Administration of Non-

Profit Organizations
 Planning
Organizing
Staffing
Directing
Administration POSDCRB
Coordination
Reporting
Budgeting
?????????????????????
 Government Departments
Welfare Boards
Corporations
Social Welfare agencies
Nongovernmental organizations
Intergovernmental Organizations
Community Based Organizations
Practice of Social National/State/Local Level
Because they work in
Welfare departments
welfare administration large number of Social
Panchayath Raj Institutions
as a method of Social Welfare and Social
work Development Setting
Challenges

Poverty, Unemployment
Disability, Destitution
Ill health, Illiteracy
Crime
Suicide, Violence, Accidents
 Social Welfare and Social Development

•Economic growth and social development are complementary process.

•Social development happen only through - National will, sustained hard
work, purposeful planning, and faithful implementation.
•Social welfare is to promote social betterment of group of people who
are defined as disadvantaged, handicapped and deprived.
•Need to give emphasis on developmental programmes of social welfare.
•Need the integration of social and economic aspects
•Need the partnership between government and voluntary organization
•Concentrate on Personnel policy aspects – Recruitment, training, staff
development, motivation and morale.
•Allocation of scarce resources for the utmost benefit of the community.
 Programmes for;

Women
Children
Disabled
Practice of Social Chronically Ill
Because it administer Aged
welfare special programmes for Scheduled Caste
administration as vulnerable, disadvantaged Scheduled Tribe
and weaker sections
a method of
Programmes for;
Social work
sustainable social
Development
Disciplinary approaches
"Human services" is defined here as social services designed to meet
human needs that are required for maintaining or promoting the overall
quality of life of the prospective service populations.
What is human services?
• Human services is a vast sector that includes a broad range of
disciplines
• "Human services professional" work in diverse settings;
correctional, intellectual disability, and community mental health
centers; family, child, and youth service agencies, and programs
concerned with alcoholism, drug abuse, family violence, and aging.
Depending on the employment setting and the kinds of clients
served there, job titles and duties vary a great deal.
• focused toward enhancing human well-being
• To accomplish human goals.
 Human Service Organization

• Human service organizations have two key characteristics.

• First, they work directly with and on people.
• Second, "they are to protect and to promote the welfare of the people they serve”

• What is Human service organization?

• Human service organizations is a set of organizations that work on people.

• Why organization?
• To fulfil the goals of the human needs/services Ex: Hospital, Educational
institution, NGO etc.
• Without organizations, the goals of the human services field would be impossible to
fulfill.
 Definitions of Administration
• Administration as a science

• The word ‘administration’-derived from Latin words; ‘ad’ and ‘ministrare’ = ‘to serve’, ‘to
care for’
• Acco. L.D White (1948) ‘the art of administration is the direction, coordination and control
of many persons to achieve some purpose or objective’.
• According to Nigro (1951) administration as the organisation and use of men and materials
to accomplish a purpose.
• According to Herbert A. Simon ‘administration can be defined as the activities of groups co-
operative to accomplish common goals.’
• According to Theo Haimann, “Administration means overall determination of policies,
setting of major objectives, the identification of general purposes and laying down of broad
programmes and projects”.
• According to Newman, “Administration means guidance, leadership & control of the efforts
of the groups towards some common goals”.
 Management
• According to F.W. Taylor, “Management is an art of knowing what to do, when to
do and see that it is done in the best and cheapest way”.
• Sir Charles Reynold, "Management is the process of getting things done through
the agency of a community. The functions of management are the handling of
community with a view of fulfilling the purposes for which it exists."
• J.N. Schulze, "Management is the force which leads guides and directs an
organization in the accomplishment of a pre-determined object."
• Mary Parker Follett defines management as the "art of getting things done through
people".
• Peter F.Drucker –”Management is work and as such it has its own skills, its own
tools and its own techniques”.
• Henry Fayol, "To mange is to forecast and plan, to organize, to compound, to co-
ordinate and to control."
 Management
• Human service professional are used to call “Pencil-pushing bureaucrat” –
Managers surrounded by papers and cut off from the day to day work with
clients.
• Need of managerial competency
• Learn how to manage people
• Learn how to manage program
• Learn how to manage resources.
Management as Art
Management as Science
Practical knowledge – how things to do
Empirically Derived
Technical skills
Critically tested
Orientation to results
General principles
Creativity
Cause and effect relationship/ Research
Personalised nature
based
Practice based learning
Universal applicability
Application of solutions
Levels of Management
Management Styles: Traditional and Contemporary
Principles of Management
• Division of Labor
• Authority & Responsibility
• Principle of One Boss
• Unity of Direction
• Equity
• Discipline
• Initiative
• Fair Remuneration
• Stability of Tenure
• Individual Interest to General Interest
• Centralization & De-Centralization
 Social Welfare

• Social welfare is – a system of well activities for various social services with the
purposes of helping individuals and groups so as to enable them to lead a satisfactory
quality of life (Friedlander, 1961)
• Social Welfare is also perceived as a comfortable condition encompassing physical,
mental and social aspects (UN- 1960)
• According to Skidmore (1971)- SW is an effort to change or improve a person’s present
position to a position of comfort from the physical, mental and social aspect.
• According to -NASSW (1971)- Social welfare generally denote to “the full range of
organized activities as voluntary and governmental agencies that seek to prevent,
alleviate or contribute to the solution of recognized social problems, or to improve the
wellbeing of individuals, groups or communities”.
Systems of social welfare / Types of welfare
services
• Remedial – removing vulnerable conditions
• Preventive – eliminating causes and blocking occurrence of
vulnerabilities
• Developmental- Improving situations
• Supportive- helping to go further
• Different levels- Poor, alms giving, from small groups to bigger
groups, etc
• Based on target groups – individual, groups, elderly, etc
Characteristics of Social welfare programmes
• Service oriented
• Serve community interests
• Value based
• Available to all
• Public accountability
• Based on needs, problems and wellbeing
• Focus on human consumption
• Non-profit motive
 Definitions of Social Welfare Administration

“Social welfare administration is the process of transferring the social policy into
social services and the use of experience in evaluating and modifying policy” John
C. Kidneigh

“Administration is the process of transforming community resources into a

programme of community service, in accordance with goals, policies and standards
which have been agreed by those involved in the enterprise. It is creative in that it
structures roles and relationships in such a way as to alter and enhance the total
product. It involves the problem solving process of study, diagnosis and treatment
solution, or action and evaluation of results.”(Sirohi, 2012)

Social Welfare Administration is the process of efficiently providing

resources and services to meet the needs of the individuals, families,
groups and communities to facilitate social relationship and adjustment
necessary to social functioning.
Rosemary Sarri – the following factors in Social Welfare Administration:

• Translation of social mandates into operational policies and goals to

guide organisational behaviour
• Design of organisational structures and processes through which the
goals can be achieved
• Securing of resources in the form of materials, staff, clients and
societal legitimation necessary for goal attainment and organisational
survival
• Selection and engineering of the necessary technology;
• Optimizing organisational behaviour directed towards increased
effectiveness and efficiency
• Evaluation of organisational performance to facilitate systematic and
continuous solution of problems
 Social Problems - The diagnosis of their causes and their treatment
through social reform and social legislation

Social Service - Social Services aiming at the well-being of the general

public through the provision of health education, housing, etc.

Scope of Social Security - Social security to compensate for the loss of income
SWA due to unemployment, disability, or death caused by accident

Social Work -Social work aims at helping people to solve their

personal, family and community problems through enhancing social
functioning

Social Policy - Social policy delineating the aims and objectives and the
goals to be achieved for the welfare of the clientele concerned through
social action.
 Planning is the formulation of intended future action. It involves the
appraisal of current conditions, identification of the problems,
needs of the society, determination of objectives, goals to be
achieved on short-term or long-term basis, and the description of
programmes to be implemented to reach the desired ends.

Planning • Planning as an intellectual activity requires conceptual skills,

foresight and sound judgment.
• Planning is goal directed and is a continuous process
• Planning is pervasive at all levels of management as well as for
all functional areas.
• Planning is always futuristic but past experience and the current
situation is to be taken into consideration.
• Planning basically involves making the right choices.
• No plan can be rigid. Planning should always be flexible.
 Planning
Types of Planning
Operational Intermediate
planning planning
• Intermediate
Deals with day-to-day
planning is usually
maintenance activities.
done in the middle
of the fiscal year.
• Setting objectives
• Technically, it is the
• Setting priorities
midyear appraisal
• Stating the assumptions
process followed
• Reviewing
by setting new
• Developing primary and
plans for the rest of
back-up plans
the year. It covers
• Implementing the plan
issues about
• Setting up a control
performance,
system and monitoring
resources, and staff
the progress and results
development.
Contingency Strategic
planning planning.
Strategic planning is
defining and
Contingency planning
prioritizing long-term
is done to overcome
plans that include
problems that
examining an
interfere with getting
organization’s
the work done. It
purpose, mission,
involves creating an
philosophy and goals
alternative plan in the
in the light of its
event of critical
external environment.
conditions. Thus it
It aims at creating an
involves having an
image of the desired
alternative strategy to
future and designing
deal with changes.
ways to make plans an
effective program.
 Setting Goals

Clarifying Tasks
Principles of
Agreeing on Responsibilities
Planning
Developing a time frame

Learning

Establishment of Objectives
Reviewing External and Internal Environment(SWOT)
Development of the Courses of Action
Steps in
Planning Evaluation of Alternatives

Selecting the Appropriate Course of Action

Arranging for implementation

 Organizing is the process which comes next to planning.
In the case of organizing, we decide on the ways and
means of achieving what has been planned.

Organization is essentially the conscious integration of

human effort for a definite purpose.

It is the systematic bringing together of interdependent

parts to form a unified whole through which authority,
Organizing/Organization coordination and control

Organizing is a multi-step process. It starts with

identification of activities, grouping of activities,
assigning responsibilities, granting authority and
establishing relationships.
 • Identifying tasks
• Grouping the tasks
• Defining and determining who will do what
• Establishing supervisory relationship among various job
positions
• Determining policies, rules and regulations in respect to
the project

Organizing/Organization
Organization is the establishment of a formal structure of
authority through which the work is sub-divided, arranged,
defined and coordinated for the defined objective.
According to Scott (1964), organizations are defined as
collectivities that have been established for the pursuit of
relatively specific objectives on a more or less continuous
basis. Thus organizations are deliberately created by
human decisions for the purpose of accomplishing goals.
 There are two major types of organizations, they are
formal and informal. A formal organization refers to a
structured organization which has an organizational
hierarchy, reporting relationships ... The informal
organization usually has an informal working
relationship

Organizing/Organization

Organization Structure

• Departmentalization
• Job specification
• Job description
• Line management
 • Staffing refers to the manner of employing and developing
employees to carry out the various activities in an
organisation.
• Staffing involves various processes like manpower
planning, recruitment, training and wage and benefits
administration.
• Staffing is also a continuous process and the manager has
to have an eye on personnel needed by the organization as
some people leave, retire, get promoted or transferred.
Staffing

According to Ployhart, “staffing is the process of attracting,

selecting, and retaining competent individuals to achieve
organizational goals”.

He continues that “every organization uses some form of a

staffing procedure, and staffing is the primary way an
organization influences its diversity and human capital”
 Significance of Staffing

• It helps in getting right people for the right job at the

right time.
• It allows the manager to do manpower planning.
Staffing • It contributes to improved organizational productivity.
• It leads to higher performances of the workers
• It helps in providing job satisfaction to the employees
• It assures the career advancement of employees.
• It maintains merit , harmony and peace in the
organization
 Process of Staffing
Steps Involved in the Process of Staffing

• Manpower Planning
• Job Analysis

Staffing

• Recruitment
• Performance Appraisal • Selection
• Compensation • Placement &
• Promotion Induction
• Transfer • Training &
Development
 • It is continuous task of making decisions.
• It helps the managers in ensuring quality performance of
jobs by the employees and achievement of organisational
goals.
• It involves supervision, communication and providing
leadership to the subordinates and motivating them to
contribute to their best of capability
• The directing function thus, involves:
Directing • Telling people what is to be done and explaining to
them how to do it
• Issuing instructions and orders to subordinates to
carryout their assignments as scheduled
• Supervising their activities
• Inspiring them to meet the mangers expectation
and contribute towards the achievement of
organisational objectives
• providing leadership. Managers plan and take
decisions.
 Importance of Directing
• It guides and helps the subordinates to complete the given task properly and as
per schedule.
• It provides the necessary motivation to subordinates to complete the work
satisfactorily and strive to do them best.
• It helps in maintaining discipline and rewarding those who do well.
• Directing involves supervision, which is essential to make sure that work is
performed according to the orders and instructions.
• Different people perform different activities in the organisation. All the activities
are interrelated. In order to co-ordinate the activities carried out in different parts
and to ensure that they are performed well, directing is important. It thus, helps
to integrate the various activities and so also the individual goals with
organisational goals.
• Directing involves leadership that essentially helps in creating appropriate work
environment and build up team spirit.

Elements of Directing - Communication, Supervision, Motivation and Leadership

 • Coordination refers to the act of making different people or things work
together to fulfill the desired goals in an organization.
• There are multiple activities happening in each organization. These
activities are performed by various agents, staff and volunteers. The end
product of all these activities is to achieve the vision and mission of the
organization. In this context, it is important for the management team to
harmonize the work of various departments. This aspect is called co-
ordination.
Importance of Co-ordination
Coordination • It ensures that the work performed by different groups, units or departments
form an integral part of the total work for which an organisation is
established.
• It helps to achieve unity of action and prevent overlapping and conflicting
action.
• It helps to achieve goals in the departments
• It brings together people working at cross purposes and helps to understand
each other's functioning better for greater efficiency
• In large organizations, coordination is even more important as there may be
operations at various places/ regions
 • Coordination refers to the act of coordination and
control of the activities that facilitates in effective
production
Coordination • Division of labour helps in proper utilization of skills
• Controlling is integral in co-ordination
• Coordinator has to be an effective team player
 • Reporting and documentation play an important role in the
effective functioning of NGOs, VOs, CBOs
• It helps in sharing the project outcome with donors, support
agencies, government functionaries, well wishers and like-
minded people.
• An effective reporting and documentation system will help
Reporting the organization in its image building efforts among its
stakeholders.
• It also enhances the credibility of the organization within
society.
• Reporting means keeping both the supervisors and
subordinates informed of what is going on and arranging for
collection of such information through inspection, research
and records.
 • Not designed to be made public
• May include confidential
information.
Internal (intra-
• It can discuss efficiency,
organizational)
• job performance,
reporting
• Other aspects of employee
activity

Two types • Chairperson's Message

of • About the Organisation
Reporting • Vision, Mission and Core
Value
• Programmes
Public reporting • Governance
(Annual Report • Finance
• Future Plan
• Gratitude
• Appeal for Support for the
Organisation’s Work
 • Budget is a statement of financial results expected in the
future.
• Budgeting is the process of preparing a detailed statement for
financial results that are likely to happen in a period of time
to come.
• “A budget is a financial statement, prepared in advance of the
opening of fiscal year, of the estimated revenues and
proposed expenditures of a given organization for the ensuing
fiscal year”. (Bruce)
Budgeting

• It helps in segregation of activities and making provisions

for funds.
• It helps to choose the best option.
• It helps to find out areas in which cost reduction can be
done.
 Budgeting
• Indicates the financial conditions of the agency during the coming year.
• Indicates the distribution of funds for certain definite welfare services.
• Indicates the proposed expenditure for a specific period, and the purpose and
the proposed means of securing the income required.
• It is a basic means of controlling the programs as well as funds
• It is the program of work of the agency expressed in rupees and paise.

The purpose of Budget

• Assessment : To asses the financial requirement of an agency
• To start fund raising campaign
• To request various grant giving bodies for financial assistance.
• Indication: To indicate the lines on which money raised / received (forecasting)will be spent.
• Guidance: To guide the staff of the agency about the manner of spending money on various
schemes
and heads of account.
• Helping: To help the managing committee to exercise financial control over the agency’s work.
• Informing: To inform the community about sources of income and the plan for incurring
expenditure.
 Methods of preparing a budget: (Steps)

• Preparing a schedule of payments and expenditure in respect of each activity

or heads of expenditure. E.g. Salaries, Travel, Communication, Equipment,
Medicine Contingencies.
• Collecting the income / expenditure statement for the last three years, on each
head of account.
• Actual income / expenditure during the previous year.
• Budgeted income / expenditure during the previous year.
• Proposed income / expenditure for the coming year.
 FUND RAISING

FINANCIAL COLLABORATION BETWEEN FUNDING PARTNERS AND

NON-PROFIT ORGANISATIONS
 Introduction

• Finance is the lifeline of any activity whether for a Non-Profit Organization or for
a profit organization.
• Funding partners around the world have a vital role to play in the work of Non-Pro
fit Organizations.
• They not only provide funds for the various activities, but also act as a catalyst for
development interventions.
• In the emerging scenario, both the funding partners and their counterparts are
looking for mutual areas of collaboration and synergising their strengths in order
to render effective service to the poor and the disadvantaged section of society.
 EXPECTATIONS OF FUNDING PARTNERS
• Funding partners mobilize their resources from the public and their Government
and hence they are accountable to their donors. As the resources are getting
scarce the world over, there is pressure on funding partners to select effective
partners who could put the scarce resources to the best use.
• In the above context, funding partners have some important expectations from
their partner organization.
1. Long term and Short term planning with clear vision, mission, goals, objectives and
activities
2. Budgeting
3. Plan for sustainability
4. Sound financial management and administration
5. Compliance with Reporting Procedures
 FUNDING OF NGO OPERATIONS
• From Indian Sources
• An NGO may draw its funds from internal as well as external sources.
Internal Sources (Community Resource Mobilization)
• Membership Contribution,
• Sponsorship Fees
• Sales (such as sales of greeting cards, candles, handicraft items, homemade
foods items, books, etc.)
• Interests
• Community Philanthropists (patron members, life members, etc.), and
• Individual Donations.

Besides, an organization can save resources by using services of

volunteers rather than paid staff.
External Sources Within India:

• Grant in aid (from Central or State Government). Various funding schemes

operated by different Ministries of the Central Government
• Donations in kind, such as, medicines, books, food items, etc.
• Private Institutional support or grants from-Parent NGOs, Corporate Bodies,
• Industrial houses
• Sponsorship for and ticket collections from fund raising events such as
• Charity shows, musical nights, etc.,
• Advertisements,
• Souvenirs,
• Other trusts/organizations,
• Individuals
• Box Collections
• Tourists/Visitors
• Outside India (Foreign Sources)

• (a) Bilateral funding (Assistance given by government to the government of another

country);
• (b) Multilateral funding (Assistance given by government to international organizations)
• (c) Private institutional funding
• (d) Overseas non-resident communities.

• The purpose for which, and the account of foreign contributions received are regulated by
Foreign Contribution Regulation Act, 1976 (FCRA).
 ELIGIBILITY CONDITIONS FOR RECEIVING FUNDS
• Generally for receiving funding from either Indian or foreign sources, the following are
essential conditions:
• (i) Legal Status: NGO should have a" legal status
• (ii) Constitution and Working Rules: The NGO should have proper constitution and
objectives framed in the form of Memorandum and Articles of Association /
Byelaws/Trust Deed.
• (iii) Management: It shall have a Governing body with authority to conduct its affairs
to achieve the main objectives.
• (iv) Not for profit profit: It should do its activities not for any profit but with an
objective to serve the targeted population.
• (v) Involvement: It shall consist of such people who are voluntarily involved in
rendering the services to the target society and also shall be able to attract volunteers.
• (vi) Not to discriminate: It shall not indulge in discriminating the target group nor use
the resources mobilized for furtherance of interests of any political party or involve in
creating communal disharmony.
• (vii) Past record: Normally the existing NGO with past record of good service and non-
discriminating in nature are funded.
 APPLICATION FOR FINANCIAL ASSISTANCE
• Applications for grant in aid / financial assistance shall be made in the prescribed form or by furnishing, amongst others, the following
information/details:
General Profile for the NGO:
• (a) Name, address, legal status (along with details of Registration like Certificate of incorporation/registration no., etc.), and thrust area.
• (b) Name(s) and address (s) of Chief/other functionaries of the organisation.
• (c) Main activities and sources of funding generally for last three years. Bank details are also required in some cases.
• (d) Evaluation of the achievements, if any, carried out by any independent agency along with the report thereof.
Project Profile:
• (a) Title of the project.
• (b) Aims and objectives along with estimation of targeted beneficiaries, expected qualitative improvement, etc.
• (c) Strategy/action plan, details of training required, availability of volunteers
• and their skills, etc.
• (d) Financial requirement, sources of funding and financial assistance required
• from Govt. under the respective program.
• (e)Duration of the project and sustainability after support is completed.
• (f)Monitoring and evaluation indicators.
Documents to be furnished
• Generally, the following documents are required to be furnished along with the application:
• (i) Copy of Registration Certificate
• (ii) Memorandum of Association & Bye-laws
• (iii) Latest Annual Report
• (iv) Audited accounts along with auditor’s report/certificate.
• (v) List of important functionaries and employees.
 AUDIT
• An audit is a systematic review of the financial transactions of an organisation.
It involves an examination of the validity of supporting documents and the
certification of:
• The financial statements.
• The various reports for legal compliance such as FC-3 for FC(R)A, audit
report in form no.10B under the income tax act.

• The auditor normally also presents a report to the management in order to help
improve the accounting standards and practices.
• It safeguards the accountability standards of an organization. An audit certifies
the authentic financial status of an organisation and points out if there are any
deficiencies, malpractices or frauds.
• An auditor is a person who is qualified as a charted accountant within the
meaning of the charted accountant’s act 1949.
 SOCIAL AUDIT
• Social audit is a way of measuring, understanding, reporting and ultimately
improving an organization's social and ethical performance. A social audit helps
to narrow gaps between vision/goal and reality, between efficiency and
effectiveness.
• Social Audit is a process by which an organisation accounts for its social
performance to its stakeholders and seeks to improve its future social
performance. Social auditing is a way to document and hold a company
accountable for its social and ethical business practices.
• Relevance of social audit;
• Governance and Accountability: - Accountability refers to a process by which
individuals or organisations are answerable for their actions and
consequences that follow from them.
• Social Accountability (Public Accountability) - Social accountability ensures
transparency, reduces leakage, forces proper spending of funds, generates
trust and peace and creates demand-led improvement in services.
 Principles as explained by Trecker

• The Principle of Social Work Values: The values of the profession are the
foundation upon which services are developed and made available to persons who need
them.
• The Principle of community and client needs: The need of the community and
the individuals within it are always the basis for the existence of social agencies and the
provision of programs.
• The Principle of agency purpose : The social purpose of the agency must be clearly
formulated, stated, understood and utilized.
• The Principle of cultural setting: The culture of the community must be
understood in as much as it influences the way needs are expressed and the way
services are authorized, supported, and utilized by the people who need them.
• The Principle of purposeful relationship : Effective purposeful working
relationship must be established between the administrator, the board, the staff and the
constituency.
• The Principle of agency totality: The agency must be understood in its totality and
wholeness.
• The Principle of professional responsibility: The administrator is responsible
for the provision of high quality professional services based on standards of
professional practice.
• The Principle of participation: Appropriate contributions of board, staff and
constituency are sought and utilized through the continuous process of dynamic
participation.
• The Principle of Communication: Open channels of communication are essential
to the complete functioning of people.
• The Principle of leadership: The administrator must carry major responsibility for
the leadership of the agency in terms of goal attainment and the provision of
professional services.
• The Principle of planning: The Process of continuous planning is fundamental to
the development of meaningful services.
• The Principle of organization: The work of many people must be arranged in
anorganized manner and must be structured so that responsibilities and relationships
are clearlydefined.
• The Principle of delegation: The Delegation of responsibility and authority to
other professional persons is essential.
• The Principle of co-ordination: The work delegated to many people
must be properly coordinated.
• The Principle of resource utilization: the resources of money
facilities and personnel must be carefully fostered, conserved and utilized
in keeping with the trust granted to the agency by society.
• The Principle of change : The Process of change is continuous, both
within the community and within the agency.
• The Principle of evaluation: Continuous evaluation of processes and
programs is essential to the fulfillment of the agency’s objectives.
• The Principle of growth : The growth and development of all
participants is furthered by the administrator who provides challenging
work assignments, thoughtful supervision, and opportunities for
individual and group learning
•