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CFRE Explain growth of the Nonprofit Sector ANSWER- 1) Philanthropy and nonprofit organizations have always played a significant role in US society 2) They play an even more significant role today 3) The nonprofit sector has grown to be a larger part of the US economy Explain philanthropy in US versus other countries. ANSWER- In the US, philanthropy compare to business and government plays a larger relative role in the economy compared to other countries (no tax deduction in Europe). What are some challenges in Philanthropy? ANSWER- 1) rapid growth in organizations and philanthropic giving 2) Accountability – narrow / broad 3) Blurring the boundaries (for profits with nonprofit arms) 4) Entrepreneurial models (family nonprofits Accountability – three general trends ANSWER- 1) Funders and donors have increased their gift restrictions and continued their call for accountability 2) Program evaluation, focus on results, and impact studies to measure return on gifts have become common 3) Fundraisers need to ensure that their organizations are ready to respond According to the Independent Sector, narrow accountability refers to: ANSWER- 1) the formal responsibilities of individuals and organizations to report their actions to higher authorities (IRS)
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