Governance and Charity

Verified

Added on  2023/04/21

|10
|2194
|456
AI Summary
This essay analyzes two articles on the importance of governance and charity in society. It discusses the shift in government responsibilities towards the welfare of the people and the concept of good governance. The articles also examine the organization and functioning of charity organizations. Critical analysis of the articles highlights the need for a balance between organization and the main activities of charity. The comparison of the articles emphasizes the importance of serving humanity and the potential pitfalls of governance. Overall, the essay emphasizes the importance of ensuring that charity organizations fulfill their obligations and serve the people in need.

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Running head: GOVERNANCE AND CHARITY
Governance and Charity
Name of the Student
Name of the University
Author Note

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
1GOVERNANCE AND CHARITY
Table of Contents
Introduction......................................................................................................................................2
Analysis of Article 1: Governance for Good...................................................................................2
What does the article recommend....................................................................................................4
Critical analysis of the article..........................................................................................................4
Analysis of Article 2: The Governance of Not-For-Profit Firms....................................................4
What does the article recommend....................................................................................................5
Critical analysis of the article..........................................................................................................5
Comparison of the articles...............................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................8
Document Page
2GOVERNANCE AND CHARITY
Introduction
All the nation states of the world have a well instituted government whose main objective
is to ensure the achievement of the national interest of the concerned country (Larsen et al.
2017). In the contemporary globalized world of today, all the various states of the world are
interdependent upon each other as a result of their economic inter dependency. This ensures that
no country lives in isolation. Such inter dependency has an impact not only on the economic
regimes of the country but also on the political and social spheres. For instance, any mishaps that
occur in one of the country of the world, automatically involves all the countries of the world
because of the concept of humanity. The idea of humanity demands that all the individuals of the
world should be treated with respect and in an equal manner so that they may be able to enjoy a
decent standard of living (Hermalin and Weisbach 2017). It is the duty of the government of the
various nation states of the world to ensure and uphold this idea of humanity. This essay seeks to
analyze two articles and critically analyze them on the basis of the main arguments as put
forward by them.
Analysis of Article 1: Governance for Good
The article entitled “Governance for good” written by the Government of Australia
talks about the importance of the concept of ‘governance’. The main argument of the paper is
that the responsibility of the government in the olden days was towards the institution of the state
and the protection of its national interest. However, with the rise in the importance of human
rights and freedom, there has been a shift of focus of the duties and responsibility of the agency
of the government. Nowadays, the government of the various nation states of the world are
required to put in more effort towards the welfare of the people of the state and in improving
Document Page
3GOVERNANCE AND CHARITY
their standard of living (Nkundabanyanga 2016). This increase in the scope of the governmental
activities is known as governance. According to the author, the very function of governance is
the activities, processes and relationships which ensures that a particular institution is
functioning in a proper manner. The article also delves deeper in to the concept of good
governance. According to the article, good governance only occurs when the stake holders have
clearly identified their main objectives and reasons for undertaking a particular task. For this
purpose, the article encourages its readers to ask a couple of questions to themselves so that they
are clear about their requirements and understand what needs to be done. The third concept that
the article looks in to is the concept of charity. Often time charities are considered to be those
organizations who under take those activities which do not have an inherent profit motive
associated with it (Niestroy and Meuleman 2015). However, according to the article charities
refer to those organization which are registered under the ACNC Act of the government of
Australia. This is a legal requirement for charities in order to be recognized for their work (Bain
and Band 2016). The ACNC is an independent national organization which regulates the
working of the various institutions of charity. The functions of the ACNC includes giving the
due recognition to the various organizations of charity, ensuring that the different institutions of
charity comply with their respective obligations and responsibilities, providing the necessary
information and guidance to the members involved in charitable work so that they can execute
their work in an efficient manner. The function of charity is important for the human society as
the people involved (Healey et al. 2017). The paper also puts forth the idea how a charity
organization should be organized. It lays down the rules and policies for appointing a board
member to the charity organization and the various guidelines for them to follow.

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
4GOVERNANCE AND CHARITY
What does the article recommend
The article recommends the appointment of board members to the charity organization
to ensure the smooth functioning of the organization. Such a recommendation has been made in
order to provide for an efficient organization whose work will be to provide for the well-being of
the people in the society.
Critical analysis of the article
The main critique of this article is that it has a very mechanistic approach to it. It does
not elaborate on the human nature associated with the function of charity. The paper lays
considerable stress on the organization of a charitable institution. For instance, it tells the reader
about the various ways in which the board members can be appointed or can be terminated.
Moreover, it tells us about how an organization can be considered as a not for profit
organization. The article also talks about the policies and guidelines for the members of the
charity organization to follow in order to ensure that the organization manages to fulfill its
obligations. However, the article makes very little mention about the importance of such charity
organizations for the human society. The sociological implications of the establishments of such
organizations have been completely ignored in the paper (Oakes 2016).
Analysis of Article 2: The Governance of Not-For-Profit Firms
The second article written by Glaesar (2002) titled “The Governance of Not-For-Profit
Firms” looks in to the various distinctions between a profit organization and a not for profit
organization (Governance for good: The ACNC’s guide for charity board members, 2019). In the
capitalist world of today, the activities of the private players have increased to a great extent.
This is because the agency of the state hardly interferes in the activities of the private
Document Page
5GOVERNANCE AND CHARITY
organizations and they have been given a free reign to undertake any activity they want. The
main objective of any private organization is to earn more profit and increase its revenue
earnings. On the other hand, a not for profit organization, according to the article, is an
organization that does not have any profit motive. The main objective of such organization s to
attain the fulfillment of a social objective. As a result of their honest intentions towards the
society, a particular advantage enjoyed by such organizations is that of tax deductibility. A
charitable organization does not have to pay tax as their earnings are in the form of donations.
Such privilege is not given to a private business as they have clear profit motives which often
leads them to exploit the natural resources of the earth in an adverse manner (Price 2017).
However, the author of this article harps on the tendency of the not for profit organizations to
assume a profit motive, especially those involved in the sphere of medicine.
What does the article recommend
The article recommends increasing the power of the board members as they are the
only ones who yield authority within a non-profit organization. Such a recommendation has been
made because charity organizations do not come under the jurisdiction of any agency of the state.
Critical analysis of the article
The article is critiqued on the grounds that it places too much emphasis on the
organization of the institution. Moreover, by increasing the power and authority of the board
members, there can be the danger of them becoming authoritarian. Thus, there is a need for other
sources of checks and balances.
Document Page
6GOVERNANCE AND CHARITY
Comparison of the articles
The similarity between these two articles, one written by the Government of Australia,
titled “Governance for good” and the other written by Glaesar (2002) titled “The Governance of
Not-For-Profit Firms” talks about the necessity for governance and how to organize it within the
folds of the private sector. In today’s age of globalization and privatization, the motive of
earning a higher profit margin has engulfed most of the agencies of the state and the private
organizations. This has a wide spread adverse impact as the activities of such organization only
leads to exploitation of the resources of the Earth without providing any kind of compensation
for their harmful activities. This necessitates the institution of those organizations whose primary
aim is to serve human kind (Loewenberg 2018). The survival of the human race and their relative
well-being is the utmost requirement of time period. As a consequence, the articles focus on this
aspect of humanity. However, a similar trend that can be noted in the two articles is that both of
them focus too much on the organization of the institution of charity rather than on the main
activity of the charity itself. For instance, in the “Governance for good” article, the Government
of Australia has put in too much details about how the board members can be appointed and
what are their eligibility criteria for this purpose. Similarly, the article “The Governance of Not-
For-Profit Firms” emphasizes on the importance of the board members as such organizations do
not come under the purview of the agency of the government.
Conclusion
In conclusion it is observed that it is not only important to organize the insitutions,
their activities is also important. Emphasis should be put on the well-being of the people. For this
purpose, there is a necessity to ensure that all the proceeds and donations of the charity

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
7GOVERNANCE AND CHARITY
organizations are given to the people in need. It is the responsibility of the board members to
look after this essential duty.
Document Page
8GOVERNANCE AND CHARITY
References:
Larsen, C., Rand, S., Schmid, A., Nagel, T. and Heike, H., 2017. The Importance of Governance
in Regional Labour Market Monitoring for Evidence-based Policy-making. Rainer Hampp
Verlag.
Hermalin, B.E. and Weisbach, M.S., 2017. Introduction: The Study of Corporate Governance.
In The Handbook of the Economics of Corporate Governance (Vol. 1, pp. 1-15). North-Holland.
Nkundabanyanga, S.K., 2016. Board governance, intellectual capital and firm performance:
Importance of multiplicative effects. Journal of Economic and Administrative Sciences, 32(1),
pp.20-45.
Bain, N. and Band, D., 2016. Winning ways through corporate governance. Springer.
Healey, P., Cars, G., Madanipour, A. and De Magalhaes, C., 2017. Transforming governance,
institutionalist analysis and institutional capacity. In Urban governance, institutional capacity
and social milieux (pp. 20-42). Routledge.
Leal Filho, W., Platje, J., Gerstlberger, W., Ciegis, R., Kääriä, J., Klavins, M. and Kliucininkas,
L., 2016. The role of governance in realising the transition towards sustainable societies. Journal
of Cleaner Production, 113, pp.755-766.
Niestroy, I. and Meuleman, L., 2015. Common but differentiated governance: Making the SDGs
work. Sustainability, 7(9), pp.12295-12321.
Oakes, G., 2016. Project reviews, assurance and governance. Gower.
Price, P.X., 2017. Liberty, poverty and charity in the political economy of Josiah Tucker and
Joseph Butler. Modern Intellectual History, pp.1-30.
Document Page
9GOVERNANCE AND CHARITY
Loewenberg, F.M., 2018. From charity to social justice: The emergence of communal
institutions for the support of the poor in ancient Judaism. Routledge.
Glaeser, E.L., 2002. The governance of not-for-profit firms(No. w8921). National Bureau of
Economic Research.
Governance for good: The ACNC’s guide for charity board members. (2019). Government of
Australia.
1 out of 10
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]