Read and Respond to each peer initial post with 3-4 sentence long

| February 25, 2017

Read and Respond to each peer initial post with 3-4 sentence long

Peer #1

“ A Board can have several types of responsibilities based on its written charter and by laws.

However, the typical responsibilities that a Board for a non- profit corporation must live up to

are generally along with ownership/shareholder objectives. Overseeing the way the company

conducts its business to insure that it is managed effectively is one primary responsibility.

Selecting, compensating and evaluating the CEO is another key responsibility”.Directors are

chosen by the company’s owners to manage the business’ affairs, subject to any

limits imposed in the company’s articles of organization, by-laws, operating agreement or

shareholders’ agreement (formation documents). The Directors’ primary function is to the

corporation itself, although they owe a contractual duty to the owners to adhere to the rules in

these formation documents. Directors should provide overall business strategy, oversight,

continuity, recommendations on major decisions and special skills that would benefit the

business. They should ask owners for and should look at financial reports, operational

reports, business ideas, new product or service proposals and other documents that they and

management agree are significant to the overall operation and life of the business. They commit

time and effort to the business and its venture(s).An effective decision-making board can

help a nonprofit organization in many different ways: perform some of the tasks of the

organization, support the organization’s work in the community, bring necessary resources for

better performance, advise the organization on legal or other matters and help with fund raising.

The Board Directors help to Establishing the Organization’s Mission, Vision and Direction

Every nonprofit organization needs to have a clear and agreed upon mission statement. Board

members should invest their time and energy in developing mission and vision statements.

A side benefit of developing mission and vision statements is the process of development.

As a rule, nonprofit organizations has financial vulnerability. The board is responsible for the

availability of proper financial resources for the work of the organization. Boards are often

thought to have only policymaking regulation; however, board responsibilities are much

broader. Boards has to ensure they are responding effectively and efficiently to the changing

needs in their community. Developing marketing and public relations plans to promote

awareness of the organization in the community is essential. Like any business, a nonprofit has

to cover operating costs and pay its employees.”To pay employee salaries, keep the lights on and

expand, a nonprofit need to generate revenue. Sometimes the nonprofit generates money that

over the amount of its expenses, resulting in a profit. How it generates that profit matters

tremendously.” To skip having to pay taxes on any profits it incurred, a nonprofit must make

money on activities “related” to its nonprofit status”.

Peer # 2

Explain why an NPO needs a board of directors

As according to myeclassonline, it is import for NPO to have a board of directors because they take on the responsibility of governing the organization. The board of directors is able to address issues that may come about within the NPO as well as come up with strategies and activities for effective fundraising. To keep the NPO in good standing, the board of directors is there to conduct effective planning which should ensure that to organization stays in compliance with the NPO’s overall mission and maintains its financial viability. Also, it’s important to note that the board of directors are mandated to act as a group, thus requiring decisions to be made by the entire committee or by a board committee.

Evaluate and explain why an NPO should or should not exist when for-profit or government agencies provide a similar service, say a private, nonsectarian school.

Well, the argument here would be that the two types of organizations would be taxed differently or what may be taken as disparity in taxation by the organization that’s not tax exempted. For example, if a NPO has a specific mission and then deviates from that mission and starts providing services or conducting commercial activities identical to that of a PO, would it be fair that they are able to do so under the same tax exemptions that are applied to their regular/initial organizational services. No! Now that doesn’t go to say that it’s not a great thing that NPOs offer services to meet the needs of underprivileged people/charities, it’s just to say that they should stick to their missions. However, in the case of a NPO having a nonsectarian or private school as would a PO that would be wrong because private schools offer education…FOR PROFIT!!!

Look at the argument in this block quotation about how NPO organizations abuse tax-exemption to better understand the feeling of competition/unfairness among NPO/PO.

Probably the most egregious and most powerful serial abuser of the non-profit tax exemption is the crony-capitalist, big government lobby AARP. Formerly known as the American Association of Retired Persons, the politically formidable AARP describes itself as a “nonprofit, nonpartisan organization with a membership that helps people 50-plus have independence, choice and control in ways that are beneficial and affordable to them and society as a whole.” ”What the AARP never admits in public is that it’s a mammoth money-making enterprise, with $1.57 billion in assets and revenue of $1.18 billion in 2010, according to its tax returns. The bulk of its riches derives not from membership dues, but from its business agreements with insurance companies and endorsements. Obamacare-boosting AARP gets much of its revenue from selling supplemental Medicare insurance provided by United Healthcare, an insurance company that explains in its promotional materials that it “pays a royalty fee to AARP for use of the AARP intellectual property.” AARP income from contracts with United Healthcare jumped from $284 million in 2007 to $427 million in 2009, and then to $670 million in 2010—a 136% increase in just three years. (Maghami, 2013)

Peer # 3

In the beginning stages of creating a programs and obtaining funding for a nonprofit organization a strategic planning process should be established to identify what tactics will be beneficial for the mission to be achieved. According to the National Council of Nonprofits, in order for this to be a great success the staff and the board need to engage in the process being committed to reaching measurable goals, and approving priorities for implementation (NCN, n.d.). The strategic planning should involve an early analysis because it will provide a clearer focus for the program by producing more efficiency and effectiveness.

Weinstein (2009) stated that early analysis focuses on four main areas which are the case for support and the need for contributed income, donor history, fundraising strategies and resources (Weinstein, 2009, p. 19, para 1). He also posted preliminary questions that must be posed during the early analysis. If the Steppingstone Philadelphia’s branch adhered to those questions their outcomes could have been much different (Weinstein, 2009, p. 19-20.) The first problem was they entered into Philadelphia implementing the same program designed for Boston, which did not work because of the difference in the demographics of the region and people served. The early analysis questions would have been very advantageous in their fundraising efforts as it would have made them engage in research and gathering of information to support their mission and purpose. It would also have prompted them to hire the proper staff before the start of the program that would have been influential in the assistance of obtaining funds. This would have given the board insight and data on going after funds by building relationships with potential funders instead of being cumbersome with educators. Utilizing the questionnaire in the early analysis would have caused them to be focused on how to accommodate the Philadelphia region with their program.

Exponent Philanthropy (2014) conducted a study on the effectiveness and efficiency on nonprofit organizations and they concluded that if a nonprofit organization has the ability to successfully perform key function to fulfil their mission such as (1) communicating the vision and mission, (2) engaging and seeking stakeholders input in designing programs, including people who uses its services and serves its target community appropriately, (3) achieve results and track impact against a few key measures, at least through basic means, (4) manage an active and informed governance structure, (5) secure resources appropriate to its needs and (6) plan for the future they are operating in undeniable success and productivity.

When a nonprofit organization operates in efficiency and effectiveness the impact of the performance is impeccable. For instance, a program that we do at the COL CDC called A New Attitude Charm Course is a program that is offered in two phases. Phase I is for kindergarten to sixth graders; this program teaches the children how to deal with their emotions by learning and apply good manners, respect, communication skills, and working as team. Phase II assist teenagers thirteen through seventeen how to deal with their emotions through approaching areas of interest such as their appearance and social interactions. They also learn how to apply good manners, communication, respect for others and themselves, along with fashion, makeup, hygiene, grooming and modeling. This program is successful with a high impact on the youth because of intensive research, strategic planning, collaboration/partnerships, good relationships with funding agencies/funders, a committed board of directors and dedicated workers. Policies, procedures and evaluations are in place that allows us to gage impact and show results of the program’s ability to be effective and efficient.

In the absence of any of these elements a nonprofit agency can improve its organizational performance by doing a number of things such as hiring a consultant or develop a performance measurement that would evaluate and gage the progress of the agency. According to Social Solutions a good way to improve organizational performance is benchmarking. Social Solutions stated that “benchmarking is simply the comparison of one organization’s practices and performances against those of others. It seeks to identify standards, or best practices to apply in measuring improving performance” (SS, 2005, para 1). Another way of improving organization performance is to be clear about the organization’s desired outcomes as it is a crucial part of the nonprofit performance measurement according to Social Solutions. In the strategic planning goals should be established such as creating attainable goals with realistic outcome targets. The goals set should be measurable with some type of quantifiable element to the targets and the goals should be relevant. The last part of the measurements include implementation which lets you know that you are moving in the right direction.

Small nonprofit agencies can market their case statement while operating with budget constraints by drafting a comprehensive formal case for support and doing a presentation with materials in the presentation that are tailored to specific markets (Weinstein, p. 65, para 1). Weinstein suggested that elements of the case that resonates with specific donors and prospective donors should be highlighted (Weinstein, p. 65, para 1)

Peer #4

Speaking for the nonprofit context efficiency is described as doing something right the first time. Effectiveness in the nonprofit content is how well it worked. An example of this is developing a plan to merge Steppingstone with a local tutoring agency to help with cutting down on the budget. Volunteers are key in organizations because it is unpaid help. They are branch out to ask college graduates to assist younger kids in need of help. Being able to partner with a tutoring agency in exchange for something else this both efficient and effective. It will work for the company because there will be no money out and no money in. “DEA is suited for measuring the technical efficiency of nonprofit organizations like charities because only input-output quality data are required” (Callen, 1993). That means that you cannot put a value or a dollar amount on what a volunteer is worth. Other items within Steppingstone can be tangible like donors and the amount that they can contribute. Salaries can be tracked and documented as well. “Except for volunteer labor, all inputs are measured in dollars. This assumes that input prices are approximately constant across different charities in the specific health focus industry” (Callen, 1993).

When you are able to track how efficient a company can you be, you are better able to determine the growth within the company. This means having a better understanding of where funds are going to and how much is need to ensure that a program can be ran the right way. Although this is subjective, it is up to more than one person to make the determination of what is right or what is wrong. Without being effective and efficient, the company can be looked at as a start-up companying that is winging it. To improve you will need evaluate what other organizations are doing. There will need to be multiple meetings between the stakeholders and the board of members to makes decisions on where the money is going to and how much is really needed to help with the mission of the organization. “Thus, evaluating nonprofit performance and ensuring their future financial viability also requires including a number of indicators of effectiveness (e.g., employability, mortality, crime, health, safety, etc.) that are linked to the achievement of outcomes that in many cases are difficult to define” (Median-boria, 2014). Keep in mind that all areas that impact an organization will need to be addressed and looked at.

Smaller nonprofit agencies can market their case statement while operating with budget constraints by downsizings in employees and programs. They will have to keep on a financial planner that is able to do the marketing and fundraising. This helps to have consistent money coming in. Many meetings can help with the communication of the organization. With more money, these agencies can eventually look at expanding if this is their long term plan.

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