Bryce Nonprofits as Policy Solutions to the Burden of Government

1. Auflage 2017
ISBN: 978-1-5015-0582-9
Verlag: De Gruyter
Format: EPUB
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 292 Seiten

This book addresses a specific subset of nonprofits that are chartered with a single mission: decrease the burden of government. Designing and engaging nonprofits to lessen the burden of government requires a specific description and acknowledgement of the burden to be lessened, and these may include the provision of infrastructure, the relief of debt, or the provision of general public services that are not motivated by charity. It also requires the assignment of specific operating powers to the nonprofit including the power of eminent domain. This book explores these and other related topics including the avoidance of resource dependence on government when attempting to reduce its burden. The book is addressed to the policy makers and rule makers who design policies that affect the ability of the nonprofit to effectively lessen the burden of government. It is also addressed to public administrators in search of innovative ways of implementing these policies consistent with the laws, and to the creative nonprofit managers who are charged with carrying out the mission often in collaboration with the government or other entities. To the advanced student in all related fields, the author offers not only material for discussion, but enables discovery of what is possible by giving key examples of organizations meeting the terms and objective of lessening a significant burden of government.

Zielgruppe

Managers, Government Policy Managers, Startup Entrepreneurs, Fina

Autoren/Hrsg.

Bryce, Herrington J.

Fachgebiete

• Sozialwissenschaften Politikwissenschaft Politische Kultur Nichtregierungsorganisation (NGOs)
• Sozialwissenschaften Politikwissenschaft Politische Kultur Staatsbürgerkunde, Staatsbürgerschaft, Zivilgesellschaft

Inhaltsverzeichnis

Preface xv Chapter 1 — Purpose, Policy, Theory, Definitions and Context 1 Purpose 1 The Burden of Government 2 Perspective, Collaboration, Competence 5 Traditional, Nontraditional, Burden 9 Organizational Design 11 Prices, Profits and Nonprofit Motives 12 The Context 13 Dimension of the Problem in the United States 13 Why the Nonprofit Option 16 Toward a Supporting Theory 17 Bibliography 18 Chapter 2 – Designing, Empowering and Engaging the Nonprofit to Lessen the Burden of Government 19 The National Trust for Historic Preservation 19 Crafting the Intent to Lessen the Burden of Government 19 Federal and State Designation of an Eligible Burden 21 Classification of Nonprofits as Doers and Facilitators 22 The Planks on Which to Design a Nonprofit to Reduce the Burden of Government 26 Plank 1: Money 28 Plank 2: Marketing and Persuading 32 Plank 3: Membership and Public 32 Plank 4: Management 33 Plank 5: The Mission 35 Plank 6: Collaboration and Cooperation 37 Plank 7: Tax Exemption 37 Plank 8: Powers to Act 38 Plank 9: Accountability 39 Plank 10: Legitimacy 39 Summary and Preview 40 Bibliography 40 Chapter 3 – Empowering the Nonprofit to Lessen the Burden of Government 43 The Creation of the Corporation 44 Incorporation: Process, Purpose, Powers 45 The Powers of the Nonprofit Corporation 48 Prohibitions 50 Financial Advantages and Disadvantages of Exemption 53 Some Factors that Threaten the Loss of Tax-Exampt Status Under 501(c)(3) 66 Summary and Preview 68 Bibliography 68 Chapter 4 – Nonprofits as Doers in Reducing the Burden of Government 69 The Doers: Distinguishing Examples 71 Categorizing 501(c)(3) Doers 73 Doers Depending Mostly on Business Income 78 Subsidiaries, Affiliates, and Holding Companies as Internal Facilitators 80 Other Categories of Doers 83 A General Comparison of Doers 85 Lessening the Burden of Government: The Benefits and Justification of Tax Exemption 86 Summary and Preview 87 Chapter 5 – Nonprofit as Financiers and Facilitators in Reducing the Burden of Government 89 Two Government-Created Examples: To Be Close But Not Controlled 89 The Nonprofit Financers 91 The Rules of Foundation Operation 93 The Key Characteristics of the Facilitator 100 Hybrids: Private Operating Foundations 102 Summary and Preview 104 Chapter 6 – Government Created Nonprofits to Lessen the Burden of Government 105 Nonprofits Created by Governments to Lessen Their Own Burdens 106 Qualifications of a Government-Created 501(c)(3) 108 Public Authorities as Government-Created Nonprofits to Relieve Government Burden 110 Ports and Powers 113 Are Authorities Doers or Financers? 123 Summary and Preview 123 Bibliography 124 Chapter 7 – Decision-Making and Governance Structure in Lessening the Burden of Government 125 The Board 125 Interlocking Directorates 129 Conflict of Interest, Independence, and Board Members 130 Dealing With Possible Conflicts of Interest 132 Dealing With Non-Independence 133 Standards at the Root of All Trustee Actions 133 Excessive Economic Transactions and Due Diligence 137 Duty of Organizations to Trustees and Their Rights 138 Liability of Trustees 139 Annual Disclosures of Involvement of Current and Past Trustees and Senior Management 141 Summary and Preview 142 Bibliography 143 Chapter 8 – Financing the Burden through Contributions 145 A General Picture of Contributions and the Sector 145 Requirements of a Tax-Deductible Gift 152 Problems of Accepting Gifts Subject to Debt 158 Summary, Responsibility, and Preview 161 Bibliography 161 Chapter 9 – Financing the Burden through Business Earnings 163 Business Activity as a Source of Money 163 Definition of Related and Unrelated Nonprofit Businesses 165 Excess Profits: A Distinction Between Related and Unrelated Income 168 Integration of Business Operations Into a Conglomerate Structure 169 The Organization of an Unrelated Business 169 Tax Treatment of Different Types of Business Income 172 Key Points on Entrepreneurial Income in Nonprofits 188 Summary and Preview 189 Chapter 10 – Financing the Burden through Debt 191 The Need for a Charter and Other Documentary Powers 191 Terms of Debt 192 Non-Deductibility and Taxability of Interest 194 Debt as Credit Facility 194 Covenants, Default, Bankruptcy 195 Strategies for Treating a Loan Due 195 Borrowing from the Securities Market 196 Borrowing from Nonfinancial Sources 197 Preparing to Borrow 197 Debt Limits and the Nonprofit 198 Subsidized Infrastructure Debt Available to Nonprofits 198 Long-Term Debt tor Infrastructure Used by the Nonprofit 199 Long-Term Debt Issued by Nonprofits on Behalf of the Government for Public Purpose Infrastructure Called 63-20 Debt 200 Issuing of Debt (Bonds) by an Authority 202 Debt Through Tax Increment Financing 205 Long-Term Lease Arrangements of Property 206 Summary and Preview 206 Bibliography 206 Chapter 11 – Establishing Cash Flows for Sustainability 207 The Trust 208 Endowments: Perpetuating a Gift 209 Specific Long-Term Assets In an Endowment: Trusts 213 Specific Long-Term Assets for Endowments: Life Insurance Policies 216 Gifts of Iras, Gift Annuities, and Other Such Contracts 222 The Power of a Will 223 Summary and Preview 224 Bibliography 224 Chapter 12 – Corruption and Control: Protecting the Assets for Lessening the Burden of Government 225 Corruption 225 Types and Effects of Corruption in Nonprofit Organizations 226 Sources and Opportunities for Corruption 228 Managing the Risks of Corruption and Fraud 230 Controls: An Accounting Approach 230 Controls: A Transaction Approach 231 Controls: A Flow Approach 232 Controls: Organizational Lines of Defense 233 A Comprehensive Approach to Corruption 234 The Discovery of Corruption 237 The Protection of Sources and Records 237 Insurance Against Corruption 240 Classification and Treatment of Certain Costs 242 A Tool of Cost Control, Avoidance of Cost Overruns, and Detection of the Risk of Inefficiency or Fraud 246 Summary and Preview 248 Bibliography 248 Chapter 13 – Discussion and Dialogue 251 Levels of Lessening the Burden of Government 252 Types of Nonprofits Lessening the Burden of Government 253 The Authority to Perform 254 The Nature of the Promise to Lessen the Burden of Government 255 To Exercise Authority the Nonprofit Needs Powers 255 The Power to Finance and the Motive for Action 256 Governance Structure 256 Accountability and Disclosures 257 Types and Range of Collaboration 258 The Conflict Between Collaboration and Control 258 Sources of Legitimacy 259 Growth and Competition 261 Debt and Off-Balance Sheet Financing 262 Who Subsidizes Whom 264 Tax Exemption as Price and Incentive 264 The Rationale for This Direction 265 Index 269

Über Autor(innen)

Herrington J. Bryce was a senior economist at the Urban Institute, a Brookings Economic Policy Fellow, a Fellow at the Institute of Politics at Harvard and a visiting professor in regional economics and planning at the Massachusetts Institute of Technology. He taught micro economic theory and public finance at Clark University in Worcester, Massachusetts, and was director of the program in legal and budget studies at the University College at the University of Maryland. He currently teaches courses at the College of William & Mary in nonprofits but mostly in corporate financial strategy and cost management-heavily reflected in this text. He has published extensively and has served on many state, local and federal government advisory committees. He has a PhD in economics from the Maxwell School at Syracuse University, and a Clu and ChFc from the American College.