Strategic Planning for Profit and Non-Profit Organizations

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Strategic Planning for Profit and Non-Profit Organizations
Name
School
Table of Contents
Abstract3

Introduction4

Discussion4

Role of government in regulation of non-profit fundraising4

Demanding of disclosure statements4

Provision of more funding5

Appointment of external auditors5

Role of states in regulating non-profit fundraising6

Sarbanes-Oxley-type legislation in non-profit fundraising8

Importance of Sarbanes-Oxley type legislation8

Operation of the legislation9

Values that should guide politicians when setting up regulatory systems10

Integrity10

Professionalism11

Accountability12

Effects of stronger regulation of non-profit organizations13

Increased accountability by managers and directors13

Effective management of collected funds14

Increased public confidence15

Increase in number of donors17

Conclusion17

References19

Abstract
The government has a role to play in regulation of non-profit organizations at both federal and state levels. This will facilitate effective management of these organizations to deal with social problems in the United States. External independent auditors should be appointed to check on the activities that take place in these organizations. In addition, the government should make it a requirement that these organizations should be run by people with adequate knowledge in finance. Sarbanes-Oxley type legislation is important in regulation of non-profit organizations to facilitate reforms. This is because there are major problems that have been experienced in the non-profit sector of the United States especially misappropriation of funds. Government intervention is inevitable if the non-profit sector in the United States is to regain its prominence. Introduction

Non-profit organizations have been established to carry out educational, charitable and civic responsibilities. Activities of non-profit organizations are directed towards maximization of the welfare of people in need in the society. Most non-profit organizations receive their funds through donations. However, decisions on how the funds are managed are determined by the managers of non-profit organizations and not the donors. Donors have trust in the managers of non-profit organizations that their funds will be used effectively. However, this is not always the case since some of these organizations have used the funds for other reasons other than the initial intention for example the American Red Cross collected funds to assist the victims of 9/11 but the money was used to fund other Red Cross projects. It is therefore important for Federal government to check on activities of non-profit organizations through legislations that govern their activities. State governments should also play a critical role in regulation of activities of non-profit organizations. This will facilitate effective management of funds to meet the needs of people in the society. The essay focuses on the role of federal and state governments in regulations of activities of non-profit organizations in the United States. Discussion

Role of government in regulation of non-profit fundraising

Demanding of disclosure statements

Federal government has role to play in regulation of fundraising activities by non-profit organizations. It should be a requirement that non-profit organizations provide a disclosure statement to the federal government pledging that such an organization has complied with all the requirements of the registration process (National Council of Nonprofits, 2012). In addition, the government should make it a requirement that non-profit organizations should declare their intentions of collecting funds from the public. Disclosure statements will be binding to the law such that when an organization fails to use the funds for the reasons intended, the government can...
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