Nonprofit Transparency
Running head: NONPROFIT STEWARDSHIP: THE CRITICAL POINT
Nonprofit Transparency by Rebecca Alene Goza
Doctoral Candidate – Anderson University
2011 Cohort
Abstract
This paper will discuss the emerging management trends developing as a result of the increasing incidents of financial misappropriation and the associated reputation destruction resulting from recent scandals in nonprofit entities. Discussion will include the many possible considerations associated with increased fraud incidents in charitable nonprofits, including inconsistent statutory requirements based on the state of incorporation as well as outdated federal oversight requirements over 501(c)(3) organizations. The paper will research three key management theories and will draw a conclusion regarding the next evolution of management theory in nonprofit entities. This paper will summarize how one of the largest charities is handling this evolving area and will present a theory that one of the biggest areas of focus and awareness should be the expectation that nonprofits demonstrate to stakeholders, explicitly and measurably, that they are being effective and transparent in fulfilling their missions.
Table of Contents
Table of Figures 4
I. Introduction 5
a. The critical point 5 b. Methodology 6 c. Thesis 6
II. §501(c)(3) Definition and Legal Research 7
a. Basic definition of a §501(c)(3) organization 7 b. State specific nonprofit legislation 8 c. Intermediate sanctions 9
III. Management Theory For Nonprofits 10
a. Stakeholder theory 10
i. Circumstances surrounding development 10 ii. Management theorist responsible for stakeholder theory development and acceptance 10 iii. Historical roots of stakeholder theory 10 iv. Theory impact 11
b. Corporate governance 13
i. Circumstances surrounding development 13 iii. Historical roots of corporate governance
Nonprofit Transparency by Rebecca Alene Goza
Doctoral Candidate – Anderson University
2011 Cohort
Abstract
This paper will discuss the emerging management trends developing as a result of the increasing incidents of financial misappropriation and the associated reputation destruction resulting from recent scandals in nonprofit entities. Discussion will include the many possible considerations associated with increased fraud incidents in charitable nonprofits, including inconsistent statutory requirements based on the state of incorporation as well as outdated federal oversight requirements over 501(c)(3) organizations. The paper will research three key management theories and will draw a conclusion regarding the next evolution of management theory in nonprofit entities. This paper will summarize how one of the largest charities is handling this evolving area and will present a theory that one of the biggest areas of focus and awareness should be the expectation that nonprofits demonstrate to stakeholders, explicitly and measurably, that they are being effective and transparent in fulfilling their missions.
Table of Contents
Table of Figures 4
I. Introduction 5
a. The critical point 5 b. Methodology 6 c. Thesis 6
II. §501(c)(3) Definition and Legal Research 7
a. Basic definition of a §501(c)(3) organization 7 b. State specific nonprofit legislation 8 c. Intermediate sanctions 9
III. Management Theory For Nonprofits 10
a. Stakeholder theory 10
i. Circumstances surrounding development 10 ii. Management theorist responsible for stakeholder theory development and acceptance 10 iii. Historical roots of stakeholder theory 10 iv. Theory impact 11
b. Corporate governance 13
i. Circumstances surrounding development 13 iii. Historical roots of corporate governance