Week One Assignment After reading the assignment this week, I realized that the book brought awareness to a lot of issues and concern in the nonprofit world that the average person does not think about including me. I realized that the average person is ignorant to how important nonprofits are because of the services they provide to the public. Often the financial failures of big companies are publicized; however, this is not the case in the nonprofit world. So for every nonprofit that fails another subset of the population does not have their needs met. I do not believe that there is a variety of resources available to help nonprofits; this in part why so many fail. Nonprofits rely on heavily on donations to continue to provide services to
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The fiscal challenge affects growth in the nonprofit sector. Two theories that attempt to address the lack of growth in the nonprofit sector are the government failure theory and interdependence theory. According to Lecy & Van Slyke (2013) the government failure theory states that nonprofits offer services to the public in areas where the government falls short. This is based on a partiality to a specific subset of the population. For example nonprofits typically offer services to the underprivileged, indigent and poverty stricken individuals in society. The author implies that the government attempts to supply goods that meet the majority of the population’s homogenous demand for goods and services. Since we live in a world that is socially diverse, additional markets are needed to meet the demand for other goods and …show more content…
This theory operates off of the premise of social exchange. Since communities cannot exist without hospitals, schools and other social agencies; for the good of the public the government finances and supports these organizations. In order to meet the needs of the underserved population, the government provides aid while receiving “praise” at the same time. Unfortunately, working with the government by itself does not come without challenges for the nonprofit. The nonprofit receives tax advantages unlike a for profit organization. However, improper filing of paperwork, audits, and repetitious paperwork are a few examples of reasons that could delay or suspend funding of grants. Another invaluable resource that nonprofits utilize is
The fiscal challenge affects growth in the nonprofit sector. Two theories that attempt to address the lack of growth in the nonprofit sector are the government failure theory and interdependence theory. According to Lecy & Van Slyke (2013) the government failure theory states that nonprofits offer services to the public in areas where the government falls short. This is based on a partiality to a specific subset of the population. For example nonprofits typically offer services to the underprivileged, indigent and poverty stricken individuals in society. The author implies that the government attempts to supply goods that meet the majority of the population’s homogenous demand for goods and services. Since we live in a world that is socially diverse, additional markets are needed to meet the demand for other goods and …show more content…
This theory operates off of the premise of social exchange. Since communities cannot exist without hospitals, schools and other social agencies; for the good of the public the government finances and supports these organizations. In order to meet the needs of the underserved population, the government provides aid while receiving “praise” at the same time. Unfortunately, working with the government by itself does not come without challenges for the nonprofit. The nonprofit receives tax advantages unlike a for profit organization. However, improper filing of paperwork, audits, and repetitious paperwork are a few examples of reasons that could delay or suspend funding of grants. Another invaluable resource that nonprofits utilize is