What is the major difference between a nonprofit organization and a for-profit organization quizlet

Historians - NP sector evolved from historical forces and events.
- Rebellion again the authority of British monarch.
-distrust of government, voluntary associations, religion, First Amendment rights, population diversity, income tax and tax deductions, shifts in public policy

Sociologists—focus on relationship between among people in groups---offer important insights on the NP sector.
- socialization, reinforcing norms and values, social capital, nonprofits as mediating structures
Political Scientists—NPs role in supporting democratic traditions and in terms of power relationship between civic and government
- Accommodating diversity
-Innovation theory
-Freedom from bureaucracy
-Attention to minority needs

Economists—analyze the work of the market
-private versus public goods, externalities, market and government failures, nonprofits as gap fillers, supply-side theories

Constructive partnership
Partnership with the CEO , established through trust, open communication, respect

Mission driven
Uphold mission
Articulate vision

Strategic thinking
Honing the organization's direction
Strategic planning

Intentional board practices
Fulfill essential governance duties and to support organizational priorities

Culture of inquiry
Institutionalize a culture of inquiry, mutual respect, and constructive debate that leads to sound and shared decision making

Independent mindedness
Do not allow their votes to be unduly influenced by loyalty to the CEO

Ethos of transparency
Stakeholders have access to appropriate and accurate information regarding finances, operations, and results

Compliance with integrity
Use mechanism such as independent audits, to ensure accountability and sufficient controls; to deepen their understanding of the organization; and to reduce the risk of waste, fraud, and abuse Sustaining resources

Results oriented
Linking budgeting to strategic planning, they approve activities that can be realistically financed with existing or attainable resources
Measure the organization ' s progress toward mission goals and evaluate the performance of major programs and services

Continuous learning
Increasing knowledge and skills
Exploring alternative methods

Revitalization
Energize themselves through planned turn-over thoughtful recruitment, and inclusiveness

Measuring against mission
Theory of change-how we effect change

Logic model- what we do and how
Links between program objectives, activities, and expected program outcomes
Inputs-what resources are committed
Money, time, staff, expertise
Outputs—what we count
Program created, number of people served, activities carried out
Outcomes- what we wish to achieve
Changes intended, expected,
Outcome indicators -what we use to stay on course
Specific, observable, measurable
Impact- what we aim to effect
Common indicators
Identifying a common set of outcomes and indicators for all nonprofit organizations
Urban Institute and the Center for What Works

Three forms:

-IRS Form 990-N (e-Postcard).
Receipts $50,000 or less
-990EZ (receipts between $200,000 and $500,000)
-Form 990 receipts more than $500,000

Watchdog organizations
Guide Star, BBB Wise Giving Alliance, Charity Navigator, American Institute for Philanthropy, Wall Watchers
Base their evaluation on financial, not program, effectiveness

Direct approach
Planers go straight from a review of mandates, mission, and SWOTS to the identification of strategic issues

Suitable if:
There is no agreement on goals, or goals on which there is agreement are too abstract to be useful
There is no preexisting vision of success, and developing a consensually based vision will be difficult
There is no hierarchical authority that can impose goals on the other stakeholders
The environment is so turbulent that development of goals or visions seems unwise, and partial actions in response to immediate, important issues seem most appropriate

Goals approach
An organization first establishes goals and objectives for itself and then goes on to identify issues that need to be addressed to achieve those goals and objectives, or else goes straight to developing strategies

Vision of success approach
Organization develops a best picture of the organization in the future, as it fulfils its mission and achieves success
The issues involve how the organization should move from the way it is now to how it would look and behave based on its vision of success

Indirect approach
Identify strategic issues and is useful when major strategic redirection is necessary but many members of the planning team and organization have not yet grasped the need

Action-oriented strategy mapping
Involves creation of word-and-arrow diagrams in which statements about potential actions the organization might take, how they might be taken, and why, are linked by arrows indicating the cause-effect or influence relationships between them
The approach is useful when participants are having trouble making sense of complex issue
Alignment approach
Clarify where there are gaps, inconsistencies, or conflicts among the various elements of an organization's governance, management, and operating policies, systems, and procedures
Issue tensions approach
There are four basic tensions around any strategic issue. Tensions involve human resources, and especially equity concerns; innovation and change; maintenance of tradition; and productivity improvement
System analysis-used to help to discern the best way to frame issues when the issue area may be conceptualized as a system

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