Fall 2011
PSC 5033-970 Foundations of Nonprofit Management
Tuesdays, 6:30-9:20pm
Burton Hall 229
Professor: Meeyoung Lamothe, Ph.D.
Office: Building Four (555 E. Constitution Ave.)
Office Hours: By appointment
Phone and e-mail: 325-6469; mlamothe@ou.edu
Course Description: This course is designed to introduce broad theories and managerial
practices in the field of nonprofit management. The focus of the course is threefold. The first
part is devoted to providing theoretical foundations of the nonprofit sector by examining its
nature, scope, legal frameworks, functions, and policy implications. Relevant questions are: why
the nonprofit sector exists, what it consists of, what functions it performs, how it intersects with
the other two main sectors (business and government), and what influences it exerts on
government policies and the economic, political, and social fabric of our society? Given a
theoretical understanding of the nature of nonprofits, the second part focuses on examining
various managerial challenges nonprofit organizations face due to their unique sector positions
and how they respond to those challenges. The challenges are multifaceted (governance,
leadership, financial, personnel, and performance evaluation and accountability) and the sector
sometimes responds in ways to emphasize its independence and leadership, but in other times to
expand its intersection with business and government and blur the sectoral differences altogether
to survive in increasingly competitive environments. The last part of the course incorporates
multiple case studies in order to explore these nonprofit challenges and responses through real
world examples.
Required Readings:
Books:

Walter W. Powell and Richard Steinberg. 2006. The nonprofit sector: A research
handbook (2nd edition). Yale University Press (ISBN: 0-300-10903-2).

Michael Worth. 2012. Nonprofit management: Principles and practice. Sage (ISBN: 9781-4129-9445-3)
Journal Articles, Think Tank Reports, and Case Studies:
There are a number of additional readings assigned to this course that are available in D2L. See
below course outlines for the reading list for the week.
Student Assessment
Participation: As a graduate course, your active participation in class is highly important and, for
this reason, I will assign 14% of your total grade based on the extent you participate and
contribute to class discussions throughout the semester. Participation can take all sorts of forms -
it could simply involve asking/answering a question about the assigned readings. You could also
initiate a conversation or discussion regarding policy issues/implications related to the readings of
the week. Keep in mind that merely attending the class does not qualify as participation. While
attendance is important (well, if you are not there, you cannot contribute, right?), it is crucial that
you actively engage in actual discussions and express your thoughts and share your
understanding of the materials with the instructor and your fellow classmates.
Assessing and grading the extent of contribution/participation made by each of you is inevitably
going to involve some subjective judgment. However, your steady and consistent participation
accompanied by a solid record of attendance will certainly ensure a good grade on this aspect.
Your participation record will be periodically updated and posted in D2L throughout the
semester.
Mini Discussion Papers: You are responsible for submitting THREE mini papers on three
separate weekly readings you choose to discuss. A sign-up sheet will be circulated early in the
semester for this purpose. A mini discussion paper will involve more than merely summarizing
the readings. More detailed instructions (such as approximate length and focus of the paper) will
be available separately. Each paper accounts for 12% of your grade (36% total).
Discussion Leader and Related Tasks: You are also responsible for leading TWO group
discussion sessions. Approximately three to four discussion leaders will be assigned per weekly
meeting. Depending on the week’s topics, discussion leaders may assume slightly different tasks
such as leading group discussions or debating policy positions on certain issues. The leaders are
responsible for submitting a written summary report of the group discussion/policy analysis (1-2
pages in length for most reports). Specific instructions for the responsibilities of the leaders will
be given at a later time. This accounts for 10% of your grade (5% per leader duty).
Research paper: You are required to write a 12-15 page research paper, which will account for
40% of the total grade. You will be asked to submit a mini prospectus in the 11th week (11/1)
and scheduled to present the paper in the 15th week (11/29) of the semester. The paper is due on
December 6th (the last day of class). Specific guidelines for the mini prospectus, presentation,
and final paper draft will be provided separately at appropriate times.
Note: No make-up work will be allowed without an excused absence. In these instances, the
student must make every effort, when possible, to inform the instructor PRIOR to the
absence and, upon return, must supply written documentation supporting the legitimacy of
the absence. Late papers will be docked one full letter grade for each 24 hour period (or
portion thereof) they are overdue.
Grading:




Participation: 14%
Three Mini Discussion Papers: 12% each (total 36%)
Discussion Leader: 10% (5% per leader duty)
Research paper: 40% (5% presentation; 35% actual paper)
The Academic Honor System
The Academic Honor System of The University of Oklahoma is based on the premise that each
student has the responsibility to:
 uphold the highest standard of academic integrity in the student’s own work,
 refuse to tolerate violations of academic integrity in the University community, and
 foster a high sense of integrity and social responsibility on the part of the University
community.
Violations of the Honor Code include, but are not limited to, taking or attempting to take any of
the following actions:
 using unauthorized materials or receiving or rendering unauthorized assistance during an
examination or in connection with any work done for academic credit,
 selling, giving, or acquiring prior knowledge of any exam material, and
 committing the act of plagiarism - the deliberate copying, writing or presenting as one's own
the information, ideas or phrasing of another person without proper acknowledgment of the
true source.
Students found in violation of the Honor Code may suffer a range of sanctions, at the instructor’s
discretion, based on the severity of the violation. These punishments could include loss of credit
for the task in question, a failing grade in the course, and/or university disciplinary action.
Students are strongly urged to visit the University of Oklahoma Provost’s Student Academic
Integrity web site – (http://www.ou.edu/provost/pronew/content/integritymenu.html) – to review
the policies and what constitutes academic honor violations. A paper from this site (“Nine Things
You Should Already Know about Plagiarism”) has been posted to D2L and should be read by
each student. Also, each student is strongly encouraged to review the Interactive Tutorial:
Avoiding Plagiarism which is linked to this page.
Students with disabilities
The University of Oklahoma is committed to providing reasonable accommodation for all
students with disabilities. Any student in this course who has a disability that may prevent him or
her from fully demonstrating his or her abilities should contact the instructor personally as soon
as possible to discuss accommodations necessary to ensure full participation and to facilitate your
educational opportunities. Students with disabilities must be registered with the Office of
Disability Services prior to receiving accommodations in this course. The Disability Resource
Center is located in Goddard Health Center, Suite 166, phone 405/325-3852 or TDD only
405/325-4173. Their webpage can be accessed at: http://drc.ou.edu/content/view/165/119/
Accommodations for Religious Observance
It is the policy of the University to excuse absences of students that result from religious
observances and to provide without penalty for the rescheduling of examinations and additional
required class work that may fall on religious Holidays. Students are expected to inform the
instructor reasonably in advance of such schedule conflicts to allow for accommodations to be
planned.
*****Course Outlines*****
1st Week (8/23): Introduction
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Review syllabus.
Introductory discussions.
2nd Week (8/30): Scope, Dimension, and Nature of the Nonprofit Sector
[P & S] Chapter 3. Scope and Dimensions of the Nonprofit Sector (Elizabeth T. Boris and C.
Eugene Steuerle).
[Worth] Chapter 2. Overview of the Nonprofit Sector.
[D2L]
 Supplemental statistics about the scope of the nonprofit sector – National Center for
Charitable Statistics.
 National taxonomy of exempted entities (comprehensive list of NTEE codes).
3rd Week (9/6): Institutional and Legal Frameworks, Tax Treatment, and Related
Regulations.
[P & S] Chapter 11. The legal framework for nonprofit organizations (Evelyn Brody).
[P & S] Chapter 12. The federal tax treatment of charitable organizations (John Simon, Harvey
Dale, and Laura Chisolm).
[D2L]
 Thomas Silk. 2005. The legal framework of the nonprofit sector in the United States. In
Herman & Associates (2nd ed.), The Jossey-Bass Handbook of Nonprofit Leadership and
Management. Jossey-Bass.
 IRS Guidelines: Samples of Unrelated Business Tax Income.
 (Document) Articles of Incorporation.
 (Document) Bylaws.
 (Document) Sample 990
4th Week (9/13): Understanding Nonprofit Theories
[Worth] Chapter 3. Theories of the nonprofit sector and nonprofit organizations.
[P & S] Chapter 5. Economic theories of nonprofit organizations (Richard Steinberg).
[D2L] (Journal Articles)
 Paul J. Dimaggio and Walter W. Powell. 1983. The iron cage revisited: Institutional
isomorphism and collective rationality in organizational fields. American Sociological
Review 48(2): 147-160.
 Ann Dill. 1994. Institutional environments and organizational responses to AIDS.
Journal of Health and Social Behavior 35(4): 349-369.
5th Week (9/20): Nonprofits and the Marketplace.
[P & S] Chapter 6. Nonprofit organizations and the market (Eleanor Brown and Al Slivinski).
[P & S] Chapter 7. Work in the nonprofit sector (Laura Leete).
[P & S] Chapter 8. Collaboration between corporations and nonprofit organizations (Joseph
Galaskiewicz and Michelle Sinclair Colman).
[Worth] Chapter 12. Earned income strategies.
[D2L] Issues related to nonprofit commercialization.
6th Week (9/27): Governance
[Worth] Chapter 4. Nonprofit governing boards.
[P & S] Chapter 26. Governance: research trends, gaps, and future prospects (Francie Ostrower
and Melissa M. Stone).
[D2L]
 (Case study) Melissa Stone. 2000. East Coast Orchestra’s board of trustees. The
Electronic Hallway.
 Harvey J Goldschmitt 1998. The fiduciary duties of nonprofit directors and officers:
Paradoxes, problems, and proposed reforms. Journal of Corporation
Law 23, no. 4 (July 1): 631. http://www.proquest.com.ezproxy1.lib.ou.edu/ (accessed
January 18, 2009).
 Board: Responsibilities to Govern and Support.
7th Week (10/4): Leadership; Human Resource Management
Executive Leadership
[Worth] Chapter 4. Executive leadership.
[D2L]
 (Case Study) Melissa Stone. 2004. Greenhill Community Center. The Electronic
Hallway.
Managing People
[Worth] Chapter 9. Managing paid staff and service volunteers.
[D2L]
 Zietlow, Hankin, and Seidner. 2007. Ch. 14 Managing risk, legal issues, and human
resources, Financial Management for Nonprofit Organizations. Wiley
 (Case Study) Harvey Simon. 1999. Generation incorporated: The search for volunteers.
Kennedy School of Government Case Program.
8th Week (10/11): Financial Management
[Worth] Chapter 13. Financial management.
[D2L]
 Zietlow, Hankin, and Seidner. 2007. Ch. 2 Liquidity management, Financial
Management for Nonprofit Organizations. Wiley
 (Think Tank Reports) Mark Hager & Janet Greenlee. 2004. "How Important is a
Nonprofit’s Bottom Line? The Uses and Abuses of Financial Data." Pp 85-96 in In
Search of the Nonprofit Sector, edited by P. Frumkin & J. Imber. Somerset, NJ:
Transaction Publishers.
 (Case study) Harvey Tucker. 2003. The theater budget. The Electronic Hallway.
 (Case study) Christopher Reddick. 2005. The bankruptcy of the San Antonio symphony:
Background and financial statements (A) and (B). The Electronic Hallway.
9th Week (10/18): Giving; Fundraising
[Worth] Chapter 11. Philanthropic fundraising.
[P & S] Chapter 23. Charitable giving: How much, by whom, to what, and how? (John Havens,
Mary O’Herlihy, and Paul Schervish).
[P & S] Chapter 24. Why do people give? (Lise Vesterlund)
[D2L]
 (Case Study) Susan Rosegrant. 2000. Give and take: Philanthropy and the Central Park
Children’s Zoo. Kennedy School of Government Case Program (C15-00-1555.0)
 (Essays) Short discussions on fundraising.
*(Supplementary reading – not required) Jason Saul. 2011. The end of fundraising: Raise
more money by selling your impact. Jossey-Bass.
10th Week (10/25): No Class Meeting (International Conference for the instructor)
Students are responsible for discussing the topics provided in the D2L Discussion Board.
11th Week (11/1): Missions; Ownership
*Mini prospectus Due: Guideline for the format, content, and length will be available through
D2L.
Missions:
[P & S] Chapter 25. Nonprofit mission: constancy, responsiveness, or deflection? (Debra C.
Minkoff and Walter Powell).
[D2L] (Case Study) Pamela Varley. 2001. The challenge of drastically changing times: The
Urban League adjusts to a post-civil rights landscape. Kennedy School of Government
Case Program (C16-01-1634.0).
.
Ownership:
[P & S] Chapter 16 Nonprofit organizations and health care: Some paradoxes of persistent
scrutiny.
[D2L] Short readings on ownership.
12th Week (11/8): Accountability
[Worth] Chapter 6. Ensuring accountability and measuring performance.
[D2L]
 (Case Study) Esther Scott. 2002. Standards for Child Sponsorship Agencies (A) and (B),
Kennedy School of Government Case Program (C16-02-1664.0).
 “What we know about overhead costs in the nonprofit sector.” Nonprofit overhead costs
project, brief No.1. Center on Nonprofits and Philanthropy, Urban Institute and Center on
Philanthropy, Indiana University. 2004 (2 pages).
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“The quality of financial reporting by nonprofits: Findings and implications.” Nonprofit
overhead costs project, brief No.4. Center on Nonprofits and Philanthropy, Urban
Institute (4 pages).
Thomas H. Pollak and Patrick Rooney. 2003. "Management and General Expenses: The
Other Half of Overhead." NonProfit Quarterly 10(1): 30-32 (3 pages).
Lester Salamon and Stephanie Geller. 2005. “Nonprofit governance and accountability.”
Communique No. 4. Baltimore: The Johns Hopkins Center for Civil Society Studies.
BBB Wise Giving Alliance standards of excellence program.
13th Week (11/15): Foundation
[P & S] Chapter 15 Foundation
[D2L]
 Susan Wolf Ditkoff and Susan J. Colby. 2009. Galvanizing philanthropy. Harvard
Business Review.
 Jessie Gruman. 2004. How foundations hurt charities. Chronicle of Philanthropy.
 Peter Frumkin. 2003. Inside venture philanthropy. Society.
 Peter Dobkin Hall. 1999. Resolving the dilemmas of democratic governance: The
historical development of trusteeship in America, 1636-1996. In Philanthropic
Foundations: New Scholarship, New Possibilities edited by Ellen Condliffe Lagemann.
14th Week (11/22): Managing Growth and Changes; Social Entrepreneurship
[Worth] Chapter 8. Capacity and collaboration.
[Worth] Chapter 16. Social entrepreneurship.
[D2L] (Case Study)
 Susan Rosegrant. 2005. Peace games: A nonprofit’s journey from birth to national
expansion (A) and (B). Kennedy School of Government Case Program (C16-05-1795.0)
 David Eddy Spicer. 1996. Managing success: Partners for Development (PfD)
reorganizes its Dongolar office. Kennedy School of Government Case Program (C18-951282.0)
 Issues related to capacity and social entrepreneurship.
15th Week (11/29): Research Paper Presentation.
[D2L] Instructions for paper presentation.
16th Week (12/6): Research paper due.
Note: The instructor reserves the right to make changes to this syllabus as necessary. Every
effort will be made to give students ample warning of changes.