Social Capital and Non-profit Organizations
Ronald McDonald House Charities (RMH-CNJ) is the US non-profit organization that works for the social cause which includes the protection of the children who are undergoing the treatment. In addition to this, there are many non-profit organizations in the US that work for the accomplishment of the objective of a social cause. This paper will attempt to explain and discuss the role played by NPOs and the ethical challenges faced by these type of non-government organizations. The paper will attempt to explain the link between social capital and the non-profit organizations that help them in the achievement of the objectives that are related to social justice and social causes.
Table of Contents
Role of NPOs
Ethical Challenges Faced by NPOs
Influence of Policies on Non-Profit Organizations
Social Capital and Non-profit Organizations
Ronald McDonald House of Central & Northern New Jersey(RMH-CNJ) is an American independent nonprofit organization which aims at the creation, discovering and support programs that improve the well-being and health of the children. Gerald Newman is the Chief Accounting Officer for McDonalds Corporation who is also the founder of Ronald McDonald Children’s Charities and was president at RMH as well. RMH has strongly developed the global network of chapters in 64 countries and regions under the three major programs known as Ronald McDonald House, Ronald McDonald Care Mobile and Ronald McDonald Family Room. The main purpose of this paper is to determine the importance of Ronald McDonald House and the ethical challenges that are linked with it. The paper further intends to shed light on the link between the social capital and the non-profit organizations along with the influence of the policies on the way processes are carried out in the organization.
Role of NPOs
In the US, the nonprofit sector (NA) unjustly took the place of the deep periphery in the context of the government’s social policy, the contribution of the sector to the multiplication of public goods, its growth potential and efficiency was underestimated. There was not a proper understanding of the purpose of non-profit organizations (NPOs) to meet such types of needs that are functionally indifferent to the market but remain difficult for the state to fulfill.
In accordance with the study by Gonsalves and McGannon (2018), there are different forms of management that were considered the only condition for meeting the needs of society. However, in the age of rapid growth of the non-material sector of production and the development of the economy of non-commercial services, this assessment turned out to be fundamentally wrong. She clearly missed the fundamental impossibility of developing many types of socially oriented activities (services) using market mechanisms. The problem of increasing the satisfaction of the individual does not boil down to a set of market benefits. In the United States, with excessive production of market goods and their marginal utility declining, as incomes, educational status, and free time increase for a large part of people, preferences and values move to a higher level. This is expressed in the requirements of nature and wildlife protection, needs for social activities, where the motivation is not a material reward, but the performance of “proper deeds”, communication, social recognition, self-realization, freedom of choice, and so on. These categories do not fit into the system of economic determination, and the demand for them is growing strongly, there is every reason to predict the further reproduction and accelerated development of the non-commercial services sector (Razmerita & Tan, 2017).
There was more need of the nation-profits organizations in the US just because of the unequal distribution of wealth in other major issues in the organization. The non-profit sector, being a system-forming component of civil society, is at the same time one of the fundamental independent sectors of the economy (the economy of non-market services). In the US, it is very numerous and diverse in its composition of participants and methods of action. In addition to hundreds of thousands of community organizations, it includes 90% of day care centers for children, primary and secondary schools, 50% of colleges and universities, canteens for the hungry and homeless, religious missions, national and city parks, private and corporate funds, 2/3 social service centers, cultural and educational organizations (65% of museums, 95% of libraries, art galleries, botanical gardens and zoos, almost all symphony orchestras), over 60% of clinics and hospital complexes, consumer associations (Moore, 2017). In 2002, full-time employees of all non-profit organizations (NOs) in the United States accounted for 11 % of theeconomically active population (in all levels of government – 14%, commercial sector – 75%) compared with 9% in 1998 and 6% in 1990 (Doherty & Lyon, 2014). On the other hand, Wang, Chou & Li (2018) stated that the rigidly structured and closed pyramidal model of the state system, the aggregate NPO is a horizontally integrated model that is reproduced in the process of direct communication of people in all directions. The United States surpasses the UK, Germany, Holland, France, and Sweden in terms of the financial self-sufficiency of the National Assembly. It is important to note that the excessive dependence of NPO budgets on government subsidies (typical for European countries) has its downside – dropping individual segments of the sector from civil society and turning them into quasi-state structures. NPOs that have a balance of different sources of income are in a favorable position, which allows them to flexibly maneuver resources. The structure of the sources of financing NPOs in a certain way influences the nature of the services provided: the higher in its budget the share of government allocations, private and corporate funds, the more pronounced the social content of the service. With the predominance of funds earned by the NGOs themselves, the tendency towards the personification of services increases (Maier, Meyer & Steinbereithner, 2016).