Strategic Management for Nonprofit Organizations : Theory and Cases

Nonprofit organizations in the U.S. earn more than $100 billion annually, and number over a million different organizations. They face increasing competition for donor's dollars and many of the issues they confront are similar to those confronted by for-profit organizations. Strategic Management for Nonprofit Organizations applies powerful concepts of strategic management developed originally in the for-profit sector to the management of nonprofits. It describes the preparation of a strategic plan consistent with the resources available; it analyzes the operational tasks in executing the plan; and describes the ways in which nonprofits need to change in order to remain competitive. The book draws clear distinctions between the different challenges encountered by nonprofits operating in different industries. Contents......Page 8 1. Introduction......Page 14 A Look at the Field Today......Page 15 A Look at Diversity in the Nonprofit Sector......Page 19 Internal Revenue Service Distinctions......Page 21 The Management Process: A Road Map of the Book......Page 22 Why Do we have Nonprofits?......Page 28 The Role of the Mission Statement......Page 33 The Process of Mission-Setting......Page 35 How Broad or Narrow Should the Mission Statement Be?......Page 38 Conclusion......Page 39 Competitive Analysis for the Nonprofit: The Industry Level......Page 40 Market Definition......Page 41 Description of Current Industry Participants......Page 42 Entry Conditions......Page 43 Competition from Substitute Products......Page 47 The Demand Side......Page 48 Users......Page 49 Donor Power......Page 51 Supply......Page 52 Industry Structure: Sources of Advantage......Page 53 Summary......Page 56 4. Competition and Cooperation Among Nonprofits......Page 58 Game Theory......Page 59 Simultaneous versus Sequential Games......Page 61 Cooperation among Nonprofits: Beyond Games......Page 68 Strategies for Cooperation......Page 71 Competing with For-Profit Organizations and Public Agencies......Page 72 A Few Thoughts on the Balance Between Competition and Cooperation......Page 74 Attracting and Motivating Staff......Page 76 Centralization versus Decentralization......Page 80 Managing Volunteers......Page 84 Conclusion......Page 85 A Review of the Stylized Facts About Nonprofits......Page 86 Function of the Board: The Theory......Page 87 Functions of the Board: In Practice......Page 91 Increasing Board Effectiveness......Page 94 Conclusion......Page 96 Why Broaden the Product Portfolio?......Page 98 The Product Portfolio: Balancing Ventures......Page 103 Combining for Profit and Nonprofit Ventures......Page 104 Tax Issues......Page 105 Strategic Management Issues......Page 107 Pricing in the Nonprofit World......Page 109 Pricing in the Nonprofit Sector: How Much Do We Charge?......Page 113 Conclusion......Page 116 Charitable Contributions: Magnitude and Sources......Page 118 The Optimal Level of Fundraising Effort......Page 122 Determinants of Giving: The Individual Level......Page 125 Corporate Giving: Trends and Determinants......Page 129 Cooperation versus Competition in Fundraising......Page 130 Conclusion......Page 132 Why do we have Financial Reports?......Page 134 The Budget Process......Page 138 The Problems of Inadequate Budget Control: Using Variance Analysis......Page 143 Conclusions......Page 149 10. Program Evaluation......Page 150 Effectiveness versus Efficiency: A Few Definitions......Page 151 For Whom are we Evaluating Programs?......Page 152 The Mechanics of Program Evaluation......Page 154 Concluding Thoughts on Performance Evaluations......Page 157 The Adaptability of the Nonprofit......Page 160 Sources of Change......Page 162 Experiencing Change......Page 165 Concluding Thoughts......Page 166 Appendix: Guide to the Cases......Page 168 A. People for the American Way......Page 171 B. United Hmong Association......Page 187 C. Public Broadcasting System......Page 208 D. American Red Cross......Page 229 E. The Good Faith Fund......Page 244 F. Classical Jazz at Lincoln Center......Page 262 G. The Future of Donor Choice at United Way......Page 283 H. Guggenheim Museum......Page 298 I. Leeway, Inc.......Page 321 Notes......Page 344 C......Page 356 F......Page 357 K......Page 358 P......Page 359 S......Page 360 Z......Page 361 Strategic Management for Nonprofit Organizations applies powerful concepts of strategic management developed originally in the for-profit sector to the management of nonprofits. It describes the preparation of a strategic plan consistent with the resources available, analyzes the operational tasks in executing the plan, and describes the ways in which nonprofits need to change in order to remain competitive. Drawing on literature in the fields of economics, management, accounting, and organizational theory, Sharon Oster explores a wide range of topics including a discussion of the role and mission of the nonprofit - from fund-raising to accounting and from evaluation to the treatment of volunteers and the board of directors. Examples are taken from all parts of the nonprofit arena including the arts, health care, education, social services, foundations, and economic development. This is the first book to bring modern strategic management concepts to the problems of managing nonprofit organizations. It draws clear distinctions between the different industries and offers practical solutions to the challenges confronting managers of nonprofits. Nonprofit organizations in the U.S. earn more than USD100 billion annually, and number over a million different organizations. They face increasing competition for donor's dollars and many of the issues they confront are similar to those confronted by for-profit organizations. This book applies powerful concepts of strategic management developed originally in the for-profit sector to the management of nonprofits. It describes the preparation of a strategic plan consistent with the resources available; it analyses the operational tasks in executing the plan; and describes the ways in which nonprofits need to change in order to remain competitive. The book draws clear distinctions between the different challenges encountered by nonprofits operating in different industries. It will be useful for managers in such diverse organizations as the Santa Fe Opera, the Salvation Army, and the National Football League

Nonprofit organizations in the U.S. earn more than $100 billion annually, and number over a million different organizations. They face increasing competition for donor's dollars and many of the issues they confront are similar to those confronted by for-profit organizations.
Strategic Management for Nonprofit Organizations applies powerful concepts of strategic management developed originally in the for-profit sector to the management of nonprofits. It describes the preparation of a strategic plan consistent with the resources available; it analyzes the operational tasks in executing the plan; and describes the ways in which nonprofits need to change in order to remain competitive. The book draws clear distinctions between the different challenges encountered by nonprofits operating in different industries.