Question

1. Should gifts be made by individuals to a nonprofit organization that receives the largest portion of its revenues from fees for services be fully tax deductible, partially tax deductible, or not deductible at all? Explain your answer. (Chapter 2)

2. If you needed to stay in the hospital, would you prefer to go to a nonprofit hospital or one managed by a for-profit company? Or would it not make a difference to you? Why? (Chapter 3)

3. Should boards of nonprofits be concerned only with the intention of doors and the interests of those who benefit from the nonprofits assets, or should they also consider the impact of their decisions on local communities? Explain your answer. (Chapter4)

4. Are leaders born or made? Can anyone learn to be a leader, or does it require some innate qualities or characteristics of the individual? Explain your answer. (Chapter 5) Discuss the concepts of effectiveness, efficiency and organizational performance as they relate to any nonprofit organization? Explain your answer. (Chapter 6)

5. Suppose a nonprofit organization’s strategy requires that it phase out a program on which few people rely, but those people are vulnerable and no good substitute exists? How might the organization proceed with its plan in an ethical and humane manner? Explain your answer. (Chapter 7)

6. Is competition among nonprofit organizations an acceptable concept, or is it contrary to the values of the sector? Explain your answer. (Chapter 7)

Answer 1

1.Should gifts made by individuals to a nonprofit organization that receives the largest portion of its revenues from fees for services be fully tax deductible, partially tax deductible, or not deductible at all?

The answer is If a nonprofit status is 501 (c) 3 than any gifts are tax deductible.

2. I will stay in the non profit hospital.

Although nonprofit and for-profit hospitals are fundamentally similar, there are significant cultural and operational differences, such as strategic approaches to scale and operational discipline.

There are five primary differences between for-profit and nonprofit hospitals.

a.TAX STATUS For-profit hospitals generally have to be more cost-efficient because of the financial hurdles they have to clear: sales taxes, property taxes, all the taxes nonprofits don't have to worry about

b.OPERATIONAL DISCIPLINE

c.FINANCIAL PRESSURE : Finance team members at for-profits must be willing to push themselves to meet performance goals

d.SCALE : The for-profit hospital sector is highly concentrated

e.COMPETITIVE EDGE : There are valuable lessons for nonprofits to draw from the for-profit business model as the healthcare industry shifts from volume to value.

3.

Boards of directors may be designated by other names:

• trustees
• regents
• directors
• council.

Directors are required to perform their duties in good faith, with ordinary care, and in the best interest of the nonprofit.

• In good faith. Good faith is shown by honesty and faithfulness to duties and obligations.

• With ordinary care. Ordinary care is the use of good judgment and common sense. It means doing what an ordinarily prudent person in a similar position would do under similar circumstances. Ordinary care may differ from director to director based on their background and experience and the role they play in the organization.

• In the best interest of the nonprofit. A director acts in the best interest of the nonprofit if the director reasonably believes that the action will benefit the nonprofit. Doing what is in the best interest of the nonprofit means being loyal to the nonprofit – it means the nonprofit’s interest prevails over the director’s personal or business interest. Doing what is in the best interest of the nonprofit means that directors are obedient to the “laws” of that nonprofit, which include adhering to the Articles of Incorporation (or Certificate of Formation), bylaws, tax-exempt status, and faithfully following its mission and purpose. As always, it means that directors follows all laws applying to the nonprofit – federal, state, and local laws and regulations.

4.

Leaders are made not born:

Behavioral Theories believe that people can become leaders through the process of teaching, learning and observation. Leadership is a set of skills that can be learned by training, perception, practice and experience over time. Leadership learning is lifetime activity. Good leaders seek out development opportunities that will help them learn new skills.

6.

Competition is a reality for every organization – for-profit or not. So many companies exist and when there’s even a slight overlap in their work, competition emerges. As a nonprofit, you need individuals to hear and be conscious of your mission in order to succeed.

Knowing Your Nonprofit

Before you concern yourself with what other organizations are doing, you should get familiar with your own organization. Understanding your own goals and your nonprofit’s impact will keep you from getting too caught up in the comparison game. Feldmann gave us some objectives for nonprofits to work toward when trying to wiggle their way through a crowded market.