desiring to enhance their incomes
– Unfair competition issue

4. The Future of the Voluntary Sector
Faith-Based Social Services
– Conservative think tanks have sought an
alternative to federal social programs
– Captured the imagination of international
development advocates

5. The Future of the Voluntary Sector
• Social Entrepreneurship
- Proposes social capital as a vehicle for
revitalization
- Pursues innovations through capital and
technology
- Uses capitalism and business principles as
a means of measuring effectiveness

6. Social entrepreneurship is the attempt to draw
upon business techniques to find solutions to
social problems. This concept may be applied to
a variety of organizations with different sizes,
aims, and beliefs.

8. Issues Facing the Voluntary Sector
– Issues Facing the Voluntary Sector
– Frivolity
– Politicization
– Property tax exemptions
– Salaries

11. Group Discussion
• Choose a social issue as a group.
– First consider how you would create a nonprofit to
address the issue.
• Would your organization provide direct service or social
advocacy?
• Who would you recruit to be on your board?
• Where would you solicit resources?
- Second consider how you would apply a business
ethic to the same social issue.
• How does this change what your organization provides?
• Who would you recruit to be a partner?
• How would you solicit resources differently?

12. PRIVATIZATION AND HUMAN
SERVICE CORPORATIONS
Chapter 7

13. Privatization Issues
• Commercialization
• Preferential Selection
• Cost-Effectiveness
• Standardization
• Oligopolization
– The control of a market by few providers
• As organizations seek to reduce competition by
buying their competitors

14. The Challenge of Privatization
• For many health and human service
professionals:
– Privatization is contrary to social welfare
• Privatization reinforces a tendency in
market economies to evolve:
– Dual structures of benefits, services, and
opportunities

15. Unions and the Private Sector
• Unions of health and welfare professionals
are one response to privatization
• Collective bargaining
• Privatization and government cuts in
funding make the issue ever more urgent

16. Welfare Capitalism
• Benefit packages for employees
• Corporate sponsorship of social welfare
initiatives activities
• Commonweal

17. Corporate Social Responsibility
• The corporation is being attacked and
criticized on various fronts
• Corporate social responsibility
• Corporate practices have also been
applied directly to social problems

18. Corporate Influence on Social
Welfare Policy
• AEI and the Heritage Foundation
• Corporate influence in social welfare is
dynamic
• Health care organizations unleashed a
legion of lobbyists on lawmakers
– In anticipation of the Obama administration’s
health reform initiative

19. The Future of Corporate
Involvement in Social Welfare
• “Decency Principles” proposed by Nancy
Amidei
– Equitable wages
– Employee rights
– Housing
– Environmental responsibility

20. Human Service Corporations
• Continued demand for human services
– Drawn the corporate sector directly into social
welfare in the United States
• Public policy decisions
– Encouraged proprietary firms to provide
health and human services

22. Consolidation and Growth in New
Human Service Markets
• Human service corporations have become
prominent, if not dominant
• Nursing Homes
• 2003 Medicare Reforms
• Hospital Management

23. Consolidation and Growth in New
Human Service Markets
• Health Maintenance Organizations
– Was slow to attract the interest of the
corporate sector
• Child Care
• Home Health Care
• Corrections
• Public Welfare

24. Conclusion
• Health and human service professionals
– Slow to adopt the corporate sector as a
setting for practice
• The corporate sector
– Can offers more opportunities for program
innovation than possible under other auspices

25. Midterm Exam Quiz
• Slides on Compass 2g to review
• Tuesday March 3, 2014
• Compass 2g
• Available all day
• Timed (should give yourself 1h15m)
• Office Hours Thursday or email

26. Extra Credit:
5 points for attending all day event
and submitting 3 page paper
1 additional point for attending the pre-advocacy day event
Illinois NASW Advocacy Day
Tuesday, April 14th in Springfield, IL
• The day will encompass a half day of educational seminars on lobbying in Illinois followed by advocating at
the Capitol.
• The cost of attending the event is $13 if you register prior to February 28th. After February 28th, the cost
goes up to $18.
You need to register individually, online at:
https://naswil.wufoo.com/forms/advocacy-day-041415/
• The School of Social Work will be arranging for transportation for all students to Springfield and back on
Advocacy Day. The event begins in Springfield at 8:15am and will wrap up at 3:30pm. Please plan to be at
the School of Social Work to leave for Springfield at 6:15am. The bus will be leaving promptly at 6:30am,
so please keep in mind if you are late, you will need to arrange for your own transportation to Springfield.
• Once you register, please also send an email to ksharmon@illinois.edu to let me know you are registered
so I can keep a head count of how many people are attending.
• More information about Advocacy Day can be found at http://www.naswil.org/advocacy/advocacy-day/.

27. Next Class
• Karger and Stoesz, Chapter 8
• Social Policy Forum.
• 1st Exam is March 3. It will be administered on
COMPASS.