Nonprofit Management
Principles and Practice
Fifth Edition
- Michael J. Worth - The George Washington University, USA
September 2018 | 576 pages | CQ Press
“Nonprofit Management: Principles and Practice provides an excellent overview of the complexities, management challenges, and importance of the nonprofit sector in the United States. It’s easy-to-use format is appropriate for undergraduates and entry-level nonprofit professionals who wish to develop a broader understanding of the nonprofit sector.” —Crystal Tull, University of San Diego
Michael J. Worth’s student-friendly best-seller, Nonprofit Management: Principles and Practice, Fifth Edition, provides a broad, insightful overview of key topics affecting governance and management of nonprofit organizations. Worth covers the scope and structure of the nonprofit sector, leadership of nonprofits, managing the nonprofit organization, fundraising, earned income strategies, financial management, nonprofit lobbying and advocacy, managing international and global organizations, and social entrepreneurship. Written specifically for students, this applied text balances research, theory, and practitioner literature with current cases, timely examples, and the most recent data available.
New to the Fifth Edition
- New cases related to accountability and governance highlight new approaches to recent controversies and risks to nonprofits. Cases include the Wounded Warriors Project, Sweet Briar College, 4-H, Housing First, the Chan-Zuckerberg Initiative, the National Audubon Society, and an expanded study of governance issues at the Hershey Trust.
- Expanded discussions of risk management offer new insights on developing strategy, building capacity, and managing risk.
- New social networks and social media content provides students with practical strategies for using social media when fundraising and marketing.
- A new comprehensive case on the Girl Scouts of the USA recounts reforms undertaken by this iconic organization and current challenges it faces.
- The chapter on financial management has been substantially revised to reflect new requirements for nonprofit financial statements issued by the Financial Accounting Standards Board in 2016, as well as an expanded discussion of audits.
- An updated chapter on fundraising includes information on the Tax Cuts and Jobs Act passed in December 2017, which has implications for charitable giving.
- New references at the end of every chapter guide readers to relevant cases in the Appendix, making it easy for instructors to incorporate the cases into classroom discussions.
Instructors: Log into the password-protected Instructor Site at study.sagepub.com/worth5e for case activities, chapter-specific discussion questions, a Microsoft® Word® test bank, PowerPoint® slides, and more!
Preface
Acknowledgments
Part I. Understanding Nonprofit Management, the Nonprofit Sector, and Nonprofit Organizations
Chapter 1. Nonprofit Management as a Profession and a Field of Study
| A Revolution in Management |
| A Distinct Profession |
| Nonprofit Management as a Field of Study |
| Toward a Balanced Approach |
| Proceeding With Realism and Pride |
| Chapter Summary |
| Key Terms and Concepts |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Articles |
| Websites |
Chapter 2. Overview of the Nonprofit Sector
| America’s Nonprofit Sector: A Historical Overview |
| Searching for a Common Vocabulary |
| Alternatives to Nonprofit |
| Size of the U.S. Nonprofit Sector |
| Differentiating the Nonprofit Sector |
| National Taxonomy of Exempt Entities |
| IRS Classifications |
| Salamon’s Anatomy |
| The Spectrum of Organizations |
| Emerging New Models |
| Commercialization and Tax Exemption |
| Implications for Nonprofit Managers |
| Chapter Summary |
| Key Terms and Concepts |
| Case 2.1 The Chan-Zuckerberg Initiative |
| Case 2.2 A Double Bottom Line: Ben & Jerry’s |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Articles/Book Chapters |
| Websites |
Chapter 3. Theories of the Nonprofit Sector and Nonprofit Organizations
| Explaining the Nonprofit Sector |
| Nonprofit Theory Across the Disciplines |
| The Failure Theories |
| Market and Government Failure |
| Nonprofits as Gap Fillers |
| Supply-Side Theories |
| Theories of Altruism and Giving |
| Theory of the Commons: An Interdisciplinary Approach |
| Changing Definitions of Private, Public, and Common |
| Explaining Nonprofit Organizations |
| Characteristics of Nonprofit Organizations |
| Nonprofits as Open Systems |
| Resource Dependence |
| Isomorphism |
| Explaining Nonprofit Organizational Structures |
| Organizational Culture |
| Chapter Summary |
| Key Terms and Concepts |
| Case 3.1 The Smithsonian Institution and the Catherine B. Reynolds Foundation |
| Case 3.2 The National Trust for Historic Preservation |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Articles |
Part II. Governing and Leading Nonprofit Organizations
Chapter 4. Nonprofit Governing Boards
| Types of Governing Boards |
| Elected Boards |
| Self-Perpetuating Boards |
| Appointed and Hybrid Boards |
| Advisory Councils |
| The Governing Board’s Responsibilities |
| The Governing Board’s Legal Responsibilities |
| The Governing Board’s Functional Responsibilities |
| The Board and the CEO |
| Carver’s Policy Governance Model |
| Chait, Ryan, and Taylor: Governance as Leadership |
| Herman and Heimovics: Psychological Centrality and Board-Centered Leadership |
| Explaining Board Behavior |
| Managing Nonprofit Boards |
| Role of the Chair |
| Governance Committee |
| Board Professionals |
| Nonprofit Board Effectiveness |
| Critics of Board Performance |
| The Search for Best Practices |
| The Challenge of Nonprofit Governance |
| Chapter Summary |
| Key Terms and Concepts |
| Case 4.1 Sweet Briar College |
| Case 4.2 The Hershey Trust |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books/Reports |
| Websites |
Chaper 5. Executive Leadership
| The CEO’s Job |
| Management and Leadership |
| Overview of Leadership Theories |
| An Evolution in Thinking |
| Transformational Leadership |
| Charismatic Leadership |
| The Effective Nonprofit CEO |
| Focus on Mission |
| Focus on the Board |
| Focus on External Relationships |
| Share Leadership and Empower Others |
| Focus on Key Roles and Priorities |
| Use the “Political Frame” |
| Right Person, Right Place, Right Time |
| Founder Syndrome |
| Executive Transitions |
| Leading Change |
| Chapter Summary |
| Key Terms and Concepts |
| Case 5.1 A Change in Leadership at Habitat for Humanity |
| Case 5.2 Challenge and Change at United Way |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Articles |
| Websites |
Part III. Managing the Nonprofit Organization
Chapter 6. Ensuring Accountability and Measuring Performance
| Defining and Ensuring Accountability |
| Mechanisms for Accountability |
| Requirements of Law |
| Self-Regulation: Standards and Accreditation |
| Transparency |
| Measuring and Managing Performance |
| Financial Ratios |
| Benchmarking |
| Outcomes |
| Balanced Scorecard |
| Social Return on Investment |
| Blended Value |
| Performance Measurement: The Continuing Debate |
| Chapter Summary |
| Key Terms and Concepts |
| Case 6.1 The Wounded Warrior Project |
| Case 6.2 Youth Villages |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Articles/Report |
| Websites |
Chapter 7. Developing Strategy, Building Capacity, and Managing Risk
| Understanding Strategy |
| Strategic Planning and Strategic Management |
| The Strategic Planning Process |
| Planning to Plan |
| Defining Mission, Vision, and Values |
| Assessing the Situation |
| Identifying Strategic Issues |
| Setting Goals |
| Developing Strategies |
| Setting Objectives |
| Writing the Strategic Plan |
| Developing an Operational Plan |
| Benefits and Limitations of Strategic Planning |
| Building Organizational Capacity |
| Defining and Understanding Capacity |
| Capacity Building in Action |
| A Model for Capacity Building |
| Capacity and Organizational Life Cycles |
| Capacity Building Evaluated |
| Managing Risk |
| Chapter Summary |
| Key Terms and Concepts |
| Case 7.1 New Hope Housing Strategic Plan 2013–2018 |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books/Brochure |
| Articles |
| Websites |
Chapter 8. Collaborations, Partnerships, and Mergers
| Growing Interest in Collaboration |
| A Continuum of Relationships |
| Exploring Collaborations and Mergers |
| Drivers of Collaborations and Mergers |
| Obstacles to Collaboration and Merger |
| Motivations |
| Culture |
| Egos |
| Brand Identity |
| Community or Political Objections |
| Costs |
| Conditions for Success |
| Driven by Mission |
| Commitment From Top Leadership |
| Trust |
| Relatedness |
| Process |
| Collaborations and Mergers Within National Nonprofits |
| Cross-Sector Collaboration |
| A Continuum of Cross-Sector Collaboration |
| Advantages and Disadvantages of CSCs |
| Obstacles and Conditions for Success |
| Achieving Collective Impact |
| Chapter Summary |
| Key Terms and Concepts |
| Case 8.1 N Street Village and Miriam’s House |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Articles/Report |
| Websites |
Chapter 9. Managing Staff and Service Volunteers
| Human Resources Management |
| An Overview of Management Theories |
| Understanding Human Motivations |
| Maslow’s Hierarchy of Needs |
| McGregor: Theory X and Theory Y |
| McClelland: Three Needs Theory |
| Myers and Briggs: Personality Types |
| Herzberg: Motivators and Dissatisifers |
| Motivations of Nonprofit Staff |
| Life Cycles and Generations |
| Applying Theories to Managing the Nonprofit Workforce |
| Managing Volunteers |
| Types of Volunteers |
| Motivations of Volunteers |
| Volunteer Program Practices |
| Volunteer Management as a Career Field |
| The Future of Volunteerism |
| Chapter Summary |
| Key Terms and Concepts |
| Case 9.1 Getta Grant |
| Case 9.2 Rita Writer |
| Case 9.3 Bob the Builder |
| Case 9.4 Myra the Volunteer Manager |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books/Book Chapter |
| Websites |
Chapter 10. Marketing and Communications
| Defining and Understanding Marketing |
| Marketing Serves the Mission |
| Marketing Means Action |
| Marketing as a Process |
| The Marketing Mix |
| Product |
| Place |
| Promotion |
| Market Segmentation |
| Price |
| Defining the Exchange |
| Building the Brand |
| Integrated Marketing Communication (IMC) |
| Crafting an Effective Message |
| Crisis Communications |
| Social Media |
| From Gatekeepers to Connectors |
| Social Media Planning |
| Operational Questions |
| Evaluating Marketing and Communication |
| Chapter Summary |
| Key Terms and Concepts |
| Case 10.1 Rebranding 4-H |
| Case 10.2 Susan G. Komen Foundation |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books/Journals |
| Websites |
Chapter 11. Advocacy and Lobbying
| Basic Distinctions |
| Overview of Lobbying Law |
| Option I: Substantial Part Test |
| Option II: 501(h) Expenditure Test |
| Political Campaign Activity |
| Implementing an Advocacy Program |
| Using Social Media |
| Continuing Issues and Concerns |
| Chapter Summary |
| Key Terms and Concepts |
| Case 11.1 Mothers Against Drunk Driving (MADD) |
| Case 11.2 Housing First |
| Case 11.3 National Audubon Society |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Articles |
| Websites |
Part IV. Obtaining and Managing Resources
Chapter 12. Financial Management
| Definitions of Key Concepts |
| Understanding Nonprofit Finances |
| Nonprofit Financial Statements |
| Statement of Financial Position |
| Statement of Activities |
| Statement of Cash Flows |
| Statement of Functional Expenses |
| Required Disclosures and Notes to Financial Statements |
| Audits |
| Using Financial Ratios |
| Managing Endowment Funds |
| Developing and Managing the Budget |
| Financial Policies and Controls |
| Chapter Summary |
| Key Terms and Concepts |
| Case 12.1 Hull House |
| Case 12.2 Corcoran Gallery of Art and Corcoran School of the Arts and Design |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Newsletter |
| Websites |
Chapter 13. Philanthropic Fundraising
| Definitions and Distinctions |
| Motivations for Giving |
| Understanding Corporate Philanthropy |
| Foundation Giving |
| Motivations of Individual Donors |
| The Fundraising Process |
| Identifying Priorities and Developing the Case |
| Identifying and Qualifying Prospects |
| Cultivating Prospects |
| Soliciting the Gift |
| Acknowledging and Recognizing Donors |
| Stewarding the Gift and the Relationship |
| Individual Donor Life Cycles |
| Planned Giving |
| Campaigns |
| Managing Fundraising Programs |
| Advancement Services |
| Prospect Management |
| Fundraising Efficiency and Effectiveness |
| Staff Performance and Accountability |
| Ethics and Professional Standards |
| Chapter Summary |
| Key Terms and Concepts |
| Cases 13.1 a–g Fundraising Ethics |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Articles |
| Websites |
Chapter 14. Social Enterprise and Earned Income
| Defining Social Enterprise and Earned Income |
| Why Earned Income? |
| Partnerships With Business |
| Licensing |
| Sponsorships |
| Cause Marketing |
| Other Variations |
| Integrated Relationships |
| Operational Relationships |
| Putting Partnerships Together |
| Nonprofit Business Ventures |
| Identifying Business Opportunities |
| Feasibility Analysis and Business Planning |
| Earned-Income Strategies: Issues and Decisions |
| Sorting Out the Issues |
| Evaluating Opportunities Against Mission |
| A Continuing Debate |
| Chapter Summary |
| Key Terms and Concepts |
| Case 14.1 Minnesota Public Radio |
| Case 14.2 Aspire CoffeeWorks |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Articles |
| Websites |
Chapter 15. Government Grants and Contracts
| Changes in Sources and Patterns of Support |
| Grants, Contracts, and Fees |
| Government Support: Opportunities and Challenges |
| Seeking Government Support |
| Identifying Grant Opportunities |
| Evaluating Grant Opportunities |
| Preparing and Submitting an Application or Proposal |
| Nonprofits in the Policy Arena |
| Chapter Summary |
| Key Terms and Concepts |
| Case 15.1 SEED Foundation |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Articles |
| Websites |
Part V. Special Topics
Chapter 16. Social Entrepreneurship and Innovation
| Defining and Understanding Social Entrepreneurship |
| Social Enterprise School |
| Social Innovation School |
| History of Social Entrepreneurship as a Field |
| Theories of Social Entrepreneurship |
| Social Entrepreneurship Across Fields and Around the World |
| Building High-Impact Nonprofits |
| Sustaining Innovation |
| The Future of Social Enterprise and Social Entrepreneurship |
| Chapter Summary |
| Key Terms and Concepts |
| Case 16.1 KaBOOM! |
| Case 16.2 Harlem Children’s Zone |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books/Journa |
| Websites |
Chapter 17. Governing and Managing International and Global Organizations
| Definitions and Scope of International Organizations |
| International Philanthropy and Fundraising |
| International Giving |
| Global Fundraising |
| International Nonprofit Governance and Management |
| Managing Across Cultures |
| Governing International and Global Organizations |
| Structuring International NGOs |
| Chapter Summary |
| Key Terms and Concepts |
| Case 17.1 Médecins Sans Frontières/Doctors Without Borders |
| Case 17.2 Haitian Earthquake Relief and Recovery |
| Questions for Discussion |
| Suggestions for Further Reading |
| Books |
| Websites |
Conclusion
Appendix: Cases for Discussion
| 1. New York City Opera |
| 2. Share Our Strength/No Kid Hungry |
| 3. The Y |
| 4. The Girl Scouts of the United States of America |
References
Index
About the Author
Supplements
Instructors Resource Site
- A Microsoft® Word® test bank is available containing multiple choice, true/false, and essay questions for each chapter. The test bank provides you with a diverse range of pre-written options as well as the opportunity for editing any question and/or inserting your own personalized questions to effectively assess students’ progress and understanding.
- Editable, chapter-specific Microsoft® PowerPoint® slides offer you complete flexibility in easily creating a multimedia presentation for your course.
- Sample course syllabi for semester and quarter courses provide suggested models for use when creating the syllabi for your courses.
- Chapter outlines summarize key concepts on a chapter-by-chapter basis to help with preparation for lectures and class discussions.
- Case activities are designed for instructors to expand questions to students, or initiate class discussion.
- Chapter-specific discussion questions help launch classroom interaction by prompting students to engage with the material and by reinforcing important content.
- Carefully selected, web-based video links feature relevant interviews, lectures, personal stories, inquiries, and other content for use in independent or classroom-based explorations of key topics.
“Comprehensive, well-researched and -documented, contemporary, well written, and holds the attention of students. Contains material that can be use as deep background even if the course design does not cover the material in depth. A resource for students to use beyond the course.”
Simmons College, School of Management
“This is the best all-around text.”
San Jose State University
“Nonprofit Management Principles and Practice provides an excellent overview of the complexities, management challenges, and importance of the nonprofit sector in the United States. It’s easy-to-use format is appropriate for undergraduates and entry-level nonprofit professionals who wish to develop a broader understanding of the nonprofit sector.”
University of San Diego
Michael Worth has produced a comprehensive overview of the nonprofit sector that provides students with a strong foundation in nonprofit management. The book has recent updates relevant to new policies effecting nonprofit organizations. Although it is primarily focused on the US context, there is ample treatment of NGOs and other topics like social entrepreneurship that have a broader application. The book also includes ancillary materials for instructors that facilitate a variety of enhancements to the classroom.
Urban Regional Planning Dept, SUNY At Buffalo
June 15, 2018
HEOA Compliance
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