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Lecture 15

Lecture #15 - Not-for-profit Sector Challenges and Opportunities Typed Filled in notes for lecture 15 - unit 2- Not-for-profit Sector Challenges and Opportunities - The prof gives lecture notes with blanks which needs to be filled during the lecture, I ha

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Department
Recreation and Leisure Studies
Course Code
REC101
Professor
Troy Glover

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Not-for-profit Sector Challenges and Opportunities
REC 101
November 5, 2010
Issues that Affect Future Vitality
Struggling with external environment and internal capacity to fulfill mission
o Not be able to secure grant funding because of the competitive environment
o People are not donating as much as before
Tracking economic contributions and inputs
o ( e.g private giving & volunteer time )
Sector is beginning to be recognized as a crucial contributor to quality of life in Canada
o More recently the NFP organization were recognized for their social contributions
Immediate Organizational Challenges
Reductions in funding
o In terms of government support and grants available
Need to compete for funding
o Number of charitable organization have increased, so they are competing on the
pool of grants
Move toward project funding instead of general support for organizational activities
Restriction of funding to costs with little provision for infrastructure or overhead
o Project specific expenses
Shortening in the length of time for which funding is provided
o Short term with view -> it is hard to secure long term grants
Mandated collaboration with other organizations
o The sectors are connecting and partnering
o E.g lecture talk -> the building that is being built and contributed by the university
operated by the YMCA and other contributions
Increasing requirements for financial accountability
o Make it time consuming and expertise in respect of the staff
Implications for Management
Makes strategic planning difficult
o Since most of the funding is short term
Creates constant staff turnover
o Lead to employee and customer dissatisfaction
Increases administrative burden
o Because of the accountability and other challenges
Implications for Organizations
Becoming cost-efficient extensions of government
o Government saves money by out sourcing services to the NFP sector
Current funding environment makes it difficult for NPOs to act independently
o Interdependent -> when the NFP are mandated to work with other organizations
Prospects for Private Giving
Between 1997 and 2000, total volunteer hours declined by 5%
o Decreased volunteering
Volunteering declined from 31% of the population to 27%
o Only over a quarter, not like the past
Financial donations have increased, but the % of donors did not
o Donor fatigue
Division within the sector
Large nonprofit, charitable organizations made up of largely paid staff (e.g YMCA)
vs.
Smaller voluntary organizations dependent upon earned income from nongovernmental sources
and private donations ( grass roots organizations ) ( not be able to secure
Organizational Designs
Organizational Designs ( IMPORTANT FOR EXAM -> know the different between all three)
Kitchen Table
Boardroom
Executive Office
Specialization
Roles based on interest
and loyalty
Specialized roles and
committees
Professional,
technical, and
administrative expertise
Standardization
Few rules, some
planning. (informal ,
flexible )
Formal roles, rules, and
programs.
Formal roles, rules, and
programs
Centralization
Decisions made by a few
volunteers
Decisions made by the
volunteer board.
Decisions decentralized
to the professional staff.
Note:
Kitchen table -> grass roots, and ultimate Frisbee club
Boardroom -> committee
Executive office -> YMCA
Changes to Public Policy
Definition of charity too restrictive

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Description
Not-for-profit Sector Challenges and Opportunities REC 101 November 5, 2010 Issues that Affect Future Vitality  Struggling with external environment and internal capacity to fulfill mission o Not be able to secure grant funding because of the competitive environment o People are not donating as much as before  Tracking economic contributions and inputs o ( e.g private giving & volunteer time )  Sector is beginning to be recognized as a crucial contributor to quality of life in Canada o More recently the NFP organization were recognized for their social contributions Immediate Organizational Challenges  Reductions in funding o In terms of government support and grants available  Need to compete for funding o Number of charitable organization have increased, so they are competing on the pool of grants  Move toward project funding instead of general support for organizational activities  Restriction of funding to costs with little provision for infrastructure or overhead o Project specific expenses  Shortening in the length of time for which funding is provided o Short term with view -> it is hard to secure long term grants  Mandated collaboration with other organizations o The sectors are connecting and partnering o E.g lecture talk -> the building that is being built and contributed by the university operated by the YMCA and other contributions  Increasing requirements for financial accountability o Make it time consuming and expertise in respect of the staff Implications for Management  Makes strategic planning difficult o Since most of the funding is short term  Creates constant staff turnover o Lead to employee and customer dissatisfaction  Increases administrative burden o Because of the accountability and other challenges Implications for Organizations  Becoming cost-efficient extensions of government o Government saves money by out sourcing services to the NFP se
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