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    Understanding

    NonproftOrganisations

    An Introduction

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    On a typical day, our lives are touchedrepeatedly by the world of nonprofitorganisations.

    E.g., daycare center, school, hospital,YMCA, college, useu, !ob"trainingcenter, nursing hoe, environentalprotection group, #irl $couts

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    Figure 1.1 The Role of Nonprofits In Society

    Government

    Private Sector 

    EnterpriseThird

    Sector 

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    Private Sector – Or Market

     %It is not fro the benevolence of thebutcher, the brewer, or the ba&er thatwe e'pect our dinner, but fro theirregard to their own self"interest. (eaddress ourselves, not to their huanitybut to their self"love, and never tal& tothe of our own necessities but of theirown advantages) 

    Ada $ith *1++, p11-

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    Public Sector

     %/those public institutions and thosepublic wor&s, which though they ay bein the highest degree advantageous to agreat society, are, however, of such a

    nature that the profit could never repaythe e'pense to any individual, or sallnuber of individuals0 and which it,therefore, cannot be e'pected that any

    individual, or sall nuber of individuals,should erect or aintain.) 

    Ada $ith *1++, p1

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    Non-Proft Sector

     %2he essence of voluntary action is that itis not directed or controlled by the $tateand that in the ain it is financed by

    private, in contradistinction to public,funds. It ebodies the sense ofresponsibility of private persons towardsthe welfare of their fellows0 it is theeeting by private enterprise of a publicneed.) 

    *3athan, 1-4, p1

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    Other Terminology

    Independent $ector 3onprofit $ector 5oluntary $ector

    Civil $ociety 3ongovernental organisations 3onproprietary organisations 6eople)s organisations

    Counity organisations 2hird sector 2he coons Charitable sector

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    Non-Proft Organisations

    NPOs!2he ters of non"profit would be dissiilar because indifferent countries or by different scholars, they focus on

    different aspects of an 36O. $oe loo& at its ission or

    ob!ectives. 2he others ay stress on its characteristics

    or functions.

    隨著不同國家,不同學者,強調的重點與思考角度不同,

    用詞偏好有所不同。有的以組織的目標!"#考$,有

    的%&'()*的+點,,&組織-.)*的/01,

    2有3組織不同的角4567思考。

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    "hat #s a Nonproft$

    2a' 7 regulatory definition8 an organi9ation that

    " En!oys special ta' status

    " :aces a non"distribution constraint *profit;

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    %ont&

    3ot conducted or aintained for the purpose ofa&ing a profit.

    not coercially otivated

    A nonprofit organi9ation is one that hascoitted legally not to distribute any netearnings *profits to individuals with control over

    it such as ebers, officers, directors, ortrustees. It ay pay the for services renderedand goods provided.

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    %ont&

    A nonprofit organisation is fored forthe purpose of serving a public orutual benefit other than the pursuit or

    accuulation of profits for owners orinvestors. 2he nonprofit sector is acollection of entities that areorganisations0 private as opposed to

    governental0 non"profit distributing0self"governing0 voluntary0 and of publicbenefit .

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    Salamon's defnition

    :oral

    6rivate

    3on"profit"distributing

    $elf"governor

    5oluntary

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    Thomas "ol('s defnition

    Must have a public service ission Must be organised as a non"for"profit or

    charitable corporation

    #overnance structures ust precludeself"interest and private financial gain

    Must be e'ept fro paying ta'

    Must possess the special legal statusthat stipulates gifts ade to the areta' deductible

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    hy Nonprofits!

    2here are econoic, historical, and political

    theories regarding the reason why nonprofit

    organi9ations e'ist in today?s society.

    Economic Theories: 

    Market failure " 2his theory is based on thepreise that not enough people desire a serviceor progra to attract for"profit corporations toprovide such services. Also, the fact that anorgani9ation e'ists without a profit"otive instillstrust in the constituent.

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    %ont&

    Government failure " 2he governent will notprovide a service because of high cost or liitedinterest by the public. If there is not a largepresence of constituents deanding a response

    fro governent, then the governent is not li&elyto act. A sall group of individuals can create anonprofit organi9ation to provide utually desiredservices rather then trying to convince a a!orityof citi9ens to support such efforts. 2here is also acultural resistance to @big@ governent. Citi9ensare s&eptical about the governent being involvedin all aspects of counity life.

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    %ont& 

    Historical Theory  " Counities in Aerica were

    fored well before foral governent. Citi9ens were

    forced to coe together to address issues within

    their counities and wor& together to for asolution. Even when governent developed a

    presence within a counity, citi9ens were afraid of

    the bureaucracy and often sought out solutions

    through voluntary association. eligion also provides

    a strong foundation for charity and altruis through

    $cripture and a sense of duty taught within the

    church.

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    %ont&

    Political Science Theory  " 3onprofit

    organisations provide an avenue for civic

    participation. 6eople are able to asseble and

    wor& towards a coon goal with an intent to

    benefit the public. 3onprofit organisations

    provide an outlet for pluralis and solidarity. 

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    %ont&

    In a boo& by Bester $alaon called Aerica?s NonprofitSector , the author concludes that the nonprofit sectore'ists to serve four critical functions8

    Service Provision: 3onprofit organi9ations provide

    progras and services to the counity. Oftenties, nonprofits are fored or e'panded to react toa counity need not being et by the governent.3onprofits also tend to have the ability to act fasterthen governent in response to an issue. 3onprofitsdo not have to wait for a a!ority of citi9ens to agreeupon a proposed solution. ather, they have theability to react to a speciali9ed need or a reuest by asall group of citi9ens. 

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    Value Guardian: 3onprofit organi9ations

    provide a echanis for prooting individual

    initiatives for the public good. 3onprofit

    organi9ations provide a eans by which ebersof a counity can ta&e action in an attept to

    change the counity they live in. 2hese actions

    ay ta&e the for of developing a local

    neighbourhood watch progra or, on a larger scale,

    developing an organisation that responds to world

    relief efforts.

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     Advocacy and Problem Identification :

    3onprofit organisations provide a eans for

    drawing public attention to societal issues.

    3onprofit organi9ations a&e it %possible to

    identify significant social and political

    concerns, to give voice to under"

    represented people and points of view, and

    to integrate these perspectives into social

    and political life).

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    Social a!ital: In Aerica, the nonprofit sector

    can be seen as a bridge between capitalis

    and deocracy. 3onprofit organisations

    develop a sense of counity aong theciti9ens by providing a eans to engage in

    social welfare.

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    #ssues topics (or Nonprofts Poverty

    6overty is a relative concept, not an absolute standard.

    6oorest ichest

    In the Dnited $tates, the richest 1 percent ofhouseholds owns F percent of all wealth. 2he top < percent owns over F< percent of all

    wealth. In 1--F, it owned F percent of allwealth. *(olff,

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    2he top 1G of Aericans own as uch wealthas the botto -4G percent.

    2he total wealth of the top

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    %ont&

    $hare of national wealth by percentage of population. K

    Edward 3. (olff, @ecent 2rends in (ealth Ownership, 1-F"

    1--F,@ April

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    $ource8 Edward 3. (olff, @ecent 2rends in (ealth Ownership,

    1-F"1--F,@ April

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    3orth"$outh Lebate *89:;

      *factors8 e.g. weather, geographicallocation, natural resources, social

    custos, religion, historicaldevelopent, ideologies

    http://www.savethechildren.org/?source=hp_logo

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    $ave the Childrenhttp8NNww.savethechildren.orgN 

    Dnited 3ations Children)s :und http8NNwww.unicef.orgN

    (orld 5ision http8NNwww.worldvision.orgN 

    One8 a&e poverty history

      http8NNwww.one.orgNaboutN 

    #raeen :oundationhttp8NNwww.graeenfoundation.orgN 

    http://ww.savethechildren.org/http://www.unicef.org/http://www.worldvision.org/http://www.savethechildren.org/?source=hp_logohttp://www.worldvision.org/http://www.one.org/about/http://www.grameenfoundation.org/http://en.wikipedia.org/wiki/Image:Unicef_logo.gifhttp://www.savethechildren.org/?source=hp_logohttp://www.savethechildren.org/?source=hp_logohttp://www.savethechildren.org/?source=hp_logohttp://www.savethechildren.org/?source=hp_logohttp://www.one.org/http://www.grameenfoundation.org/http://www.one.org/about/http://www.worldvision.org/http://www.unicef.org/http://ww.savethechildren.org/

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    Issues on Medical Care   ealth is a coplete physical, ental

    and social well"being, and not erely the

    absence of disease or infirity. *(O 6laces without health care syste0

    people get sic&, people get help

    $ic& people should get treated eually,

    not because they are rich or poor.

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    %ont&

    AIL$.O#

    Educating, aising I5 Awareness, uilding

    Counity, http8NNwww.aids.orgN 

    ritish eart :oundation, http8NNwww.bhf.org.u&N  3ational idney :oundation, D

    http8NNwww.&idney.org.u&N 

    ritish Bung foundation, http8NNwww.lungu&.orgN 

    ritish 3utrition :oundation,http8NNwww.nutrition.org.u&

    http://www.lunguk.org/index.asp

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    Organ Lonation and nonprofits

    Organ Lonor :oundation, $outh Africa

    http8NNwww.organdonor.org.9aN  Mohan Foundation

    (Multi Organ Harvesting Aid Network),

    http://wwwindia!u"o#/#ohan/inde$ht#

    ‘Don't take your organs to heaven for heaven

    knows they are needed here’.

    http://www.organdonor.org.za/IntroFrameset.html

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    Environental Issues yoto 6rotocol *1--+ #reen 6eace International

    http8NNwww.greenpeace.org  Earth force *engages young people as active

    citi9ens who iprove the environent and theircounities now and in the future

    http8NNwww.earthforce.org 

    Environental Lefensehttp8NNwww.environentaldefense.orgNhoe.cf 

    $eacology http8NNwww.seacology.org 

    http://www.greenpeace.org/http://www.earthforce.org/http://www.environmentaldefense.org/home.cfmhttp://www.seacology.org/http://en.wikipedia.org/wiki/Image:Gpi-logo-rgb_green-large.pnghttp://www.seacology.org/http://www.environmentaldefense.org/home.cfmhttp://www.earthforce.org/http://www.greenpeace.org/

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    Eployent issues Eual opportunity

    :ree fro discriination

    Especially for the disabled and racialinority.

    #ender issues, eual pay

    Pob security, wor&place safety

    Etc.

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    Eployent Opportunities

    Eployent Opportunities is a national charity helping

    people with disabilities find and retain wor&. (e also

    provide a wide range of support and advice to eployers

    on disability and eployent issues.

    http8NNwww.opportunities.org.u&

    $&ill8 3ational ureau for $tudents with Lisabilities

    *$&ill is a national charity prooting opportunities for young

    people and adults with any &ind of disability in post"1education, training and eployent across the D.

    http8NNwww.s&ill.org.u&

    http://www.skill.org.uk/index.asp

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    Education issues 2he iportance of education

    One way to get away fro poverty

    Eual opportunity to receive education

    Educational resources should be shared byall

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    $pecial ids :undK for children with disabilities and at"ris& youth http8NNwww.special&idsfund.org 

    2he :ederation for Children with $pecial 3eedsK EarlyChildhood, Education 7 $pecial 3eeds, and ealthCare  http8NNwww.fcsn.org 

    Charity for African Educationhttp8NNwww.africaneducation.org 

    %id &ou 'now

    Q4NJH< will &eep one African child in schoolfor a whole yearR *(orld an& figures for 1--F

    http://www.specialkidsfund.org/http://www.fcsn.org/http://www.africaneducation.org/http://www.africaneducation.org/index.htmhttp://www.africaneducation.org/index.htmhttp://www.specialkidsfund.org/http://www.africaneducation.org/http://www.fcsn.org/http://www.specialkidsfund.org/

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    2raffic or 2ransportation issues 6rivate owned cars vs. ass transit

    syste

    Environental concerns, historical sitesvs. developental issues *suehshan2unnel

    % t

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    Charity MotorK Lonate your car and choose your favoritecharity to receive the proceeds http8NNwww.charityotors.org 

    http://www.charitymotors.org/http://www.charitymotors.org/

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    $afetyNsecurity Issues 36Os that deal with 2erroris

    Civil society and counity

    :ree fro :ear for huans

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    Lefinition

    ivil so"iety refers to the set of institutions,

    organisations and behaviour situated between

    the state, the business world, and the faily.

    $pecifically, this includes voluntary and non"

    profit organisations of any different &inds,

    philanthropic institutions, social and political

    oveents, other fors of social participation

    and engageent and the values and cultural

    patterns associated with the. *B$E

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    %ont&

    Civil society International http8NNwww.civilsoc.org  2he African Center for the Constructive esolution

    of Lisputes K creating African solutions to Africanchallenges http8NNwww.accord.org.9a 

    Center for (arN6eace $tudiesK thin& tan&

      http8NNwww.cwps.org 

    2he Center for $ecurity 6olicy

      http8NNwww.centerforsecuritypolicy.org 

    http://www.civilsoc.org/http://www.accord.org.za/http://www.cwps.org/http://www.centerforsecuritypolicy.org/http://www.centerforsecuritypolicy.org/http://www.centerforsecuritypolicy.org/index.htmlhttp://www.centerforsecuritypolicy.org/http://www.centerforsecuritypolicy.org/http://www.cwps.org/http://www.accord.org.za/http://www.civilsoc.org/

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    Issues on underprivileged people Ethnic inority *rights to education,

    eployent, etc

    (oen 6eople with disability

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    %ont&

    Ethnic Minority :oundationK building a security basehttp8NNethnicinorityfund.org.u& 

    (oen elping (oenhttp8NNwhwn!.coN 

    (oen for (oen Internationalhttp8NNwww.woenforwoen.org 

    Calvary (oen)s $ervicesK

    A sae "aring pla"e or tonight*upport, hope and "hange

    or to#orrow.

    http8NNwww.calvaryservices.org 

    http://ethnicminorityfund.org.uk/http://whwnj.com/http://www.womenforwomen.org/http://www.calvaryservices.org/http://www.calvaryservices.org/http://www.womenforwomen.org/http://whwnj.com/http://ethnicminorityfund.org.uk/

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    Child 6rotection Issues Ownership8 children can be considered

    as 6ublic goods

    inferior goodsSS Children can)t choose their parents $oe are born with a silver spoon, soe

    are uite opposite

    Child protection8 edical care, parenting,education, etc. bullying, child prostitution, pornography,

    traffic&ing, eotional, physical, se'ualabuse, neglect

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    %ont&

    Australian Childhood :oundation

    "ounseling# $dvocacy for "hildren# Education# "hild a%use

     programmes# inspiring and supporting parents# research. 

    http8NNwww.aaca.co.au 

    Advocates for $urvivors of Child AbusePrimary mission is the healing and &ell'%eing of survivors.

    (ltimate goal is the prevention of all child a%use. 

    http8NNwww.asca.org.au 

    ids :irst foundationhttp8NNwww.&idsfirst.co.au 

    http://www.aaca.com.au/http://www.asca.org.au/http://www.kidsfirst.com.au/http://www.kidsfirst.com.au/page.php?partid=2http://www.kidsfirst.com.au/http://www.asca.org.au/http://www.aaca.com.au/

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    *el+portrait, a"o-, . )aco% is one of five children under the age of seven.

    *ife at home is chaotic as +um and ,ad# &hile

    struggling to cope &ith their children# %ecome

     physically and emotionally a%usive.

    hen )aco% appears to %e distressed and an-ious# he

    &ill %ecome &ithdra&n and engross himself in his art.

    This is a self'portrait that )aco% produced on one such occasion.

    hen )aco% arrived at the early childhood program# he &as very

    upset and curled up on a rug# cuddling into a teddy %ear# &hile he &asgently patted. $fter some time# he settled# reoined the group of

    children and then /uietly &andered over to the easel and produced

    this masterpiece.

    Source0 ids First Foundation

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    Happy Me, essi"a,  )essica lives at home &ith her mother# step'father#

     %rother and t&o sisters. 2ecause )essica is the eldest

    child in the family# she has %een e-pected to ta3e on

    far too many adult responsi%ilities &ithin the home.

    ,ad is a strong disciplinarian# &hich has led to physical

    and emotional a%use# and has included %eing loc3ed in

    an outside shed as punishment. )essica al&ays appears to %e hungry

    and &ill raid ru%%ish %ins and steal food from other children4s lunch

     %o-es. )essica has %ecome a very sad# an-ious little girl &ho sufferssignificant mood s&ings. 5ften )essica is reluctant to participate in

    activities and &ill %ecome e-tremely &ithdra&n. 6o&ever# during a

     party at school &hen )essica appeared to %e having a &onderful time#

    she painted this happy picture of herself.

    Source0 ids First Foundation.

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    Issues on Elderly people #erontology

    McLonalds *1-F

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    #lobal Action on AgeingElderly rights, ealth, 6ension watch, ural Ageing

    http8NNwww.globalaging.org

    Age Concern England

    http077&&&.ageconcern.org.u3 Ageing and ethnicity

    6rovide info to inority ethnic older persons

    http8NNwww.eng.aeweb.org

    Ageing in 3ew Yor& :und

    to enhancing the uality of life for older 3ew Yor&ers and their

    failies http8NNwww.anyf.org

    elp age International  http8NNwww.helpage.orgN 

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    Issues on ousing asic huan rightsS

    ent see&ing

    Bow incoe people can)t afford

    oelessness

    Affordable housing 

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    BC Non-Profit Housing Association  fored in 1--0 representing the interests of the

    non"profit housing sector to governent and thepublic0participates in housing policy and progradevelopent with all levels of governent.

    http077&&&.%cnpha.%c.ca7 Canadian Housing and enewa! Association" #our Nationa!

    A!!y for Afforda$!e Housingprootes access to adeuate, affordable housing forlow" and odest"incoe households, and see&s to

    heighten awareness of affordable housing issuesthrough research, advocacy, networ&ing andcounications. http8NNwww.chra"achru.ca

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    Older hoelessnesshttp8NNwww.olderhoelessness.org.u&N

    #lasgow hoeless networ&

      http8NNwww.ghn.org.u&

    Centrepoint http8NNwww.centrepoint.org.u&N

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    Issue Advocacy 6atients vs. doctors *asyetric inforation

    Inforation Ethics

    Patients are Powerfu! 

    A diverse group of @anaged care e'perts@singularly dedicated to helping patients iprovetheir anaged edical healthcare. ealthcareinsurance copanies have put profits beforepatient care. Cost containent easures haveliited your ability to $ee a $pecialist, #et a ndOpinion, eceive igh Uuality Medications andhave your $urgery perfored at your choice ofinstitution. http8NNwww.patientsarepowerful.org