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PADM 7040 Nonprofit Management. Chapters 1 & 2 Overview Jerry Merwin. Chapters 1 & 2 Overview. I. DEVELOPING A CUSTOMER ORIENTATION. Chapter 1. The Growth and Development of Nonprofit Marketing. Chapter 2. Developing a Customer-Centered Mind-Set. Weeks 1 & 2 Overview (2).

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PADM 7040 Nonprofit Management


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    1. PADM 7040 Nonprofit Management Chapters 1 & 2 Overview Jerry Merwin

    2. Chapters 1 & 2 Overview • I. DEVELOPING A CUSTOMER ORIENTATION. • Chapter 1. The Growth and Development of Nonprofit Marketing. • Chapter 2. Developing a Customer-Centered Mind-Set.

    3. Weeks 1 & 2 Overview (2) • I also want to clarify a few things about our topics that might not be covered clearly in the textbooks. • First, let me explain that we generally talk about three types of organizations: • Private – or “for profit” – the typical business • Public – government organizations, including federal, state, and local (city or county) • Nonprofit – organizations created for some specific purpose, generally for the public good, and typically incorporated, with a board of directors, staff, and volunteers • “The primary purpose of nonprofits is to involve people in promoting the common good,” (Nonprofit Quarterly Newsletter, October 2003, Issue 27, copied from web August 21, 2005).

    4. Weeks 1 & 2 Overview (3) • There are many similarities among these three types of organizations and some important differences. • Nonprofits are regulated by the Internal Revenue Service (IRS). • While there are many types of nonprofits, as defined by the IRS, I believe our focus is the 501(c)(3). • The 501(c)(3) represents the number of the Internal Revenue Code (IRC) for the law covering charitable organizations. • These organizations are called charitable, or “tax exempt” in that contributors can deduct donations to these organizations from their income tax.

    5. Weeks 1 & 2 Overview (4) • Go to the IRS web site to learn more about “charitable organizations” and the requirements. • Check to see if the organization you are researching is classified as a 501(c)(3). • If not, please be sure to find out how the IRS classifies the organization. • It might still be OK to use the organization for your project, but check this early in your research and let me know.

    6. Strategic Marketing for NonProfit Organizations Chapter 1 • Our first chapter in the marketing book gives us a good introduction to both nonprofits and the role of marketing. • You can get a good idea of some of the issues facing nonprofits today. • It is possible you will learn some things you did not know before about nonprofits and their importance. • You might wonder why marketing could be seen as undesirable… • Be sure to pay attention to the ethical issues.

    7. Strategic Marketing for NonProfit Organizations Chapter 1 • The Growth and Development of Nonprofit Marketing • How can PDAs be useful to nonprofits or NGOs? • Which of the myths (on page 4) were part of your belief system before reading this book? • Why study nonprofit marketing? (page 5) • Where did the idea of nonprofit marketing originate? (page 7)

    8. Strategic Marketing for NonProfit Organizations Chapter 1 (continued) • The Growth and Development of Nonprofit Marketing • What are the four important developments carried over from the end of the 20th century? (pages 8-10) • Growth of social marketing • International dimension of nonprofit marketing • Corporate involvement in nonprofit sector • Ethics

    9. Strategic Marketing for NonProfit Organizations Chapter 1 (continued) • The Growth and Development of Nonprofit Marketing • What is the fundamental objective of this book? (page 10) • “Provides concepts, techniques, illustrations…” (Andreasen & Kotler, page 10) • What are the basic premises of the book? • “Marketing goes on everywhere in the nonprofit!” (A&K, p. 10) Any examples? • Characteristics of first-rate marketer are? (A&K, p. 10)

    10. Strategic Marketing for NonProfit Organizations Chapter 1 (continued) • The Growth and Development of Nonprofit Marketing • Explain the evolution of nonprofit organizations. (A&K, p. 11) • What are the “central contradictions” related to nonprofit (according to P. D. Hall, p. 12)? • What strikes you about the top 15 nonacademic nonprofits listed on page 13? • How important is the nonprofit sector: • In the U.S.? (p. 14) • In the world? (pp. 14-15)

    11. Strategic Marketing for NonProfit Organizations Chapter 1 (continued) • The Growth and Development of Nonprofit Marketing • What explanations do Andreasen and Kotler offer for the cross-country differences? (p. 17) • Explain cross-sector confusion. (p. 18) • How are nonprofit classified? (p. 20) • What is the national taxonomy of tax-exempt entities? (p. 21)

    12. Strategic Marketing for NonProfit Organizations Chapter 1 (continued) • The Growth and Development of Nonprofit Marketing • What is meant by “managerially relevant classification?” (Andreasen and Kotler, p. 22) • Environment? • Donative? • Scrutiny? • View of Marketing as Undesirable? • Volunteers? • Performance Judged by Nonmarketing Standards? • Nature of Exchanges? (p. 26) • See the Table 1-5 (p. 27) Cost/Benefit Matrix for the Profit/Nonprofit Sector

    13. Strategic Marketing for NonProfit Organizations Chapter 1 (continued) • The Growth and Development of Nonprofit Marketing • Explain the “uniqueness of nonprofit marketing?” (Andreasen and Kotler, p. 28) • What are the “ethical challenges in the nonprofit sector?” (Andreasen and Kotler, p. 29) • See the Exhibit 1-1 on page 30

    14. Strategic Marketing for NonProfit Organizations Chapter 1 • Some questions for consideration: • Why is the legal status of the nonprofit important in the U.S.? • How is marketing different for nonprofit organizations?

    15. Cases and Applications in Non-Profit Management • Case 34 Three Go-Arounds Toward Assessing a Nonprofit • Read the “Instructions and Questions” at the end of the case (Page 168) and consider how they might help in the class project on the Nonprofit Overview. • Look at the “Web Links” page on our class web site and go to the pages for the Drucker Foundation and learn more about the Self-Assessment Tool.

    16. Strategic Marketing for NonProfit Organizations Chapter 2 • Developing a Customer-Centered Mind-Set • What is a customer-centered or marketing mindset and why is it important? • Explain the “Boundaries of Marketing” according to Andreasen and Kotler (pp. 38-40) • Outline “Evolution of Marketing Philosophy” & relate to nonprofits. (pp. 40-43) • What are customer-centered organizations? (p. 44) • How can one detect “an organization-centered orientation?”(p. 45-49)

    17. Strategic Marketing for NonProfit Organizations Chapter 2 • Developing a Customer-Centered Mind-Set • How can we determine if nonprofit managers have a customer-centered or marketing mindset? (p. 49-55) • Why is research seen as important to the customer-centered organization? (p. 51) • Explain some of the issues in introducing a customer orientation to a nonprofit. (p. 55-56) • Can the organization go too far with a customer-centered orientation? (p. 56-57)

    18. Cases and Applications in Non-Profit Management • Case 11 Dinosaurs Are Extinct: Should the Museum Be, Too? • How did the museum get into trouble? • What are the responsibilities of the different groups involved (Board, management, members)?

    19. Some Discussion Questions • Thread 1: Choose one question - • Why is the legal status of the nonprofit important in the U.S.? • How is marketing different for nonprofit organizations? • Thread 2: Choose one question - • Why is research seen as important to the customer-centered organization? • Explain some of the issues in introducing a customer orientation to a nonprofit.