The Blurring of Nonprofit Structure
Board member and CEO responsibilities can often be blurred. Choose one of the responsibilities discussed in the required readings this week and discuss how it can be blurred. Suggest what you would do to provide further clarification of roles for this responsibility.
Day-to-day operations of any business entity are critical, and it is no different with nonprofits, to a degree. Nonprofits cannot have shareholders (who share in profits) and do not have private ownership, so there is no obligation to an owner. Nevertheless, they DO have stakeholders (those who have an interest in seeing that the nonprofit fulfills its mission). Of the one-and-a-half million nonprofits in the US, some are huge.
· The American Red Cross has revenue of about $3.3billion with 90% of its finds going to its programs.
· National Goodwill Industries generates over $5 billion in revenues with 83%returned to program services.
· The YMCA generates $ 6.25 billion in revenues with 85% going back into programs. (Ullman, 2014)
Many that we have known about since we were children have been around over 100 years (the Red Cross since Clara Barton in 1881, the Boys (and Girls) clubs since 1860, the YMCA since 1844, the Salvation Army since 1865.
These are superb “businesses” that are run well and have had a phenomenal impact on society. How do they do it?
· Board Roles and Responsibilities (Links to an external site.). (2018, May 26). Retrieved from https://www.councilofnonprofits.org/tools-resources/board-roles-and-responsibilities (Links to an external site.)
· Magloff, L. (2018, February 12). The typical non-profit organizational structure (Links to an external site.). Retrieved from http://smallbusiness.chron.com/typical-non-profit-organizational-structure-4896.html (Links to an external site.)
· Ullman, M. (2014, October 27). The top nonprofit organizations (Links to an external site.). Retrieved from https://www.investopedia.com/articles/personal-finance/102714/top-nonprofit-organizations.asp
· Williamson, J. (2014, December 11). A nonprofit’s board of directors – What is a board? (Links to an external site.) Retrieved from https://www.501c3.org/nonprofits-board-directors-board/
In your first Discussion Forum this week, you will be looking at the roles of the executives and board members. In your second Discussion Forum this week, you are asked to explore the structure of a nonprofit. If you can, consider the nonprofit from your first week’s work.
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