Nonprofit Management Principles and Practice By Michael J. Worth 4th Edition

Double Bottom Line: Chapter 1-Page 7
A nonprofit exists to pursue a social mission, and success must be measured in terms of its ability to achieve that mission but in today’s competitive environment, nonprofit managers also must pay close attention to the financial bottom line if their organizations are to survive and succeed.-Worth
Interdisciplinary Field of Study: Chapter 1 pages 50,55-56
Concept to be Learned within the Entire Chapter.
Intrapreneur: Chapter 1-Page 11
Change within existing organizations.-Worth
Management: Chapter 1
This book is the predicate sector on a variety of ways, including the following; NP: management uniquely requires the ability top integrated mission, the acquisition of resources and strategy…Recognition of management as an identifiable function- in any organization setting is relatively recent in the scope of history….see Chapter 1 for more Details
Social Entrepreneurship/social: Chapter 1
Reflect two schools of thought. Some people meant the pursuit of business income by nonprofits. Others define a social entrepreneur as someone who leads innovation and brings about systemic change, whether using business methods or some other strateg. -Worth
Entrapreneur: Chapter 1-page 11
Someone who starts a new company or organization. -Worth
Advocacy Organizations: Chapter 2-Page 29 and 432
Advocacy Organizations are generally 501(c)(4) organizations under the Nonprofit Sector, (Figure 2.1 page 28). Advocacy Organizations are tax-exempt because they work, in the IRS’s (n.d.b) words, “to further the common good and general welfare of the people of a community (such as bringing about civic betterment and social improvements.” They cannot receive tax-deductible gifts. -Worth
B Corps: Chapter 2-page 39 and 43
Emerging New Models: “It is important to clarify that benefit corporation is different from a certified B corp. A Certified B corp is not truly a new corporate legal form but rather for-profit business that has been certified as following socially responsible practices and having a positive social impact while engaging in commerce. This certification is similar to the Leadership in Energy & Environmental Design (LEED.”-Worth
Benefit Corporations: Chapter 2-Pages 39 and 43
The Benefit Corporation was, as of 2014, recognized in 26 u.s states. Social responsibility is included in the corporation’s charter, granted by the state, and the benefit corporation is thus a new legal form (B Lab, 2015).
Charitable Choice: Chapter 2-Page 31
“A provision to allow faith-based organizations to receive grants under federally funded programs, and proposals to further increase the ability of faith-based nonprofits to obtain such funding generated controversy during the first term of President George W. bush.”-Worth
Charity: Chapter 2-Page 22
Giving intended to meet current individual human needs or to alleviate current human suffering.-Worth
Civil Society: Chapter 2-Page 24
Alternatives to Nonprofit: “There are many different definitions of civil society, and while “the nonprofit sector provides the organizational infrastructure of civil society,” the concept itself is more abstract, included “the sum of institutions, organisations, and individuals located between the family, the state, and the market, in which people associate voluntarily to advance common interests” (Anheier, 214 p.9).”” -Worth
Collective Impact: Chapter 2-Page 39
Emerging New Model: “the commitment of a group of important actors from different sectors to a common agenda for solving a specific social problem”(kania and Kramer, 2011) -Worth
Faith-Based Organizations: Chapter 2-Page 31
Charitable Nonprofits:”Provide social services, which can receive government funds to support their secular programs.”-Worth
Flexible Purpose Corporations: Chapter 2-Page 39
“It requires that the board and management agree on social purposes, and it provides the boards and managers with protection against liability if they do not exclusively pursue profits for the benefit of shareholders (Battilana et al.,2012).” Its features are similar to the benefit corporation.-Worth
Hybrid Organizations: Chapter 2-Pages 39-40
” While for-profit firms create economic value and nonprofits create social value the authors suggest that “hybrid ideal” may emerge. As they describe, “This hypothetical organization is fully integrated–everything it does produces bothy social value and commercial revenue” (Battilana, lee walker and Dorsey, 2012)-Worth P. 39
Impact Investors: Chapter 2-Page 40
Impact Investors “includes individuals and organizations willing to accept lower rates of financial return in exchange for social benefits. But Battilana et al. reports that, as of 2012, hybrid organizatiors were still experiencing difficulty in raising capital; thur, the future of impact-investing concept remained uncertain.
Independent Sector: Chapter 2-Page 24
www.independentsector.org “…the name of the principal organization representing the interests of nonprofits in Washington, DC.”…”Some prefer the term third sector, placing nonprofits in the universe alongside the comercial economy and government.” -Worth
Institutionally Related Foundations: Chapter 2-Page 34
“Another type of foundation that is a public charity is the institutionally related foundation. These foundations are the fundraising arms of their host or parent organization. They are public charities because they solicit and receive gifts…this type of foundation directs its support to just one organization.”-Worth
Low-Profit, Limited Liability Company (L3C): Chapter 2-Page 39
“…defines an organization that spans the for-profit and nonprofit sectors. …it was first created under Vermont law in 2008 and by 2014 had been adopted in nine additional states.” -Worth
Member-serving Organizations: Chapter 2-Page 35
“…exist to secure benefits for the people who belong to them or who support them through dues, membership fees, or other contributions” They include, for example, social and fraternal organizations, buisness and professional associations, and labor unions.”-Worth
National Taxonomy of Exempt Entities (NTEE): Chapter 2-Page 26-27
The NTEE divides the universe of nonprofit organizations into 26 major groups under 10 braud categories. These categories are based on organizations purposes, activities and programs and are similar to the industry classification codes used to group for-profit companies. , this is one way to delineate the nonprofit sector. Box 2.1 National Center for Charitable Statistics (htpp://nccs.urban.org) Arts, culture and humanities, Education, Environment and Animals, Health, Human Services, Internationa, Foreign Affairs, Public/Societal Benefit, Religion Related, Mutual/Membership Benefit, Unknown/Unclassified. -Worth
Nongovernmental Organizations: Chapter 2-Page 23
” …reflects in part the reality that many such organizations are performing government like functions in the countries they serve, and the most receive a substantial portoon of their revenue from government sources.” -Worth
Operating Foundations: Chapter 2-Page 35, 337
“…private foundations that do not make, any, or many grants to other nonprofits and that may not even have the term foundaiton in their names.” -Worth
Philanthropy: Chapter 2-Page 18-20, 22, 24-Page
Philanthropy is a more rational form (than charity) of long-term investment in the infrastructure of society. 22
Private Foundations: Chapter 2-Page 34-35
“Private foundations…usually have only one or perhaps a few donors-often one person, one company, or the members of a family.”-Worth p.34
Public Charities: Chapter 2-Page 34-35
“public charities…as the term suggests, are organizations that receive support from a relatively large number of donors or from the government, that is, from the public. “
Public-Serving Organizations: Chapter 2-Page 25-26, 35-36
Example: “hospitals, museums, schools, colleges and universities, orchestras and nonprofits that provide a range of human and social services.”- Worth
Social Enterprise: Chapter 2-Page 24-25, 37
“…is generally associated with those who especially advocate organizations operating like a business and undertaking efforts to increase revenues from commercial activities . It could be argued that the term captures the positive essence of all private organizations having a social purpose, perhaps better than nonprofit.” p. 24-25 worth
Social Welfare Organizations: Chapter 2-Page 27,28,29,30
Under the Nonprofit Sector: Figure 2.1
“Includes civic clubs and advocacy organizations, some large HMOs and managed health plans. Organizations are tax exempt, but gifts are not tax deductible. “-p. 28 worth See pages-28-30 for details to this 501(c)(4) nonprofits as known to the IRS. -Worth
Tax Deductible: Chapter 2-Page 29-31
“…eligible to recieve gifts that are tax deductible for the donors.” p. 29 worth
Tax-Exempt: Chapter 2-Page 23-25,27-29
“…All organizations represented in Figure 2.1 are tax-exeppt; that is, they are not required to pay federal taxes on their income.” -worth
Unrelated business income tax (UBIT): Chapter 2-Page 41-42
Commercialization and Tax Exemption:
” A companion to the common misunderstanding that nonprofit organizations cannot earn profits is the idea that nonprofits are always exempt from taxation. They are exempt from income taxation on revenues that relate to exempt activities–that is, activities that directly address their social missions. but revenues from activities that are not relation to the mission are subject to the unrelated business income tax (UBIT). An activity is unrelated and subject to tax if it meets three requirements: (1) It is a trade or business, as defined by the IRS; (2) it is regularly carried on; and (3) it is not substantially related to the exempt purpose of the organizaiton.” -Worth
Voluntarism: Chapter 2-Page 21-23, 25-26
“Some use the term voluntary sector. Voluntarism is one of the foundations of the sector, and many organizations do indeed rely on volunteers, both as members of their governing boards and for at least part of their workforce.” p. 24 -Worth