Non- profit organizations Include cultural institutions, recreational groups, social groups, environmental organizations, human rights groups, and community organizations. Non-profit organizations are viewed favorably by Canadians; 79% of Canadians think non-profit organizations understand the needs of Canadians better than the government. The non-profit sector in Canada will only continue to grow and serve more and more Canadians. Introduction to Management and Board Issues An effective chief executive officer (CEO) and board of directors are at the heart of any successful non-profit.
These leaders must work as a team with a vision, skill, and sufficient resources to accomplish the organization’s mission. The team must work to achieve a shared vision of success and assist the CEO in achieving the goals of the organization. The board must be sufficiently skilled In management to assess the work of the CEO and assist in strategic decision-making. Non-profits have increasingly begun to rely on efficient managements to succeed in their missions, goals, and objectives.
Across the non-profit sector. The most successful organization appears to be the ones with strong Coos and an equally strong board. Ironically, in the past, management was considered a “bad word” In the non-profit world as a reactive at odds with what some regard
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In essence, non-profits have come to embrace the culture of the business world, and the skills largely associated with senior managers in the for-profit sector. The increasing employment of business’ like management strategies by non-profit 1 OFF top of that, an increasingly aware public has begun to hold the management accountable for the operations and the practices of the organization. From raising funds to perceived or real excessive administrative expenses to how each and every dollar raised is spent is subject to questioning by the public and even the government.
The topic of management and board issues is vast in nature and as such, cannot be entirely addressed by this report. For the scope of this report, only few selected issues will be addressed and analyzed. This selection will enable an in- depth look at the topics, and narrow the focus of this report. These issues were elected based on the discussions in class, their relevancy to the main topic, and how important they are in today’s non-profit environment. The following issues will be covered in this report: 1 .
Executive Compensation 2. Role of the Board 3. Undefined Bottom-Line Key Issues Executive Compensation Executive compensation is a major issue in the non-profit sector. Salaries for top executives in the non-profit sector have climbed 25% to 50% since 2000. It is estimated that for non-profits with operating budgets in excess of $20 million, of their Coos earned $250,000 to $350,000. Executive compensation has risen steadily in the last two decades in this sector.
This rise in salaries is not entirely without its own reasons; several factors boosting pay for these executives are: ; Competition amongst non-profit organizations to attract top talent. O With non-profit organizations embracing the culture of the business world and its management styles, non-profits are aiming to attract the best talent to guide and manage these organizations. To compete with for-profit organization, non-profits need to offer higher salaries and perks to attract talent that might otherwise be interested in securing positions in the business world.
Although it is generally accepted salaries will be higher and more attractive in the business world, non- profits have still made an effort to raise executive compensation to improve their prospects of attracting quality talent. ; Difficulty in retaining staff, top talent, and a lack of quality internal candidates for management positions. O Non-profit organizations have traditionally struggled to retain quality staff and hampers non-profits as they lose much-needed skills to effectively manage their own organizations. To counter this pattern, non-profits have boosted management compensation to attract and retain talent.
It is generally accepted that compensation will never be on the same level between non-profits and the business world; however, increased salaries have helped non-profits to attract quality personnel. ; Non-profits organizations have sought to attract corporate executives to use their experiences in organizing their finances as they have been subjected to increased government scrutiny. O Attracting corporate executives in the non-profit sector is not an easy task, given the act that corporate executives earn higher salaries and attractive perks in the business world.
The hiring of corporate executives has also boosted pay in the non- profit sector. Not only do these corporate executives help with organizing finances but they also provide the highly valued management skills and talent that non-profit organizations now demand from their management. While the higher salaries and better perks have definitely helped the non-profit sector in attracting top talent, it has also become a major source of criticism for many non-profits.