What is the nonprofit sector? What role(s) does it play in the United States? Do we need it? Why or why not?
The non-profit sector refers to a sector that provides goods and services to the population but whose overall returns are retained by the organization rather than distributed to the owners or shareholders. These organizations are not operated as private businesses but at the same time they do not form part of the public sector. However, their structure and shape whether it agrees or disagrees with the government of the region it serves, helps shape their functions and scope of practice, as well as their role on the society. They are also known in other terms as independent organizations, charitable, voluntary or third sector.
These organizations have a lion g history of existence and their primary role is seen as one that focuses on helping the needy in the society and reaching to those populations that have otherwise been sidelines in health, education or economic development to empower them. Specifically, nonprofit organizations are regarded as organizations that fill the gap that remains uncovered by the roles of the government and the private sector and those which are deemed critical for the society. These roles could encompass religious, educational; health and facilitating research in these fields to help overcome the barriers that the society faces with lack of concern form the government. However, at times, these organizations act as pioneers to such programs up which the private and government sector take up and further professionalize them.
While critics may argue that nonprofit organizations are a liability to the government or the economy in general because they are tax exempted,, the role played by these organizations is so wide that the economic impacts of losing them would be hugely felt. From disease control strategist, provision of social services, international aid and relief and advocacy for public services all these help open up employment opportunities. In 2011, 10% of the employed population was working in this sector. On the other hand, the sector provides volunteer work that as of 2009 was regarded as contributing “14,963,262 hours equivalent to 8,802,000 full-time employees” (Vaughan, 17). This is close to $278,615,940 time-value for money that essentially explains the growi9ng importance and role of this sector to the economy.
Works Cited
Vaughan, S., and S. Arsneault. Managing non-profit organizations in a policy world. Los Angeles: CQ press, 2014. Print.
