Strategic Planning for Profit and Non-Profit Organizations

Topics: Non-profit organization, Fundraising, Non-profit organizations Pages: 15 (4843 words) Published: January 16, 2013
Strategic Planning for Profit and Non-Profit Organizations
Table of Contents



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




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



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...

References: Abbort, F., & Beardsley, L. (2012, April 27). Sarbanes-Oxley and Changing Nonprofit Accountability. Retrieved from
Allhoff, F., & Vaidya, A
Blythe, J. ( 2006). Principles & Practice of Marketing. New York: Cengage Learning EMEA.
Chomsky, N., & Herman, E. S. ( 2010). Manufacturing Consent: The Political Economy of the Mass Media. New York: Random House.
Cook, J. D., Harwood, P., Pollock, W. H., Harris, F., & Hodge, H. (2006). The Saturday Review of Politics, Literature, Science and Art, Volume 122. Lancashire: J. W. Parker and Son.
Gaby, P. V., & Gaby, D. M. (2009). Nonprofit organization handbook: a guide to fund raising, grants. New York: Prentice-Hall.
Humphrey, J. (2012, April 27). Non Profit Organizations. Retrieved from
Ifes, S
Ignatieff, M. (2005). American Exceptionalism And Human Rights. New Jersey : Princeton University Press.
Landskroner, R. A. (2001). The Nonprofit Manager 's Resource Directory. San Francisco: John Wiley & Sons.
Lindahl, W. E. ( 2009). Principles of Fundraising: Theory and Practice. Sudbury: Jones & Bartlett Learning.
Massaro, T. ( 2007). United States Welfare Policy: A Catholic Response. Washington: Georgetown University Press.
National Council of Nonprofits . (2012). Laws that Regulate Fundraising. Retrieved April 26, 2012, from
Powell, W
Urban Institute. (2001). Building Capacity in Nonprofit Organizations. Washington: Urban Institute.
Young, D. R. (2007). Accountability the key to keeping the nonprofit sector on course. Retrieved April 27, 2012, from
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • audit in non profit organization Essay
  • Essay about non profit and profit organization
  • Non-Profit vs. for Profit Organizations Essay
  • Profit vs Non Profit Organization Essay
  • Operations Management Non Profit Organization Essay
  • Essay on Non-Profit Organizations
  • Strategic Management in Non Profit Making Organization Essay
  • Swot for Profit and Non Profit Essay

Become a StudyMode Member

Sign Up - It's Free