Conflict at Workplace – Why Conflict Should be Avoided ?
Differences in interest, thought process, perception as well as need lead to a conflict. When individuals do not agree to each other’s opinions, a conflict arises. Conflict can occur at any place be it organizations, groups and even at our homes. Let us first go through the below example. Sandy was heading the operations department […]
Office Lunch Etiquette
Etiquette refers to behaving in a socially responsible way. Etiquette teaches individuals to be civilized and create an everlasting impression on others. Etiquette is a code of behavior expected out of a professional to help him stand apart from the crowd. It is essential to behave in an appropriate way at the workplace to gain […]
Format of a Resume
Introduction Research has shown that recruiters on an average have about thirty to forty seconds for each resume they screen before they decide whether to take it to the next round or discard it. Therefore, it becomes imperative that you prepare a resume that is as compelling and as attractive to recruiters as your work […]
Credit Rating Terminology
Credit rating is an important and almost central part of the overall credit risk management function in any organization. Every major organization around the world has implemented credit rating in some form. In many companies, credit rating has been overtaken by credit scoring. Instead of providing a rough range about the creditworthiness of a prospective […]
Models/Approaches to Implement Change Management Programme
Several models of Change Management have been suggested by several management consultants, social scientists and clinical psychologists till date for implementing planned change successfully. But these models are continually revised or adapted as per the changing times or forces of business. Change Management Models establish the framework or can be regarded as the starting point […]
By definition, the nonprofit sector operates in the humanitarian goals and objectives space. This means that many nonprofits are loosely structured and are often volunteer driven without formal hierarchies and patterns of management. However, this does not mean that nonprofits need not have formal boards, management structures, and financial control.
The point here is that though nonprofits are made up of committed individuals working for a cause, there is still a need for a corporate type structure and management. This is especially the case with those nonprofits that receive large amounts of money and handle multiple projects across the breadth of the country.
Further, the fact that the government monitors the performance of the nonprofits means that there needs to be accountability and financial due diligence done periodically. Hence, there is a need for proper management and structure of the nonprofits and means of control and process driven internal environment as well.
The first and foremost requirement for a nonprofit is to have a board of directors who provide the high level monitoring and control. The board members can be drawn from all walks of life and must have enough experience in the social sector.
Further, the members of the nonprofits should be on the board as executive members. Apart from this, the nonprofits must have internal financial controls through auditing and monitoring of the inflows and outflows of funds. This is needed both from an internal Processual perspective as well as to satisfy the requirements from the government regarding compliance with all regulatory requirements.
For instance, in India, the government monitors the inflow of foreign funds into the nonprofits and hence, appropriate permissions must be taken according to the laws for nonprofits to receive money from abroad.
The third aspect as far as the management of nonprofits is concerned relates to the need for them to have people who can be held accountable for the actions of the nonprofits. This means that there needs to be a chain of command in case owning up to the decisions taken up the nonprofits are concerned. This is especially the case with nonprofits that are engaged in providing relief and service to the underprivileged, as the chances of wrong decisions boomeranging on them are high and where the implications include human life and health. The government is an important part of this, as the bureaucrats need structured responses from the nonprofits and clear patterns of organizational accountability.
Finally, the nonprofits need to have management structures that can be advertised to the external world as the single point of contact between the nonprofits and society lends itself to easy access to the nonprofits and helps in recruiting more volunteers for the cause.
In conclusion, while it is certainly not the case that nonprofits must be corporatized in their means of functioning, there are good reasons as discussed in this article for the nonprofits to follow due diligence and proper management principles.
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The Corporatization of the NGOs and How It Impacts Funders, Beneficiaries, and Others
February 12, 2025
