Nonprofit Versus For Profit Stakeholders

Do you believe nonprofit managers have to pay more attention to stakeholders than business managers?

For-profit businesses are attentive to the simple fact that their stakeholders desire maximum profit for their investment, but this simple fact may only be correct for a few stakeholders. Corporations are facing more and more pressure to consider the social impacts of the business decisions they make. For instance, stakeholders are beginning to ask corporations about their environmental ethics. Stakeholders want to know if the business is operating in a way that is environmentally sustainable and socially responsible (Marshall & Woodward, 2004). Your analysis and facts were well written, but you did not provide your thoughts about which managers need to pay more attention to stakeholders. Do non-profit managers or for-profit managers need to pay more attention to stakeholders? Adding your thoughts for this section would positively add to your

The group continues to succeed at their mission, but various nonprofit leaders question their methods. They are calling for change. A change in way they evaluate charity finances and to spread the message that charities can suffer if they don’t spend enough on overhead costs. Critics suggest that the organization is steering donors in the wrong direction. In response Dugan asks, “What is the best way for individuals who don’t have a sophisticated understanding of nonprofit operations to select charities? In the absence of third-party evaluators, how can they be sure they are giving to a sound organization?” Critics recommend that more emphasis should be put on how mow much of an impact the nonprofit has made in its’ mission. Unfortunately, very few charities document impact in a methodical way. It is also costly to hire a third-party for

People often think of stakeholders as people with a monetary stake in an organization, but not necessarily true anymore. In the past, people considered stakeholders the people with a financial stake in the organization that would receive profits from the success of the business. Today stakeholders cover a much broader spectrum of people such as funders, administration, staff, volunteers, community, and the target population (Yuen/Terao, 2003). Each group of stakeholders has his or her influence on the program plan as well as the success of a human service organization and programs services (Yuen/Terao, 2003).

Collaboration among organization members and community stakeholders is very important, we must begin to study and understand nonprofits not merely as organizations housed within four walls but as catalysts that work within, and change, entire systems. The most effective of these groups employ a strategy of leverage, using government, business, the public, and other nonprofits as forces for good, helping them deliver even greater social change than they could possibly achieve alone (Crutchfield, 2012). There is also an understanding that community partnerships and assistance from caring individuals will be of a great benefit to the organization and the young men they serve. The different chapters in the organization are funded through member dues, grants and contributions from corporations, foundations, individuals and combined federal

The nonprofit sector in America is a reflection some of the foundational values that brought our nation into existence. Fundamentals, such as the idea that people can govern themselves and the belief that people should have the opportunity to make a difference by joining a like-minded group, have made America and its nonprofit sector what it is today. The American "civil society" is one that has been produced through generations of experiments with government policy, nonprofit organizations, private partnerships, and individuals who have asserted ideas and values. The future of the nonprofit sector will continue to be experimental in many ways. However, the increase of professional studies in nonprofit management and the greater

Over the years, the government has given more responsibility through subcontracts for nonprofits to carry out a range of services for communities. Consequently, nonprofits face major challenges in a constantly changing environment. This type of environment has created a battle amongst other nonprofits as they struggle to obtain similar resources. In this memorandum, the topic of strategy formulation in the not-for-profit area and its application to nonprofits are touched on.

Stakeholders are people or groups with interest in an organization that can affect or be affected by the organization itself, its objectives, or its policies (BusinessDictionary, 2015). Each stakeholder brings their own perspective to the table based on their relationship with the organization (e.g. internal or external role), their level of experience, and their area of expertise about the subject matter they are involved with. At a high level, the list of stakeholders for any organization could include people or groups such as: customers, employees, government agencies, suppliers, unions, community resources, shareholders, and business owners. For the purpose of this assignment, I will discuss and review stakeholders relative to the

The nonprofit sector faces many challenges that make it more difficult to measure its financial performance. Young (2007) states that the survival of nonprofit businesses depends upon receiving financial funding from outside donors such as donations from charities, government contracts, endowments et cetera, and the necessity for having several different revenue sources is a challenge for nonprofit management. In addition, he points out that securing capital for operating is also much different than in the traditional business world. Fortunately, scholars have provided tools and information that will help nonprofits manage and measure their unique financial performance so they may make informed decisions and guide their organizations to sustainability (Young, 2007).

Disadvantages for non-profit hospitals is they are not owned by anyone; meaning that some non-profit hospitals may not be able to afford all of the latest technology or sometimes offering the cost-effective services when operating in lower-income areas. Non-Profit hospitals have “higher operating costs because of a high amount of uncompensated care and the charitable component of their operations” (Kovner & Knickman, 2008).

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.

Stakeholders are individuals or groups that partake, or assert, possession, privileges, or benefits in a, organization and its accomplishments, previously currently, and in the upcoming (Barrett, 2001). These requested privileges or benefits are the result of communications with, or activities reserved by the organization, and they must be lawful or ethical, separate or combined Stakeholders with comparable benefits, entitlements, or privileges can be categorized as fitting into the similar collection: personnel, investors, and clients (Barrett, 2001). The better the impact these groups have on client’s lives and the extra community assets with which they are assigned, and it becomes vital that they are responsible (Barrett, 2001).

Social entrepreneurship is gaining such strong interest in nonprofit world because of the economic challenges that have plagued this sector with cuts in philanthropic and government funding. According to Nash (2010) not only are there cuts, there are many organizations vying for the limited funding. Studies support, the attitudes in capitalistic America, and the ease of nonprofits to embrace this concept; evidenced by their ability to sell their once free services, to meet the demands of the consumer. According to the IRS (2010) nonprofits have increased their selling power on unrelated business income, to the tune of 184% increase, in a sixteen-year time frame. This writer, believes these numbers are evidence which support this trend is

Stakeholders are the group or number of people who are directly or indirectly related to a particular business. Stakeholders can be directors, customers, employees, government, agencies, owners, suppliers, unions and the community from which the business draws its resources (Campbell, 2002). However, stakeholders are a crucial part for the success of business. If an organisation knows it’s stakeholder, then it can determine where, there is prospect for business and also by analysing stakeholders, business can set its operational activities (Graham, 2005).

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