Michael J. Worth’s best-seller, Nonprofit Management: Principles and Practice,
provides a comprehensive, insightful overview of key topics nonprofit leaders encounter
daily. Worth covers both the governance and management of nonprofit organizations—
the scope and structure of the nonprofit sector, leadership of nonprofits, management,
fundraising, earned income strategies, financial management, lobbying and advocacy,
managing international and global organizations, and social entrepreneurship—helping
readers understand what they are and how they work. The text balances research, theory,
and practitioner literature with current cases and the most recent data available, making
it appropriate for undergraduates, graduate students, and nonprofit professionals.
The Sixth Edition has been updated to include new material on diversity, equality, and
inclusion; volunteer stewardship; nonprofit executive transitions; models for pursuing
earned income; ethical dilemmas and controversial donors; generational differences in the
workplace; and an exploration of the role of nonprofits in advancing social movements.
“This text provides a comprehensive look at the theories, practices, and trends informing the
effective management of nonprofit organizations in the United States. It is an excellent resource
for students at the undergraduate and graduate levels, especially for those who are interested in
pursuing a career in the nonprofit sector. This text provides timely and relevant information on
nonprofit organizations and is accessible to a range of audiences. Highly recommended.”
—Catherine E. Wilson, Villanova University
Cover image: iStock.com/nd3000
NONPROFIT MANAGEMENT
Sixth Edition
Sara Miller McCune founded SAGE Publishing in 1965 to support
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NONPROFIT MANAGEMENT
Principles and Practice
Sixth Edition
Michael J. Worth
The George Washington University
Copyright © 2021 by SAGE Publications, Inc.
All rights reserved. Except as permitted by U.S. copyright law, no part of
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Printed in the United States of America
Library of Congress Cataloging-in-Publication Data
Names: Worth, Michael J, author.
Title: Nonprofit management : principles and practice / Michael J.
Worth, The George Washington University.
Description: Sixth Edition. | Thousand Oaks : SAGE Publications, Inc,
2020. | Revised edition of the author’s Nonprofit management, [2019] |
Includes bibliographical references and index.
Identifiers: LCCN 2020025074 | ISBN 9781544379982 (paperback) |
ISBN 9781544379999 (epub) | ISBN 9781544380001 (epub) | ISBN
9781544380018 (ebook)
Subjects: LCSH: Nonprofit organizations–Management.
Classification: LCC HD62.6 .W675 2020 | DDC 658/.048–dc23
LC record available at https://lccn.loc.gov/2020025074
This book is printed on acid-free paper.
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Brief Contents
Preface xix
Acknowledgments xxiv
PART I UNDERSTANDING NONPROFIT
MANAGEMENT, THE NONPROFIT
SECTOR, AND NONPROFIT
ORGANIZATIONS 1
Chapter 1 Nonprofit Management as a Profession
and a Field of Study 2
Chapter 2 Overview of the Nonprofit Sector 18
Chapter 3 Theories of the Nonprofit Sector
and Nonprofit Organizations 52
PART II GOVERNING AND LEADING
NONPROFIT ORGANIZATIONS 79
Chapter 4 Nonprofit Governing Boards 80
Chapter 5 Executive Leadership 116
PART III MANAGING THE NONPROFIT
ORGANIZATION 143
Chapter 6 Ensuring Accountability and
Measuring Performance 144
Chapter 7 Developing Strategy, Building Capacity,
and Managing Risk 184
Chapter 8 Collaborations, Partnerships, and Mergers 218
Chapter 9 Managing Staff and Service Volunteers 246
Chapter 10 Marketing and Communications 278
Chapter 11 Advocacy and Lobbying 306
PART IV OBTAINING AND MANAGING
RESOURCES 327
Chapter 12 Financial Management 328
Chapter 13 Philanthropic Fundraising 364
Chapter 14 Social Enterprise and Earned Income 400
Chapter 15 Government Grants and Contracts 428
PART V SPECIAL TOPICS 443
Chapter 16 Social Entrepreneurship and Innovation 444
Chapter 17 Governing and Managing International
and Global Organizations 462
Conclusion 479
Appendix: Cases for Discussion 482
References 510
Index 540
About the Author 567
Detailed Contents
Preface xix
Acknowledgments xxiv
PART I UNDERSTANDING NONPROFIT
MANAGEMENT, THE NONPROFIT SECTOR,
AND NONPROFIT ORGANIZATIONS 1
Chapter 1 Nonprofit Management as a Profession
and a Field of Study 2
A Revolution in Management 4
A Distinct Profession 5
Nonprofit Management as a Field of Study 8
Toward a Balanced Approach 12
Proceeding With Realism and Pride 14
Chapter Summary 15
Key Terms and Concepts 16
Questions for Discussion 16
Appendix Case 16
Suggestions for Further Reading 17
Books 17
Articles 17
Websites 17
Chapter 2 Overview of the Nonprofit Sector 18
America’s Nonprofit Sector: A Historical Overview 21
Searching for a Common Vocabulary 23
Alternatives to Nonprofit 24
Size of the U.S. Nonprofit Sector 25
Differentiating the Nonprofit Sector 27
National Taxonomy of Exempt Entities 27
IRS Classifications 28
Salamon’s Anatomy 36
The Spectrum of Organizations 37
Emerging New Models 39
The Commercialization Debate 42
Commercialization and Tax Exemption 43
Implications for Nonprofit Managers 44
Chapter Summary 45
Key Terms and Concepts 46
u Case 2.1 The Chan-Zuckerberg Initiative 46
u Case 2.2 A Double Bottom Line: Ben & Jerry’s 47
u Case 2.3 Burning Man 49
Questions for Discussion 50
Appendix Cases 50
Suggestions for Further Reading 50
Books 50
Articles/Book Chapters 51
Websites 51
Chapter 3 Theories of the Nonprofit Sector
and Nonprofit Organizations 52
Explaining the Nonprofit Sector 53
Nonprofit Theory Across the Disciplines 54
The Failure Theories 55
Market and Government Failure 56
Nonprofits as Gap Fillers 57
Supply-Side Theories 58
Theories of Altruism and Giving 59
Theory of the Commons: An Interdisciplinary Approach 59
Changing Definitions of Private, Public, and Common 60
Explaining Nonprofit Organizations 62
Characteristics of Nonprofit Organizations 62
Nonprofits as Open Systems 65
Resource Dependence 66
Isomorphism 69
Explaining Nonprofit Organizational Structures 70
Organizational Culture 71
Chapter Summary 72
Key Terms and Concepts 73
u Case 3.1 The Smithsonian Institution and the Catherine B. Reynolds Foundation 74
u Case 3.2 The National Trust for Historic Preservation 76
Questions for Discussion 78
Appendix Case 78
Suggestions for Further Reading 78
Books 78
Articles 78
PART II GOVERNING AND LEADING
NONPROFIT ORGANIZATIONS 79
Chapter 4 Nonprofit Governing Boards 80
Types of Governing Boards 82
Elected Boards 83
Self-Perpetuating Boards 84
Appointed and Hybrid Boards 85
Advisory Councils 85
The Governing Board’s Responsibilities 86
The Governing Board’s Legal Responsibilities 87
The Governing Board’s Functional Responsibilities 91
The Board and the CEO 94
Carver’s Policy Governance Model 95
Chait, Ryan, and Taylor: Governance as Leadership 97
Herman and Heimovics: Psychological Centrality and
Board-Centered Leadership 98
Explaining Board Behavior 100
Managing Nonprofit Boards 100
Role of the Chair 101
Governance Committee 101
Board Professionals 101
Nonprofit Board Effectiveness 102
Critics of Board Performance 102
Diversity, Equity, and Inclusion 103
The Search for Best Practices 104
The Challenge of Nonprofit Governance 106
Chapter Summary 108
Key Terms and Concepts 109
u Case 4.1 Sweet Briar College 109
u Case 4.2 The Hershey Trust 111
Questions for Discussion 113
Appendix Cases 113
Suggestions for Further Reading 114
Books/Reports 114
Websites 114
Chapter 5 Executive Leadership 116
The CEO’s Job 117
Management and Leadership 119
Overview of Leadership Theories 120
An Evolution in Thinking 121
Transformational Leadership 124
Charismatic Leadership 125
The Effective Nonprofit CEO 127
Focus on Mission 128
Focus on the Board 129
Focus on External Relationships 129
Share Leadership and Empower Others 129
Focus on Key Roles and Priorities 130
Use the “Political Frame” 130
Right Person, Right Place, Right Time 131
Founder Syndrome 132
Executive Transitions 134
Leading Change 135
Chapter Summary 137
Key Terms and Concepts 138
u Case 5.1 A Change in Leadership at Habitat for Humanity 138
u Case 5.2 Challenge and Change at United Way 140
Questions for Discussion 142
Appendix Cases 142
Suggestions for Further Reading 142
Books/Book Chapters 142
Articles 142
Websites 142
PART III MANAGING THE NONPROFIT
ORGANIZATION 143
Chapter 6 Ensuring Accountability and
Measuring Performance 144
Defining and Ensuring Accountability 146
Mechanisms for Accountability 147
Requirements of 147
Self-Regulation: Standards and Accreditation 149
Transparency 157
Measuring and Managing Performance 159
Financial Ratios 160
Benchmarking 163
Outcomes 164
Balanced Scorecard 169
Social Return on Investment 171
Blended Value 172
Performance Measurement:
The Continuing Debate 174
Chapter Summary 176
Key Terms and Concepts 177
u Case 6.1 The Wounded Warrior Project 177
u Case 6.2 Youth Villages 179
Questions for Discussion 181
Appendix Cases 181
Suggestions for Further Reading 182
Books 182
Articles/Reports 182
Websites 182
Chapter 7 Developing Strategy, Building Capacity,
and Managing Risk 184
Understanding Strategy 185
Strategic Planning and Strategic Management 186
The Strategic Planning Process 187
Planning to Plan 189
Defining Mission, Vision, and Values 190
Assessing the Situation 192
Identifying Strategic Issues 194
Setting Goals 195
Developing Strategies 195
Setting Objectives 198
Writing the Strategic Plan 199
Developing an Operational Plan 199
Benefits and Limitations of Strategic Planning 199
Building Organizational Capacity 200
Defining and Understanding Capacity 201
Capacity Building in Action 202
A Model for Capacity Building 203
Capacity and Organizational Life Cycles 204
Capacity Building Evaluated 206
Managing Risk 207
Chapter Summary 209
Key Terms and Concepts 210
u Case 7.1 Generation Hope Strategic Plan 2021 210
Questions for Discussion 215
Appendix Cases 215
Suggestions for Further Reading 215
Books/Reports 215
Articles 216
Websites 216
Chapter 8 Collaborations, Partnerships, and Mergers 218
Growing Interest in Collaboration 221
A Continuum of Relationships 222
Exploring Collaborations and Mergers 223
Drivers of Collaborations and Mergers 224
Obstacles to Collaboration and Merger 226
Culture 227
Egos 228
Brand Identity 228
Community or Political Objections 228
Costs 229
Conditions for Success 229
Driven by Mission 229
Commitment From Top Leadership 229
Trust 230
Relatedness 230
Process 230
Collaborations and Mergers Within National Nonprofits 231
Cross-Sector Collaboration 232
A Continuum of Cross-Sector Collaboration 233
Advantages and Disadvantages of CSCs 234
Obstacles and Conditions for Success 235
Achieving Collective Impact 236
Chapter Summary 238
Key Terms and Concepts 239
u Case 8.1 N Street Village and Miriam’s House 239
Questions for Discussion 243
Appendix Cases 243
Suggestions for Further Reading 244
Books 244
Articles/Reports 244
Websites 244
Chapter 9 Managing Staff and Service Volunteers 246
Human Resources Management 248
Requirements of 248
Diversity, Equity, and Inclusion 249
An Overview of Management Theories 250
Understanding Human Motivations 251
Maslow’s Hierarchy of Needs 251
McGregor: Theory X and Theory Y 253
McClelland: Three Needs Theory 253
Myers and Briggs: Personality Types 254
Herzberg: Motivators and Dissatisifiers 254
Motivations of Nonprofit Staff 255
Life Cycles and Generations 257
Applying Theories to Managing the Nonprofit Workforce 258
Managing Volunteers 261
Types of Volunteers 261
Motivations of Volunteers 263
Volunteer Program Practices 264
A Contingency Approach to Volunteer Stewardship 269
Volunteer Management as a Career Field 270
The Future of Volunteerism 271
Chapter Summary 272
Key Terms and Concepts 273
u Cases 9.1–9.4 Staff and Volunteer Issues 273
Questions for Discussion 276
Appendix Cases 276
Suggestions for Further Reading 276
Books/Book Chapters/Journals 276
Websites 276
Chapter 10 Marketing and Communications 278
Defining and Understanding Marketing 279
Marketing Serves the Mission 281
Marketing Means Action 282
Marketing as a Process 283
The Marketing Mix 283
Product 284
Place 285
Promotion 285
Market Segmentation 286
Price 287
Defining the Exchange 289
Building the Brand 289
Integrated Marketing Communication (IMC) 292
Crafting an Effective Message 294
Crisis Communications 295
Social Media 297
From Gatekeepers to Connectors 297
Social Media Planning 298
Operational Questions 298
Evaluating Marketing and Communication 299
Chapter Summary 300
Key Terms and Concepts 301
u Case 10.1 Rebranding 4-H 302
u Case 10.2 Susan G. Komen Foundation 303
Questions for Discussion 304
Appendix Cases 305
Suggestions for Further Reading 305
Books/Journals 305
Articles 305
Websites 305
Chapter 11 Advocacy and Lobbying 306
Basic Distinctions 308
Overview of Lobbying 309
Option I: Substantial Part Test 311
Option II: 501(h) Expenditure Test 311
Political Campaign Activity 313
Implementing an Advocacy Program 314
Using Social Media 316
Creating Movements for Social Change 317
Continuing Issues and Concerns 319
Chapter Summary 320
Key Terms and Concepts 321
u Case 11.1 Mothers Against Drunk Driving (MADD) 321
u Case 11.2 Housing First 322
u Case 11.3 National Audubon Society 324
Questions for Discussion 325
Appendix Case 325
Suggestions for Further Reading 325
Books 325
Articles 325
Websites 325
PART IV OBTAINING AND MANAGING
RESOURCES 327
Chapter 12 Financial Management 328
Definitions of Key Concepts 330
Understanding Nonprofit s 331
Nonprofit Financial Statements 335
Statement of Financial Position 335
Statement of Activities 337
Statement of Cash Flows 339
Statement of Functional Expenses 339
Required Disclosures and Notes to Financial Statements 342
Audits 343
Using Financial Ratios 344
Managing Endowment Funds 346
Developing and Managing the Budget 349
Financial Policies and Controls 351
Chapter Summary 352
Key Terms and Concepts 354
u Case 12.1 Hull House 354
u Case 12.2 The Newseum 356
Questions for Discussion 360
Appendix Cases 361
Suggestions for Further Reading 361
Books 361
Newsletters 362
Websites 362
Chapter 13 Philanthropic Fundraising 364
Definitions and Distinctions 366
Motivations for Giving 368
Understanding Corporate Philanthropy 368
Foundation Giving 369
Motivations of Individual Donors 370
The Fundraising Process 372
Identifying Priorities and Developing the Case 373
Identifying and Qualifying Prospects 374
Cultivating Prospects 375
Soliciting the Gift 376
Acknowledging and Recognizing Donors 379
Stewarding the Gift and the Relationship 380
Individual Donor Life Cycles 381
Planned Giving 382
Campaigns 385
Managing Fundraising Programs 387
Advancement Services 388
Prospect Management 388
Fundraising Efficiency and Effectiveness 388
Staff Performance and Accountability 389
Ethics and Professional Standards 390
Tainted Donors and Tainted Money 391
Association of Fundraising Professionals Code 393
Chapter Summary 394
Key Terms and Concepts 396
u Cases 13.1a–g Fundraising Ethics 396
Questions for Discussion 397
Appendix Cases 398
Suggestions for Further Reading 398
Books/Book Chapters 398
Articles/Reports 398
Websites 398
Chapter 14 Social Enterprise and Earned Income 400
Defining Social Enterprise and Earned Income 401
Why Earned Income? 404
Partnerships With 405
Licensing 406
Sponsorships 407
Cause Marketing 408
Integrated Relationships 411
Operational Relationships 411
Putting Partnerships Together 412
Nonprofit Ventures 413
Identifying Opportunities 414
Feasibility Analysis and Planning 415
Earned-Income Strategies: Issues and Decisions 417
Sorting Out the Issues 417
Evaluating Opportunities Against Mission 418
A Continuing Debate 420
Chapter Summary 421
Key Terms and Concepts 422
u Case 14.1 The National Geographic Society 423
u Case 14.2 Aspire CoffeeWorks 424
Questions for Discussion 426
Appendix Cases 426
Suggestions for Further Reading 426
Books 426
Articles 427
Websites 427
Chapter 15 Government Grants and Contracts 428
Changes in Sources and Patterns of Support 430
Grants, Contracts, and Fees 431
Government Support: Opportunities and Challenges 434
Seeking Government Support 436
Identifying Grant Opportunities 436
Evaluating Grant Opportunities 437
Preparing and Submitting an Application or Proposal 438
Nonprofits in the Policy Arena 439
Chapter Summary 439
Key Terms and Concepts 440
u Case 15.1 SEED Foundation 440
Questions for Discussion 442
Appendix Case 442
Suggestions for Further Reading 442
Books 442
Articles 442
Websites 442
PART V SPECIAL TOPICS 443
Chapter 16 Social Entrepreneurship and Innovation 444
Defining and Understanding Social Entrepreneurship 445
Social Enterprise School 446
Social Innovation School 446
History of Social Entrepreneurship as a Field 448
Theories of Social Entrepreneurship 449
Social Entrepreneurship Across
Fields and Around the World 450
Building High-Impact Nonprofits 452
Sustaining Innovation 455
The Future of Social Entrepreneurship 456
Chapter Summary 457
Key Terms and Concepts 457
u Case 16.1 KaBOOM! 458
u Case 16.2 Harlem Children’s Zone 459
Questions for Discussion 460
Appendix Case 460
Suggestions for Further Reading 460
Books 460
Journals 461
Websites 461
Chapter 17 Governing and Managing International
and Global Organizations 462
Definitions and Scope of International Organizations 464
International Philanthropy and Fundraising 466
International Giving 467
Global Fundraising 467
International Nonprofit Governance and Management 469
Managing Across Cultures 470
Governing International and Global Organizations 470
Structuring International NGOs 471
Chapter Summary 473
Key Terms and Concepts 474
u Case 17.1 Médecins Sans Frontières/Doctors Without Borders 474
u Case 17.2 Haitian Earthquake Relief and Recovery 476
Questions for Discussion 478
Suggestions for Further Reading 478
Books 478
Articles 478
Websites 478
Conclusion 479
Appendix: Cases for Discussion 482
1. New York City Opera 482
2. Share Our Strength/No Kid Hungry 489
3. The Y 497
4. The Girl Scouts of the United States of America 503
References 510
Index 540
About the Author 567
xix
Preface
The first edition of Nonprofit Management: Principles and Practice was published by SAGE in 2009. The second edition was published in 2012, the third in 2014, the fourth in
2017, and the fifth in 2019. It is striking how much the landscape of the nonprofit sector
has continued to change over the years, requiring frequent updates to stay current with the
state of the field in nonprofit management. Changes reflected in this sixth edition of the
book include, most obviously, certain data but also trends, new concepts and research, and
new cases that have drawn attention since the fifth edition was completed. The inevitable lag
between research and writing and publication often means that readers should be alert to
recent changes and events that may have occurred during the process of publishing the book.
Thus, even this sixth edition may have some obsolescence by the time it reaches the reader.
There are reminders of this reality throughout the book, and it is recommended that students
consult referenced websites and other resources on points that seem subject to change.
It is, of course, impossible to know what economic conditions will prevail when this
book reaches its readers. The recession that began in 2007, what some people called the Great
Recession, took a significant toll on many nonprofit organizations, resulting in decreased
financial resources at a time when the demand for services was increasing. Most nonprofit
organizations survived the Great Recession, although the death rate was higher among
smaller organizations. Even larger organizations found it necessary to reduce staff, programs,
and expenditures (McKeever et al., 2016). A decade later, by 2017, the economy had largely
recovered. By 2019, unemployment was low and financial markets had reached historic
highs. Then, in 2020, the COVID-19 pandemic plunged the nation into crisis, including a
significant economic downturn. At the time of this writing, it is impossible to predict what
conditions may prevail by the time this edition reaches its readers. Perhaps the economy will
have recovered or difficult conditions will continue. In either scenario, the Great Recession
and the COVID-19 pandemic have produced a heightened awareness of financial uncertainty,
of the need for nonprofits to use resources efficiently and effectively, and of the importance
of achieving diverse revenue sources to weather various economic scenarios. Both historical
events have also demonstrated the critical importance of nonprofits in meeting human and
community needs.
Adding to the uncertainty of economic cycles, the federal tax law passed in 2017 had
possible implications for the nonprofit sector, including reduced incentives for charitable
giving. In the midst of the COVID-19 pandemic, emergency federal legislation was passed in
2020 to increase tax incentives for charitable giving on a temporary basis. It is not possible to
predict at the time of this writing whether these changes will continue beyond the emergency
period. Whatever may unfold, history suggests that the nonprofit sector will continue to face
new opportunities and challenges in the years ahead, requiring leadership by knowledgeable
and experienced professionals.
New to This Edition
This sixth edition includes a number of significant changes from the fifth. First, chapter top-
ics continued from the previous edition have been updated to reflect new data, new research,
and recent events. New material, drawn from both the scholarly and practitioner literatures,
is incorporated at relevant points throughout the book.
In response to reviewer comments as well as the evolving landscape, some topics from
the previous edition have been expanded. They include, for example, new material regard-
ing diversity, equity, and inclusion; volunteer stewardship; nonprofit executive transitions;
xx Nonprofit Management
models for pursuing earned income; ethical dilemmas and controversial donors; generational
differences in the workplace; and the role of nonprofits in advancing social movements. New
cases have been developed for this edition, including the Newseum, the National Geographic
Society, Generation Hope, and Burning Man. Cases that appeared in the fifth edition have
been updated to reflect recent events.
Philosophy of This Book
A Balanced Approach
Students reading this book are likely to have varied backgrounds. Some may be undergradu-
ates who do not yet have substantial work experience and perhaps wish to explore nonprofit
management as a possible career direction. Others may be graduate students who have an
interest in nonprofit careers but have not previously studied management. Still others might
have studied management but may have limited knowledge of the unique values, characteris-
tics, and circumstances of the nonprofit sector or how the management principles they know
can be applied in the nonprofit environment. Yet others may be individuals with considerable
experience working in nonprofit organizations who are pursuing further study to increase
and broaden their understanding and professional skills.
Some students reading this book may be undergraduates taking a course that is an intro-
duction to the nonprofit sector. Some may be enrolled in a certificate program intended to
increase the skills of nonprofit professionals. Others may be enrolled in a program leading to
a master’s degree in nonprofit management. Some may be pursuing a master’s degree in busi-
ness, social work, public administration, or public policy, with a concentration in nonprofit
management. Still others may be taking only one course in nonprofit management as an
elective in their undergraduate or graduate degree program, seeking only a broad and general
orientation to the field.
Given the diversity of backgrounds and goals often found among students taking a
course in nonprofit management, a textbook that seeks to provide an overview of the field
must include both theoretical concepts and practical applications; it must cover some basics
as well as intellectually stimulating issues; it must be both rigorous and accessible to students
of varied academic backgrounds; and it must provide both a foundation of knowledge that
may serve as a springboard to more advanced study and a comprehensive overview for those
students whose one experience with the field will consist of a single course.
This book strives to address all these diverse needs and interests, with the author’s hum-
ble recognition that it may not succeed in meeting all of them for all students. It attempts to
provide a comprehensive exposure to topics relevant to the field of nonprofit management,
but it obviously must be selective in its discussion of those topics. This intended balance
between comprehensiveness in topics and selectivity in their treatment may disappoint some
readers. Some may find their appetites whetted but unsatisfied by the quick tour provided in
some parts of the book. It is possible that others may find that some chapters include ideas
they have seen before in other courses. Of course, some will find the discussion just right for
their level of previous knowledge and desire for new understanding.
Students are encouraged to tailor their use of the book to their own interests and back-
grounds. Readers who, for example, already have studied some of the organizational and
management theories we will discuss are encouraged to read relevant sections as a refresher
but to pay closer attention to material that is new to them. Those to whom the theories are
new, and who find their discussion in this book to be too brief, are encouraged to explore
the additional resources suggested throughout the book. In sum, it is hoped that this book
will provide a kind of comprehensive menu, from which students may select the topics or
Preface xxi
approaches on which they wish to “click” for more information. Both novices and more expe-
rienced individuals may find it a foundation on which they can build, seeking appropriate
avenues for further information and learning. Suggested additional readings are included at
the end of every chapter. And, in all likelihood, professors also will elaborate on some topics
and skip lightly over others, as they sense the tempo of their individual classes.
Focus on Charitable Nonprofits
As will be discussed in Chapter 2, the nonprofit sector encompasses an amazing array of orga-
nizations with different characteristics, structures, and purposes. This book focuses primarily
on that category known as charitable nonprofits and, in particular, on those that provide ser-
vices, such as education and research, health care, arts and cultural programs, and social and
legal services. The following chapters will also sometimes mention member-serving organiza-
tions—for example, trade and professional associations—but primarily as points of contrast
with charitable nonprofits. Religious congregations make up a significant component of the
overall nonprofit sector, but religion is the subsector that is the least professionalized—that
is, it employs relatively few professional managers. Thus, this book does not devote sig-
nificant discussion to the management of churches, synagogues, mosques, or other religious
congregations. We will discuss foundations, but primarily as sources of support for service-
providing nonprofits; we will not discuss the …
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