Nonprofit And Voluntary Sector

Running head: NONPROFIT AND VOLUNTARY SECTOR 1

Nonprofit and Voluntary Sector

Name

Institutional Affiliation

NONPROFIT AND VOLUNTARY SECTOR 2

Nonprofit and Voluntary Sector

Introduction

Nonprofit organizations are voluntary and charity-based businesses with tax-free revenue

due to their social callings. Practically, the sector’s primary objective is to further social causes

and advocate for universal viewpoints. US records from the National Center for Charitable

Statistics (NCCS) indicate that there are over 1.5 million non-profit organizations, which include

private foundations and charities (Boris & Steuerle, 2017). Primarily, these voluntary

organizations raise funds from donations, sponsorships, government funding, investments and

sale of services or merchandise, to maintain the social cause in question. The US enjoys several

benefits from having philanthropist entities since they generate public value through furthering

religious, education, charitable, health, safety, and other causes. Nonprofit organizations have a

historical backdrop pegged on social, political, and economic functions that are not only

pertinent to the development of societies but also promote sustainability of norms; thus,

heightening their significance in the 21

century.

Roles of Nonprofit Organizations in Society

Social functions

Nonprofit organizations form relationships and networks connecting people to each other

as well as institutions that may not be affiliated with them. The civil society approach defines the

role of linking communities to others as a social capital basic need that these organizations

provide. Primarily, these relationships brew social capital in that they enable individuals to work

towards a common goal in society. As Callahan (2017) posits, ties in the form of bowling

leagues, choral corporations, and community associations are pertinent to building cooperation

and trust, which in turn aid the sustenance of the society, economy, and political realms.

Apparently, organizations foster efficacy and community participation that produces worthwhile

NONPROFIT AND VOLUNTARY SECTOR 3

social outcomes. Therefore, nonprofit organizations in the US and around the world boost social

capital through creating relationships and networks that promote the development of a shared

vision in the society.

Nonprofit organization activities cause positive social changes in their environs. Notably,

some of the most significant social changes in the world in the 21

century result from research,

advocacy, legislation, public education and litigation that these organizations foster. Evidently,

nonprofit organizations create coalitions with groups in the society, like religious groupings, and

the government to influence changes. According to the social failure theory, the services of

nonprofit organizations are better and more efficient since governments are slow to act on the

society needs (Gaist, 2010). Indeed, the public perception of drinking in the US has changed due

to the Mother Against Drunk Driving campaign through advocacy and community sensitization

by NGOs. Thus, some significant social changes happen because of the influence and activities

of different nonprofit organizations in collaboration with the public and government.

The participation of people in exercising civic rights is widespread today due to the high-

level sensitization by the different Human rights and civil society organizations. Recently, there

was a presentation of documents on the crucial role that formal as well as informal nonprofit

entities play, ensuring that communities are united in civic participation (Boris & Steuerle,

2017). Voluntary associations build active social networks that enhance the efficient functioning

of democratic societies. Although people think there is partisan ideology infiltration in nonprofit

associations, their cooperative actions bring people together to achieve mutual interests. Indeed,

no democracy can be successful unless citizens unite to accomplish public objectives and air out

their concerns to the government which role is best played by nonprofit organizations. Therefore,

these voluntary entities and associations foster democracy and human rights through enhancing

citizen civic participation.

NONPROFIT AND VOLUNTARY SECTOR 4

Economic roles

The business sector enjoys the benefits accruing from the activities and programs that

certain nonprofit organizations consider. NGOs collaborate with companies and businesses to

promote their working conditions and quality of life in their areas of operation. The donations

and contracts with recreation groups, cultural organizations and childcare guarantee better

facility services that entice and retain corporate employees (Polack & Warwick, 2013). Besides,

environmental organizations collaborate with industries to encourage socially responsible

manners like cleaning up the pollutants they release. Eminently, pollution is one of the issues

that cause lawsuits for large firms, which result in considerable losses regarding paying damages.

The role that nonprofit organizations play here is that they encourage the behavior of cleaning

pollutants that turns into avoiding such lawsuits. Therefore, business firms operate in a safe and

desirable business environment due to the actions of nonprofit organizations.

International trade relations have been boosted by the advocacy role that the nonprofit

entities play in the global market. Primarily, the profitability stance of businesses is often limited

by the conditions that countries attach to the selling, buying, and shipping of specific goods,

which affects the firms dealing in those goods. The market failure theory explains the economic

role of nonprofit organizations following the concept that some desired products and services

may not attract as much profit due to additional conditions (Pallotta, 2012). Following this

theory, these companies turn to advocacy groups that negotiate workable terms in the global

markets that simplify business without profit interests. Thus, the economy is boosted as business

opportunities open up for domestic traders to import and export goods with limited constraints as

a result of the information that advocacy groups provide.

NONPROFIT AND VOLUNTARY SECTOR 5

Political roles

Social and economic policies and international affairs in the society have been a primary

target for most nonprofit making agencies. The organizations always inform and influence these

policies through research, evaluation, writing and demonstration programs by altering executive

agencies or the legislature in policy formulation. Majorly, individuals or institutions conduct

investigations and evaluations from which they formulate data and avail it to policymakers

through the media, news, publications, individual conversations or forums (Polack, & Warwick,

2013). Such advocacy is evident in most communities as nonprofit agencies educate and

encourage the public to reach out to their leaders or petition for social issues affecting them.

Besides, other organizations parade demonstrations which are attempts to influence social and

economic policies or contest undesirable legislation. Thus, nonprofit organizations act as perfect

influences to policymaking in society.

Nonprofit agencies and groups are pertinent to improving the provision of public services

to the society. Sometimes, there are thosenecessary requirements such as education, healthcare,

food, security and more that lack in some areas in the world. For instance, NGOs mobilize and

provide food, medical care, and education to refugees in camps in collaboration with

governments to improve people’s livelihoods. Scholars through the government failure theory

assert that some services are better provided by charity organizations because they deliver with

clear accountability (Heitzmann, 2010). In other words, the government cannot afford those

services honestly due to the increased corruption tendencies in the different departments.

Therefore, the society trusts the mobilization and efficiency that the nonprofit organizations put

forward in providing basic needs to those in urgent need than would be with the government.

On the other hand, one of the potential adverse outcomes of the role of nonprofit

organizations is that government escapes taking responsibility for the services provided.

NONPROFIT AND VOLUNTARY SECTOR 6

Principally, some governments prefer using CBOs or NGOs to deliver services which eliminate

direct blame or credit that discourages public support or encourage cynicism towards the

organization. From history, NGOs are not for profit and try to take on this role, but sometimes,

politicians use them to advance their business interests at the expense of charitable activities

(Gaist, 2010). Besides, some political parties utilize the NGOs and advocacy groups to improve

partisan ideologies that negatively influence policy formulation. Therefore, the role of nonprofit

organizations is sometimes misused and results in adverse outcomes that affect the society in one

way or the other.

Historical Highlights of Nonprofit Organizations

The 1800 - 1900’s

Although charitable and voluntary work dates to the Biblical times, philanthropy is not

old in the history of America since it dates to the nineteenth century. Between the late 1800’s and

1920, the US experienced a progressive era in which political reform and social activism were at

the apex (Hall, 2016). The time was characterized by the formulation of policies like suffrage for

women, child labor laws, and prohibition. It was during this time that Andrew Carnegie spread

the wealth gospel, which promoted the concept of outstanding service to the society and donating

to welfare causes (Hall, 2016). 21

-century individuals must know that is that no matter how

small the charitable entity is, it can expand by engaging as many people as possible. It is easier in

this century since the organization can set up an online donation and social media networks to

promote the social cause nationwide.

1940’s

Nonprofit activity during the WW2 times arose in the US due to fear that the war might

spread to America. At this time, the American society came together to raise support for those

involved or affected by the war. It was during this time that they began resource conservation,

NONPROFIT AND VOLUNTARY SECTOR 7

sending supplies to armies, and developed refugee and civilian relief programs (Hammack,

2006). Collaborations among organizations like YMCA, National Jewish Welfare Board, and the

Salvation Army were also imminent. Today, nonprofit organizations have to understand that

working autonomously cannot yield positive results as collaboration. In fact, two or more

nonprofit entities working together can achieve remarkable results as compared to the

independent entities. Therefore, from the developments accrued ever since the 1940’s, 21

century people should know that a nonprofit organization cooperating with other entities or

sponsors can maximize efficiency and grow faster.

The 1970’s

The Civil Rights Movement and the 1965 cultural opposition to enter Vietnam ushered in

a new paradigm shift as Americans organized and worked together to handle particular issues.

The US government got involved in the social-cultural welfare matters when it passed the 1969

Tax Reform Act that allows all charitable organizations to become private foundations operating

and being managed independently (Hall, 2016). The legal pronouncement of nonprofit, tax

exempted organizations brought multiple applications on board which aided the development of

policies and regulations governing the sector. By 1976, a bill supporting collaborative charities

was passed allowing them a higher voice in pertinent issues. Therefore, this teaches the 21

century that working with the government can ease nonprofit agency operations, and using the

state to gain funding may help the organization grow.

The 2000’s

Towards the new millennium, in 1991, the World Wide Web was availed for public use

which encouraged many go technology. The technological transformation did not leave nonprofit

organizations the same. Statistics reveal that online donations to charity and voluntary

organizations summed up to $2.1 billion (Callahan, 2017). In 2006, Facebook and Twitter gained

NONPROFIT AND VOLUNTARY SECTOR 8

popularity which encouraged the promotion of charitable missions and causes. For instance, the

‘ALS Ice Bucket Challenge’ started small online but became a massive social movement. Any

nonprofit entity in this era needs to embrace technology and make use of the multiple online

opportunities to advance their cause. In fact, the internet serves various purposes for such

organizations, meaning it is up to the management to utilize these benefits. Therefore, present

nonprofit associations should explore the opportunities of technology to advance their missions.

Conclusion

Philanthropy in the US is not an old thing, but ever since its start, over a million

organizations have come up further public and social causes. Nonprofit organizations have a

significant role they play in the society, including social, economic and political functions

through advocacy, research, and community mobilization. The highlights of history indicate the

transition that nonprofit entities went through, which are preparations that save today’s

organizations from years of troubleshooting. Indeed, this history is to act as a roadmap for the

present organizations to explore the nonprofit field with ease. Therefore, a look at the role and

history of the nonprofit and voluntary sector should act as enlightenment for the 21

-century

persons to understand what these are and why they exist.

NONPROFIT AND VOLUNTARY SECTOR 9

References

Boris, E. T., & Steuerle, C. E. (2017). Varied roles and responsibilities. In Nonprofits and

government: Collaboration and conflict. Lanham: Rowman & Littlefield.

Callahan, D. (2017). The givers: Wealth, power, and philanthropy in a new gilded age (1st Ed.).

New York: Alfred A. Knopf.

Gaist, P. A. (2010). Igniting the power of community: The role of CBOs and NGOs in global

public health. New York: Springer.

Hall, P. D. (2016). Historical Perspectives on Nonprofit Organizations in the United States. The

Jossey&;#x02010; Bass Handbook of Nonprofit Leadership and Management, 3-42.

doi:10.1002/9781119176558.ch1

Hammack, D. C. (2006). Accountability and nonprofit organizations: A historical

perspective. Nonprofit Management and Leadership, 6(2), 127-139.

doi:10.1002/nml.4130060203

Heitzmann, K. (2010). Poverty relief in a mixed economy: Theory of and evidence for the

(changing) role of public and nonprofit actors in coping with income poverty. Frankfurt

am Main: Peter Lang.

Pallotta, D. (2012). Charity Case: How the Nonprofit Community Can Stand Up For Itself and

Really Change the World. Hoboken: John Wiley & Sons.

Polack, P., & Warwick, M. (2013). What Can Government and Philanthropy Do? The Business

Solution to Poverty: Designing Products and Services for Three Billion New Customers,

40-60. doi:10.5848/bk.978-1-60994-078-2_5

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