Preface Page: xix Acknowledgments Page: xxiv PART I Understanding Nonprofit Management, the Nonprofit Sector, and Nonprofit Organizations Page: 1 Chapter 1 Nonprofit Management as a Profession and a Field of Study Page: 2 A Revolution in Management Page: 4 A Distinct Profession Page: 5 Nonprofit Management as a Field of Study Page: 8 Toward a Balanced Approach Page: 12 Proceeding With Realism and Pride Page: 14 Chapter Summary Page: 15 Key Terms and Concepts Page: 16 Questions for Discussion Page: 16 Appendix Case Page: 16 Suggestions for Further Reading Page: 16 Books Page: 16 Articles Page: 17 Websites Page: 17 Chapter 2 Overview of the Nonprofit Sector Page: 18 America’s Nonprofit Sector: A Historical Overview Page: 21 Searching for a Common Vocabulary Page: 23 Alternatives to Nonprofit Page: 24 Size of the U.S. Nonprofit Sector Page: 25 Differentiating the Nonprofit Sector Page: 26 National Taxonomy of Exempt Entities Page: 27 IRS Classifications Page: 27 Salamon’s Anatomy Page: 36 The Spectrum of Organizations Page: 37 Emerging New Models Page: 39 The Commercialization Debate Page: 42 Commercialization and Tax Exemption Page: 43 Implications for Nonprofit Managers Page: 44 Chapter Summary Page: 44 Key Terms and Concepts Page: 49 Case 2.1 The Chan-Zuckerberg Initiative Page: 49 Case 2.2 A Double Bottom Line: Ben & Jerry’s Page: 49 Case 2.3 Burning Man Page: 49 Questions for Discussion Page: 49 Appendix Cases Page: 50 Suggestions for Further Reading Page: 50 Books Page: 50 Articles/Book Chapters Page: 51 Websites Page: 51 Chapter 3 Theories of the Nonprofit Sector and Nonprofit Organizations Page: 52 Explaining the Nonprofit Sector Page: 53 Nonprofit Theory Across the Disciplines Page: 53 The Failure Theories Page: 55 Market and Government Failure Page: 56 Nonprofits as Gap Fillers Page: 57 Supply-Side Theories Page: 58 Theories of Altruism and Giving Page: 59 Theory of the Commons: An Interdisciplinary Approach Page: 59 Changing Definitions of Private, Public, and Common Page: 60 Explaining Nonprofit Organizations Page: 62 Characteristics of Nonprofit Organizations Page: 62 Nonprofits as Open Systems Page: 65 Resource Dependence Page: 66 Isomorphism Page: 69 Explaining Nonprofit Organizational Structures Page: 70 Organizational Culture Page: 71 Chapter Summary Page: 72 Key Terms and Concepts Page: 77 Case 3.1 The Smithsonian Institution and the Catherine B. Reynolds Foundation Page: 77 Case 3.2 The National Trust for Historic Preservation Page: 77 Questions for Discussion Page: 77 Appendix x Page: 78 Suggestions for Further Reading Page: 78 Books Page: 78 Articles Page: 78 PART II Governing and Leading Nonprofit Organizations Page: 79 Chapter 4 Nonprofit Governing Boards Page: 80 Types of Governing Boards Page: 82 Elected Boards Page: 82 Self-Perpetuating Boards Page: 84 Appointed and Hybrid Boards Page: 84 Advisory Councils Page: 85 The Governing Board’s Responsibilities Page: 86 The Governing Board’s Legal Responsibilities Page: 87 The Governing Board’s Functional Responsibilities Page: 91 The Board and the CEO Page: 94 Carver’s Policy Governance Model Page: 95 Chait, Ryan, and Taylor: Governance as Leadership Page: 97 Herman and Heimovics: Psychological Centrality and Board-Centered Leadership Page: 98 Explaining Board Behavior Page: 99 Managing Nonprofit Boards Page: 100 Role of the Chair Page: 100 Governance Committee Page: 101 Board Professionals Page: 101 Nonprofit Board Effectiveness Page: 102 Critics of Board Performance Page: 102 Diversity, Equity, and Inclusion Page: 103 The Search for Best Practices Page: 104 The Challenge of Nonprofit Governance Page: 106 Chapter Summary Page: 107 Key Terms and Concepts Page: 109 Case 4.1 Sweet Briar College Page: 109 Case 4.2 The Hershey Trust Page: 111 Questions for Discussion Page: 113 Appendix Cases Page: 113 Suggestions for Further Reading Page: 113 Books/Reports Page: 113 Websites Page: 114 Chapter 5 Executive Leadership Page: 116 The CEO’s Job Page: 117 Management and Leadership Page: 119 Overview of Leadership Theories Page: 120 An Evolution in Thinking Page: 121 Transformational Leadership Page: 123 Charismatic Leadership Page: 125 The Effective Nonprofit CEO Page: 127 Focus on Mission Page: 128 Focus on the Board Page: 129 Focus on External Relationships Page: 129 Share Leadership and Empower Others Page: 129 Focus on Key Roles and Priorities Page: 129 Use the “Political Frame” Page: 130 Right Person, Right Place, Right Time Page: 131 Founder Syndrome Page: 132 Executive Transitions Page: 134 Leading Change Page: 135 Chapter Summary Page: 137 Key Terms and Concepts Page: 138 Case 5.1 A Change in Leadership at Habitat for Humanity Page: 138 Case 5.2 Challenge and Change at United Way Page: 139 Questions for Discussion Page: 141 Appendix Cases Page: 142 Suggestions for Further Reading Page: 142 Books/Book Chapters Page: 142 Articles Page: 142 Websites Page: 142 PART III Managing the Nonprofit Organization Page: 143 Chapter 6 Ensuring Accountability and Measuring Performance Page: 144 Defining and Ensuring Accountability Page: 145 Mechanisms for Accountability Page: 147 Requirements of Law Page: 147 Self-Regulation: Standards and Accreditation Page: 149 Transparency Page: 157 Measuring and Managing Performance Page: 159 Financial Ratios Page: 160 Benchmarking Page: 163 Outcomes Page: 164 Balanced Scorecard Page: 169 Social Return on Investment Page: 171 Blended Value Page: 172 Performance Measurement: The Continuing Debate Page: 174 Chapter Summary Page: 176 Key Terms and Concepts Page: 177 Case 6.1 The Wounded Warrior Project Page: 177 Case 6.2 Youth Villages Page: 177 Questions for Discussion Page: 177 Appendix Cases Page: 181 Suggestions for Further Reading Page: 181 Books Page: 181 Articles/Reports Page: 183 Websites Page: 183 Chapter 7 Developing Strategy, Building Capacity, and Managing Risk Page: 184 Understanding Strategy Page: 185 Strategic Planning and Strategic Management Page: 186 The Strategic Planning Process Page: 187 Planning to Plan Page: 188 Defining Mission, Vision, and Values Page: 190 Assessing the Situation Page: 192 Identifying Strategic Issues Page: 194 Setting Goals Page: 194 Developing Strategies Page: 195 Setting Objectives Page: 198 Writing the Strategic Plan Page: 198 Developing an Operational Plan Page: 199 Benefits and Limitations of Strategic Planning Page: 199 Building Organizational Capacity Page: 200 Defining and Understanding Capacity Page: 201 Capacity Building in Action Page: 202 A Model for Capacity Building Page: 203 Capacity and Organizational Life Cycles Page: 204 Capacity Building Evaluated Page: 206 Managing Risk Page: 207 Chapter Summary Page: 209 Key Terms and Concepts Page: 210 Case 7.1 Generation Hope Strategic Plan 2021 Page: 210 Questions for Discussion Page: 210 Appendix Cases Page: 215 Suggestions for Further Reading Page: 215 Books/Reports Page: 215 Articles Page: 217 Websites Page: 217 Chapter 8 Collaborations, Partnerships, and Mergers Page: 218 Growing Interest in Collaboration Page: 221 A Continuum of Relationships Page: 222 Exploring Collaborations and Mergers Page: 223 Drivers of Collaborations and Mergers Page: 224 Obstacles to Collaboration and Merger Page: 225 Culture Page: 227 Egos Page: 228 Brand Identity Page: 228 Community or Political Objections Page: 228 Costs Page: 228 Conditions for Success Page: 229 Driven by Mission Page: 229 Commitment From Top Leadership Page: 229 Trust Page: 229 Relatedness Page: 230 Process Page: 230 Collaborations and Mergers Within National Nonprofits Page: 231 Cross-Sector Collaboration Page: 232 A Continuum of Cross-Sector Collaboration Page: 232 Advantages and Disadvantages of CSCs Page: 234 Obstacles and Conditions for Success Page: 235 Achieving Collective Impact Page: 235 Chapter Summary Page: 238 Key Terms and Concepts Page: 239 Case 8.1 N Street Village and Miriam’s House Page: 239 Questions for Discussion Page: 239 Appendix Cases Page: 243 Suggestions for Further Reading Page: 243 Books Page: 243 Articles/Reports Page: 245 Websites Page: 245 Chapter 9 Managing Staff and Service Volunteers Page: 246 Human Resources Management Page: 248 Requirements of Law Page: 248 Diversity, Equity, and Inclusion Page: 249 An Overview of Management Theories Page: 250 Understanding Human Motivations Page: 251 Maslow’s Hierarchy of Needs Page: 251 McGregor: Theory X and Theory Y Page: 253 McClelland: Three Needs Theory Page: 253 Myers and Briggs: Personality Types Page: 254 Herzberg: Motivators and Dissatisifiers Page: 254 Motivations of Nonprofit Staff Page: 255 Life Cycles and Generations Page: 257 Applying Theories to Managing the Nonprofit Workforce Page: 258 Managing Volunteers Page: 261 Types of Volunteers Page: 261 Motivations of Volunteers Page: 263 Volunteer Program Practices Page: 264 A Contingency Approach to Volunteer Stewardship Page: 269 Volunteer Management as a Career Field Page: 270 The Future of Volunteerism Page: 271 Chapter Summary Page: 271 Key Terms and Concepts Page: 273 Cases 9.1–9.4 Staff and Volunteer Issues Page: 273 Questions for Discussion Page: 273 Appendix Cases Page: 277 Suggestions for Further Reading Page: 277 Books/Book Chapters/Journals Page: 277 Websites Page: 277 Chapter 10 Marketing and Communications Page: 278 Defining and Understanding Marketing Page: 279 Marketing Serves the Mission Page: 281 Marketing Means Action Page: 282 Marketing as a Process Page: 283 The Marketing Mix Page: 283 Product Page: 284 Place Page: 285 Promotion Page: 285 Market Segmentation Page: 286 Price Page: 287 Defining the Exchange Page: 289 Building the Brand Page: 289 Integrated Marketing Communication (IMC) Page: 292 Crafting an Effective Message Page: 294 Crisis Communications Page: 295 Social Media Page: 296 From Gatekeepers to Connectors Page: 297 Social Media Planning Page: 297 Operational Questions Page: 298 Evaluating Marketing and Communication Page: 299 Chapter Summary Page: 300 Key Terms and Concepts Page: 301 Case 10.1 Rebranding 4-H Page: 301 Case 10.2 Susan G. Komen Foundation Page: 303 Questions for Discussion Page: 304 Appendix Cases Page: 304 Suggestions for Further Reading Page: 305 Books/Journals Page: 305 Articles Page: 305 Websites Page: 305 Chapter 11 Advocacy and Lobbying Page: 306 Basic Distinctions Page: 308 Overview of Lobbying Law Page: 309 Option I: Substantial Part Test Page: 311 Option II: 501(h) Expenditure Test Page: 311 Political Campaign Activity Page: 313 Implementing an Advocacy Program Page: 314 Using Social Media Page: 316 Creating Movements for Social Change Page: 317 Continuing Issues and Concerns Page: 318 Chapter Summary Page: 319 Key Terms and Concepts Page: 321 Case 11.1 Mothers Against Drunk Driving (MADD) Page: 321 Case 11.2 Housing First Page: 322 Case 11.3 National Audubon Society Page: 323 Questions for Discussion Page: 324 Appendix Case Page: 325 Suggestions for Further Reading Page: 325 Books Page: 325 Articles Page: 325 Websites Page: 325 PART IV Obtaining and Managing Resources Page: 327 Chapter 12 Financial Management Page: 328 Definitions of Key Concepts Page: 330 Understanding Nonprofit Finances Page: 331 Nonprofit Financial Statements Page: 335 Statement of Financial Position Page: 335 Statement of Activities Page: 337 Statement of Cash Flows Page: 339 Statement of Functional Expenses Page: 339 Required Disclosures and Notes to Financial Statements Page: 342 Audits Page: 343 Using Financial Ratios Page: 344 Managing Endowment Funds Page: 346 Developing and Managing the Budget Page: 349 Financial Policies and Controls Page: 351 Chapter Summary Page: 352 Key Terms and Concepts Page: 354 Case 12.1 Hull House Page: 359 Case 12.2 The Newseum Page: 359 Questions for Discussion Page: 359 Appendix Cases Page: 361 Suggestions for Further Reading Page: 361 Books Page: 361 Newsletters Page: 361 Websites Page: 362 Chapter 13 Philanthropic Fundraising Page: 364 Definitions and Distinctions Page: 366 Motivations for Giving Page: 368 Understanding Corporate Philanthropy Page: 368 Foundation Giving Page: 369 Motivations of Individual Donors Page: 370 The Fundraising Process Page: 372 Identifying Priorities and Developing the Case Page: 372 Identifying and Qualifying Prospects Page: 374 Cultivating Prospects Page: 375 Soliciting the Gift Page: 376 Acknowledging and Recognizing Donors Page: 379 Stewarding the Gift and the Relationship Page: 380 Individual Donor Life Cycles Page: 380 Planned Giving Page: 382 Campaigns Page: 385 Managing Fundraising Programs Page: 387 Advancement Services Page: 387 Prospect Management Page: 388 Fundraising Efficiency and Effectiveness Page: 388 Staff Performance and Accountability Page: 389 Ethics and Professional Standards Page: 390 Tainted Donors and Tainted Money Page: 391 Association of Fundraising Professionals Code Page: 392 Chapter Summary Page: 393 Key Terms and Concepts Page: 395 Cases 13.1a–g Fundraising Ethics Page: 396 Questions for Discussion Page: 396 Appendix Cases Page: 397 Suggestions for Further Reading Page: 398 Books/Book Chapters Page: 398 Articles/Reports Page: 398 Websites Page: 398 Chapter 14 Social Enterprise and Earned Income Page: 400 Defining Social Enterprise and Earned Income Page: 401 Why Earned Income? Page: 403 Partnerships With Business Page: 405 Licensing Page: 406 Sponsorships Page: 407 Cause Marketing Page: 408 Integrated Relationships Page: 411 Operational Relationships Page: 411 Putting Partnerships Together Page: 412 Nonprofit Business Ventures Page: 413 Identifying Business Opportunities Page: 413 Feasibility Analysis and Business Planning Page: 414 Earned-Income Strategies: Issues and Decisions Page: 417 Sorting Out the Issues Page: 417 Evaluating Opportunities Against Mission Page: 418 A Continuing Debate Page: 420 Chapter Summary Page: 421 Key Terms and Concepts Page: 422 Case 14.1 The National Geographic Society Page: 425 Case 14.2 Aspire CoffeeWorks Page: 425 Questions for Discussion Page: 425 Appendix Cases Page: 426 Suggestions for Further Reading Page: 426 Books Page: 426 Articles Page: 427 Websites Page: 427 Chapter 15 Government Grants and Contracts Page: 428 Changes in Sources and Patterns of Support Page: 430 Grants, Contracts, and Fees Page: 431 Government Support: Opportunities and Challenges Page: 434 Seeking Government Support Page: 436 Identifying Grant Opportunities Page: 436 Evaluating Grant Opportunities Page: 437 Preparing and Submitting an Application or Proposal Page: 438 Nonprofits in the Policy Arena Page: 439 Chapter Summary Page: 439 Key Terms and Concepts Page: 440 Case 15.1 SEED Foundation Page: 441 Questions for Discussion Page: 441 Appendix Case Page: 442 Suggestions for Further Reading Page: 442 Books Page: 442 Articles Page: 442 Websites Page: 442 PART V Special Topics Page: 443 Chapter 16 Social Entrepreneurship and Innovation Page: 444 Defining and Understanding Social Entrepreneurship Page: 445 Social Enterprise School Page: 446 Social Innovation School Page: 446 History of Social Entrepreneurship as a Field Page: 447 Theories of Social Entrepreneurship Page: 448 Social Entrepreneurship Across Fields and Around the World Page: 450 Building High-Impact Nonprofits Page: 452 Sustaining Innovation Page: 453 The Future of Social Entrepreneurship Page: 456 Chapter Summary Page: 460 Key Terms and Concepts Page: 460 Case 16.1 KaBOOM! Page: 460 Case 16.2 Harlem Children’s Zone Page: 460 Questions for Discussion Page: 460 Appendix Case Page: 460 Suggestions for Further Reading Page: 460 Books Page: 460 Journals Page: 460 Websites Page: 461 Chapter 17 Governing and Managing International and Global Organizations Page: 462 Definitions and Scope of International Organizations Page: 464 International Philanthropy and Fundraising Page: 466 International Giving Page: 467 Global Fundraising Page: 467 International Nonprofit Governance and Management Page: 469 Managing Across Cultures Page: 470 Governing International and Global Organizations Page: 470 Structuring International NGOs Page: 471 Chapter Summary Page: 473 Key Terms and Concepts Page: 477 Case 17.1 Médecins Sans Frontières/Doctors Without Borders Page: 477 Case 17.2 Haitian Earthquake Relief and Recovery Page: 477 Questions for Discussion Page: 477 Suggestions for Further Reading Page: 478 Books Page: 478 Articles Page: 478 Websites Page: 478 Conclusion Page: 479 Appendix: Cases for Discussion Page: 482 1. New York City Opera Page: 482 2. Share Our Strength/No Kid Hungry Page: 488 3. The Y Page: 496 4. The Girl Scouts of the United States of America Page: 502 References Page: 510 Index Page: 540 About the Author Page: 567