Nonprofit Profit Case Study

The diversity of nonprofit organizations, services provided and the problems faced shows that nonprofits require leadership with an in-depth understanding of the multifaceted nonprofit landscape. Understanding the culture of nonprofit work is also crucial and much easier to understand once you have been through a nonprofit management program. My career interests lead me towards an avocation of a deeper knowledge of strategic management/planning, legal structure and standards, increase my skills in quantitative analysis of policy, financial governance and developing fundraising strategies. These areas allow for macro management within the nonprofit

At the center of any successful nonprofit organization there is an effective chief executive and board of directors. These leaders must work as a team with a vision and specific skills, to effectively produce resources in order to accomplish the organization's goals. The majority of the decision making authority and leadership is shared amongst board members; however, critical management skills and day-to-day operational decisions rest within the authority of the chief executive. However, members of the board must also be sufficiently skilled in management in order to assess the work of its director to assist in the implementation and evaluation of strategic decision making.

The fourth nonprofit I analyzed is called GreaterGood which is an online website that sells a wide range of products that have been made across the world and uses the profit generated by sales to donate to a variety of different nonprofits that have a specific mission (Help, 2015, p.1). The specific nonprofits that GreaterGood donates to breast cancer, animal rescue, veterans, autism, diabetes, the rainforest, and the one that is specific to my area of analysis the hunger site. This style of nonprofit expressed by the GreaterGood charity is extremely unique because of the extreme differences in charities they are partners with. With the multiple charities they work with I would be confident in arguing that the GreaterGood-hunger site is a path-goal leadership style.

A nonprofit analysis helps nonprofit executives and board members understand their organization’s underlying fiscal health and readiness for change and growth. The analysis is a critical tool for Northeast Health Council planning for program expansion, organizational restructuring and/or realignment, financial and fundraising challenges, new executive and board leadership, a new capital project, or acquisition or merger with another nonprofit organization (such as the local health clinic).

In this week’s lesson we are looking at the importance of having a chart of accounts in our nonprofit business. At HOPE which is the business that I support. The main focus is to house and provide support to those who are homeless, mentally ill and may be struggling with dual issues. Because there is a need in a nonprofit to show measurements to determine success in each area. Charts are created for every service area the HOPE supports ( Margolis, S. (2014, 11).

One of the things that I have seen happen repeatedly is that some Executive Directors truly “fall in love” with their agency and fail to adjust to the needs of the stakeholders. One of the things that nonprofits need to do is to learn from the

With an economy driven by our relationship with capitalism and bottom lines, it seems inevitable that nonprofits also tap into these business dealings if they are to survive. The third chapter of Leslie R. Crutchfield’s and Heather McLeod Grant’s book, Forces for Good: The Six Practices of High-Impact Nonprofits, titled “Make Markets Work,” delves into the strategies used by nonprofits who harnessed business tactics in an effort to increase their social impact. Using three overall strategies- change business practices; partner with business, and run a business- Crutchfield and McLeod Grant describe how non-profits have achieved successful leverage in the business world.

Both of the categorized health care entities have characteristics that are applicable with their established business models. Differences that may distinguish the two business entities may be minor in detail, but an apparent difference that can clearly be defined and highlighted is their apparent business cultures. (Nonprofit versus for-profit)

The journey toward updating nonprofit financial reporting began in 2011 when the accounting board met to analyze ways to implement reforms that would make the function of accounting in nonprofit organizations more transparent. The Financial Accounting Standards Board (FASB) hoped to cover many areas concerning access to funds by nonprofit organizations in order to give insight to the actual funds groups have at their disposal at any time. Public accountability and transparency dictates that the access to funds is a very major aspect of financial reporting for institutions. For instance, a group of university alumni may decide to donate funds for scholarships, whereas others could give money for the construction of a facility

When considering a budget, it is said that the value of money must play a significant role in this dialog. As money of one sum today will rise to a greater value tomorrow. Even if the nonprofit organization does not look at things from a stand point of inflation which is always in effect. Money is a tool that if we use it and the sooner we do in a productive way. The nonprofits money will produce value in the future. It is not by coincidence that the most successful nonprofit watches their finances very carefully. And often look at the progress of their financial goals (McLaughlin, T.A. 2002).

A nonprofit organization (NPO), can be self-sustaining by adhering to some very simple rules. A nonprofit is described as an organization that “Operates for the common good and not for generating individual wealth: does not distribute its profits to individuals who control the organization such as its members, officers, directors, or trustees. While a non-profit organization can make a profit, the profit it earns must be used toward the core missions of the organization and not towards any personal benefits” (Bennett, 2013). One of the enormous challenges that a

This causes tension, as some long term members of the nonprofit sector feel that businessmen and women don’t appreciate the hard work that goes into nonprofits as well as the unique struggle of balancing business and social interests. For-profit board members are not used to the increased focus on social outcomes, and other members might get frustrated their increased focus on business outcomes and the bottom line. Measuring the success of nonprofits can be very frustrating, as it is significantly more difficult to measure social change as opposed to profit margins. As a result, “Too many cross-sector partnerships fail because business leaders can’t accommodate the nonprofit sector’s different culture and demands [and don’t realize that] in fact it’s harder to succeed in the nonprofit world” (Silverman & Taliento

Prior to constructing a nonprofit board, the basic responsibilities and duties of its members must be determined. These functions are steered by the organization’s mission and goals. BoardSource (2012) furthers this by stating, “The board should review the mission periodically – for example, at the beginning of every strategic planning process – to make sure it remains useful and valid” (p. 9). A NPO’s mission and vision statements communicates the organization’s purpose, identifies the group(s) it serves, and provides direction for how the organization will achieve these goals. It is important to understand that these statements are not solely external messages, however, they are also used internally to stimulate and impact the board and staff, establish goals and evaluation measures, and stimulate successful governance through the strategic planning process. Board members who are entrenched in the mission are better able to fulfill their governance duty as it keeps the organization’s true focus at the forefront of decision making.

A non-profit organization cannot be effectively managed if it is not effectively planned. One of the challenges facing non-profit organizations has been long range, strategic planning. Long range, strategic planning in the non-profit sector is essential to the success of an organization. Long range, strategic planning encompasses broad policy and direction setting, internal and external assessments, attention to key stakeholders, the identification of key issues, development of strategies to deal with each issue, decision making, action and the continuous monitoring of results. (Herman, The Jossey-Bass Handbook of Nonprofit Leadership and Management, 154) While it is important to deal with the short term planning and activities of non-profits, managers or directors must consider the future of their organizations. Successful planning should be comprehensive, integrating all areas of responsibility of an organization.

Financially healthy nonprofits use income-based, rather than budget-based spending which allows them to have income projections that are realistic and helps to determine realistic costs (Zietlow, Seidner, 2014). The most successful nonprofit should have an operating reserve to finance shortfalls and hopefully allows them to have a positive cash flow at the end of the year (Zietlow, Seidner, 2014). However, most nonprofit organizations fight to manage cash flow due to how income and the expenses often may occur at different times, so that there may not be enough cash to pay for the expenses as they become due and payable (Zietlow, Seidner, 2014).