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Summary: Most Pressing Issues In Nonprofit Management

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Most Pressing Issue in Nonprofit Management
Nonprofits have an array of issues. Some of these issues include maintaining public trust, developing methods for tracking performance, creating a strong capital structure, evaluating their lines of business, diversifying their share of stakeholders, and meeting the growing market for their services. Nevertheless, the most pressing issue in nonprofit management concerns meeting the demands of the federal government upon nonprofits receiving federal aid.

History of ethical Issue in Nonprofit Management
The federal government pushed for the creation of nonprofits during President Lyndon B. Johnson’s administration. In 1958, President Johnson came across the statistics against individuals living in …show more content…

The concept behind the new civil society is that individuals living in poverty can get out of poverty with aid and given a voice to speak their concerns and create their own futures (Cohen, 2014, para. 1). As a result, of the War on Poverty the federal government created and supported agencies and policies that helped populations in need in the urban and rural areas. Some of these agencies and public policies include the Job Corps, VISTA, Head Start, and Medicaid.

Today nearly a million “nonprofits and religious organizations are charged with delivering many of our public services” (Carman, Fredericks, & Introcaso, 2008, p.7). Nonprofits supply a majority of the human services in the United States (as cited in Carman, Fredericks, & Introcaso, 2008, p.7). Many nonprofits are able to carry out these public services with the financial aid received from the federal government through contracts and grants. Since, nonprofits provide a majority of public services the federal government is holding nonprofits more and more accountable for their delivery of these public …show more content…

The federal government expects for nonprofits to achieve results. The failure of nonprofits to produce results may lead to a decrease or withdrawal of funding for that agency. Consequently, the federal government has put into place several processes to have nonprofits evaluate each step they take towards achieving their respective missions.

Smaller nonprofits are most affected by the strings attached through federal aid. Smaller nonprofits may not have the workforce or the knowledge to create strategic plans, business plans, and performance reports. Thus, nonprofits may have to invest in training its current workforce to develop these skills in its workers. Furthermore, these agencies have the option of hiring an individual who has the skills to develop strategic plans, business plans, and performance reports. Nevertheless, whatever option is chosen nonprofit agencies will expend time and resources to train or higher personnel with these skills.

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