Throughout Dan Pallotta’s TED Talk he argues that the discrimination against nonprofits is limiting their ability to change the world. He believes that nonprofits operate under one rule book, while for-profits operate under another. And the book for-profits are encouraged to operate under, allows them to attract the best talent, spend money to make money, take risks, pay dividends, and take their time returning profits to investors.
Of course, Pallotta can’t just state this without having some sort of evidence to back up his claims. To provide evidence that nonprofits are discouraged from incentivizing people to produce more, he provides an example of how if someone wants to make $50 million dollars selling violent video games, they will put
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When I watched the video the first time, I completely agreed with him, but as I analyzed his argument further, I am not so sure. A lot of the things he was saying makes sense, however, it is the lack of evidence that he provides that worries me. Only a few times, did Pallotta give actual data to back up his argument. Pallotta relied on storytelling and non-real-life examples that he constructed solely for the talk. Overall, I think that not providing quantifiable data to back up his claims leaves the potential that he came up with this idea that nonprofits are discriminated, and then made his “stories” fit his claim. In addition, I think that one potential problem is that his charity went out of business, so he may just believe that he was discriminated, when in actuality, he may not have been. Pallotta very well could be right, but I think that in order for people to believe him, he needs to be specific in his claims. He also needs to provide statistics, data, and multiple examples of real-life examples for each, rather than just one for each claim. Overall, I suggest that Pallotta gather real data about why nonprofits have struggled to grow, and then come up with an argument. I think that this approach will allow for a much more accurate and credible claim as to why nonprofits are failing to really grow and therefore, change the
Being identified as a nonprofit, doesn’t necessarily mean it will be a charitable organization. Though the term has been applied to most nonprofit organizations, the fact is most nonprofits is structured using the economic model. The economic model is based on the traditional model of management designed to deal with the complexity of managing an organization (Bradshaw & Hayday, 2007, p. 4). This model acquires funding from multiple sources such as; individuals, government grants, corporations, and foundations. Though an nonprofit organizations may be identified by the Internal Revenue Service (IRS) as tax-exempt, it may use the same economic model and framework as a for-profit organization. According to Brainard & Siplon, (2004), the nonprofit economic model often mimics that of the private sector by using organized professionals to help determine the goals and vision of the organization (p. 439). It is widely believed that most nonprofits use the economic model along with an aggressive...
Many people have begun to question how they use the money they raise. About 81% of their funds are put towards their programs and services, while more reputable charities are usually
The nonprofit sector in America is a reflection some of the foundational values that brought our nation into existence. Fundamentals, such as the idea that people can govern themselves and the belief that people should have the opportunity to make a difference by joining a like-minded group, have made America and its nonprofit sector what it is today. The American "civil society" is one that has been produced through generations of experiments with government policy, nonprofit organizations, private partnerships, and individuals who have asserted ideas and values. The future of the nonprofit sector will continue to be experimental in many ways. However, the increase of professional studies in nonprofit management and the greater expectation of its role in society is causing executives to look to more scientific methods of management.
Worth, M. (2014). Nonprofit management: Principles and Practice. 3rd Ed. Thousand Oaks, CA: SAGE Publications, Inc.
Product Line Manager, Liz Marenakos, of The Financial Edge and The Information Edge, asserts that nonprofits must be “accountable to multiple stakeholders, including private and institutional donors; local, state, and federal agencies; volunteers; program recipients; and the public at large”. She goes on to report that “financial and regulatory compliance, stewardship, and donor trust” are essential to nonprofit accountability (Marenakos, 2011). As previously mentioned, these accountabilities are upward, internal, and
Subsidy will complicate their execution of services. It’s simple, without funding, programs are not able to exist and hiring employees is out of the question. Although they have overcame many hurtles to become what they are today, they still have much to work on. Finding hardworking and dedicated people is not much of a concern in this field because if people didn’t have a heart to wanting to improve the betterment of all people through service, they would not be working countless hours with a less than gracious pay. Volunteers are another concern to the effectiveness and efficiency of the nonprofit. Volunteers act as the glue to the program. They work solely with the mindset of helping others at their own expense. Would a volunteer necessarily feel that way about it, probably not, but regardless of why, the end goal is to assist those in need in order to get he or she improved
One of the biggest ethical dilemmas that nonprofits are faced with in their fundraising world is tainted money. A nonprofit needs the money to support itself, but is the source of the money in agreement with the values and mission of the institution?
Singer states, as one of his premises in his argument about ending poverty, “if you do not donate to aid agencies, you are doing something wrong”. This statement is the only premise that I disagreed with. First, you do not know where the proceeds go after you do not money.
McLaughlin, T. A. (2016). Streetsmart Financial Basics for Nonprofit Managers, 4th edition. New York, NY: John Wiley & Sons, Inc.
Worth, Michael J. Nonprofit Management: Principles and Practice. 3rd Ed. Copyright 2014 by SAGE Publications, Inc.
Increasingly, not-for-profit organisations have taken to emulating the moneymaking practices of corporations. This trend has three primary causes: the decrease in funding from the public sector, the increase in competition for funds among an expanding number of not-for-profit organisations and the rise in funder pressure for not-for-profit organisati...
Brian Little, an award-winning psychology professor explains the science behind personalities in his Ted talk, “ Brian Little: Who are you really? The puzzle of personality.” He is a professor at Cambridge University and his students often describe him as, “A cross between Robin Williams and Einstein.” Brian wrote the book Me, Myself, and Us: The Science of Personality and the Art of Well-Being. Brian uses his degree in psychology and the acronym OCEAN to explain the different characteristics of personalities in his TED talk, “Brian Little: Who are you really? The puzzle of personality.” In his Ted talk, Brian describes how the acronym OCEAN applies to the science of personality. He says, “ So “O” stands for “open to experience” versus those
Over the last 20 years, there has been a significant increase in nonprofit and nongovernment organizations (NGOs) in the United States. With the increase in organizations, also came an increase in scandals and in the 1990’s multiple nonprofit and nongovernment organizations lost the public’s trust due to misuse of funds, lavish spending, and improper advances to protected populations. These charity scandals not only hurt direct organization’s reputation, but also led to the mistrust of nonprofit and nongovernmental organizations as a whole (Sidel, 2005). To combat these reputations, NGOs and nonprofit organizations began to self-regulate through employing morally obligated and altruistic employees, accountability practices, and lastly through
... “The Nonprofit Sector: For What and for Whom?” Working Papers of the Johns Hopkins Comparative Nonprofit Sector Project, no. 37. Baltimore: The Johns Hopkins Center for Civil Society Studies, 2000
Throughout this course my paradigms of what a nonprofit organization have been challenged as we have considered the major aspects and leadership challenges of these organizations. Having worked with for profit and nonprofit organizations in the past I was quite confident that I had a clear understanding of the distinctions between the two. I had worked in organizations that regularly used volunteers to accomplish their mission and felt that the management of these processes were simplistic. Despite these misconceptions, I found that I was able to learn a tremendous amount through our reading, peer interactions, group projects and equally important, my volunteer service as part of this course.