Nonprofit organizations are not the same as they were in the past. In the early days of non-profit companies, fewer governmental restrictions existed (Young, 2000). In other words, non-profit organizations were not held to the same standards as they currently are. In addition, digital technology was not as advanced. Many modern non-profit organizations use digital technology in order to accept donations and handle transactions. The result is that the government can audit the organizations in order to determine whether or not they are being honest with their financial statements.
Another difference is that the public has less trust in nonprofit organizations than they did in the past. Several different major scandals in the non-profit sector have led people to have a less positive view of nonprofit organizations in general. Although many non-profits operate in an ethical and transparent way, there are some that have been discovered to be engaging in deceptive practices. In some cases, their practices were illegal. Some individuals think that non-profit organizations should be held to the same standards as for-profit companies (Gilkeson, 2006). Some people think that non-profit organizations should still have to pay taxes like regular companies. One reason is because it would create an incentive for the government to audit and monitor those companies more closely. In current times, most non-profit organizations are exempt from paying taxes. The government usually audits companies that are suspected of underreporting their earnings in order to cheat the government out of money. As a result, it is reasonable to assume that the IRS would have more of an incentive to audit and monitor for-profit companies than non-profit companies. Some people think that the situation would change if non-profit organizations still had to pay taxes like a regular company. Then, individuals who found for-profit companies would be doing so out of a desire to pursue their mission rather than out of a desire to avoid paying taxes or to trick the government by underreporting their earnings.
Leadership plays an important role in non-profit organizations. Leaders have the task of inspiring other people and communicating the vision of an organization in an effective way. People are more likely to donate and take part in a non-profit organization if the leader does a good job of communicating the importance of the cause and the value of contributions. Leadership is particularly important in the modern era as a result of the scandals that have taken place in the non-profit sector. The public currently has less trust in non-profit organizations than they did in the past. A central part of leadership is gaining the trust of followers. Leaders in the modern non-profit sector have the responsibility of gaining the trust of their followers and of people in their community.
For the future of non-profits, leadership will play an even more important role than it did in the past. Leaders have the task of communicating the vision of an organization, and of reestablishing trust that was lost when some companies in the non-profit sector were involved in scandals.
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