Chapter 1: Nonprofit Management as a Profession and a Field of Study

Two Fundamental Questions

Why do nonprofit organizations need to be managed? Is management of a nonprofit organization really different from management of a business or government agency?

Need for Effective Nonprofit Management

Increased competition for government funding Demand for nonprofit organizations to show measurable results Focus on organizational capacity and sustainability Growth in the nonprofit sector and its assets

Nonprofit Management as a Distinct Profession

Organizational trade-offs between mission, acquisition of resources, and strategy Complex relationships among various stakeholders Double bottom line of social and financial results Addressing problems that are exceptionally difficult and intractable

Management as an Independent Field of Study

Management functions performed throughout civilized history, but not recognized as an independent field of study until the late 19th century
Henry R. Towne article (1886) Wharton School (1989) First doctoral dissertation in management (1915)

Early study of management focused on business organizations

Timeline for the Study of Nonprofit Management

Early management theorists did not distinguish between management in business, public, and nonprofit sectors 1960s -- recognition of differences between business and public management 1970s -- recognition of differences unique to nonprofit management 1980s -- government outsourcing delivery and management of social and human services draws attention to nonprofit sector 1990s -- significant attention paid to nonprofit management by scholars and writers

Sources of Nonprofit Management Literature

Social scientists who study nonprofit organizations Organizational theory, theories of organizational behavior, and management theory from the business and public sectors Practitioners, including consultants, working in and with the nonprofit field

Growth in the Study of Nonprofit Management (Mirabella 2007 )

426 programs in nonprofit management, offered at 238 colleges and universities

Number of undergraduate programs grew by 36 percent between 2002 and 2006 Number of graduate programs grew by 26 percent between 1996 and 2006

Nonprofit Management as an Evolving Field

Where should nonprofit management be taught?
Schools of business or management Schools of public administration and public policy Other academic units

What is the primary role of nonprofit organizations?

Social institutions responsible for preserving social values (emphasizing process) Social enterprises responsible for achieving a defined mission (emphasizing results)