April M. Maxwell- Henley
NPM/502
Thomas Edison State College (online)
Mentor: Dr. Lloyd Williams
January 12, 2015
Discuss the nature of the nonprofit sector, why it came into existence, and how it has changed over time. The nature of a nonprofit organization is to assist the public. It is an organization that is referred by many different names such as third sector, a charitable sector, voluntary sector and tax-exempt sector. This private organization is self-governing and plays a significant role in the lives of people all across the globe. Charitable nonprofit organizations are the largest groups that functions under the 501(c) (3). These groups are known as museums, hospitals, universities and religious
organizations. This organization employs over 13.5 people and are roughly 10% of the economy labor force. According to Worth (2014) “the nonprofit sector is even more sprawling and unruly today than it was in 1987” (p.17).
The legal aspect of the nonprofit sector came into existence in 1601 and explained the foundation of the group to be implied for charity, voluntarism, and philanthropy. Drucker (1990) believes that nonprofit organizations are “the central to the quality of life in America” (preface) and has been around for over 40 years. This association was instituted for the primary purpose of servicing the public and changing the lives of the community. It emerged in the 20th century making it a modern day movement that is geared toward meeting the needs of the people. In, 1980 's under the direct leadership of the late President Ronald Reagan, various community programs were condensed to reduce funding, and it changed to voucher subsidies. Historians have explained that the very existence of nonprofit organizations were due to a rebellion of the British monarch and has been a part of the nation’s governmental outlook ever since. Currently, the nonprofit sector continues to grow immensely to roughly 1.9 million organizations that are tax-exempt. According to Drucker, it is America 's "growth industry."
References
Worth, M. J. (2014). Nonprofit Management Principles and Practice (3rd ed.). Thousand Oaks, California: Sage Publications.
Drucker, P. F. (2005). Managing the Nonprofit Organization. New York, NY: Harper Collins.