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Ethical Issues Of Nonprofit Organization


Question 1: Critically analyze the case study while highlighting the author's point of view.

Answer: Introduction and objective of the assignment: Every non-profit organization has a specific public benefit objective that it aims at attaining [1]. However, for the company to achieve these public benefits it must have a specific program activity that matches the public benefit. The aim of this assignment is to analyze the five program activities in the non-profit organization including non-profit management strategy and program planning. Apart from that, this assignment will analyze the ethical issues in the non-profit organization.

Summary of the case study: There are multiple programs that non-profit organizations engage in to achieve certain public benefits. According to the United States, Internal Revenue Services these activities are referred to as the program activities in an organization [2]. The outcome of public benefit determines the program activity that it should make use. However, according to the case study, there are five main program strategies and every strategy have a specific result to the non-profit organization. Consequently, when it comes to the issue of program activity, the non-profit organization must define the outcome it tends to achieve before deciding the program activity. There are cases whereby the non-profit organization is responding to multiple outcomes and it has to apply multiple program activities. Besides that, there exist ways of classifying the program activities which assist the organization to align its goal with a specific outcome [3]. During classification, the company must have things such as level of benefit, type of activity, an example of activity, the definition of need, focus, beneficiary engagement, output, an example of outcome and social value proposition.

On the other hand, the case study talks about program content dimensions. It argues that each activity dimension differs in terms of logic. The logic of the activity is based on the social value proposition of the activity. However, before an organization comes up with the dimension of the activity there are few factors to consider. These include the nature and the character of the challenges the organization is undergoing. The organization defines its activities after specifying the nature of the problem in that organization [4]. It gives the organization the interpretation strategy of what they should be doing at any particular time.

The author of this case study argues that after the interpretation of the need is when the organization applies an activity. The need in an organization may vary. For example, it may be social, political or socioeconomic need. When an organization is making use of the advocacy strategy it conceptualizes the need as a deficiency in the system of the institution. These needs may include legal, economic or political needs. After getting the need, the organization turns in focusing on the activity that is suitable in the case. The author argues that the focus means the issue that is enacted upon to achieve what the institution is aiming at the moment. These steps need the members of the institution to be keen to prevent any mess.

Discussion about program activities: During the implementation of a project, a non-profit organization must classify the programming activities depending on the needs it has at the moment. However, the process of classifying the program activities must have a clear guideline. First, the institution must frame the intended result across multiple levels of analysis. The existing levels of analysis include community, individual, political and social levels. In this context, the outcome of activity refers to the expected benefits and the changes that come as a result of the implemented program activities.


In the current setting, the non-profit organization mainly has multiple outcomes to address at a particular time. For this reason, the company should have a clear strategy and the mechanism of prioritizing its activities. The organization can apply the classification approach to understand the order of addressing the existing activities. The process of classifying these activities is beneficial because it clearly shows the program options and the difficulties that the company will face while using the approach. Besides that, classification assists the managers to compare and contrast various strategies that enhance understanding of the program choices and their implementations. The choice of the program activity is always based on the interpretation and the analysis of the issues such as social issues and economic issues.

On the other hand, programs can be categorized into five groups which include community builder, service provider, innovator or the creator, advocacy and the preservation player [5]. In situations where there is more than one activity in the same non-profit organization, these activities can run concurrently provided on is not interfering with the other. For example, the Mitchell clustered services, they take part in programs which include grassroots mobilization, delivery, public education, capacity building among other services. These activities ran concurrently without interference. It means that the company has classified the duties as an NGO and understands what needs to run at that particular time.

Question 2: What are the ethical issues of nonprofit organization? Explain with the help of suitable examples.

Answer: The aim of non-profit organizations is to get complimentary and multiple results from public benefits. These institutions take part in delivering services such as community development direct services, advocate issues, and preservation initiatives. For the company to achieve these services, it must apply various strategies by blending many types of approaches. For an instant, during the initiation of the activities, the company must align the goals with the expected results. By clarifying, the institution gets the modest clarity to the range of program they can utilize. These activities require different approaches even though they can run concurrently. The five activities differ after the classification of the needs of the company. The other thing that the non-profit institutions must ensure is that they keenly analyze their needs before identifying the activities they can take part in at any moment. However, it also important to have a test of the recommended classification system mentioned in the assignment to ensure that it aligns to the goals of the institution. When the company misses the best way of analyzing its needs and goals it misses the outcomes it was to achieve.

Ethical issues of non-profit organizations with examples

Ethical issue refers to a condition or a problem which needs an organization to make a decision between alternatives which it must evaluate as either right or wrong. Like any other institution, non-profit organizations also face common ethical issues which need them to make a strong stand. Some of the common ethical issues in non- profit organizations include the following:

a. Financial fraud: There are cases where non-profit organizations are tempted to monitor their own financial inquiries. These activities are unethical because these people may end up altering the numbers to suit their conditions [6]. Such type of negligence in unfair because it promotes embezzlement f funds by the non-profit institutions. For the institution to promote ethics, it should embrace an external auditor to cross-check the accounting books. These steps will make the institution accountable for the funds it spends in every season. 


b. Evasion of the entitled taxes: It the responsibility of every organization to pay tax as per the regulation of the government. In some cases, there are non-profit organizations who buy the ideas of politicians which is illegal and unethical. When an organization is taking part in any business it must pay tax.

c. Lacking accountability: There are cases where the government give non-profit organization to run their daily activities. However, at the end of the season, the authority expects the institution to be accountable for the funds it was allocated. The non-profit organization misuse funds in some cases and they fail to be accountable. These are behaviors which are wrong and unethical. It is important to spend the funds legitimately and be ready to be accountable at the end.

d. Solving ethical issues: Everyone expects that the non-profit organization should train their employees on how to respond to the ethical issues that arise in the institution. The only way it can do this is through training. Through training, the members of the organization understand what they need to do in case they are facing decision making challenges.

e. Conflict of interest: Everybody expects the non-profit organizations to ensure standards which focus on ethics. However, there are few areas that make no profit institutions to have conflict in their interest. For example, awarding tenders to members of the institutions or the known donors of the organization. Apart from that, when a non-profit institution involves in environment pollution it is a sign of conflict of interest.

f. Privacy: It is another crucial issue. The non-profit organization should only give donors the details they are supposed to see not the sensitive data that may expose the privacy of other individuals such as HIV status.

Conclusion: Every non-profit organization has specific program activities, however, before aligning to these activities the institution must ensure that analyzes it needs keenly. In a big institution, these programs may run concurrently because they need different resources. Consequently, one of the important things is that organizations must ensure ethical standards while doing every activity. Some decisions may be painful but they are worth it. The classification of these activities will the managers an easy time to plan and implement the activities without any hindrance. However, engaging in unethical activities makes the institution invulnerable.


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