Today’s Objectives ? ? ? Extend our discussion of strategic human resource management to the non-profit sector. Get a broad overview of the distinctive challenges of managing in this sector Consider the strategic and organizational challenges facing Joel Lamstein and JSI. What is a “Nonprofit”? ? ? ? Contrary to popular perception, nonprofit organizations are permitted to generate a profit (a surplus of revenues over expenses.) They may not distribute this surplus to parties who have a controlling interest in the organization (i.e. officers, directors, or employees). Economic surplus must be used to further the approved nonprofit mission of the organization. A Brief List of Some Prominent Nonprofits: ? ? ? ? ? ? ? ? American Cancer Society Blue Cross and Blue Shield Children’s Televisions Workshop Consumer Union Educational Testing Service Habitat for Humanity Harvard Business School Harvard Community Health Care Plan ? ? ? ? ? ? ? ? Nature Conservancy National Geographic Society National Organization for Women National Rifle Association Outward Bound Planned Parenthood Save the Children Wang Performing Arts Center Tax Treatment and Government Regulation Charitable Organizations IRS section 501(c)(3) Non-Charitable Organizations IRS section 501(c)(4)-(23) Purpose must be: “Religious Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals.” Commonly referred to as “mutual benefit associations.” • Exempt from income tax, but donations to them are generally not tax deductible. • Generally not eligible for foundation grants • Tend to be privately controlled Some further distinctions: • Public foundations • Operating private foundations • Non-operating private foundations Management Challenges of Nonprofits ? ? ? ? ? Defining and Measuring Success Attracting and Motivating People Raising Funds Managerial Control and Autonomy Mission and Strategic Flexibility Alignment at JSI Strategy Key Success Factors HR Practices