Question

Select a concept of interest in public or nonprofit administration. Provide a substantive definition of the concept. Develop three measures for the concept that are both valid and reliable. Explain how you would establish that the measures are valid and reliable.

Answer 1

Not-for-Profit Organisations are the establishments that focused on the welfare of the community and are set up as charitable associations which operate without any motive for profit. Their primary objective is to provide service to the public. Usually, they do not produce, buy or sell commodities and may not have credit transactions. The funds or capital raised by such establishments are credited to the general fund or capital fund. The major sources of their income usually are subscriptions from their member’s donations, income from investments, grants-in-aid etc. The main aim of maintaining records in such establishments is to meet the statutory necessities and assist them in exercising control over the consumption of their funds. They also have to prepare the financial statements during the closure of each accounting period (usually a financial year) and determine their income and expenditure and the financial condition.

The primary measures of such establishments are:

• Such establishments are established for furnishing service to a particular group or public at a larger picture such as recreation, education, sports, health care and others without any deliberation of creed, caste and colour. Its sole objective is to provide service at free of cost or at nominal cost and not to earn profits
• The principal sources of income of such organisations are:
  • subscriptions from members
  • Legacies
  • Grant-in-aid
  • Donations
  • income from investments, etc.,

• The NPO earn their prestige based on their contributions to the welfare of the society rather than on the consumers’ or owners’ content

Primary measures that established reliable include the following:

• Decide what legal status of the organization will take (public charity or private foundation, incorporated or unincorporated, etc.)
• If incorporating, take necessary legal steps to make that decision a reality (devise by-laws, submit articles of incorporation, etc.)
• Determine the leadership of the organization (Trustees, officers, primary staff positions)
• Define compensation for such positions
• Find a physical location for the organization (factors here can range from variations in state law to availability of reasonable office space)
• Put together a strategic plan for achieving organization goals at both community and larger levels targeting public at large
• Decide how to go about funding those goals (gifts, grants, unrelated income, etc.?)
• Determine which media avenues will be best for publicizing the organization's goals and securing volunteers
• Devise an ongoing business plan that 1) serves as a blueprint for institution goals and development, and 2) can be periodically reviewed and adjusted as appropriate.