Introduction
A nonprofit organization is dedicated to providing services or goods to the public without the expectation or gain of profits. Nonprofit organizations , though, may receive funds and donations from well-wishers, the government or other organizations . The most important element of a nonprofit organization is its operation and management. A sound management ensures the development of a nonprofit firm. It is a fact to say that a nonprofit company that lacks proper management may not last for a long time. Nonprofits do not pay taxes on the donations and funds that they receive. Alternatively, taxes are deducted from those individuals or other firms that offer funds to the nonprofits. For nonprofits to develop successfully, and receive donations and funds from more donors, the organization must stay open on its operations. The organizations , therefore, is faced with a task to ensure that the public sees no weaknesses. A positive picture of the activities of the organization must be maintained which in turn must be seen by the public. This essay paper will describe the management of a nonprofit organization and how a manager can make the best out of a nonprofit organization .
As stated above, a nonprofit organization mainly depends on the support of other people or organizations to carry out its operations. A nonprofit organization , therefore, requires a director or a manager with excellent skills and qualities of management as asserted by Tschirhart and Bielefeld (2012). The people or other companies that offer donations to the nonprofit organization will want to see if their funds are put to work. The public observes the work of the nonprofit organization and promotes its operation. The operations, the efforts or the services that a nonprofit organization offers to the public will determine its rating by the public. The quality of its service also plays a role in its operation and promotion. If the public is happy, the organization succeeds and more funds flood into the organization .
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1. Accountability
Accountability and transparency are important in a nonprofit organization . The management is charged with accountability and is expected to act in control of all the operations of the organization . In the event that activity goes wrong, the management is entirely accountable. The management controls all the operations of the organization , and in some nonprofit organization , the management also controls that pay of other employees. The heart of the management of the organization is the manager or the managing director who solely has the final say on all events in the organization . The manager decides on and puts a say on which firms or individuals to receive funds from . The manager role is to delegate’s duties to other stakeholders and employees of the organization . The manager may receive funds on behalf of the organization . As the manager is in charge of the funds in the organization , he or she will design a module for the utilization of the resources.
Transparency must be shown by any nonprofit organization 's manager in the allocation and utilization of the organization 's funds. Fraud managers may steal money from the organization and draw fake budgets for the utilization of the funds. This is basically why most nonprofits may not develop or last for a long time. Managers need to show transparency in funds allocation and utilization . They must be accountable for all the operations and costs of the operations. The costs must clearly, without exaggeration, reflect the services delivered or the operations that the organization has carried out. Other stakeholders of the organization must feel satisfied with the operations and management of their organization . They must see the accountability and transparency of the management to keep working at the organization . The requirements and concerns of the other stakeholders, employees and volunteers should always be met by the management.
There are various ways to ensure that the management of nonprofit organization remains accountable. One of the ways is through the adoption of financial policies. A financial policy will clarify the roles, the authority and the responsibilities of financial management. It also defines the essential management activities and decisions made by the management regarding funds allocation and utilization . According to Zietlow, Hankin and Seidner (2011), t he existence of a policy such as the financial policy will put away other forms of operations such as the operation based on assumptions. Such operations provide inaccuracy and a way for fraud managers to embezzle funds. With a financial policy, funds are handled in a transparent and accurate manner. Some of the commonly practiced financial policies include the Conflict of interest and the Gift of acceptance policy.
2. Am in charge of certain Funds
In the event that I am faced with the challenge of determining what nonprofits to fund, I would come up with an appropriate strategy that will help me choose the right nonprofit organization to support. Funding that involves nonprofit organizations which lack funding guidance may prove to be more challenging. More expertise is needed, and a desirable criterion should be designed . Most nonprofit organizations , especially the small-scale nonprofit organizations , completely lack funding guidance. Such nonprofit organization also lacks the most important aspect of any organization – a good management. Some do not even have proper criteria for acquiring funds. They never follow the basic criteria to be offered funds. Given that the nonprofit firms to be funded have all submitted the registration forms, in which all their operations, history, objectives and management are documented , I would be faced with a much simpler task.
My criteria would go down as illustrated below. First of all, I would have to reassess the funds at my disposal before planning on how or who to fund. With the knowledge of the quantity of funds available, it would be easier to assess which nonprofit organizations to support. As nonprofit organizations register for funds and may also say what amounts they expect or request for, some would be dismissed at this stage. Second, I would take a close look at each organization and check on their operations. According to Renz (2016), a good organization is that which puts much of its funds to use in a more open way. The projects undertaken by each firm will be checked at this stage. The full history of each organization is also checked to see of any weaknesses. The next step involves going through the objectives of the nonprofit organizations and analyzing to determine which one has the most appropriate and logical objectives. I would want to know what the nonprofit organizations will do with the funds if funded. The last bit involves checking the management and organization of each firm. I would not want to offer fund to nonprofit organizations with poor managements, which will never put the funds to any good use. The nonprofit organization which satisfies the criteria will definitely receive funds.
The criterion is a good one because it would help me evaluate faster and determine which organizations to fund. At the first step, those organizations which will request for funds that I cannot be able to offer will be absolutely removed from the list. In the next step, the operations and history of every organization are checked. At this stage, most of the nonprofit organizations will be dismissed. Those whose operations are quite low and less worthy will not make it. By checking their history, those organizations with past weaknesses in funds management may also fall out of the list. The rest of the group is the checked regarding their objectives. The nonprofits with well-formulated objectives and plans will pass through this stage as asserted by Renz (2016). The final group will then be finally passed through the last stage. Good management will make a nonprofit organization legible for the funds.
The nonprofit organization which will finally satisfy the criteria to receive the funds will have deserved it. The criteria may also work as an encouragement to all the nonprofit organization and as something that will see most of those nonprofit organizations change in terms of their operations strategies. They for sure, will develop new management organizations and build their reputation to receive fund in the future. Some strategies will ensure that managers of nonprofit organizations work harder become more accountable with a view of attracting more funds. The nonprofit who lack proper guidance and guidelines for funding will also improve on this aspect to receive funds ( Bryson, 2011).
3. As an Executive Director
As a new director of a nonprofit firm, the position and the work can be quite challenging. The work might become more difficult if the former director had been involved in cases of fraud and fund embezzlement. Such involvements come as a big blow or what is termed as a huge disaster, to a nonprofit organization . Nonprofit organizations have a big disadvantage in comparison to the profit firms I that they solely depend on funds and donations for their operations. Secondly, nonprofit organizations do not provide services or goods with the expectations of gaining profits ( Bai, 2013) . Therefore, with such kind of a blow, the firm might end up receiving no more funds. Some of the stakeholders might also leave the company which will further hurt the morale of the organization . With the weakness in control and management of the organization revealed, most people would draw away from the organization .
As a new executive director to such a nonprofit company much would be needed of me to execute. Some of the work might be done later while some changes might be required to take effect immediately and as soon as possible. The organization at this stage might remain aloof, but some members who still believe in it will still be around ready to find new ways to rise. Most donors have now withdrawn their support due to the organization 's weakness and involvement in the fraud . A strategy that will let other members realize the mistake they made by going away and a plan that will see more other donors and investors offering funds to the firm, should be formulated as soon as possible. More resources are therefore needed for the firm to stand on its feet and start operating. The employees of the firm also need to be paid their due salaries.
In the effort to organize a massive and an immediate fundraising, an excellent strategy must be put in place. As the director, I would analyze the results of the previous fundraisings and check on the response rates. I would also explore these trends; look at the months and times when more or less funds were raised . I would then choose an appropriate date for the fundraising event. The objectives of the event would be well formulated, and the need for the funding would also be formulated and made known to the community. I would then sit back evaluate the financial cost of the fundraising ceremony's cost. The cost of the fundraising event should not outweigh the funds that will be received during the event. The next step in the strategy would involve building a good rapport with the community ( Grimes, 2010) . At present, the firm's reputation is quite questionable, and people have lost faith in the firm. We have to find quick and proper ways to communicate to the public and develop a good relationship. With my managerial skills and contacts, I would also call in some important and influential friends who might be able to help with the fundraising.
The actual fundraising event may take place in a different place or position, unlike the usual places. Extinguished and famous guests invited to the event will themselves attract the attention of the general community. Such a fund raising event would put the organization in a better position to deal with its problems. Kelly (2012) believes that m ost of the challenges would be sorted out. The employees would be paid , and the firm would return to operation.
Conclusion
Organizational management requires a lot of skills and expertise. A nonprofit organization requires a sound management with appropriate operations. The operations of a nonprofit company depend on its management. For nonprofit organizations to operate, they require funds or donations from well-wishers, the government or other firms (Zietlow, Hankin & Seidner, 2011). Nonprofit companies need to have a proper guideline for funding to attract or receive funds. Those who lack good organizations in management and guidance may not receive fund which they so desperately need. The directors or managers of nonprofit organizations also need to come up with suitable criteria for acquiring funds or organizing fundraising events. A proper strategy will see the firm receiving many funds that will be adequate for the operations of the company.
References
Bai, G. (2013). How do board size and occupational background of directors influence social performance in for-profit and non-profit organizations ? Evidence from California Hospitals. Journal of business ethics , 118 (1), 171-187.
Bryson, J. M. (2011). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement (Vol. 1). John Wiley & Sons.
Grimes, M. (2010). Strategic Sensemaking within funding relationships: The effects of performance measurement on organizational identity in the social sector. Entrepreneurship Theory and Practice , 34 (4), 763-783.
Kelly, K. S. (2012). Effective fund-raising management . Routledge.
Renz, D. O. (2016). The Jossey-Bass handbook of nonprofit leadership and management . John Wiley &Sons.
Tschirhart, M., & Bielefeld, W. (2012). Managing nonprofit organizations . John Wiley & Sons.
Zietlow, J., Hankin, J. A., & Seidner, A. G. (2011). Financial management for nonprofit organizations : policies and practices . John Wiley & Sons.
