Nonprofit Organizations: Theory, Management, Policy

Nonprofit Organizations: Theory, Management, Policy Q1.Nonprofit organizations Although the economic recession has had a negative effect upon many industries, nonprofit organizations have suffered more acutely, given their dependence upon donations. Quite simply, when people are cutting back, personal donations are not considered necessities. The 2008 recession also decimated many endowments. Government financial difficulties have limited state and federal support for nonprofits. To take the example of one nonprofit, the St. Barnabas Hospital "witnessed a 10% increase in demand" while "governmental budget cuts" reduced revenue (Cannon 2011).

However, nonprofits spanning from organizations like UNICEF to universities play a vital role in our domestic and also our international economy. Governments must continue to try to support and leave untaxed the vital functions of nonprofit institution, especially when donations fall short (Anheier 2005: 207). International relief organizations are also needed to respond to international disasters like the Japanese earthquake and tsunami. Nonprofits offer social services that are not traditionally 'profitable' but which substantially enhance the public good.

Nonprofits, in contrast to larger government bureaucracies, often meet the individual needs of communities and underserved populations in a highly specific fashion. In recent years, the divides between the 'haves' and the 'have-nots' of the world have become larger, and the power of for-profit organizations has grown. "The emergence of the multidivisional form in the first half of the twentieth century created organizations of hitherto unprecedented proportions" (Anheier 2005: 360).

As both government and for-profit entities grow larger, they become less and less responsive to micro-level social needs, particularly to members of the population without financial power. Nonprofits can fill this vital function. Q2. The environment of nonprofit organizations The American Red Cross has been the recipients of increased criticism and scrutiny in the wake of a series of recent highly-publicized natural disasters, including Hurricane Katrina, the Japanese earthquake and tsunami, and Superstorm Sandy.

"Many residents and volunteers in the hardest-hit areas say they've been disappointed by its response, even as smaller and ad-hoc relief efforts have played a prominent frontline role in the relief and recovery effort" (Crocker & Dickson 2012). There were numerous complaints that the famous charity was nowhere to be seen on the Jersey Shore and due to "inadequate food and supply distribution" local entities such as Occupy Sandy or personal volunteerism took the place of the Red Cross (Crocker & Dickson 2012).

If the Red Cross is to sustain itself in the future, it must answer these charges. The director of Occupy Sandy, a veteran of disaster relief said: "what I observed in New Orleans after Katrina was that these large disaster-relief organizations are not structured to respond in a nimble way, to build relationships in communities" (Crocker & Dickson 2012). The Red Cross must seek to utilize the knowledge of local entities, who are often more informed and more nimble in their ability to address specific needs.

The Red Cross also requires better centralized leadership to ensure that it is meeting its goals effectively. According to the nonprofit rating organization Charity Navigator: "We do.