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NP Exam 1

Philanthropic insufficiency Low donations due to donors withholding charitable dollars – often due to worry that other funding sources (like the government) will withhold monies if individual donate, free riding is also an issue.
Commons Externality Too many organizations or causes that compete for the same scare resources, example: one NPOs effort can increase the fundraising efforts of another, thus reduce the funds available for collective goods.
Paternalism Refers to tendency of those who choose to work or volunteer for NPOs to treat problems as they perceive them, rather than as clients perceive them.
Particularism Refers to tendency of NPOs to focus on particular ethnic, religious, geographic, or ideologic groups, leading to duplication in some cases and gaps in coverage in others.
Amateurism Refers to tendency to rely less on credentialed workers.
Sorting Entrepreneurial sorting occurs when those residing in the NPO sector have different personal objectives regarding whey they want to accomplish in their role.
Cross-subsidize Where NPOs charges higher prices for some products to generate financial surplus that can be used to lower the price, and so reduce exclusion, for other services.
Free Riders Individuals that use resources or services without paying for them.
Contract Failure Refers to information asymmetry in transactions where one party has more or better information than the other.
Non Profit Organization Is barred from distributing its earnings, if any, to individuals who exercise control over it, such as members, officers, directors or trustees.
National Taxonomy if Exempt Entities (NTEE) Divides the universe of nonprofits into 26 major groups under 10 broad categories based on the organizations purposes, activities, and programs.
Created by: sfrase



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