Nonprofit Organizations

Helmut K. Anheier is Professor of Sociology and Dean at the Hertie School of Governance, Germany. He also holds a chair of sociology at Heidelberg University and serves as Academic Director of the Centre for Social Investment. He has previously been professor of Public Policy and Social Welfare at ULCA’s School of Public Affairs and Centennial Professor at the London School of Economics

Part I: Studying Nonprofit Organizations 1. Studying Nonprofit Organizations 2. Historical Background 3. Concepts Part II: Dimensions 4. Dimensions I: Overview 5. Dimensions II: Specific Fields 6. Giving, Philanthropy and Foundations 7. Civic Engagement Part III: Approaches 8. Theories of Nonprofit Organizations 9. Approaches to Giving and Philanthropy 10. Studying Civic Engagement, Volunteering and Social Entrepreneurship Part IV: Managing Nonprofit Organizations 11. Organizational Behavior and Performance 12. Management Models and Tools 13. Financing Nonprofit Organizations 14. Leadership and Human Resources 15. Governance, Accountability, and Transparency 16. State-Nonprofit Relations Part V: Current Issues and Developments 17. International Aspects and Globalization 18. Policy Issues and Developments

Chapter 1
This introductory chapter presents an overview of the range of nonprofit institutions, organizations and activities. The chapter briefly surveys the intellectual and political history of the study of nonprofit organizations, and states some of the key intellectual, practical and policy-related issues involved. It also discusses how the field relates to the various social science disciplines, and shows its interdisciplinary nature. Finally, the chapter includes a description of the objectives and structure of the book by offering brief chapter summaries.

Chapter 2
This chapter introduces the historical background to the development of the US non-profit sector in the context of the wider civil society, and then compares the American experience to other countries. It shows the path dependency of the nonprofit sector and the development of distinct types of nonprofit regimes. The chapter also links the historical study of the nonprofit sector to notions of state-society relations, forms of democracy, economic development, and community.

Chapter 3
This chapter discusses the various types of activities (volunteering, giving, civic engagement, advocacy, service provision), organizations (charities, foundations, associations, social enterprises) and institutions (charity, philanthropy, social economy community, solidarity) that make up, or relate to, the nonprofit sector, and looks at the various attempts to define the area between the market, state and household sectors. The chapter also explores how the nonprofit sector relates to the concept of civil society and the social economy, to social capital approaches, and to terms such as social investment, social entrepreneurship, and the social economy.

Chapter 4
In a first section, this chapter presents an overview of the size, composition, revenue structure and role of the nonprofit sector in the US. The chapter also considers the place of the nonprofit sector within the mixed economy of quasi-public goods as well as the wider economy. In a second section, the chapter presents an overview of the size, composition, revenue structure and role of the nonprofit sector in other parts of the world (the UK, EU, Canada, Australia, etc.) and places the US nonprofit sector in comparative perspective.

Chapter 5
This chapter introduces the nonprofit sector in the context of selected fields of activity and examines in particular how nonprofit organizations compare in scale and scope to the other two major institutional complexes of modern society: the public sector and the market. The chapter also suggests a number of challenges and opportunities facing nonprofit organizations in each field of activity.

Chapter 6
This chapter first looks at the dimensions of individual giving in the US and other countries. Then, following a brief overview of the history of institutional philanthropy and how the modern foundation evolved over the centuries, the chapter presents an empirical overview of different types of foundations and other forms of philanthropy (donor advised funds, strategic philanthropy, etc.), and surveys their size, activities and development over time, both in the United States and other countries.

Chapter 7
In a first section, this chapter offers a sociological portrait of civic engagement, including volunteering, social participation, and caring behavior in the US and other parts of the world. The chapter looks at both the extent and the patterns of civic engagement, and how these relate to the nonprofit sector and social capital. The chapter also introduces data demonstrating the link between nonprofit organizations, civic engagement and notions of social trust and cohesion.

Chapter 8
This chapter offers an overview of various economic, sociological and political science approaches that address the origins, behavior, and impact of nonprofit organizations. It compares these approaches with one another, highlighting their strengths and weaknesses, and points to new and emerging theoretical developments.

Chapter 9
This chapter introduces different perspectives on giving and philanthropy in modern society, in particular the roles and contributions that have been suggested in the literature about the role of philanthropy in the US and other parts of the world, in particular Europe. Why do individuals make donations, why do foundations exist, what functions do foundations perform, and what has been their impact?

Chapter 10
This chapter first offers an overview of theories of civic engagement and volunteering. Why do people volunteer? What motivates them to become active in local communities; what accounts for social participation, community building, etc.? The chapter will discuss sociological and economic approaches to civic engagement and volunteering, before, in a second part, reviewing the various forms of social entrepreneurship. The chapter will then address why social entrepreneurship is important and why it comes about, and offer an overview of current approaches.

Chapter 11
This chapter looks at organizational theory and its contributions to understanding non-profit organizations. The chapter also explores the factors involved in shaping the development of nonprofit organizations over time. It then examines more specific aspects of organizational structure and sets the stage for the presentation of different management approaches. It examines the functions and contributions of nonprofit organizations in different fields and explores if, and under what conditions, they perform distinct tasks. This includes a discussion of performance measurement models and approaches. The chapter ends with a brief introduction to the organizational ramifications of alliances and mergers.

Chapter 12
The chapter reviews the background to nonprofit management. It introduces a normativeanalytical management approach based on the notion that nonprofits are multiple stakeholder organizations. The chapter then reviews a number of basic management tools and issues with an emphasis on strategic management and planning techniques appropriate for nonprofits.

Chapter 13
Introducing different business models and revenue generating strategies, this chapter offers an overview of how and for what nonprofit organizations use financial resources for achieving their objectives. The chapter reviews various revenue strategies for nonprofits, including fund-raising. The chapter concludes with an introduction to financial management and the development of business plans.

Chapter 14
In a first part, this chapter offers an overview of the theory and practice of leadership in nonprofit organizations from a multiple stakeholder perspective. The remainder of the chapter presents an overview of human resources management in the nonprofit sector, with emphasis on both paid employees and volunteers.

Chapter 15
This chapter is in two parts. First, the chapter explores the special requirements that arise for governance, accountability and transparency from a multiple stakeholder perspective. Against this background, the chapter considers the governance of nonprofit organizations; reviews the role of the board, and the relationship between the board and management; examines the different forms of accountability; and explains the role of transparency.

Chapter 16
This chapter considers the different models and types of relationships non-profit organizations have with the state in terms of funding and contracting, regulation, and consultation. The chapter also discusses the advantages and disadvantages of relations with governmental bodies and explores different forms of public-private partnerships.

Chapter 17
This chapter examines the internationalization of the nonprofit sector in the context of globalization and explores some of the reasons for the significant expansion of cross-border activities. Next, the chapter focuses on the management of international nongovernmental organizations and other types of nonprofits that operate across borders.

Chapter 18
This chapter first refers back to Chapters 1 and 2, taking a more comparative-historical look at macro-level changes that have affected and will continue to affect the nonprofit sector over time, in particular the supply and demand conditions for nonprofit development. Next, the chapter looks at the impact of the 2008-12 financial and economic crises and explores their implications from the perspective of organizational theory. In a closing section, the chapter returns to broader, long-term issues and explores different scenarios for the future of the nonprofit sector.