Financial and Strategic Management for Nonprofit Organizations, Fourth Edition

The highly acclaimed Financial and Strategic Management for Nonprofit Organizations provides an encyclopedic account of all the key financial, legal, and managerial issues facing nonprofit executives. This is today's definitive single-source text and reference for managing any nonprofit organization. Designed for both professional and graduate student readers, this work thoroughly addresses all key aspects of building managerial skill and promoting imagination and innovation in organizations across the nonprofit spectrum. Herrington J. Bryce presents every technique and concept in the context of today's public policies, leading practices, laws, norms, and expectations.

Herrington J. Bryce was a senior economist at the Urban Institute, a Brookings Economic Policy Fellow, a Fellow at the Institute of Politics at Harvard and a visiting professor in regional economics and planning at the Massachusetts Institute of Technology. He taught micro economic theory and public finance at Clark University in Worcester, Massachusetts, and was director of the program in legal and budget studies at the University College at the University of Maryland. He currently teaches courses at the College of William & Mary in nonprofits but mostly in corporate financial strategy and cost management-heavily reflected in this text. He has published extensively and has served on many state, local and federal government advisory committees. He has a PhD in economics from the Maxwell School at Syracuse University, and a CLU and ChFC from the American College.

Auteur

Herrington J. Bryce was a senior economist at the Urban Institute, a Brookings Economic Policy Fellow, a Fellow at the Institute of Politics at Harvard and a visiting professor in regional economics and planning at the Massachusetts Institute of Technology. He taught micro economic theory and public finance at Clark University in Worcester, Massachusetts, and was director of the program in legal and budget studies at the University College at the University of Maryland. He currently teaches courses at the College of William & Mary in nonprofits but mostly in corporate financial strategy and cost management. He has published extensively and has served on many state, local and federal government advisory committees. He has a PhD in economics from the Maxwell School at Syracuse University, and a Clu and ChFc from the American College.

Contenu

Acknowledgements | vii

About the Author | ix

Introduction: Teasing Your Managerial Imagination, Creativity and Resolve | 1

Part I: Why Us

Chapter 1: The Foundations of Nonprofit Management as Asset Management | 9

The Hierarchy | 10

The Need for a Nonprofit Perspective | 11

The Core Tasks of Managing Nonprofit Organizations | 12

Secular Growth of the Nonprofit Sector | 13

A Varied Sector | 14

The Nonprofit as an Asset | 16

Isomorphic Forces and Organizational Identity | 19

The Mission as Contract, Source of Expectation, Confidence and Style | 20

The Public Policy Process as the Principal Action Space | 22

Organization-Specific Opportunities in the Action Space | 23

The Link: Ethics, Effectiveness and Efficiency in Performance | 24

Stewardship | 25

Keeping Track for Evaluation and Direction | 27

Cost as a Driver and as Object of Efficiency | 30

Insufficiency of Contributions | 31

Collaboration | 38

Social Entrepreneurship | 39

Disclosures as Functional Tools | 42

Disclosure as a Management Philosophy or Attitude | 43

The Role of the State | 44

Conflict of Interest and Transactions with Related Parties | 45

Nonprofits as Tax Payers and the Value of Exemption | 45

Summary and Preview | 47

Postscript to Perspectives | 48

Footnotes | 49

Chapter 2: Managing the Corporation, Its Powers, and Exemption | 51

The Nonprofit Corporation: Its Creation, Powers and Prohibitions on

Management | 53

Specific Powers of the Nonprofit Corporation | 54

Specific Prohibitions | 56

How Does the Nonprofit Corporation Differ from a For-Profit Corporation | 58

Financial Advantages and Disadvantages of Exemption | 60

The Tax-Exempt Status: Its Privileges, Prohibitions, Responsibilities | 62

How is the Tax-Exempt Status Acquired First at the Federal Level | 64

How is Tax-Exempt Status Acquired on the State and Local Levels | 69

Factors That Threaten the Loss of Tax-Exempt Status Under 501(C)(3) | 74

Carrying Out a Dissolution | 81

Summary and Preview | 83

Footnotes | 83

Chapter 3: Managing the Nonprofit as a Public Corporation | 85

Forming the Publicly Supported Organization | 85

The Basic Requirements of 501(c)(3)s | 86

Privileges of Public Organizations | 86

The Public Charities: Section 509(a)(1) Organizations | 87

Proof of Public Support: 509(a)(1) | 88

Calculation of Public Financial Support: 509(a)(1) | 90

The Effect of Large Contributions on Public Support | 91

Unusually Large Gifts and Grants | 91

IRS Certification of Organization's Tax-Exempt Status | 92

Fee-For-Service Organizations: 509(A)(2) Organizations | 93

Diversification and Preservation of Tax-Exempt Status | 94

Comparison if 509(A)(1) and (A)(2) Organizations | 96

Category One: Subordinate Corporations | 97

Category Two: Closely Cooperating Affiliates | 99

Summary and Preview | 102

Chapter 4: Managing the Nonprofit as a Private Corporation | 103

The Private Foundation-What It Is | 103

The 501(C)(3) That Is Not Private | 104

The Performance-Based Group | 105

The Formula-Based Group | 106

Private Nonoperating Foundations | 106

Restrictions on Expenditures, Economic Transactions, and Investment | 107

Disqualified Persons | 107

Private Operating Foundations | 113

The Income Test | 113

Asset, Endowment, and Support Tests | 114

Soliciting Private and Community Foundations | 114

Private Foundations | 115

Community Foundations | 116

The Affiliated or Supporting Organizations | 117

The Donor Advised Fund | 117

Private Foundations, Public Foundations, and Charitable Organizations In

Canada | 118

Summary and Preview | 119

Chapter 5: Managing the Nonprofit as Instrument of Groups, Business, and

Politics | 121

Powers of Associations | 122

Associations of Individuals | 122

Civic Leagues and Welfare Organizations | 124

Agricultural Associations | 125

Business Associations | 126

Common Interest of Business Associations | 126

Non-deductibility of Business Lobbying Expenses | 127

Examples of Missions of Business Associations | 127

PACs, SUPERPACs, and Political Organizations including Parties and

Committees | 129

Federal Disclosures by Section 527 Organizations | 131

Social Clubs | 132

Fraternal Associations | 132

Cooperatives | 133

Religion | 134

Veterans | 134

Associations of Organizations | 135

Federations | 135

Affiliations | 136

Groups | 137

The Lodge System | 138

Holding Companies | 138

Common Trusts or Charitable Risk Pools | 139

Membership Powers, Duties, and Liabilities | 139

Stocks as Evidence of Membership | 140

Termination of Membership | 141

Political Involvement of Nonprofit Organizations | 141

Advantage of 501(c)(4) as a Political Vehicle | 142

State Example of Trying to Reign-in the 501(c)(4) | 142

The Feds and 501(c)(4) | 143

Citizens United v. Federal Election Commissio…