The non profit sector, with more than 1,5 million organisations, and a 5.3% share of the national GDP, is a significant force in the US (National Center for Charitable Statistics). Non-profit organizations play an important role in fostering democracy by educating the public about key problems and keeping the government under pressure. This role enables the government also to help improve their economic status by assisting economic activities in the region (Grady and Auburn). Non-profit efforts are instrumental in fostering their justice in a world where poverty and discrimination have affected many groups of individuals over time. Their engagement with communities on the ground makes them perfect for this role.
The nonprofit sector has grown tremendously over the recent past. As such, it is necessary for the government to become more involved in the activities of nonprofits due to the potential of the sector being exploited by ill- meaning individuals. Nonprofit organizations have been caught up in political wars severally. As such, setting parameters to govern who qualifies as a nonprofit would help maintain the integrity of the sector. The categorization of nonprofits as illustrated by Publication 557 of the Internal Revenue Service (IRS) helps keep the sector organized and is a positive for all stakeholders rather than a hindrance when it comes to innovation regarding organizational models.
The scale and scope of nonprofit organizations are important considerations when assessing their operational success. Large non- profit organizations are endowed with financial and human resources and as such can work towards their mission easier than smaller nonprofits can. Such large nonprofits have also built global reputation due to their presence across the country. As such, funders and donors will tend to prefer such an organization which is significant in a very competitive sector (Smith). The size of a nonprofit could, however, disadvantage it when it comes to dealing with local communities. Small and medium- sized nonprofits which are usually local- based have a better awareness of the needs of such communities. This could be attributed to their familiarity with the issue at hand and the members of the community. Smaller organizations can also react to a changing environment faster than larger ones can.
Grady, Joseph and Auburn, Axel. “The Explanation Gap: How Democracy Depends on Nonprofit Organizations.” 21 Sep 2005. Web. 29 Aug. 2017.
National Center for Charitable Statistics. “Quick Facts About Nonprofits.” N.d. Web. 29 Aug. 2017.
Smith, Brock. “Measuring Impact: How small and medium- sized nonprofits can benefit from effectively measuring their impact.” 9 July 2014. Web. 29 Aug. 2017.