Intro to Nonprofit Organizations

Community Based Development Organizations

"a nonprofit organization controlled by the residents of low to moderate income areas to help stimulate economic and physical improvement of the community"

Community development

"a set of values and practices which plays a special role in overcoming poverty and disadvantage, knitting society together at the grass roots and deepening democracy"

Community foundation

"pools revenue and assets from a variety of sources for specified communal purposes"

Welfare state

The idea that government plays a key role in protecting and promoting economic and social well-being of citizens through equality of opportunity, distribution of wealth, and public program that provide for a good of life; US is a limited Welfare State because Americans hold individualism in high regard

Who volunteers?

Women more than men (not just stay-at-home moms), those with higher education, age group 35-44. Students also volunteer and compulsory volunteers such as those in the correctional system

Public interest

a common concern among citizens in the management and affairs of local, state, and national government

Insurgency

a rebellion or uprising that threatens existing power relationships, some elites may work to squelch such movements

Social goods

clean air, trust, social cohesion, tolerance

Collective good

collective interests of society (may transcend actual borders)

Corporate foundation

corporate foundations are established and often governed by members of the corporate leadership or by individuals the corporation choses

Mobilization

direct participation in the political process

Education

educating the larger community to be better informed of your issue

Institutions

family, marriage, friends

Demographic shifts

growing diversity, aging of America, income inequality

Paternalism (theory)

history of white, wealthy, civic elites making organizational decisions without soliciting client input

five political opportunities that can enable social movements

increased access shifting alignments divided elites influential allies repression and facilitation

What group gives the most?

individuals

Lobbying

influencing government and policy (including budgetary decisions)

Grant-making foundations

these organizations exist primarily to issue grants to other nonprofit organizations and, to a lesser extent, government organizations whose programs, services, projects, and initiatives align with the foundations' goals and mission

Classical model

they are a reaction to strain in society, the political, economic, and social system criticism: there's always strain in society, discontent or inequality so it's unclear what level of strain would lead to a social movement

Expenditure Test

known as the "H election," which establishes a clearer limit on how much agencies can spend on lobbying: up to 20% of their total annual budget on "lobbying related activities," up to a flat $1 million for organizations with total revenues in excess of $17 million

501(c)4

largest group after 501(c)3, primarily lobby, shape public opinion, associations are usually 501(c)4s

Cons

no transparency in people, finances, or donors

Pros

unlimited lobbying for candidates and governmental funding

501(c)3s can't

use federal funds for legislative matters or endorse candidates

501(c)3s can

use general funds to lobby and endorse bills/levies

Operating foundation

use their funds to pursue their goals directly

Micro-volunteering

usually virtual, project based

Other terms for sector

voluntary, charitable, non-governmental, social, independent

Social movements

when individuals come together to advocate for some large-scale social reform some rise up among people and organize into formal nonprofits others are initiated and supported by nonprofit organizations

501(c)3

⅔ of entire sector, supports community, public charities, private and community foundations

Particular-ism (theory)

often formed to serve a particular group (while ignoring others)

Substantial Part Test

organizations that wish to maintain their public charity status cannot engage in "substantial" lobbying and must carry out their political activities in a nonpartisan fashion

Resource deficiency

organizing and joining the movement enables the collection of resources required to participate in advancing the goals of the movement criticism: it cannot explain all movements, only some

PILOTS

payments in lieu of taxes

Insufficiency (theory)

private giving ebbs and flows, goodwill and charity of few cannot generate resources of a scale that is adequate and reliable enough

Day of Caring

project that takes place for usually one day

Public interest groups

promote issues of general public concern

Umbrella groups

provides resources and often an identity to the smaller organizations

Economic development

refers to the plans of action made and carried out by public officials and communities to raise the standard of living and economic health of a particular geographic area

Amateurism (theory)

reliant on volunteer or undertrained leadership

What sectors do most people volunteer in?

religion and education

What rights does it afford us?

Freedom of speech, freedom to assemble, protest, lobby, individualism, freedom of press, separation of church and state

Donor Advised Fund

Fund at a sponsoring organization of a community foundation that you put money into until someone decides where it goes

Social capital

Glue that keeps communities together, social networks, personal bonds

Government failure

Govt. failure is when the govt./the public Is unwilling to provide for every need presented

Prominent sub-sections

Health: 51% Education: 15% Human Services: 13% Remaining: 19%

Individual rights

In the Individual Rights citizens are protected by the Rule of Law and are free to pursue individual goals for individual purposes , including organizing to pursue a collective agenda

Different types of giving

Individual (private) bequests (money after you die) Foundations corporate Government

Volunteering

Informal: without an organization, not tracked ex. helping a neighbor Formal: with an organization, is tracked

How much money was donated in 2016?

$373.25 billion

How are nonprofits rooted in politics?

Ability to organize and mobilize through civil society offers an alternative political avenue for many disenfranchised groups in U.S.

Sister organizations

Allowed to share: board members advocacy plans collaborate manage resources to maximize goals

What are the motivations?

Altruistic: social action carried out to achieve positive outcome for someone other than self Egoist: individual self interest is the actual motive for all conscious action

Individualism

Belief that citizens should not rely on the state to provide for their basic needs but should "pull themselves up by their bootstraps"

How are nonprofits similar to for-proftis?

Both need resources, can be working/servicing same issue

Rule of Law

Creates the conditions for a civil society by putting in legal frameworks for civil society (gives structure)

Human Service Organization

Embody values of charity and philanthropy and create opportunities for citizens to give their time and financial resources to help improve the plight of the less fortunate

How are nonprofits related to lobbying?

Lobbying means you advocate something specific which is what some nonprofits do

Market failure

Market failure is when the market is not able to efficiently provide a good or service

Nonprofit characteristics

Mission directed, voluntary governance, reliance on voluntary resources, diverse income services, have to disclose resources and taxes (transparency)

Pluralism

Multiple groups coexist without any single one of them being at the center of power

Norms

Norms-saying bless you when someone sneezes, calling older members in society by the appropriate title

Civil society

Organizations and actions initiated by citizens outside of government and the market, along with laws, norms and customs that enable citizen driven organizations and actions

Community Based Organizations

Organizations that are organized around a common purpose to achieve common goals (considered associations because serve own members but also the community)

The Giving Pledge

Pledge to give half their money when they die. Started by Bill and Melinda Gates and Warren Buffett. Not actually giving your money just saying you will

Nonprofit

Serves a Purpose/Population, Meets a Need, Addresses an Issue Board represents community as owners Income is retained (not used to benefit private interest) May or may not be a Charity Accept tax deductible donations

Pluralistic society

State of society where members of different groups maintain their traditions and cultures in confines of a common civilization

What groups are involved in political education?

Think tanks, public policy research institutes

What is the purpose of a foundation?

To fund nonprofits

What is the intent of a foundation?

To redistribute wealth down

How do religious organizations differ?

Treated like the typical charitable nonprofit They are sometimes free from the oversight that most 501(c)(3) charities receive. Meaning they are not required to release all the informations other nonprofits do

What are associations and how do they function?

Usually 501 c4's and exist to support their members not the entire populations. Examples are Verteran associations and AARP

Why do people give?

Warm glow giving (seven faces: communitarian, devout, investor, socialite, altruist, repayer, dynast) Coercive giving: some religious institutions expects a certain amount

Social enterprise

although they have a social purpose or goal they also operate like a business, selling a product or service

Advocacy

attempts to influence legislation on government spending advances an agenda in both the political arena and society at large

Accountability

being accountable and accepting responsibility for one's actions or duties

Transparency

being open, clear and visible about business practices