Download Nonprofit Organizations and Social Institutions

Nonprofit Organizations
and Social Institutions
Nonprofits have become essential
aspects of “institutional life” in that they
fulfill basic functions necessary for our
social way of life.
Chapter 2, pp 44-64
The mission of the nonprofit
organization manager:
• Fulfilling the institutional role of the
nonprofit organization:
– Nonprofits allow individuals to foster their
passion to benefit others.
– To pull people together to make collective
meaning out of actions important to them.
– To link their organization in myriad ways to the
world outside it.
pp. 44-45
Roles played by nonprofit executive
•
•
•
•
•
Directing
Motivating
Coordinating
Innovating
External
spokesperson
• “Gladiator”
• Crisis managing
p. 45
Societies create institutions to provide
for basic social needs.
• 1. Family and community structures develop to
meet basic needs for meaning and support.
• 2. Political institutions emerge to define and
articulate public goals.
• 3. Economic institutions exist to develop
resources.
• 4. Social institutions exist to harmonize the
various actions of organizations.
pp. 46-47
Institutions that respond to these
needs are thought of as sectors.
We divide our institutions into four
major sectors to accomplish our
societal tasks.
The First Sector
• Corporations and
businesses.
• Makes most of our
products.
• Hires most of our
labor.
• Provides jobs that
amount to 80% of
payrolls
Second Sector
• Government
• Provides military
capacity.
• Ancillary regulatory
services.
• Welfare services.
• Meets about 13% of
national payroll.
Third Sector
• Voluntary and nonprofit
organizations.
• Address number of
educational, charitable
and membership
purposes.
• Meets about 7% of
national payroll.
• Supplemented by MUCH
valuable voluntary effort.
Fourth Sector
• Households
• Informal community
organizations.
• Performs
– Home management
– Child care
• Functions performed
without any transfer of
cash.
The Environment of Nonprofit
Management
Nonprofits are institutions capable of
solving human problems when we
distrust government and business.
Nonprofit management must take
following into account:
•
•
•
•
The family
Religion
Education
Social and Demographic
Conditions.
– Poverty and Economic
Malaise
– Racism
– Alienation
– Incapacity
pp. 46 - 56
• Government, Politics and
Law.
– Welfare Mix
– Certification
– Regulation
• Nonprofits and Economy
– Productivity
– Distribution
– Globalization. Including
Mass Media
Nonprofits and family
• Current issues related to interpretations of
“family values” have impacted nonprofits’
approaches to their work.
• Post-modern family changes
interpretations of what is appropriate.
• The “Moral Majority” has become a force
that complicates the mission of some
nonprofits.
Nonprofits and Religion
• Religious organizations impose their
version of truth on what is appropriate for
nonprofits.
• Issues like “choice” and birth control are
critiqued by religious positions.
• The examples such as the American Boy
Scouts and the Salvation Army limiting
activity by sexual preference show the
impact of religion on nonprofits.
Nonprofits and Education
• Education is a cultural force that shapes
the “learning society.”
• The battle over public and private
education shapes the nonprofit
environment.
• The educational initiative of “service
learning,” internships, and shared
community responsibility impact the
nonprofits.
Social and Demographic Conditions:
Poverty and Economic Malaise
• The economic condition of citizens will
shape the kind of problems with which
nonprofits have to deal.
• Structural unemployment, unemployment
rate shapes life chances and life struggles.
• Consider what it means for nonprofits
when one in five American children live in
poverty.
Social and Demographic
Conditions: Racism
• Nonprofits need to focus on racism as it
increases or decreases.
• As government decreases its focus on
affirmative action, nonprofits must take up
the slack.
• Conservative social policy calls for more
effort from non-government organizations
when it comes to fighting racism
Social and Demographic
Conditions: Alienation
• Alienation is a structurally caused
condition that makes it difficult to find
meaning and connection in everyday life.
• Our democracy can’t work when people
believe “what I think doesn’t matter.”
• Those expressing disaffection with
community/social life increased from 29%
to over 60% in the 25 years 1966-1989.
Social and Demographic
Conditions: Incapacity
• The political and social definition of
“disability” will influence the amount and
type of effort directed toward this issue.
• Both physical and mental disability has
been compensated for by nonprofit efforts.
• When governmental policy is more
conservative fewer resources are directed
toward assisting individuals in their
struggle with disability.
Government, Politics, and Law
• The approach to social policy; more
conservative (it is up to the individual) or
more liberal (society as a service provider
to the individual) will have dramatic effect
on the need for specific types of
nonprofits.
• Government decides on tax deduction
eligibility and which services are needed.
The Welfare Mix
• Government chooses degree to which it
will provide services and to whom.
• We have seen dramatic shifts in aid to the
poor, the provision of child care, support
for education, and unemployment
compensation.
• The approach to policy supporting
housing, higher education, health care, job
training, etc. will impact nonprofits.
Government certification
• The nonprofit environment is impacted by
the decisions to certify certain service
areas as tax exempt.
• The deductibility of a donation to a
nonprofit is of significant help in nonprofit
fundraising.
• The power to certify also carries restriction
of the independence of the nonprofit.
Government and regulation
• Governmental regulation can make a
nonprofit venture much easier or much
harder.
• Government contracts add a large degree
of control over the nonprofit effort.
• Government can direct the kind and
quality of services through regulation.
Nonprofits and the Economy
• When the economy is productive people
feel hopeful and optimistic. When it
stagnates people feel powerless and left
behind.
• In a “bad” economy fewer people give
support to nonprofits while more people
feel the need for the services nonprofits
have to offer.
Distribution of wealth
• How a political administration chooses to
distribute wealth will have a critical affect
on nonprofits.
• Since 1980s (the Ragan revolution) social
policy has fostered a “reverse Robin
Hood” pattern.
• Nonprofits have had to contend with an
attitude of hard hearted individuality.
Globalization
• Globalization: One world – one economy –
one information system.
• Globalization offers reduced prospect for
world war.
• It creates a single market and makes all
economies interdependent.
• It creates the possibility of international
problem solving.
Major Players on the Nonprofit
Stage
• Givers: more than ½ of American population
volunteer service, financial contributions make
nonprofits possible, altruism is rewarding and
has a humanizing affect.
• Intermediaries: Foundations provide resources
for problems of special import.
• Regulators: 1. State agencies of taxation, 2.
nonprofit sector monitors, 3. program evaluators,
4. congressional subcommittees.
p. 56-61
Nonprofits and Charitable
Organizations: We all benefit!
• Over a million nonprofits in the U.S. employ
about 10% of total number of workers.
• Work of nonprofits directed at service, advocacy
and member benefit.
• Involved in all aspects of American life: Boy and
Girl Scouts, the Catholic Church, the Brookings
Institution, Blue Cross, Mayo Clinic, Yale and
Amherst, the Ford Foundation, the National
Football League, the Motion Picture Academy of
America, the Red Cross, Habitat for Humanity…