Strategic Philanthropy and Nonprofit Management

Author`s Name
Professor
Subject
Date
Strategic Philanthropy and Nonprofit Management
Every year, more the $200 billion charity donations are distributed to nonprofit making companies in the USA. The nonprofit making organizations have made an impact in the community by offering a helping hand. They generate their income mainly from fundraisings, investment and government grants. Although they tackle some of the challenging issues in the society, there lacks a mechanism to determine whether the funds are given to the chief performers. Donors frequently lack the information on social issues as well as how to address them. They also lack the information to guide them on the best organization to award their donation. This paper will focus on determining four major practices and behaviors that a donor should consider before making their donation. These include ethics, transparency, sustainability and accountability.
It is vital to consider the transparency of the nonprofit making organization before making a donation to the company. The nonprofit making organization is run by a board of governors. The chairman of the board is responsible for facilitating the activities of the board as well as implementing the recommendations of the board. The nonprofit making organization sells their products to the general public. They address the various issues in the public including poverty, disaster victims as well other issues affecting the community. These organizations offer these services for free through funding from the donors. It is thus paramount for organizations to carry out their activities in a transparent way.
Transparency is a term in business that refers to operating in such a way that the actions of the firm are seen by the public. It implies that the company carries out its activity in the open and in constant communication with the public. The company`s activities are contained in the mission and vision oriented programs of the organization. Transparency in a nonprofit making organization involves demonstrating clearly where the grants are distributed and the overall cost of running the organization. It implies that the programs and operation of the nonprofit making organizations are accessible for inspection and scrutiny.
This is a very important practice for every nonprofit making organization. It helps the organization to win the trust of the donors as they are well aware how their money is used. It also encourages potential donors to invest in a performing organization. Transparency is also important in that it highlights the governance, programs and financial activities of the organization. This shows responsibility of the firm not only to the donors but also the public and their staff members.
There are various ways that a profit organization may demonstrate accountability. These include open demonstration of governance, programs and financial activities of the organization. The organization should prepare the fi...