Introduction to the Third Sector

Introduction to the Third Sector: Non-profit and Non-governmental organizations.

This certainly provides a new opportunity for leaders to discover and apply the best leadership styles to cope up with the demographic and socio-economical shifts witnessed in such organizations. This implies that upcoming as well as the veteran nonprofit organizations must rise up to the challenge to ensure effective management and service delivery to their target populations.

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This paper will examine critical issues pertaining to nonprofit organizations. More specifically, the paper will discuss the demand forecast for leaders in the nonprofit sector, how the responsibilities of nonprofit leaders differ from those of commercial sectors, and the various skills and traits required of nonprofit leaders. It will also examine whether there are any differences between business and nonprofit leaders with regard to demographic variables, and diversity issues in nonprofit organizations. Finally, the paper will conclude by analyzing how the skills of nonprofit leaders may lead may lead to future organizational change.

It is vital to understand what nonprofit organizations are and what they do. Generally speaking, a not-for profit organization is any entity that is formed with objectives other than making of profits, and in which no director, officer, or member is entitled to receive incomes generated by the organization. They may come in the form of an individual enterprise, corporation, foundations, unincorporated associations, or partnerships among others. The law requires these organizations to be designated as not-for profit when being formed. They are required only to pursue those objectives permitted by the laws governing nonprofit organizations (Deitrick et al., 2008).

The nonprofit sectors are said to play a critical role in the US at all levels, be it in cities, nation, states, and region (Deitrick et al., 2008). This is because they play a role in improving people’s living standards across the country.

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