25/04/2020

NOT-FOR-PROFIT &
GOVERNMENTAL
ORGANIZATIONS

NOT-FOR-PROFIT ORGANIZATIONS
• It does not earn any profits for its owners.
• Instead, the organization donates the money it
receives to help fund the organization’s objectives
and goals.
• It might also use received donations to stay up
and running.
• In many cases, not-for-profits are tax-exempt,
meaning they are not required to pay most taxes.
However, businesses are not automatically
exempt.

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FOR-RPOFITS vs. NOT-FOR-PROFITS

• The main difference between for-profits and not-for-
profits is how the organization handles its profits. A
for-profit organization or business distributes profits to
owners.
• Typically, not-for-profits use the same business
strategies and techniques as for-profit organizations.
Both organizations set goals and want to reach them.
• A for-profit business can participate in a wide range of
activities. On the other hand, not-for-profit
organizations must exclusively operate as a charity or
for scientific, religious, or public safety purposes.

NOT-FOR-PROFITS VS. NONPROFITS

NOT-FOR-PROFITS NONPROFITS
Organization’s Supports a cause, activity, or Supports charitable,
purpose the community educational, or religious
purposes
Uses of profits Funds activities, hobbies, and Profits are used to support the
recreation related to their organization’s cause or goal,
cause or goal but funds can also be used to
pay for employee salaries and
administrative need
Type of Volunteers, paid staff, or a Could have paid staff as well as
employees mixture of both paid volunteers
Tax-exemption Yes (must be both state and Yes (must be both state and
availability federal levels) federal levels)
Stock option No No
availability

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• Individuals establish community

• They strive to improve or cater to social
organizations to help with causes
causes.
around the community.
• These organizations may assist the
• Some causes that community
homeless, provide free legal services,
organizations might help with
or help veterans find work.
include cleaning up the
• A social organization’s earnings typically
community, improving
come from donations or profits made
neighborhoods, and promoting
from selling goods.
recycling locally.

EVALUATION OF PROGRAMS
• It is a systematic method for collecting,
analyzing, and using information to answer
questions about projects, policies
and programs, particularly about their
effectiveness and efficiency.

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MAJOR TYPES OF PROGRAM EVALUATION

GOALS-BASED EVALUATION
• It is evaluating the extent to which programs are meeting predetermined
goals or objectives.
• Questions to ask yourself when designing an evaluation to see if you
reached your goals, are:
– How were the program goals (and objectives, is applicable) established? Was
the process effective?
– What is the status of the program's progress toward achieving the goals?
– Will the goals be achieved according to the timelines specified in the program
implementation or operations plan? If not, then why?
– Do personnel have adequate resources (money, equipment, facilities, training,
etc.) to achieve the goals?
– How should priorities be changed to put more focus on achieving the goals?
(Depending on the context, this question might be viewed as a program
management decision, more than an evaluation question.)
– How should timelines be changed (be careful about making these changes -
know why efforts are behind schedule before timelines are changed)?
– How should goals be changed (be careful about making these changes - know
why efforts are not achieving the goals before changing the goals)? Should any
goals be added or removed? Why?
– How should goals be established in the future?

PROCESS-BASED EVALUATIONS
• They are geared to fully understanding how a program works -- how does it produce that results that
it does.
• These evaluations are useful if programs are long-standing and have changed over the years,
employees or customers report a large number of complaints about the program, there appear to be
large inefficiencies in delivering program services and they are also useful for accurately portraying to
outside parties how a program truly operates (e.g., for replication elsewhere).
• Examples of questions to ask yourself when designing an evaluation to understand and/or closely
examine the processes in your programs, are:
– On what basis do employees and/or the customers decide that products or services are needed?
– What is required of employees in order to deliver the product or services?
– How are employees trained about how to deliver the product or services?
– How do customers or clients come into the program?
– What is required of customers or client?
– How do employees select which products or services will be provided to the customer or client?
– What is the general process that customers or clients go through with the product or program?
– What do customers or clients consider to be strengths of the program?
– What do staff consider to be strengths of the product or program?
– What typical complaints are heard from employees and/or customers?
– What do employees and/or customers recommend to improve the product or program?
– On what basis do employees and/or the customer decide that the product or services are no
longer needed?

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OUTCOMES-BASED EVALUATION
• It facilitates your asking if your organization is really doing the right
program activities to bring about the outcomes you believe (or better yet,
you've verified) to be needed by your clients (rather than just engaging in
busy activities which seem reasonable to do at the time).
• Outcomes are benefits to clients from participation in the program.
• The general steps to accomplish an outcomes-based evaluation include to:
1. Identify the major outcomes that you want to examine or verify for the
program under evaluation.
2. Choose the outcomes that you want to examine, prioritize the outcomes
and, if your time and resources are limited, pick the top two to four most
important outcomes to examine for now.
3. For each outcome, specify what observable measures, or indicators, will
suggest that you're achieving that key outcome with your clients.
4. Specify a "target" goal of clients, i.e., what number or percent of clients you
commit to achieving specific outcomes with, e.g., "increased self-reliance
(an outcome) for 70% of adult, African American women living in the inner
city of Minneapolis as evidenced by the following measures (indicators) ...“
5. Identify what information is needed to show these indicators, e.g., you'll
need to know how many clients in the target group went through the
program, how many of them reliably undertook their own transportation to
work and stayed off drugs, etc. If your program is new, you may need to
evaluate the process in the program to verify that the program is indeed
carried out according to your original plans.
6. Decide how can that information be efficiently and realistically gathered.
7. Analyze and report the findings

REASONS WHY PROGRAM

EVALUATION IS HELPFUL
1. Understand, verify or increase the impact of products or
services on customers or clients
2. Improve delivery mechanisms to be more efficient and less
costly
3. Verify that you're doing what you think you're doing
4. Facilitate management's really thinking about what their
program is all about, including its goals, how it meets it goals
and how it will know if it has met its goals or not.
5. Produce data or verify results that can be used for public
relations and promoting services in the community.
6. Produce valid comparisons between programs to decide which
should be retained, e.g., in the face of pending budget cuts.
7. Fully examine and describe effective programs for duplication
elsewhere.

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EFFECTIVENESS vs. EFFICIENCY

EFFICIENCY EFFECTIVENESS
• Getting work done with a • Accomplish tasks that help fulfill
minimum effort, expense, or organizational objectives
waste
• Use resources – people, money, • Make the right decisions and
raw materials– wisely and cost- successfully carry them out to
effectively accomplish the org. goal
• Getting the most output from • Do those work activities that
the least amount of inputs will help the organization reach
its goals
• “doing things right” • “doing the right things”
• concern with means (ways) of • concern with ends(result) of
getting things done organizational goal achievement

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MEASURING EFFICIENCY
EFFICIENCY
• It measures relationship between inputs and outputs or how
successfully the inputs have been transformed into outputs
(Low, 2000).
• EXAMPLE: To maximize the output Porter’s Total Productive
Maintenance system suggests the elimination of six losses:
• reduced yield – from start up to stable production;
• process defects;
• reduced speed;
• idling and minor stoppages;
• set-up and adjustment; and
• equipment failure.
• The fewer the inputs used to generate outputs, the greater the
efficiency.

MEASURING EFFICIENCY
The Pinprayong and Siengthai (2012) introduced seven
dimensions, for the measurement of organizational
efficiency:
1. Organizational strategy;
2. Corporate structure design;
3. Management and business system building;
4. Development of corporate and employee styles;
5. Motivation of staff commitment;
6. Development of employee’s skills;
7. Subordinate goals.

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MEASURING EFFECTIVENESS
• It oriented companies are concerned with
output, sales, quality, creation of value added,
innovation, cost reduction.
• It measures the degree to which a business
achieves its goals or the way outputs interact
with the economic and social environment.
• Usually effectiveness determines the policy
objectives of the organization or the degree to
which an organization realizes its own goals
(Zheng, 2010).

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ACTIVITY:
• Identify a situation wherein a business could
be both effective & efficient in its operations.
• Determine a not-for-profit organization and
discuss its contributions to economic growth
and community improvement.

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