Nonprofits

Nonprofits and Nongovernmental Organizations

by Yohanes Budiarsa

​The role and importance of nonprofit sector

• ​Nonprofit organizations address a range of issues that affect people’s lives, including health care, homelessness, environmental concerns, youth development, job training, arts and culture, education, and much more.

• They ​fill the gaps in meeting the needs of society left unattended by the other two sectors—for-profit corporation and government agencies.

​Five distinguishing features of nonprofit organizations

1. Organized. In short, the organization has a charter, regular meetings, officers, rules, or other indicators of relative permanence.

2. ​Private. Nonprofit organizations are institutionally separate from government, even if they receive government funding.

3. ​Not-for-profit. Nonprofit organizations can make a profit and reinvest it in the agency, but cannot distribute profits to those who manage or direct it.

4. Self-governing. Nonprofit organizations govern themselves and their activities, have their own boards of directors and provide opportunities for citizen involvement.

5. Voluntary. There must be some voluntary participation in the management of organization, meaning that there is some aspect of charitable contribution involved.

​Volunteerism and philanthropy

• ​Philanthropy is the act of giving resources (money, volunteer time, etc.) to help individuals, causes, or organizations.

  Indonesia was confirmed as the most generous country in the world – again, according to the World Giving Index 2021.

Multiple Choice

Director of Filantropi Indonesia, Hamid Abidin, welcomed the achievements made by the Indonesian philanthropic sector. According to him, the pandemic and the economic crisis did not seem to prevent Indonesians from giving. Below are several factors that support Indonesia’s success in maintaining its position as a generous nation, based on Hamid's research. Which factor do you think rather vague explaining the increased of spirit of solidarity to help others in Indonesia?

• The strong influence of religious teachings and local traditions related to giving and helping others in Indonesia.

• Philanthropic actors in Indonesia have been successful in encouraging the transformation of philanthropic activities from conventional to digital platforms

• The increase of the role and involvement of youth and key opinion leaders/influencers in philanthropic activities.

• The relatively worst economic condition compared to other countries

Multiple Choice

The WGI report shows that Indonesia has managed to maintain as first position in the midst of the pandemic compared to other countries whose positions went down due to the implementation of lockdown policies and restrictions. Most of the western countries that normally occupy the WGI Top 10 have dropped in the rankings possibly due to the effects of the pandemic. For example, the United States fell to 19th in the world, having previously been consistently placed in the top 5. While Ireland, England and Singapore have slipped from 5th and 6th to 26th and 22nd. It also indicates the non-profit sector faces numerous change pressures. Below are the possible pressures might be faced by the non-profit organizations ...

• Competition is intense among charitable groups for financial donations and volunteer

  support.

• Charitable agencies have been found guilty of scandals including financial mismanagement, excessive compensation, and more.

• Public confidence in nonprofits is quite high.

• Demand for social and support services exceed available resources.

​The role of PR

• ​Public relations is charged with both helping rebuild credibility and maintaining or trying to restore public confidence in the many charitable agencies and voluntary groups that serve the needs of so many.

• ​In most nonprofits, the public relations role includes internal and external communication to achieve the following:

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Define or “brand” the organization to build “ ... ” awareness, gain acceptance of its mission, and protect its reputation.

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Develop ... of communication with target audiences, including those the

organization serves and those that can impact the nonprofit’s performance.

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Create and maintain a favorable climate for fund-raising and coordinate communication strategies for fund-raising ...

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upport the development and maintenance of ... that is favorable to the

organization’s mission.

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Recruit and motivate key organizational ... (such as employees, volunteers, and trustees) to support the organization’s mission, goals, and objectives.

Part of growing nonprofit sector

• ​Foundation

• ​Social service agencies

• ​Nongovernmental organizations

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A foundation is a nongovernmental, nonprofit organization that uses its own ... to provide grants and financial assistance, primarily to other unrelated nonprofit agencies for educational, social, religious, cultural, or other charitable activities.

Foundations

​There are two general types of foundations—private foundations and public foundations.

​

• ​Private foundations are typically funded by an individual, a family, or a corporation.

• Public foundations, in contrast, receive funds from multiple sources, including private foundations individuals, government agencies, and their own service fees.

Social service agencies

• In USA, nonprofit social service agencies, sometimes called human service agencies, fill a vital role in the health, safety, and well-being of millions of population.

  These nonprofit agencies and programs fill needs that other organizations are unable to meet, by providing services and resources that are not accessible or not readily available to those who need them.

• ​A common lament among nonprofit leaders is that the people who need services may not know how to access them or simply do not know that services are available.

• In ethnically diverse communities, communication must address cultural and language differences or low education levels. People with disabilities may present additional communication challenges.

Multiple Select

Given this environment, enlightened nonprofit social service agencies realize that public relations expertise is required to achieve organizational goals such as ...

,

• Educating legislators and key community leaders to gain their support.

• Establishing favorable partnerships for the staffs.

• Maintaining existing

  funding and attracting new philanthropy.

• Building a committed staff and mobilizing volunteers.

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To help accomplish its mission, a nonprofit may establish a “ ... ” relationship with a for-profit business. These relationships can take many forms. For example, a for-profit can conduct a sales campaign or underwrite an event and advertise it as benefiting the nonprofit charity.

​Nongovernmental organizations

• ​A nongovernmental organization, or NGO, typically advocates for public policy on behalf of the people they serve.

• ​NGOs focus on a range of issues, such as human rights, environmental protection, animal rights, disaster relief, racial and gender equity, political freedom, and more. NGOs can range in size from large international groups to local “grassroots” groups.

• ​They may be called membership or voluntary organizations, advocacy groups, development agencies, or mutual aid societies.

​Whatever their mission, goal, or target public, nonprofit organizations of all kinds need public relations, especially in these turbulent and challenging times, to build and maintain relationships with organizational stakeholders, be they clients, donors, volunteers, or employees.

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There is growing awareness that NGOs not only provide traditional humanitarian services, but also help shape worldviews on social and ... issues.