Download PADM 7040 Nonprofit Management

PADM 7040
Nonprofit Management
Chapters 1 & 2 Overview
Jerry Merwin
Chapters 1 & 2 Overview
 I. DEVELOPING A CUSTOMER
ORIENTATION.
 Chapter 1. The Growth and Development
of Nonprofit Marketing.
 Chapter 2. Developing a CustomerCentered Mind-Set.
Weeks 1 & 2 Overview (2)
 I also want to clarify a few things about our topics
that might not be covered clearly in the textbooks.
 First, let me explain that we generally talk about three
types of organizations:
 Private – or “for profit” – the typical business
 Public – government organizations, including federal,
state, and local (city or county)
 Nonprofit – organizations created for some specific
purpose, generally for the public good, and typically
incorporated, with a board of directors, staff, and
volunteers
 “The primary purpose of nonprofits is to involve people
in promoting the common good,” (Nonprofit Quarterly
Newsletter, October 2003, Issue 27, copied from web
August 21, 2005).
Weeks 1 & 2 Overview (3)
 There are many similarities among these three types
of organizations and some important differences.
 Nonprofits are regulated by the Internal Revenue
Service (IRS).
 While there are many types of nonprofits, as defined
by the IRS, I believe our focus is the 501(c)(3).
 The 501(c)(3) represents the number of the Internal
Revenue Code (IRC) for the law covering charitable
organizations.
 These organizations are called charitable, or “tax
exempt” in that contributors can deduct donations to
these organizations from their income tax.
Weeks 1 & 2 Overview (4)
 Go to the IRS web site to learn more about
“charitable organizations” and the
requirements.
 Check to see if the organization you are
researching is classified as a 501(c)(3).
 If not, please be sure to find out how the IRS
classifies the organization.
 It might still be OK to use the organization for
your project, but check this early in your
research and let me know.
Strategic Marketing for NonProfit
Organizations Chapter 1
 Our first chapter in the marketing book
gives us a good introduction to both
nonprofits and the role of marketing.
 You can get a good idea of some of the issues
facing nonprofits today.
 It is possible you will learn some things you
did not know before about nonprofits and their
importance.
 You might wonder why marketing could be
seen as undesirable…
 Be sure to pay attention to the ethical issues.
Strategic Marketing for NonProfit
Organizations Chapter 1
 The Growth and Development of
Nonprofit Marketing
 How can PDAs be useful to nonprofits or
NGOs?
 Which of the myths (on page 4) were part
of your belief system before reading this
book?
 Why study nonprofit marketing? (page 5)
 Where did the idea of nonprofit
marketing originate? (page 7)
Strategic Marketing for NonProfit
Organizations Chapter 1 (continued)
 The Growth and Development of
Nonprofit Marketing
 What are the four important
developments carried over from the end
of the 20th century? (pages 8-10)
 Growth of social marketing
 International dimension of nonprofit
marketing
 Corporate involvement in nonprofit sector
 Ethics
Strategic Marketing for NonProfit
Organizations Chapter 1 (continued)
 The Growth and Development of Nonprofit
Marketing
 What is the fundamental objective of this book?
(page 10)
 “Provides concepts, techniques, illustrations…”
(Andreasen & Kotler, page 10)
 What are the basic premises of the book?
 “Marketing goes on everywhere in the
nonprofit!” (A&K, p. 10) Any examples?
 Characteristics of first-rate marketer
are? (A&K, p. 10)
Strategic Marketing for NonProfit
Organizations Chapter 1 (continued)
 The Growth and Development of
Nonprofit Marketing
 Explain the evolution of nonprofit
organizations. (A&K, p. 11)
 What are the “central contradictions” related
to nonprofit (according to P. D. Hall, p. 12)?
 What strikes you about the top 15
nonacademic nonprofits listed on page 13?
 How important is the nonprofit sector:
 In the U.S.? (p. 14)
 In the world? (pp. 14-15)
Strategic Marketing for NonProfit
Organizations Chapter 1 (continued)
 The Growth and Development of
Nonprofit Marketing
 What explanations do Andreasen and
Kotler offer for the cross-country
differences? (p. 17)
 Explain cross-sector confusion. (p. 18)
 How are nonprofit classified? (p. 20)
 What is the national taxonomy of taxexempt entities? (p. 21)
Strategic Marketing for NonProfit
Organizations Chapter 1 (continued)
 The Growth and Development of Nonprofit
Marketing
 What is meant by “managerially relevant
classification?” (Andreasen and Kotler, p. 22)

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
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Environment?
Donative?
Scrutiny?
View of Marketing as Undesirable?
Volunteers?
Performance Judged by Nonmarketing Standards?
Nature of Exchanges? (p. 26)

See the Table 1-5 (p. 27) Cost/Benefit Matrix for the Profit/Nonprofit
Sector
Strategic Marketing for NonProfit
Organizations Chapter 1 (continued)
 The Growth and Development of
Nonprofit Marketing
 Explain the “uniqueness of nonprofit
marketing?” (Andreasen and Kotler, p. 28)
 What are the “ethical challenges in the
nonprofit sector?” (Andreasen and Kotler, p. 29)
 See the Exhibit 1-1 on page 30
Strategic Marketing for NonProfit
Organizations Chapter 1
 Some questions for consideration:
 Why is the legal status of the nonprofit
important in the U.S.?
 How is marketing different for nonprofit
organizations?
Cases and Applications in NonProfit Management
 Case 34 Three Go-Arounds Toward
Assessing a Nonprofit
 Read the “Instructions and Questions” at
the end of the case (Page 168) and
consider how they might help in the
class project on the Nonprofit Overview.
 Look at the “Web Links” page on our
class web site and go to the pages for
the Drucker Foundation and learn
more about the Self-Assessment Tool.
Strategic Marketing for NonProfit
Organizations Chapter 2
 Developing a Customer-Centered Mind-Set
 What is a customer-centered or marketing
mindset and why is it important?
 Explain the “Boundaries of Marketing”
according to Andreasen and Kotler (pp. 38-40)
 Outline “Evolution of Marketing
Philosophy” & relate to nonprofits. (pp. 40-43)
 What are customer-centered
organizations? (p. 44)
 How can one detect “an organizationcentered orientation?” (p. 45-49)
Strategic Marketing for NonProfit
Organizations Chapter 2
 Developing a Customer-Centered Mind-Set
 How can we determine if nonprofit
managers have a customer-centered or
marketing mindset? (p. 49-55)
 Why is research seen as important to the
customer-centered organization? (p. 51)
 Explain some of the issues in introducing a
customer orientation to a nonprofit. (p. 55-56)
 Can the organization go too far with a
customer-centered orientation? (p. 56-57)
Cases and Applications in NonProfit Management
 Case 11 Dinosaurs Are Extinct:
Should the Museum Be, Too?
 How did the museum get into trouble?
 What are the responsibilities of the
different groups involved (Board,
management, members)?
Some Discussion Questions
 Thread 1: Choose one question  Why is the legal status of the nonprofit
important in the U.S.?
 How is marketing different for nonprofit
organizations?
 Thread 2: Choose one question  Why is research seen as important to the
customer-centered organization?
 Explain some of the issues in introducing a
customer orientation to a nonprofit.