Sunday, November 17, 2019
History of nonprofit organizations Essay Example for Free
History of nonprofit organizations Essay The history of the nonprofit organizations in the US is dated back to the mid of 19th century. They came as important tools to look after the effects of the slavery activity. Generally, a non-profit organization is an organization with a legal constitution whose creation is by private people/persons or elsewhere organizations without any fundamental representation within the government activity. At the epochs of globalization effect in early 20th century, the subject matter of nonprofit organization became yet a more featured activity. This was at the realization that the central government could not serve to solve most of the people’s problems. Even the existing national and international organizations had their roots to serve the interest of capitalists more than the general human population. To strike a counterbalance to this irrationality, development of these organizations was biased in fostering development, providing humanitarian support and aiding in development sustainability. Their development came inform of various types with interest in different areas of humanity. Depending on the purpose and role to serve and play in the society, development of these organizations is fundamentally made to provide an environment for support into different spheres of humanity. At one view, they engage in designing and implementing projects which are related on development. This provides the conventional understanding of them in providing development support to the community. Their classification within US is in terms of development oriented, international, community based or even national organizations. Their purposes are different and mainly depend on the kind of service they provide to the society.            Nonprofit organizations in the US can as a refuge to the long suffering of human beings at different levels. They came to bridge the gap of inefficiency which was provided by the political and governmental structures within the US governance system. Their basic aim is to provide various conditions which are solemn to providing various support structure to improve the human population. Their method of activity is also diverse coming in form of lobby groups, initiative programs above community-based activities for service to the people. The basic rule with all non-profit organization in US and the general world is that they are strictly not made to make profit benefits in their foundations. They should service the interest of the community in line with their activity to ensure high standards of service output. The nonprofit and non-benefit nature of these organizations is provided by the legal structure of the Federal Legal system which recognizes their presence and roles before instituting various legal parameters. At the individual/internal capacity, they are guided by various legal autonomies within  constitutional framework that embody their activity. They are free from the authorities of international laws. (Hall, 22)            Generally, their role and purpose is diverse and depends on the basic purpose for their formation. However, the basic purpose is to provide service to humanity by confronting various issues that affect the human population. Either, their development is only made to serve the interest of a specific population of the people in which they are instituted. In the US, nonprofit organizations come in a huge number making more than 600, 000. In regard to their functional outlay, they are instituted for environmental conservation, human rights encouragement and observance, taking care and improving the inequalities within the disadvantaged societal population, or even having an agenda on corporate representation to the society. They rise as corporations to provide refuge to the human population by acting on provision of the basic inequalities allied to the society. They aim at providing structures that provide support in the well-being of the society. It seeks to provide autonomy in the observation of well-founded societal image before driving the society to attainment of its mission. Key guiding principles.            Due to the diversity of culture and operations by these organizations, some principles help as guide for their activity. At one point, the principles provide rationality in the support of equality in the basic corporate governances which help to ensure observation of the conventional purpose allied to their formation. Firstly, all non profit organizations are to be guided by the principle of optimal costing. This is in the realization of their nonprofit nature which provides support for the most adequate costing system. Costing is observable in the budgeting systems which help to provide a support for the best cost parameter. Budgeting involve the control of funds to ensure the most adequate use of their financial authorities. Costing principle is guided by their non-profit/benefit nature which prevents any financial advantage in terms of profit or benefits to any party. The Federal Law recognizes the importance of costing principle in these organizations before instituting various laws and regulations to guide them in their support for the most optimal interest to the community in service. This principle is fundamentally obliged in internalizing the cost parameters in the organizations financial outlay in terms of their grants, cost of contracts, financial utilization and allocation and any other fundamental activity allied to the costing system. The aim of the principle is to provide a concrete share of the cost liberation by federal government in the administration process of the non-profit organizations within its framework. Either, the principles help to define in the standards of approach and use in providing structures for adequacy in the financial management and quotations of their costs in activities and processes.            Either, all non-governmental organizations are to be guided by adequate public relations standards. With their role and activity outlay within the society, these organizations should always provide structures for standard relationships with the general public population. This is a basic factor if their role of meeting the societal goals is not to be compromised. Public relations are the basic tools with which various organizations such as charity organizations and foundations use to capture the relative interest of the general public. Through sophistication in the public relations activities, many organizations are able to raise their funds. They use various lobbying techniques to seek financing from the government and other statutory sources. Either, high public relations to interest groups help to provide importance of benefits with their fundamental influences to the social systems and political standards. Either, their public relations support helps to campaign adequately among the human population to achieve their basic missions and goals. (Dimagio, Anheir, 152)            With the diversity in the activities and mission statement, all non-profit organizations are provided with support by high standards of monitoring process and control of activities. Controlling and monitoring is a basic principle which helps to ensure a coordinated approach in all their activities. All activities and processes are controlled and monitored in order to ensure a support of the basic activity and fulfillment of their service to the general public. This principle provides an oversight into the basic fundamentals that help to ensure a logical collaboration between the various structures of the organization. At one point, controlling and also monitoring seeks to provide accountability for the character and effect of the process and activities. It seems to provide a sanction of coordinated approach with which activities are done according to their optimal requirement.            Non profit organization are free from jurisdiction and control by the federal government unless of very explicit legal controls. As a basic and conventional principle, these organizations are supposed to be out of the federal legal system. The guiding force and regulations should be based on the specific standards and requirements of specific organization. This is by conventional due to the role played by the organizations as a bridge towards the rigidities found in the federal legal system. Either, they should not be allied to the international legal process. The principle of free government control should therefore prevail. Otherwise, any interaction and control by he federal government would betray their mission since majority are founded as lobby groups to act against the federal system legal inequalities.            As an ethical parameter, the funding process and activities should fundamentally be authentic. This should seek to provide an atmosphere for the most adequate income flow. The funding principle is a subject of the costing principle with which the size and scale of funding is to be determined and evaluated in a conventional costing system.            Democracy should always prevail in all activities of these organizations. There foundations are aimed at providing support for the general interest of the public population. They are interest groups which serve stop the basic loopholes and rigidities of the federal legal system. Democracy helps to provide equity and equality in service provision to the public. It seeks to ensure that the interest of the public is seldom at par with the good of the society. This is a preferential requirement which gives the community an optimal opportunity of enjoying basic interest in the community development process. They should invite for free contribution, comment and exercise of the members allied to them.            Either, the performance of their work should be at peaceful and harmonious grounds where no external harassment, intimidation, reprisal and discrimination is to support their basic activities. This helps to formulate standards of activity where they are to act and perform at their most discretional and willing capacity without any external effect. Either, there should be no external influence by the federal governmental which is to provide support for the well being of the society.            Elsewhere, they should be provided with conditions for seeking, managing, receiving and administering their activities in the support of international, domestic and foreign activities and entities.            Equally, individual joining, formations and participation in such organizations should be at the discretion guided by their freedom and rights of expressions, associations and peaceful assembly. This helps to provide standards with which the governmental regulations are not to shape the interest and nature of the organizations.            Since the principles are to provide support for the authenticity and the well being of the society, the governments of democratic countries are to act adequately in the effect of the strong withstanding of these organizations from the inadequate influence of the national systems. The violations of their basic principles should therefore call for a close action by the national government in their effective defense.            The concept of ethics is fundamentally critical in analyzing the management system of the non profit organizations. The Alliance for Nonprofit Management Standards (ANMS) is the movement allied to setting and establishing ethical standards for use and applications by the organizations. Ethical management is closely allied and synonymous to adequate management. Ethical management is a subject of nonprofit organizations leadership which help to ensure a conduct within the gross corporate requirement. It’s a basic support that provides harmony in the institutional framework of these organizations. They help to provide a peaceful coordination in implicit formality to ensure ways and means to safeguard the interests of the stakeholders. At one edge, it helps to provide responsibility and either set the respective ideals in the professional outlay of the organization. On the extreme end, unethical management is what violates the basic principles of nonprofit organizations. Its operations are to provide for a continued inequality in the role they play in the society. Such unethical management is a way of administration and organizational leadership which provokes the legal authenticity of the nonprofit mission statement. Generally, every ethical management is to provide solid protection for the organizations clientele and professional system. Either, such management does not compromise structure for acceptance into adequate system of administration and also the will of guidance to the people. It does not compromise on improving the consistency and also the quality of the life of the individual human population with which it provides service to. Ethical management provides a standard collaboration in the activities of the organizations. Every ethical management is aimed at rationalizing the quality, support and formulating high integrity for capacity building within the organization’s activities. Due to the fragility and the developing nature of the capacity building within these organizations, every epoch of the legitimate leadership standards to provide support for the mission statement of these organizations. Ethical behaviors in the leadership autonomy, helps to provide effectiveness and promotion of capacity building in the functional outlay of these organizations. Ethical management equals ethical standards which ensure a support for standardized capacity building. Ethical managing is a tool for promoting a better clientele service and activity within the organizational framework. It is an approach which seeks to ensure control of the interest conflict within the organizational function. (Waden, 715)            However, unethical management is subject to providing inadequacy in the standards of the organizations activity. This is the leadership activity which destabilizes the functional capacity of the organization. It is a leadership activity (management appraisal) which brings conflict to the organization. Elsewhere, unethical management does not focus on maintaining the basic principle allied to nonprofit organizations. This is the management system which down looks major rules and processes within the organizations which ensure a collaborated approach in service delivery and promotion of efficiency in the organization’s activities. Legal framework            Generally, non-profit organizations have a lot to do with its legal status. At one level, many states have well provided laws which govern the activity of the organizations. Either, these laws help to regulate the management system and formulate the various requirements for their establishment. The nature of these laws is to provide standards of support for management process which does not overlook the systems of corporate governance. Above the state laws, their internal systems is driven and monitored by authorities which provide support for basic organizational coordination. Above the many legal requirements, these organizations should provide well detailed support of their financial activities. This should have a clear picture in the level of expenditure and also income flow within their transactions. The legal system requires them to have a full support for the governance and management system by providing a layout of their organizational management staff. The legal structure under the federal system also provides the level of structural formulation. It pronounces the legal terms with which these organizations are made to follow in the pursuit of their administration from the legal status portfolio as the tax exemption clause. This provides that the organizations are to enjoy income tax free activities. Tax exemption in US is through Internal Revenue Service (IRS). However, this exemption is only enjoyed by organizations which meet specific statutory requirements which includes, limited spending, safeguard for charity interest in its internal affairs above specifity in its purpose. Tax exemption is required a full commission to the requirement of the nonprofit organization’s activities. (Walden, 719) Deviations from this standard requirement will lead to the withdrawal of the tax exemption requirement.            However, the Federal Law has a weak force in providing for charity and non-governmental operations. It fails to substantially provide the basic requirements for what should be done by the organizations. However, lack of strong legal concern does not mean that the state government should run these organizations.            However, the basic legal authority of the non profit organizations is bound to be self regulatory without operational influence of both the state and the international laws. The organizations are made to provide their own management system which should not go by the standard of approach and regulation by the state law. However, private control by these organizations is the foremost influence of inadequacies in the fundamental activities. Due to their solidary private control and governance, these organizations will at many a time endure inefficiencies in the administrative prospects. Their private nature is the basic initiative for mismanagement and rebel over many interests at the expense of the federal system laws and regulations. (Til, 54) Governance and board development strategies. With the fragility allied to the activities of the non-profit organizations, governance and board development posits an important factor. Consideration for the most optimal governance and development within such organization should not be compromised. However, essential of board development should provide strategies which helps to ensure the most adequate board system. Firstly, the choice in strategy should not overlook the role of the board. However, the achievement of the goals and missions of the organization should be promoted. This helps to ensure high standards of achieving the standards of the organization. Either, adequate support by the board helps to facilitate a comprehensive support for the roles of the organization. However, supported training to board members should seek to ensure the most adequate governance structure within the organizations. (Axelrod, 142)            Nonprofit organizations come as fundamental bodies that seek to refuge the problems allied to the current regime where such organizations have risen falsely with even non-functional activity and performances. The board should therefore reclaim the specific roles they are made to play within the organizations. This is to ensure a richly state of practices. Either, the board has a sublime role to play in the governance of the organization. Unless the society is provided with clarity of the authenticity in the activities within the organization, various stakeholders may not have the will to participate fully in the organization’s activities. The board is allied to a functional capacity which helps to provide strength of the weaknesses born in the institutional and also management capacities.            The boards’ development should therefore provide various strategies which help to give a comparative impression for adequate activities within the organization. This should seek to give directions on strategies and goals for facilitating control on organizational issues. Every governance structure will therefore help to provide a strong coordination of the internal outlay of the organization. The rules of many boards reduce shortly after the registration of the organization where such boards disintegrate out. There functional layout is mostly seen at the growth stage and emergent stage of these organizations. However, they normally posses unclear or even poor definition in the goals of the organization. There is lack of understanding of the governance requirements. The next aspect is the modality of conflict among them and the organizations management.            Therefore, every strategy in board development should perpetuate a board which ensures effective board’s activity. Adequacy in such board should not compromise training of the board members. Training is therefore an important strategy which should be used to overcome the inequality born by the weak board systems.            The board development process helps to ensure a board which helps to coordinate adequately the activity of the organization. For adequacy in the leadership and governance styles within the organization, the board provides an authentic support for the organizational activity. The development process of the organization’s board should use various developmental initiates as strategies with which it will be able to adjust its board development process.            Either, the mission of the organization should be a basic fundamental aspect when defining the nature of the board development. The organizations mission should be the basic tool which helps to shape the nature of the board. Through the mission statement, the characters and the nature of the board will thus be shaped. Elsewhere, the organization program should a basic guiding strategy towards a better coordinated approach for the governance.            A coherent plan of its strategies should guide the organization in developing its board. Since organizational strategies vary with its mission and activity, the package of strategies should seldom be the guiding factor towards the nature of its board.            Governance structure system of the organization plays an important role in defining the nature of activities it plays within the community. Sound governance is very important in defining the scale of attainment of the mission statement. Either, the governance system borrows its authority from the management and the board outlay. Adequacy in the governance plays a predominant role in defining the level with which the organization is able to achieve its goals. Either, the structure of the board defines the standards with which the governance of the organization is to be. (Silk, 76)            By their nature, non profit organizations are formed on private grounds to overseer the interest of the people. Every good relationship between such organizations and the community /public should fundamentally be provided for. Generally, the relationship between these organizations and the community is ideally rationally close. It seeks to create an incentive of participation between the community and such organizations. Elsewhere, lack of adequate relationship between the two would definitely mean standards of high activity and a reasonable state of coordination and surveillance for the community. The interest of the organizations is in the provision of service to the general public. Adequate attempt of coordination between them and the community should be provided as the best initiative which provides grounds for service to the human population. Financial and human resource management A package of basic principles in the financial management, human resource management and fund development act as the guiding rule for these organizations. Financial management is an approach of administration in which the financial inflow and outflow is monitored considerably .This is to ensure that the financial transactions are at the most optimal discretion to provide support for the community. Either, this is aimed at providing the closest relationship between the community and the organization . However, the basic principle is the optimal costing principle which is applied to provide the most adequate system of financial use in the financial system .Optimal costing implies that the financial inflow and outflows is at the greatest capacity to provide support for the use of the finances. Generally poor financial use has been the benchmark in lack of trust to many of the organizations by the community, government and private financiers .Therefore every optimal costing should seek to serve the interest of the stakeholders in the organization. Either, like any other organization, these organizations should provide financial management systems which ensure the right perception by both the internal and external environments. Accountability provides a support for financial management .The internal financial position, standards and figures are used by the internal management to make decisions about the organization .Through adequate disclosures of the financial documents, and the management is able to make the relevant decisions (Linnel, Radoserich, Spack, 48) Generally, these organizations are to maintain their financial accounting in the principle provided by the Generally Accepted Accounting Principles (GAAP). Such provide that financial accounting follow the international standards in support of the financial documents Either all non profit organizations ought to have a system of internal control. This is to ensure that the financial transactions abide by the conventional system of management Elsewhere non profit organizations are supposed to have full provision of reports to the finance management and to be provided to the relevant stakeholders such as financiers. Adequate financial reports are important to every activity of management within the organizations Generally the management should use systems of adequate control on their budgets which ensures adequate control in their budgetary system .Budgeting is very important for every activity allied to the organizations. Financial management also provide a requirement in which the governance structure has clarity in its role play to the organization,s financial management . Adequacy in the role play by individual members provides accountability support for it’s individual persons. Elsewhere, financial management seeks to provide the basic requirements which may be required by the different donors in the use and the allocation process of the funds .Above all, financial records are to be submitted to any stakeholder in use and control of the organization if need be for effective management. Due to the importance attached to the human capital in these organizations various principles are applied to provide a support for the most functional human capital. Many of the organizations are involved in the provision of service to the human population. To many organizations, the human workforce is large with professionalism and competence provided for all. Therefore, the organizations should not look down to the nature in which the human capital support can be provided to the service output. However, depending on the organization, various principles embody there activities. (Hall, 26) Firstly training and human force development is never compromised. This is in the realization of role played by every upright and experienced work force. They ensure various training programs for their workforce. Within the scope of the workforce management, aspect of planning and design of work for them is highly vigilant. Proper planning and design of work is important in every attempt to reduce conflict between them. Planning is made according to some preferential attributes. Time and again, the organizations provide an adequate support in the employee recruitment process and the selection for new staff. This is via the use of modalities of high competence and management. In all the activities, the rights of employees are never overlooked. This is a principle which applies to all employees of these organizations. It ensures providing support for the workers in enjoying and exercising their contribution to the organization. This is an attempt to provide support for ensuring that workers are not exploited of their resource capital. (Jeavons, 218) Workers exploitation is the main cause of conflict at the working environment. Also, the principle of performance management holds true in these organizations. Performance management involves monitoring of the role played by the workers through surveys and study activities. Performance management provides support for adequacy and optimal performance by these workers to ensure the most optimal output by the workers.            Fund development is an important tool in the non profit organizations. Such organizations are allied to formulating various fund development strategies. Fund development implies the system of approach in creating funds and using supporting tools for creating their donation. This helps to provide support for fund raising and using methods to attract funds from the donors and finances. Fund development uses the tool of public relations to create fundamental environment with which such financiers can be motivated to run the organization. Fund development is a management attribute which seeks to investigate the financial support system so that adequacy in the organizations funds can be ensured. Since this is a management process, it uses basic tools and approaches which provide support for the highest funding. Fund development will help to provide the organization with a relieved workload and hence avoid not meeting financing deadlines. This is an important aspect in the management structure since it is the driving force of the organization towards its goals achievement is the level of funds.            Financial and human resource management, and also fund development are closely interrelated. Firstly, these are system of management and governance of the organization which provide the most adequate corporation in the organizational structure to provide an authentic goal and mission achievement. The success of each implies and promotes the success of the other. At one level, good fund development is allied to financial management where the tools of financial management are used to adequately apportion and budget for the collected funds. Either, all the activities that include financial management and fund development are provided by an adequate structure of human resource. This provides a support for the adequacy into the activities of the organization. Human resource package is fundamental in defining the nature of performance of all the organizations activities. Emerging practice in non profit organizations.            Currently, the non profit organizations’ activities have had a diverse state of practices that are emerging out from the conventional outlay of the organizations in the US and the world in general. These practices have been key pillars in providing a support for the most authentic system of support for the future of the organizations. The sector is perhaps having a brighter future when its activities and processes are under a good system of practices.            Firstly, policy and framework on the legal parameter guiding the organizations have been developed on fountain grounds. Adequacy in the legal policies is a fundamental subject in providing adequate support for their performance. Policies ensure a coordinated approach in the standards of the organization legal framework which ensures that conflict is reduced between the organizations activities in terms of its structures and stakeholders. Through a support for strong legal modalities that act as pillars of the organization, the management process of the organizations is highly strengthened with little or no conflict in their governance process. Strong legal framework has ensured that the organizations act within the basic legal requirements that promote the best relation with the community. Either, adequate structures above programs as well as services ensure a coordinated link between the organization. Every organization is accompanied by a structure of specific programs, and structure which help to ensure a strong personal activity. Adequate programs and high maintained and supported structural authenticity has ensured a continued high activity and dominance of the organizations in the society. Program system is the nature of the activity support for the organization. Strong program and services outlay provide a support for a continued rationality of organizations within the society. (Til, 53) Generally, the organizations act within the human capacity. This is synonymous to capacity-building by the human populations. Human capacity has been a basic tool for leading to changes in the social structures and hence provides conditions for the most adequate human life potential in the global portfolio. Their nature is in service to humanity. Within the changing nature of the social structures, capacity building remains an important aspect in rationalizing the societal activities. Providing adequate outcomes in their performance and the measures in their activity is also an emerging practice. There has been an increased activity in the analysis of their activities. Performance outcome seeks to study the scale with which the activities described to the organizations provide the most adequate and profitable benefits. Summarily therefore, the aspects of nonprofit organizations is fundamentally critical and capturing an enormous scale of activities within its jurisdiction. They does a lot in support the human population. Their adequacy depends on the manner with which management is done in due course. Work cited Axelrod, Nancy R. (2005). Board leadership and development. In. R.D. Herman, Handbook of Nonprofit Leadership and Management, pp. 142, San Francisco: Jossey Bass Publications. Dimaggio, Paul J. and Anheier, Helmut K. (1990). The sociology of nonprofit organizations and sectors. Annual Review of Sociology, Vol. 6, pp152. Hall, P. H (2005). Historical perspectives on nonprofit organizations in the United States, In. R.D. Herman, Handbook of Nonprofit Leadership and Management, pp. 22, San Francisco: Jossey Bass Publications. Jeavons, T. H. (2005). Ethical Nonprofit Management. In R.D. Herman, Handbook of Nonprofit Leadership and Management, pp. 218. San Francisco: Jossey Bass Publications. Linnell, D, Radosevich, Z, Spack, J, ( 2001). Executive Director’s Guide: A Guide for successful Nonprofit Management. Pp.48. Boston: United Way of Massachusetts Bay. Silk, T. (2005). The legal framework of the nonprofit sector in the United States. In. R.D. Herman, Handbook of Nonprofit Leadership and Management, pp.76, San Francisco: Jossey Bass Publications. Til, V. (2005). Nonprofit Organizations and Social Institutions, In. R.D. Herman, Handbook of Nonprofit Leadership and Management, pp.53, San Francisco: Jossey Bass Publications. Walden, G. (2007). Who’s watching us now? The nonprofit sector and the new government by surveillance. Nonprofit and Voluntary Sector Quarterly, Vol. 35, 719
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