MSG Team's other articles

9478 How to be a good team player

A team player is an individual who will unify others for a purpose by exchanging information and ideas and empower them and have trust in them. Teamwork is the potential to work together for a common vision. A good team player assists his team by using his strengths, and clearly understanding his task. He must […]

10966 Resolving an Ethical Dilemma

In a business setting mangers are put to test when they face the challenge of resolving an ethical dilemma. Often certain situations do not fall in the ambit of procedures or the official code of conduct and this is when the managers feel the heat. The problem with ethical decision making is that a decision […]

11140 Role of Management in Inculcating Workplace Ethics

Management plays an essential role in inculcating workplace ethics in employees. Bosses need to set an example for their subordinates. You need to come on time if you expect your team members to reach office on time. Management needs to act as a source of inspiration for the employees. It is generally observed that team […]

9238 Examining the Crisis of the Leader – Follower Relationship in the Present Times

Historically Legendary Leaders and the Leadership Crisis of the Present Times Leaders by definition are expected to inspire and motivate their followers to execute their mission and be transformed by their vision. Indeed, any textbook on leadership would explain how Leaders not only need to articulate their vision but also imbue their followers with a […]

12977 Crisis Management Model

Crisis refer to unplanned events which cause harm to the organization and lead to disturbances and major unrest amongst the employees. Crisis gives rise to a feeling of fear and threat in the individuals who eventually lose interest and trust in the organization. Crisis Management Model Gonzalez-Herrero and Pratt proposed a Crisis Management Model which […]

Search with tags

  • No tags available.

Management of Nonprofits

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.

Need for Management Structures

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.

Accountability and Regulatory Requirements

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.

Final Thoughts

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.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

Advocacy and Volunteerism: Differences and Similarities

MSG Team

The Advocacy versus the Activist Functions of Nonprofits

MSG Team