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Nonprofit Management
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Nonprofit Management
Principles and Practice

Fifth Edition
Additional resources:


August 2018 | 576 pages | CQ Press

Nonprofit Management: Principles and Practice provides an excellent overview of the complexities, management challenges, and importance of the nonprofit sector in the United States. It’s easy-to-use format is appropriate for undergraduates and entry-level nonprofit professionals who wish to develop a broader understanding of the nonprofit sector.” —Crystal Tull, University of San Diego

Michael J. Worth’s student-friendly best-seller, Nonprofit Management: Principles and Practice, Fifth Edition, provides a broad, insightful overview of key topics affecting governance and management of nonprofit organizations. Worth covers the scope and structure of the nonprofit sector, leadership of nonprofits, managing the nonprofit organization, fundraising, earned income strategies, financial management, nonprofit lobbying and advocacy, managing international and global organizations, and social entrepreneurship. Written specifically for students, this applied text balances research, theory, and practitioner literature with current cases, timely examples, and the most recent data available.

New to the Fifth Edition

  • New cases related to accountability and governance highlight new approaches to recent controversies and risks to nonprofits. Cases include the Wounded Warriors Project, Sweet Briar College, 4-H, Housing First, the Chan-Zuckerberg Initiative, the National Audubon Society, and an expanded study of governance issues at the Hershey Trust.
  • Expanded discussions of risk management offer new insights on developing strategy, building capacity, and managing risk. 
  • New social networks and social media content provides students with practical strategies for using social media when fundraising and marketing. 
  • A new comprehensive case on the Girl Scouts of the USA recounts reforms undertaken by this iconic organization and current challenges it faces.
  • The chapter on financial management has been substantially revised to reflect new requirements for nonprofit financial statements issued by the Financial Accounting Standards Board in 2016, as well as an expanded discussion of audits.
  • An updated chapter on fundraising includes information on the Tax Cuts and Jobs Act passed in December 2017, which has implications for charitable giving.
  • New references at the end of every chapter guide readers to relevant cases in the Appendix, making it easy for instructors to incorporate the cases into classroom discussions.  

Instructors: Log into the password-protected Instructor Site at study.sagepub.com/worth5e for case activities, chapter-specific discussion questions, a Microsoft® Word® test bank, PowerPoint® slides, and more!

 
Preface
 
Acknowledgments
 
Part I. Understanding Nonprofit Management, the Nonprofit Sector, and Nonprofit Organizations
 
Chapter 1. Nonprofit Management as a Profession and a Field of Study
A Revolution in Management

 
A Distinct Profession

 
Nonprofit Management as a Field of Study

 
Toward a Balanced Approach

 
Proceeding With Realism and Pride

 
Chapter Summary

 
Key Terms and Concepts

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Articles

 
Websites

 
 
Chapter 2. Overview of the Nonprofit Sector
America’s Nonprofit Sector: A Historical Overview

 
Searching for a Common Vocabulary

 
Alternatives to Nonprofit

 
Size of the U.S. Nonprofit Sector

 
Differentiating the Nonprofit Sector

 
National Taxonomy of Exempt Entities

 
IRS Classifications

 
Salamon’s Anatomy

 
The Spectrum of Organizations

 
Emerging New Models

 
Commercialization and Tax Exemption

 
Implications for Nonprofit Managers

 
Chapter Summary

 
Key Terms and Concepts

 
Case 2.1 The Chan-Zuckerberg Initiative

 
Case 2.2 A Double Bottom Line: Ben & Jerry’s

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Articles/Book Chapters

 
Websites

 
 
Chapter 3. Theories of the Nonprofit Sector and Nonprofit Organizations
Explaining the Nonprofit Sector

 
Nonprofit Theory Across the Disciplines

 
The Failure Theories

 
Market and Government Failure

 
Nonprofits as Gap Fillers

 
Supply-Side Theories

 
Theories of Altruism and Giving

 
Theory of the Commons: An Interdisciplinary Approach

 
Changing Definitions of Private, Public, and Common

 
Explaining Nonprofit Organizations

 
Characteristics of Nonprofit Organizations

 
Nonprofits as Open Systems

 
Resource Dependence

 
Isomorphism

 
Explaining Nonprofit Organizational Structures

 
Organizational Culture

 
Chapter Summary

 
Key Terms and Concepts

 
Case 3.1 The Smithsonian Institution and the Catherine B. Reynolds Foundation

 
Case 3.2 The National Trust for Historic Preservation

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Articles

 
 
Part II. Governing and Leading Nonprofit Organizations
 
Chapter 4. Nonprofit Governing Boards
Types of Governing Boards

 
Elected Boards

 
Self-Perpetuating Boards

 
Appointed and Hybrid Boards

 
Advisory Councils

 
The Governing Board’s Responsibilities

 
The Governing Board’s Legal Responsibilities

 
The Governing Board’s Functional Responsibilities

 
The Board and the CEO

 
Carver’s Policy Governance Model

 
Chait, Ryan, and Taylor: Governance as Leadership

 
Herman and Heimovics: Psychological Centrality and Board-Centered Leadership

 
Explaining Board Behavior

 
Managing Nonprofit Boards

 
Role of the Chair

 
Governance Committee

 
Board Professionals

 
Nonprofit Board Effectiveness

 
Critics of Board Performance

 
The Search for Best Practices

 
The Challenge of Nonprofit Governance

 
Chapter Summary

 
Key Terms and Concepts

 
Case 4.1 Sweet Briar College

 
Case 4.2 The Hershey Trust

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books/Reports

 
Websites

 
 
Chaper 5. Executive Leadership
The CEO’s Job

 
Management and Leadership

 
Overview of Leadership Theories

 
An Evolution in Thinking

 
Transformational Leadership

 
Charismatic Leadership

 
The Effective Nonprofit CEO

 
Focus on Mission

 
Focus on the Board

 
Focus on External Relationships

 
Share Leadership and Empower Others

 
Focus on Key Roles and Priorities

 
Use the “Political Frame”

 
Right Person, Right Place, Right Time

 
Founder Syndrome

 
Executive Transitions

 
Leading Change

 
Chapter Summary

 
Key Terms and Concepts

 
Case 5.1 A Change in Leadership at Habitat for Humanity

 
Case 5.2 Challenge and Change at United Way

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Articles

 
Websites

 
 
Part III. Managing the Nonprofit Organization
 
Chapter 6. Ensuring Accountability and Measuring Performance
Defining and Ensuring Accountability

 
Mechanisms for Accountability

 
Requirements of Law

 
Self-Regulation: Standards and Accreditation

 
Transparency

 
Measuring and Managing Performance

 
Financial Ratios

 
Benchmarking

 
Outcomes

 
Balanced Scorecard

 
Social Return on Investment

 
Blended Value

 
Performance Measurement: The Continuing Debate

 
Chapter Summary

 
Key Terms and Concepts

 
Case 6.1 The Wounded Warrior Project

 
Case 6.2 Youth Villages

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Articles/Report

 
Websites

 
 
Chapter 7. Developing Strategy, Building Capacity, and Managing Risk
Understanding Strategy

 
Strategic Planning and Strategic Management

 
The Strategic Planning Process

 
Planning to Plan

 
Defining Mission, Vision, and Values

 
Assessing the Situation

 
Identifying Strategic Issues

 
Setting Goals

 
Developing Strategies

 
Setting Objectives

 
Writing the Strategic Plan

 
Developing an Operational Plan

 
Benefits and Limitations of Strategic Planning

 
Building Organizational Capacity

 
Defining and Understanding Capacity

 
Capacity Building in Action

 
A Model for Capacity Building

 
Capacity and Organizational Life Cycles

 
Capacity Building Evaluated

 
Managing Risk

 
Chapter Summary

 
Key Terms and Concepts

 
Case 7.1 New Hope Housing Strategic Plan 2013–2018

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books/Brochure

 
Articles

 
Websites

 
 
Chapter 8. Collaborations, Partnerships, and Mergers
Growing Interest in Collaboration

 
A Continuum of Relationships

 
Exploring Collaborations and Mergers

 
Drivers of Collaborations and Mergers

 
Obstacles to Collaboration and Merger

 
Motivations

 
Culture

 
Egos

 
Brand Identity

 
Community or Political Objections

 
Costs

 
Conditions for Success

 
Driven by Mission

 
Commitment From Top Leadership

 
Trust

 
Relatedness

 
Process

 
Collaborations and Mergers Within National Nonprofits

 
Cross-Sector Collaboration

 
A Continuum of Cross-Sector Collaboration

 
Advantages and Disadvantages of CSCs

 
Obstacles and Conditions for Success

 
Achieving Collective Impact

 
Chapter Summary

 
Key Terms and Concepts

 
Case 8.1 N Street Village and Miriam’s House

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Articles/Report

 
Websites

 
 
Chapter 9. Managing Staff and Service Volunteers
Human Resources Management

 
An Overview of Management Theories

 
Understanding Human Motivations

 
Maslow’s Hierarchy of Needs

 
McGregor: Theory X and Theory Y

 
McClelland: Three Needs Theory

 
Myers and Briggs: Personality Types

 
Herzberg: Motivators and Dissatisifers

 
Motivations of Nonprofit Staff

 
Life Cycles and Generations

 
Applying Theories to Managing the Nonprofit Workforce

 
Managing Volunteers

 
Types of Volunteers

 
Motivations of Volunteers

 
Volunteer Program Practices

 
Volunteer Management as a Career Field

 
The Future of Volunteerism

 
Chapter Summary

 
Key Terms and Concepts

 
Case 9.1 Getta Grant

 
Case 9.2 Rita Writer

 
Case 9.3 Bob the Builder

 
Case 9.4 Myra the Volunteer Manager

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books/Book Chapter

 
Websites

 
 
Chapter 10. Marketing and Communications
Defining and Understanding Marketing

 
Marketing Serves the Mission

 
Marketing Means Action

 
Marketing as a Process

 
The Marketing Mix

 
Product

 
Place

 
Promotion

 
Market Segmentation

 
Price

 
Defining the Exchange

 
Building the Brand

 
Integrated Marketing Communication (IMC)

 
Crafting an Effective Message

 
Crisis Communications

 
Social Media

 
From Gatekeepers to Connectors

 
Social Media Planning

 
Operational Questions

 
Evaluating Marketing and Communication

 
Chapter Summary

 
Key Terms and Concepts

 
Case 10.1 Rebranding 4-H

 
Case 10.2 Susan G. Komen Foundation

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books/Journals

 
Websites

 
 
Chapter 11. Advocacy and Lobbying
Basic Distinctions

 
Overview of Lobbying Law

 
Option I: Substantial Part Test

 
Option II: 501(h) Expenditure Test

 
Political Campaign Activity

 
Implementing an Advocacy Program

 
Using Social Media

 
Continuing Issues and Concerns

 
Chapter Summary

 
Key Terms and Concepts

 
Case 11.1 Mothers Against Drunk Driving (MADD)

 
Case 11.2 Housing First

 
Case 11.3 National Audubon Society

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Articles

 
Websites

 
 
Part IV. Obtaining and Managing Resources
 
Chapter 12. Financial Management
Definitions of Key Concepts

 
Understanding Nonprofit Finances

 
Nonprofit Financial Statements

 
Statement of Financial Position

 
Statement of Activities

 
Statement of Cash Flows

 
Statement of Functional Expenses

 
Required Disclosures and Notes to Financial Statements

 
Audits

 
Using Financial Ratios

 
Managing Endowment Funds

 
Developing and Managing the Budget

 
Financial Policies and Controls

 
Chapter Summary

 
Key Terms and Concepts

 
Case 12.1 Hull House

 
Case 12.2 Corcoran Gallery of Art and Corcoran School of the Arts and Design

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Newsletter

 
Websites

 
 
Chapter 13. Philanthropic Fundraising
Definitions and Distinctions

 
Motivations for Giving

 
Understanding Corporate Philanthropy

 
Foundation Giving

 
Motivations of Individual Donors

 
The Fundraising Process

 
Identifying Priorities and Developing the Case

 
Identifying and Qualifying Prospects

 
Cultivating Prospects

 
Soliciting the Gift

 
Acknowledging and Recognizing Donors

 
Stewarding the Gift and the Relationship

 
Individual Donor Life Cycles

 
Planned Giving

 
Campaigns

 
Managing Fundraising Programs

 
Advancement Services

 
Prospect Management

 
Fundraising Efficiency and Effectiveness

 
Staff Performance and Accountability

 
Ethics and Professional Standards

 
Chapter Summary

 
Key Terms and Concepts

 
Cases 13.1 a–g Fundraising Ethics

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Articles

 
Websites

 
 
Chapter 14. Social Enterprise and Earned Income
Defining Social Enterprise and Earned Income

 
Why Earned Income?

 
Partnerships With Business

 
Licensing

 
Sponsorships

 
Cause Marketing

 
Other Variations

 
Integrated Relationships

 
Operational Relationships

 
Putting Partnerships Together

 
Nonprofit Business Ventures

 
Identifying Business Opportunities

 
Feasibility Analysis and Business Planning

 
Earned-Income Strategies: Issues and Decisions

 
Sorting Out the Issues

 
Evaluating Opportunities Against Mission

 
A Continuing Debate

 
Chapter Summary

 
Key Terms and Concepts

 
Case 14.1 Minnesota Public Radio

 
Case 14.2 Aspire CoffeeWorks

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Articles

 
Websites

 
 
Chapter 15. Government Grants and Contracts
Changes in Sources and Patterns of Support

 
Grants, Contracts, and Fees

 
Government Support: Opportunities and Challenges

 
Seeking Government Support

 
Identifying Grant Opportunities

 
Evaluating Grant Opportunities

 
Preparing and Submitting an Application or Proposal

 
Nonprofits in the Policy Arena

 
Chapter Summary

 
Key Terms and Concepts

 
Case 15.1 SEED Foundation

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Articles

 
Websites

 
 
Part V. Special Topics
 
Chapter 16. Social Entrepreneurship and Innovation
Defining and Understanding Social Entrepreneurship

 
Social Enterprise School

 
Social Innovation School

 
History of Social Entrepreneurship as a Field

 
Theories of Social Entrepreneurship

 
Social Entrepreneurship Across Fields and Around the World

 
Building High-Impact Nonprofits

 
Sustaining Innovation

 
The Future of Social Enterprise and Social Entrepreneurship

 
Chapter Summary

 
Key Terms and Concepts

 
Case 16.1 KaBOOM!

 
Case 16.2 Harlem Children’s Zone

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books/Journa

 
Websites

 
 
Chapter 17. Governing and Managing International and Global Organizations
Definitions and Scope of International Organizations

 
International Philanthropy and Fundraising

 
International Giving

 
Global Fundraising

 
International Nonprofit Governance and Management

 
Managing Across Cultures

 
Governing International and Global Organizations

 
Structuring International NGOs

 
Chapter Summary

 
Key Terms and Concepts

 
Case 17.1 Médecins Sans Frontières/Doctors Without Borders

 
Case 17.2 Haitian Earthquake Relief and Recovery

 
Questions for Discussion

 
Suggestions for Further Reading

 
Books

 
Websites

 
 
Conclusion
 
Appendix: Cases for Discussion
1. New York City Opera

 
2. Share Our Strength/No Kid Hungry

 
3. The Y

 
4. The Girl Scouts of the United States of America

 
 
References
 
Index
 
About the Author

Supplements

Instructors Resource Site
  • Microsoft® Word® test bank is available containing multiple choice, true/false, and essay questions for each chapter. The test bank provides you with a diverse range of pre-written options as well as the opportunity for editing any question and/or inserting your own personalized questions to effectively assess students’ progress and understanding.
  • Editable, chapter-specific Microsoft® PowerPoint® slides offer you complete flexibility in easily creating a multimedia presentation for your course.
  • Sample course syllabi for semester and quarter courses provide suggested models for use when creating the syllabi for your courses.
  • Chapter outlines summarize key concepts on a chapter-by-chapter basis to help with preparation for lectures and class discussions.
  • Case activities are designed for instructors to expand questions to students, or initiate class discussion.
  • Chapter-specific discussion questions help launch classroom interaction by prompting students to engage with the material and by reinforcing important content.  
  • Carefully selected, web-based video links feature relevant interviews, lectures, personal stories, inquiries, and other content for use in independent or classroom-based explorations of key topics.

“Comprehensive, well-researched and -documented, contemporary, well written, and holds the attention of students. Contains material that can be use as deep background even if the course design does not cover the material in depth. A resource for students to use beyond the course.”

Patricia H. Deyton
Simmons College, School of Management

“This is the best all-around text.”

Maya Esparza
San Jose State University

“Nonprofit Management Principles and Practice provides an excellent overview of the complexities, management challenges, and importance of the nonprofit sector in the United States. It’s easy-to-use format is appropriate for undergraduates and entry-level nonprofit professionals who wish to develop a broader understanding of the nonprofit sector.”

Crystal Tull
University of San Diego

I used a previous edition of this text last fall and my students loved it. Of special note are the cases at the end of each chapter, which gave students opportunities to apply and compare various management approaches to realistic situations. I plan to use the latest edition of this text in fall 2019.

Ms Bonnie McEwan
School of International Affairs, The New School University
April 11, 2019

Great book, comprehensive and has plenty of material for students. Highly recommended.

Professor Karlerik Naslund
Public Policy, Univ of Texas-San Antonio Downtown
June 18, 2018

Michael Worth has produced a comprehensive overview of the nonprofit sector that provides students with a strong foundation in nonprofit management. The book has recent updates relevant to new policies effecting nonprofit organizations. Although it is primarily focused on the US context, there is ample treatment of NGOs and other topics like social entrepreneurship that have a broader application. The book also includes ancillary materials for instructors that facilitate a variety of enhancements to the classroom.

Dr Robert Silverman
Urban Regional Planning Dept, SUNY At Buffalo
June 15, 2018

For instructors

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ISBN: 9781506396866
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