...services has increased, the government can no longer fully provide those services on their own; instead they have passed the duty onto nonprofits, whose sole goal is to provide these services at little to no cost to the recipient. In return for providing the services, the nonprofits receive money through the form of grants given by the federal government. Nonprofits who receive these grants are almost always dependent upon them and the removal of these grants could be detrimental...
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...Financial Disclosure Management by Nonprofit Organizations1 Ranjani Krishnan, Michelle H. Yetman, Robert J. Yetman* Eli Broad College of Business, Michigan State University, East Lansing, MI 48824. Tippie College of Business, The University of Iowa, Iowa City, IA 52240 ______________________________________________________________________________ Abstract This paper examines how nonprofit organizations respond to incentives to manage their publicly available financial information. Prior research identifies two operating ratios donors commonly use to evaluate the efficiency and effectiveness of nonprofits (i.e., the program service ratio, defined as the fraction of total expenses committed to advancing the charitable mission of the organization, and the fundraising ratio, defined as the ratio of fundraising expenses to donations revenue). Nonprofit managers have an incentive to over-report the expenses classified as program services and under-report the expenses classified as administrative and fundraising in order to improve these ratios. We examine whether nonprofits respond to these incentives, and we find evidence consistent with opportunistic cost shifting to improve the program service and fundraising ratios. Additional analysis finds that smaller nonprofits that are more reliant on donations revenue manipulate their operating ratios to a greater extent. JEL classification: M4; L3 Key words: Nonprofit organizations, earnings management, disclosure, hospitals. __...
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...| MARKETING FOR A NON-PROFIT ORGANIZATION By: Ahmed Alhalal, Charles Hazzard, Dreu dixon, Faisal Al Mubayedh, Kelly Walker April 11, 2013 Introduction to Engineering Management- 2111-001 MARKETING FOR A NON-PROFIT ORGANIZATION By: Ahmed Alhalal, Charles Hazzard, Dreu dixon, Faisal Al Mubayedh, Kelly Walker April 11, 2013 Introduction to Engineering Management- 2111-001 | EXECUTIVE SUMMARY At the start of this project, our team was given a special opportunity to develop a hands-on marketing project with a non-profit organization. This non-profit organization goes by the name of The Lightfactory, and is known as one of four museums of photography and film in the United States. The board of directors requested our team to develop an e-mail campaign strategy to improve membership and donor rates. However, as systems engineers, none of our team members had any prior knowledge of marketing or segmenting. Therefore our team was forced to do some extensive research on non-profit marketing, as well as database segmenting. The ideals and concepts learned throughout the research process were eventually used as a foundation for completing the project objectives proposed by the Lightfactory board of directors. Segmenting the database was a success and provided some key insights about the LightFactory’s customer base. Most of the customer’s in the database were segmented into three major populations: Big givers, Middle givers, and Low givers. These segments are customers...
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...Expected at 10:00 a.m. EDT Thursday, May 26, 2005 Testimony Before the Committee on Ways and Means, House of Representatives NONPROFIT, FOR-PROFIT, AND GOVERNMENT HOSPITALS Uncompensated Care and Other Community Benefits Statement of David M. Walker Comptroller General of the United States GAO-05-743T May 26, 2005 Highlights Highlights of GAO-05-743T, a testimony before the Committee on Ways and Means, House of Representatives Accountability Integrity Reliability NONPROFIT, FOR-PROFIT, AND GOVERNMENT HOSPITALS Uncompensated Care and Other Community Benefits Why GAO Did This Study Before 1969, IRS required hospitals to provide charity care to qualify for tax-exempt status. Since then, however, IRS has not specifically required such care, as long as the hospital provides benefits to the community in other ways. Seeking a better understanding of the benefits provided by nonprofit hospitals, this Committee requested that GAO examine whether nonprofit hospitals provide levels of uncompensated care and other community benefits that are different from other hospitals. This statement focuses on, by ownership group, hospitals’ (1) provision of uncompensated care, which consists of charity care and bad debt, and (2) reporting of other community benefits. The hospital ownership groups were (nonfederal) government, nonprofit, and for-profit. To compare the three hospital ownership groups, GAO obtained 2003 data from five geographically diverse states with substantial...
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...Conference of the Association for Research on Nonprofit Organizations and Voluntary Action in November 1999. This paper was submitted to the peer-reviewed academic journal Nonprofit and Voluntary Sector Quarterly for consideration. ¬¬¬¬¬¬¬¬¬¬¬¬¬¬_______________________ Nonprofits’ Use of the Media in the Influence of Public Policy: Is there a correlation between exposure in the media and positive results? DAVID A. RICE STRATEGIC POLICY CONCEPTS Abstract: The extent to which interest groups and the media influence policymakers has been a popular topic of research. However, there has been little research on interest groups’ attempts to use the media for the specific purpose of influencing policymakers. This paper examines the attempts of nonprofit advocates in Massachusetts to use the media to influence public policymaking. The research was conducted through a survey of policymakers, the media, and registered lobbyists for nonprofit and for-profit interest groups in Massachusetts. The results of the survey indicate that the majority of nonprofit advocates do not use the media as a tactic to influence policymakers primarily because they do not believe policymakers are very influenced by the media. The results also found that policymakers would view nonprofit advocates as being more influential if they frequently obtained media coverage of the issues important to them. The paper posits that the nonprofit sector’s degree of influence in the policymaking...
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...Role of Nonprofit Enterprise [The book version] by Andreas Ortmann* & Mark Schlesinger** Abstract In this chapter we examine the trust hypothesis: the proposition that information asymmetries between providers and consumers of services can explain the existence of nonprofit enterprise in certain markets. We argue that this hypothesis, in order to be viable, has to meet three challenges: (1) the de jure inability of nonprofits to distribute profits to shareholders and/or management must affect incentives within the nonprofit firm in ways that are compatible with trustworthiness (Aincentive compatibility challenge@), (2) nonprofit behavior must not be adulterated by individuals taking advantage of the perceived trustworthiness (Aadulteration challenge@), and (3) nonprofit status must be treated as a reliable predictor of organizational behavior by consumers, when the reputation of individual firms is not seen as reliable (Areputational ubiquity challenge@). We propose that the trust hypothesis stands on shaky ground. It can be sustained only under particular conditions that have been neither carefully described in theory nor subject to empirical assessment. The available evidence, patchy and inadequate as it is, seems to suggest that there are ownership-related differences in the organizational behavior of non-profits and for-profits. However, there is little evidence that these differences can be connected to trust per se or provide a rationale for the existence of nonprofit ownership...
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...Financial Management of For-Profit and Nonprofit Organizations by Kamilah A’Vant Submitted to MGMT 640 9040 November 13, 2011 EXECUTIVE SUMMARY This paper will outline the similarities and differences between for-profit organizations and nonprofit and organizations. Many view for-profit and nonprofit companies as very different business organizations; however they have many commonalities. Both for-profit and nonprofit organizations are corporations. As a corporation, both are legal enterprises created to operate and transact business. Corporations hire employees to manage day-to-day activities and act in its best interests. For-profit and nonprofit companies work to control spending, find ways to bring in revenue, operate under organizational structures and utilize accounting practices to track and report how efficiently assets are used. Nonprofit organizations fall under a large umbrella in respect to size and mission. The environment under which they do business helps set them apart from for-profit companies. Nonprofit companies have a great need for their services, face cuts in funding and capital limitations. In this paper I will focus on the financial management techniques used by for-profit and nonprofit companies. I will address the following questions: • What are the sources of funds available to for-profit and nonprofit companies? • Is there a conflict between the mission and bottom line of nonprofit companies? • What types...
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...HISTORY The Performing Arts Center of Los Angeles County or Music Center is one of the largest performing arts centers in the United States. In 1955, Dorothy Buffum Chandler was named by the Los Angeles County Board of Supervisors to build a permanent home for the Los Angeles Philharmonic. Dorothy raised $18.7 million in private donations and the country provided the site and $14 million. The construction of the original complex lasted for five years from 1962 to 1967. The original complex was comprised of three venues: Dorothy Chandler Pavilion, Mark Taper Forum, and Ahmanson Theatre. In 2003, the Music Center added the Walt Disney Concert Hall to there list of venues. Other venues that are part of the Music Center include: outdoor theaters, plazas, and gardens. The Music Center campus covers 12 acres in downtown Los Angeles. The largest venue is the Dorothy Chandler Pavilion, which seats approximately 3,200 audiences. Followed by the Walt Disney Concert Hall, Ahmanson Theatre, and Mark Taper Forum. According to the organization’s Form 990, their mission is to be “A leader at the cultural heart of Los Angeles County, the Performing Arts Center of Los Angeles County brings to life one of the world’s premier arts destinations by creating opportunities for arts participation, enabling compelling programming and providing first class facilities and services.” The audited financial statements and Form 990 will be used to analyze the financial health and position of the Performing...
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...Head: Effectiveness of Juvenile Correctional Facilities Effectiveness of Juvenile Correctional Facilities: Juvenile Crime Kalah Jiggetts Criminal Justice Abstract This paper uses data on juvenile offenders released from correctional facilities in Florida to explore the effects of facility management type (private for-profit, private nonprofit, public state-operated, and public county-operated) on recidivism outcomes and costs. The data provide detailed information on individual characteristics, criminal and correctional histories, judge-assigned restrictiveness levels, and home zip codes—allowing us to control for the non-random assignment of individuals to facilities far better than any previous study. Relative to all other management types, for-profit management leads to a statistically significant increase in recidivism, but, relative to nonprofit and state-operated facilities, for-profit facilities operate at a lower cost to the government per comparable individual released. Cost- benefit analysis implies that the short-run savings offered by for-profit over nonprofit management are negated in the long run due to increased recidivism rates, even if one measures the benefits of reducing criminal activity as only the avoided costs of additional confinement. Since its beginnings in the mid-1980s, prison privatization in the United States has provoked several rounds of congressional hearings and hundreds of articles discussing...
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...Campus、jk56646n@pace.edu Katy Kaestner 、Trinity University、kkaestne@trinity.edu ABSTRACT The processes and outcomes of a service learning project conducted by a group of five students and engaged with a nonprofit organization are described in this paper. The processes and outcomes are evaluated with respect to the effectiveness of service learning as an educational means and the contribution to the nonprofit sector made by service learning initiatives. The findings include the benefit of the initial ambiguity of the service learning project and the benefit of the project outputs to the nonprofit agency. It is concluded that researchers may need to figure out the absolute relationship between initial ambiguity and the effectiveness of a service learning project and that between project outputs and the benefits received by the organization concerned. It is also concluded that researchers need to study how to keep participants’ passion towards the nonprofit sector after completion of their service learning project. KEYWORDS Service learning, volunteering, nonprofit organizations, social enterprises 1. INTRODUCTION The primary goal of this paper is to describe the processes and outcomes of a service learning project conducted by a group of five students and engaged with a nonprofit organization. The processes and outcomes are evaluated with respect to the...
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...Page 1 1. (TCO A) Which answer includes the three major categories of nonprofit organizations? (Points : 5) Governmental, charitable, and scientific Charitable, governmental, and membership Membership, educational, and veterans | 2. (TCO A) Which statement is true? (Points : 5) State laws apply to the formation and existence of a nonprofit organization as a general rule. State laws do not apply to nonprofit organizations. Federal laws apply to the formation and existence of a nonprofit organization as a general rule. | 3. (TCO E) Generally, a nonprofit organization is not able to offer a salary comparable to what would be offered by a for-profit business for a similar position. What is a reason for this discrepancy? (Points : 5) The organization just plainly may not be able to afford to pay as well as a for-profit. The nonprofit does not care about how much it pays employees. For-profits care more about their employees. | 4. (TCO F) You have just been promoted to Volunteer Coordinator at your organization. This is a newly created position so you are responsible for developing all aspects related to volunteer management. What should you include in the New Volunteer Welcome Packet? (Points : 5) The names, addresses, and phone numbers of other volunteers Executive director's resume Mission statement of organization | 5. (TCO F) What is a valid reason to develop and use a volunteer job description...
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...to the competitive, military-based concept of strategy. In Porter’s words: “developing a competitive strategy is developing a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals.” (Porter, 1980, p. xvi). The business I chose is a non-profit business, named Time To Go (TTG) that focus on natural energy that can also use chemicals and natural resources. Some non-profit organizations may also be a charity or service organization; they may be organized as a not-for-profit corporation or as a trust, a cooperative, or they exist informally. A very similar type of organization termed a supporting organization operates like a foundation, but they are more complicated to administer, hold more favorable tax status and are restricted in the public charities they support. Nonprofits have benefited from the development of strategy concepts in the for-profit world, and have applied many of them (Stone & Crittenden, 1993). For example, Bryson (1994), as well as Nutt & Backoff (1992), utilize SWOT analysis and environmental analysis in their widely used texts on public and nonprofit strategy. Two recent texts (Kearns, 2000; La Piana & Hayes, 2005) even draw directly on the competitive legacy of strategy. The La Piana & Hayes book is entitled “Play to Win: The...
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...ABSTRACT The processes and outcomes of a service learning project conducted by a group of five students and engaged with a nonprofit organization are described in this paper. The processes and outcomes are evaluated with respect to the effectiveness of service learning as an educational means and the contribution to the nonprofit sector made by service learning initiatives. The findings include the benefit of the initial ambiguity of the service learning project and the benefit of the project outputs to the nonprofit agency. It is concluded that researchers may need to figure out the absolute relationship between initial ambiguity and the effectiveness of a service learning project and that between project outputs and the benefits received by the organization concerned. It is also concluded that researchers need to study how to keep participants’ passion towards the nonprofit sector after completion of their service learning project. KEYWORDS Service learning, volunteering, nonprofit organizations, social enterprises 1. INTRODUCTION The primary goal of this paper is to describe the processes and outcomes of a service learning project conducted by a group of five students and engaged with a nonprofit organization. The processes and outcomes are evaluated with respect to the effectiveness of service learning as an educational means and the contribution to the nonprofit sector...
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...Profit Versus Not-for-Profit Hospitals In Partial Fulfillment of the Requirements for Health Services Systems HSM 541 Blaise X. Schmidt DeVry University Keller Graduate School of Management September 2012 1.0 Purpose The purpose of this paper is to conduct a comparative analysis between for-profit hospitals and not-for-profit hospital. It will discuss the characteristics of each as well as factors affecting the operations of both systems. Additionally, it discusses potential areas of improvement and some of the challenges associated with each relative to finance and operations. 2.0 Comparing Not-for-Profit and For-Profit Hospitals Not-for-profit hospitals are organized under the Section 501 (c)(3) of the Internal Revenue Service (IRS) tax code, and as such, are exempt from federal and state taxes and generally from local property and other taxes. Not-for-profit hospitals also have access to tax-exempt bond financing and have tax-deductible status for gifts and contributions (Barton, 2010). For-profit hospitals do not have this luxury. Public or private hospitals can be classified as non-profit. Non-profits include a majority of the hospitals in the US. The two types of hospitals differ mainly in regulatory rules. Not-for-profit hospitals do not need to pay property, sales, or income taxes. For-profit hospitals do. Despite these differences, the two types of ownerships have been becoming more and more similar and many hospitals...
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...Anymore! The economic downturn in the United States has been intensifying every month since September 2008, and it is having significant impacts on numerous nonprofit organizations (NPOs). It is now clear that this financial crisis is more severe than anything we have experienced in over 50 years; it is affecting every sector of the economy. Managers of NPOs are facing numerous obstacles while having to face an increase in the vital services they provide to the public. The most critical issue is the lack of funding. The effects of the economic recession are spurring NPO leaders and their funders to create and apply innovative fundraising projects, collaborate together and to deeply analyze federal packages and plans for support. Although raising funds in today's tight economy is a challenge, some nonprofits are doing better than others. Organizations that are doing well have numerous amounts of revenue sources and many ways for donors to give, they spend more time and personal effort in building relationships with their donors, have refocused on the importance of developing staff, resources, and programs, and are simply looking to do more, not less (Borning, 2010). NPOs have suffered from the downturn in 2008 and 2009 but the fact is even tougher financial times have come since then for many nonprofit organizations, especially larger organizations that rely heavily on government grants and contracts (Kerr, 2010). Fifteen regional NPO agencies were surveyed...
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