The non-profit organization's sector is part of the U.S economy that supports both private and public interests without aiming at monetary benefits. These include public charities and private foundations. There are two types of nonprofit organization: those which are based on the economic model and those which are based on the individual spirit model. The economic model is defined by business-like methods whereas the voluntary spirit model is built on membership and participation (Brainard & Siplon, 2004). There has been a long-standing pattern of organizations using the economic model, but current trends indicate a shift in position towards the voluntary spirit model.
These models are different from each other in various aspects. First, the economic model assumes that all organizations are similar whereas the voluntary spirit model insists that non-profit organizations are different from for-profit organizations. The nonprofit organizations established on this model raise funds so as to produce and deliver the goods and services that they are supposed to while those on the voluntary spirit model encourage the participation of members basing on philanthropy. The economic model views individuals as independent and rational actors who need incentives to be able to support and participate in some programs. Mostly, these people are given material and purposive incentives rather than solidary incentives such as social interaction. The voluntary spirit model, on the other hand, is built solidly on solidary incentives. Individuals have to be public spirited and willing to participate without the presence of incentives. There is a lot of bureaucracy in the economic model whereas the voluntary model is participatory. The economic model has its own customers hence there is the aspect of marketing and org'l competition when it comes to fundraising. The voluntary model, on the other hand, serves all the target beneficiaries in one category.
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For nonprofit organizations to run effectively, they require resources to operate. These include donations, grants, and volunteers. Management of non-profit organizations requires one to be able to acquire these resources, develop strategies and manage a social and financial double line. In economic based non-profit organizations, the members are used to acquire money such as through their donations and also when they volunteer in the activities they stretch their input. These funds are used to pay the staff that actualizes the goals and objectives of the organization as well as to accomplish the long term programs and investments stipulated.
Membership is a primary resource for the voluntary based nonprofit organizations (Worth, 2017). The members have a mutual obligation to service that is reinforced through social interaction. Members either give donations or offer their service in the realization of goals and the search for funds rarely displaces the main agenda.
Christians have various principles that govern giving, but one that stands out is that giving should be a joyful experience. The most important factor is the experience. The joyful experience is achieved when an individual is volunteering. Volunteering involves actual participation towards achieving a goal or a stipulated mission, for instance: feeding the homeless. Charitable donations, on the other hand, revolve around giving monetary help with no ground work (Huppert & Cooper, 2014). Those who volunteer get to meet the homeless and distribute food to them and maybe share a meal with them. Those who gave a donation get to fund the buying and transportation of the food. Those who volunteer have a greater impact than those who donated (Wolk, 2006). Volunteering is about giving time whereas donation can be said to be philanthropy: giving money.
In conclusion, nonprofit organizations rise to the occasion in the event of market failures. There are those that are based on the economic model which is purely business like while there are those that are based on voluntary spirit. These organizations make use of resources such as money and volunteers. Giving time has more impact than giving money.
References
Brainad, L. A. & Siplon, P. D. (2004). Toward Nonprofit Organization Reform in the Voluntary Spirit: Lessons from the Internet. Nonprofit and Voluntary Sector Quarterly , 33(3), 435-457 DOI: 10.1177/0899764004266021
Huppert, F. A., & Cooper, C. L. (2014). Interventions and Policies to Enhance Wellbeing: Wellbeing: A Complete Reference Guide, Volume VI . Hoboken, New Jersey: John Wiley & Sons Ltd.
Wolk, C. P. (2006). Ensuring the Future of Philanthropy-An American Tradition-Through Accountability and Fundraising. Retrieved from: http://www.jblearning.com/samples/0763746665/46665_CH01_001_012.pdf
Worth, M. J. (2014). Nonprofit Management: Principles and Practice . London, UK: Sage Publications
