#2 Exam Concepts Review #7
1. Non Profit Revenue
2. Non-profit organization: most are granted tax exempt status
3. Formed to operate for some religious, charitable, educational, literary, or scientific
purpose.
4. Contributors allowed to take tax deductions for their gifts to 5013 organizations. Does
not issue shares and cannot pay dividends
5. Non-Profit Organization: 1 million non profit Organization in the US: hospitals,
Education Institutions, Churchs, Community Organization (Camp Fire inc. Boy scout),
Social services (women shelters, boys and girls clubs) Special interest Groups: Sierra Club
6. A giving Culture: Americans give!
o
In 2008, they gave $307.65 billion in Charitable Contributions. 82 percent of
contributions are from individuals, representing $252 billion
o
In 2003; Americans gave $2.41 billion
o
An increase of 27.7% from 2003 to 2008
7. 2008 Donations by Source: individuals $229 billion, Individuals Bequests $22.7 billion,
Foundations $41.2 billion, Corporations $14.5 billion Source: Giving USA
8. Other Giving: In addition to giving money, donors also often give non-cash donations
(this does not include the time they volunteers, only tangible assets): Real Estate, Stock,
Electronics, Clothes, Vehicles, Food. In 2003 these donations accounted for app. $36.9
billion or $2,585 per gift.
9. Why people Give: People derive both emotional and material benefits from supporting
the work of nonprofit organizations. Recent research highlights three main drivers for people
giving:
o
Altruism: unselfish concern for the welfare for others
o
Reciprocity: giving because other contribute
o
Commitment: contributing because it's the "right thing to do"
10. Why people give: belief in the Organizations and its purpose, needs of the organization
are important, Loyalty, gratitude, and affection toward the organization, Friendship with
those asking for funds (giving is then a show of support for friends) Thanks the organziation,
staff or volunteers for past service, Ensure the continued fulfillment of the organization's
mission, tax benefits (minimize their tax bill), recognition as a supporter, Right thing to do,
attend special functions or events.
o
A struggling low-income family is moved by the philanthropic impulse as wellknown generous donors.
11. Giving is fundamentally shaped by your values
o
Values: people motivated by their own value system, which are in turn, shaped by
their life experiences.
o
What are your core values and life experiences? How will they shape your
giving? Faith, Education, Family Experience
12. How do you reach givers? Direct mail, Phonathans, Internet, Door to Door, face to face,
Workplace solicitations, Payroll deductions, planned giving, special events
13. Successful Principles of Fundraising: Successful fundraising requires careful forethought
and planning, no organization should depend so much on a single funding source that the
group would be unable to function without it. It needs Diversity.
14. People give to people more that needy institutions.
15. The care and treatment cultivation and of the donor is #. The second thing is ask for a gift
that is in relationship to the individuals' ability to give. Those two things will give you a long
term, stable, growth. It will give you a broad-based advocacy, and I think those are the two
most important parts.
16. Advice from dudley Hafner: Askign for a specific gift dramatically improves for return,
People who find the appeal a little bit too high are not offended, they're usually flattered, the
long term strategy is to upgrade gifts.
17. Advice from Arthur Brooks: people who give become better off. Religious people give
more, both in terms of money and time, than the non-religious, giving produces happiness
18. Summary: The United States has a giving culture. Successful non-profits are funded by
planning, and by diverse funding sources. People give based on their value system and life's
experiences. Non-proft culture is very different than government. Individuals are the single
largest source of funds. Face to Face is the most effective method
Nov3rd
19. PurePrivateGood:Excludable&Rival
20. CommonPoolGood:NonExcludable(can'tkeeppeoplefromconsuming),Rival
(consumptionbyone,eliminatesconsumptionbyothers.
21. TollGood:Excludable(keeppeoplefromconsuming),NonRival(consumptionby
onedoesnotdiminishconsumptionbyothers)
22. Purepublic:nonExcludable,nonrival
23. Productiondoingtheactualworkofservicedelivery
24. Provisionmakingdecisionsabouthowtheservicewillbedelivered
Whydogovernmentexist?Whydogovernmentsengageintheactivitiestheydo?
25. RespondtoMarketFailure
26. Stabilizetheeconomy
27. Distributewealth
28. Allocateresources
Whatistheunderlyingphilosophyofprivatization?
29. Privatesectorisabettersolution
30. Marketincentivesimproveresourceallocation
Whyisprivatizationseenasanimportantalternativetogovernmentproduction&
provision?
31. Politicalargumentsmarketsarebetterthangovernments
32. Efficiencyargumentsmarketsencourageefficiency
33. Businessisseenassuperiortogovernment
34. Governmentisperceivedasbudgetmaximizers
WhyPrivatization
35. Reducecosttoconsumer
36. Competition
37. Reducingtheadministrativeburdenongovernment
38. Meetingunmetneeds
39. Increaseproductivity
40. Innovation
41. Streamlinedecisionmakinggovernmentdecisionmakingisslow,takesalong
time
42. Conditionofequipment
WhynotPrivatization
43. Impactonpricesnolongerbudgetsubsidizes
44. Won'tserveremoteonunprofitableareas
45. Lossofcontrolofservicequality
46. Influenceonworkingconditions
47. Opportunitiesforcorruption
48. Creatingprivatemonopolies
Whatareourservicedeliveryalternatives?
49. Production:PublicorPrivate?
50. Provision:PublicorPrivate?
FormsofPrivatization
51. Transferofownership
52. Partialorpartial
53. Sellingagovernmententerprisetotheworkforce
54. Deregulation(aformofprivatization)
Contractingouttheservicetoprivatefirmsornonprofitorganizations
FundingofPrivatization
55. Grantstosubsidizefunctiondirecttoagency
o
Removefromdirectgovernmentprovision
o
Voucherstoindividualswhocandecidewheretheywanttopurchase
56. AreThereanyservicesthatarebadfitsforprivatization?
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