Literature Review on Nonprofit Organization

3 pages of literature review (please use the sources already added in attachment) Special focus on: -era of diminishing resources -limited capacity of resources (role of volunteers), -effect of competition -low overhead cost, -economies of scale on management and fundraising expenses -ways to optimize spending -risk aversion. –> conclusion of the literature review should be something like ‘non for profit organizations work under a low cost structure with limited resources (limited staff)

Nonprofits are organizations that engage in their activities and the profits they generated are not distributed to the owners or the shareholders (Butler, 2015). The profit generated is recognized as a surplus that is used to finance the organization’s activities. The structure and mode of operation of nonprofit organizations is complex to understand or even make conclusions and deductions from a text addressing this topic (Anheier, 2000). A lot has been researched by many others with an aim of understanding it better and filling the gap that has been left by previous researchers. The recent research by Anheier (2014) on this topic has provided substantial information on the nature, operations, and management of these institutions. As pointed out by Gregory (2009), there is a need to refocus on the management of nonprofit organizations with a key consideration of the limited capacity of resources, the role of volunteers as well as the effect of competition. The insights of these authors play a unique role in the development of this paper. The paper continues to investigate the soundness of the current management practices and models currently in use to control these organizations. Concerning the management of the non-profit organization, it is important to understand that availability of resources differs from one organization to the other (Kong, 2008).

The management of these resources will, therefore, depend on the availability and the ease in which they are obtained (Lecy, 2015). Besides, the costs of the resources will also affect their mode of utilization of limited resources must be efficiently and effectively utilized (James, 2013). In an attempt to study the availability and utilization of resources, several questions arise. Are all non-profit organizations exposed to the problem of limited resources? Are all types of resources required by non-profit organization diminishing? An attempt to answer these questions brings out the fact that most nonprofit organizations, profit making concerns as well as public agencies face a problem of limited resources. The situation is in line with the economic principle that states that all production resources are limited. The activities of the organization will determine to which extent the resources are limited (Allison, 2011). Despite the noted limitation of resources, Frumkin (2001) points out on the role of volunteers in a non-profit making organization. In many occasions, a non-profit organization comprises of volunteers in different levels of the organization ranging from the operational, middle level and strategic level of management. The volunteers serve a crucial role in the running of the organization depending on the role held by the individual volunteers. Drucker (2004) argues that most volunteers….

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