Analysis of Strategic Management in Nonprofit Organizations (MGMT)

This report delves into the realm of strategic management within nonprofit organizations, examining critical aspects such as their tax-exempt status, ownership structures, and diverse funding sources. The research investigates the methods employed by these organizations to manage financial records, highlighting key differences from for-profit entities. The report explores the utilization of assets, emphasizing the importance of careful financial handling due to limited resources, and the role of the Balanced Scorecard in performance measurement. Additionally, it covers the administration of budgetary records and the literature review comparing and contrasting nonprofit and for-profit entities. The findings are based on a quantitative research approach, utilizing surveys to gather insights from nonprofit managers, shedding light on the core missions and objectives of nonprofit organizations and their approaches to strategic management.

STRATEGIC MANAGEMENT IN NON-PROFIT ORGANIZATIONS
November 15, 2017

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Table of Contents
Introduction................................................................................................................................................3
Research Questions................................................................................................................................4
Research Method Used...........................................................................................................................4
Findings.......................................................................................................................................................5
Discussion...............................................................................................................................................6
Utilization of Assets................................................................................................................................7
Administration of Budgetary Records....................................................................................................8
Literature Review........................................................................................................................................9
Conclusion: Final View..........................................................................................................................11
References................................................................................................................................................12

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Introduction
A nonprofit association is a partnership or an affiliation that does business for the advantage of
the overall population without investors and a benefit thought process. There are monstrous
group benefits as a not-for-profit and acknowledges everybody paying little respect to capacity
to pay. Nonprofit organizations are approved to assess excluded status which causes them to
give services to people in general and are relied upon to be powerful bosses of their finances
and also to be proficient. In doing as such, they can pick up exclusions from the government,
and state wages assessments as well as request deductible charge commitments (Adeolu &
Afolabi, 2010).
According to Ahmed & Mohamed (2017), the subject of responsibility on accounts and
financing as well as performance measurement has turned out to be earnest for nonprofit
organizations as they experience expanding rivalry from a multiplying number of offices, all
contending for the rare benefactor, establishment, and government financing. However, the
general population execution reports and numerous interior execution estimation frameworks
of these organizations concentrate just on money-related measures, for example, gifts,
consumptions, and working cost proportions. Accomplishment for nonprofits ought to be
Nonprofit
organization
Cash flow
management
Cash
Management
Plan
Different
funding
sources
Planning for
new projects
Accomplish
more
projects
Keep
employees and
hire more

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measured by how successfully and productively they address the issues of their voting
demographics. Monetary contemplations can play an empowering or obliging part; however,
will once in a while be the essential target. At the smaller scale, automatic level, organizations
may have heap measures to track and control nearby activities. These measures, in any case,
don't identify with general authoritative mission and targets (Alfonso et al., 2010).
Research Questions
1) Are nonprofit organizations tax-exempt?
2) What is the ownership structure of nonprofit organizations?
3) What is the source of funds for nonprofit organizations?
4) How are financial records managed by a nonprofit organization?
5) Why do nonprofit organizations exist?
Research Method Used
In this part, the examination system utilized as a bit of the examination is described. The
geological area where the examination was driven, the examination plan and the general
population and test are portrayed. A quantitative approach was taken after. Ansgar & Diana
(2011) portray quantitative research as a formal, objective, strategic to delineate and test
affiliations in addition to exploring conditions and the last-item relationship among factors.
Reviews might be utilized for outlines, valuable and exploratory research. An expressive
examination setup was utilized. Moreover, a survey is utilized to collect exceptional information
for delineating expansive people, particularly making it difficult to watch.

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A framework gets data from a case of individuals by procedures for self-report, that is, the
general public reacts to a development of demand postured by the specialist. In this
examination, the data was gathered through independently directed studies scattered
inevitably to the subjects by the examiner. The review was picked since it gives a right depiction
or record of the qualities, for instance, lead, suppositions, points of confinement, sentiments,
and information of a specific individual, condition or gathering. This chart has met the targets of
the examination, to be specific to pick the learning and perspectives of respondents concerning
the administration.
Findings
Information was acquired from self-controlled reviews or surveys, wrapped up by 32 directors
(n=32), a 43% reaction rate; enduring that single portion of the aggregate masses of 394
supervisors in various organizations may provoke an honest to a good conclusion. The way
additionally upholds this that a little fragment of the pros in this present business has non-
administrative posts, for instance, they might be secured with supervisory.
A total of 22 reviews was gotten, in any case, only 93 surveys were usable for this examination
and met the required joining criteria as talked about in the previous part. This tended to 43% of

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the conventional masses. Neither the explanations behind the refusal to take a premium nor
the attributes of the non-respondents are known, the typically low reaction to traces of expired
data might be a divided enlightenment for the low reaction rate in this examination. Of
whatever is left of the 24 are regarded unusable, 15 respondents did not finish the study in two
subsections of the reviews. Nine respondents announced that they had not experienced
definitive administration in the most recent a half year, and along these lines did not meet the
combination criteria for this examination.
Discussion
Binod & Devi (2013) assert that revenue-driven organizations have as of late perceived that
monetary estimations without anyone else are deficient for measuring and dealing with their
execution. Money related reports measure past execution yet impart minimal to long-haul
value creation. To cure this inadequacy, David & Russell (2014) presented another execution
administration framework—called the Balanced Scorecard—for private division organizations.
The new framework held money-related estimations, however, supplemented these with
measures from three different points of view: that of the client, the interior procedure, and
learning then development.

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The underlying concentration and utilization of the Balanced Scorecard were in the revenue
driven private sector. In any case, the open door for the scorecard to enhance the
administration of nonprofits ought to be significantly more prominent. Revenue driven looking
for partnerships, the money related point of view gives a reasonable long-run objective, yet it
gives a requirement instead of a goal for nonprofits. Despite the fact that these organizations
should unquestionably monitor what they are going through and follow budgetary spending
plans, their prosperity cannot be measured by how intently they continue spending to planned
sums. Regardless of the possibility that they control spending with the goal that real costs are
kept well beneath planned sums (Elaine & Dawn, 2011).
Utilization of Assets
This is another vital zone of distinction amongst benefit and nonprofit organizations. Rather
than benefit making organizations, they utilize their cash, most importantly, to compensate
their staff group to persuade them. They likewise utilize their assets to grow their operations by
opening new product offerings through securing of new hardware and gear; to open new
branches and operations in different regions and districts. Non-benefit influencing
organizations to utilize their assets for the most part by giving fundamental products and
enterprises to the general population, and the exercises that they were set up to embrace.
These organizations are extremely cautious in the way they handle their finances since they

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have restricted wellsprings of finance. Besides, it is of incredible significance for the
contributors and well-wishers to see that their gifts are utilized viably and effectively for the
reason that they were planned on the off chance that they need to complete proceeded with
an arrangement of awards and gifts (Evelyn et al., 2010).
Administration of Budgetary Records
According to Jackson (2011), this is an extremely basic zone of contrasts between the two sorts
of organizations. In the planning of money related proclamations, the influencing bodies have
strict principles and controls. They need to set them up in adjustment to for the most part
acknowledged bookkeeping measures and practices. This is on account of there are numerous
partners who have to shift critical interests in the business. For example, the administration
would need the announcements of pay to demonstrate the genuine photo of the business
execution with the end goal of tax assessment and counteractive action of investors
misrepresentation.

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The investors have premiums in the business detailing that the business can pay them the
arrival on their put subsidizes as reasonable profits on their shareholdings. Their budgetary
proclamations must be reviewed completely by government examiners to guarantee
straightforwardness and responsibility. With regards to nonprofit organizations, their budgetary
reports are likewise examined yet they have less weight and desire since are for the most part
to fulfill the contributors and well-wishers that their assets are appropriately misused by the
association. It ought to be noticed that, there are set up bookkeeping and announcing
guidelines for the non-benefit organizations to guarantee consistency in the way budgetary
reports are readied (Madia, 2011).
Literature Review
The main purpose of thought is surely the reason behind which every association flourishes.
The nonprofit organizations, as expressed above, regularly get their assets from the gifts,
keeping in mind the end goal to do their services that are instrumental to the general public.
For example, giving alleviation, sustenance, protect, safeguard, ecological preservation and
arrangement of restorative help to the casualties of different normal and man impacted
calamities. Benefit making organizations are framed to deliver and offer merchandise and
enterprises with the sole point of making benefits as well as excess. It ought to be noticed that
benefit influencing worries to connect with themselves in the creation of merchandise and
ventures that have a popularity by purchasers, and which if there should be an occurrence of

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disappointment close their operations. They acquire subsidizing from proprietors and investors
and must circulate benefit to them (Maimunah et al., 2015).
The nonprofit organizations get their assets essentially from the stipends and gifts of the well-
wishers who can be governments, people, and other non-benefit making organizations and also
benefit making concerns. The leaders of these organizations can arrange and requested these
financing from the above sources because a large portion of them are not willing to give
because there are no profits on the assets progressed to them. Luckily, the corporate social
obligation has been underscored enough, even by the legislature, constraining numerous
corporate bodies to give a considerable measure to non-benefit making bodies. With regards to
the benefit making bodies they get their assets from various sources. This is evidently because
the subsidizing put has returned in the type of profits and interests on the borrowings
(Narendra & Karnika, 2013).
The chief wellspring of assets revenue driven making organizations is the proprietors. These are
the general population who concoct beginning the business and, in this way, have real offers of
the association. These individuals can acquire subsidizing from their investment funds or
approach budgetary and non-monetary foundations for cash. The other wellspring of assets can
be through opening up to the world when the organization is issuing its stocks and makes them
accessible to the individuals from general society on the stock exchange. Along these lines, the

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organization can fund-raise for its exercises, for example, the development of its operations
(Patricia et al., 2012).
Additionally, an organization can take a credit which is completed in two routes, to start with,
like cold hard cash from the money related or non-budgetary foundation, whereby it is required
to pay the obligation on the advance the premium. The other path is to advise on issuing
corporate securities whereby the organization commits to pay the bondholders their main sum
after the lapse of securities in addition to general intrigue installments. The other way can be
the wander financing. This is the point at which the investment stores benefit assets to
organizations with gigantic potential for development and gainfulness, and they finance it up to
80% and take up shares in it which they may pitch to proprietors when the organization
balances out (Pederzini, 2016). The investment finances ordinarily favor organizations that are
mechanically arranged.
Mergers and acquisitions are strategies of awesome significance for any business beginning
which can't contend adequately with different contenders. A merger is a point at which the two
organizations of equivalent monetary may partner to frame a major venture and advantage
from the economies of scale and synergistic impacts. This is typically by picking up a
noteworthy piece of the overall industry and a high cost of its stocks in money markets. The
securing is the point at which a substantial firm assumes control over the operations of a little
firm in a similar industry (Rothaermel, 2013).
Conclusion: Final View
Amid the previous years, nonprofit organizations have received and adjusted the private
segment Balanced Scorecard to their circumstances. A few have hoisted the part of mission and
client to the highest point of the pecking order of viewpoints, perceiving that nonprofits ought
to be responsible for how well they address an issue in the public eye instead of how well they
raise finances or control costs. Additionally, as the people or gatherings that give money related
help to nonprofits are normally unique about the individuals who are the immediate recipients
of the services given, numerous nonprofits perceive contributors or funders, and also
beneficiaries, as their clients.

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