A non profit organization is a tax- exempt organization that serves the interest of the public. These tax exemptions include sales, income, and property taxes at the state level. A perfect example of such an organization is American Red cross. Nonprofit organizations are not truly concerned with making profits as compared to profit making organizations. Surplus money that remains after the nonprofits have paid all their bills is reinvested back into the organization. They are dedicated to providing benefits to the public, rather than making profits. Managing a non profit is inherently more complex than managing a comparable size business. Proper management of the nonprofit organization requires appropriate considerations of significant concepts.
A concept is a mental schema or idea formed in order to represent items having common attributes. Three Key concepts to be considered in a non profit include social entrepreneurship concept (pp 35-36), voluntarism concept pg (pp19-20) and philanthropy concept (pg 20). Social entrepreneurship is a concept which encourages non profit organizations to diversify their sources of revenues by developing revenue generating activities. This is due to harsh economic conditions and also where the government funding and other grants are unable to fund the operations of these non profit organizations. The revenues generated from these activities are directed in funding the projects which will have positive social impact. Although the nonprofit organization carries out these activities, their core mission remains to be socially responsible so as to make the world a better place. Social entrepreneurship benefits the organization by providing the organization with required funds, so as they can be able to continue their mission of providing services and programs, that give people a chance to improve their lives.
Voluntarism is a system or principle of being willing of helping others by doing voluntary actions. Non profit organizations should consider in ways they may involve themselves so as to help solve social problems that benefit the public. Non profit should consider giving a chance to those people who are willing to volunteer. Voluntarism will benefit the nonprofit organization as it will have enough personnel to take place in carrying out their operations. Voluntarism also helps the organization to reduce payroll expenses thus being able to carry out their operations more effectively.
Philanthropy is a concept which refers to altruism concern about human advancement and welfare. It is commonly manifested through donations of property, money or gifts to needy persons, by endowment of hospitals and learning institutions, and by generosity to other socially useful purposes. Philanthropy benefits the organization in a big way since philanthropic people gives donations, funds and gifts generously thus sourcing the non profit institutions. This is truly vital as the organizations cannot be able to run their operations smoothly without adequate sources of revenues. Therefore, through philanthropy, nonprofit institutions are able to operate well in its programs aimed for the public good.
The above three concepts namely social entrepreneurship, voluntarism and philanthropy if applied well reflects God’s purpose or design in the following ways. When social entrepreneurship is applied in providing resources to the nonprofit organizations, which in turn is used to fund programs aimed at improving people’s lives, this reflects God’s purpose and design of helping the needy. Also, voluntarism and philanthropy involves being generous and tirelessly helping others thus, alienating human suffering reflects, God’s purpose and design of duty of care and helping others thus, making a world a better place.
Worth, M. J. (2012). Nonprofit management: Principles and practice (2nd ed.). Thousands Oaks, CA: SAGE Publications.