Internal And External Stakeholder of Nonprofit Organization

Categories: OrganizationPolicy

Non -profit organization- an organization that is tax free and that serves the public interest. Their purposes are charitable, educational, scientific, religious or literary. Public expects to donate and their donations be deducted from their federal taxes. A legally non -profit org does not declare any profit and instead utilizing all the resources and revenue for its operating expenses.

International Humanitarian City (IHC)

Established in 2003 by HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the International Humanitarian City (IHC) has grown to become the world’s largest and busiest logistics hub for humanitarian aid with nine UN agencies and nearly 50 NGOs and commercial entities as members.

Its expertise is in transport and logistics to work hand in hand with aid agencies on helping the victims of crises and families whose lives are scarred by poverty. IHC capabilities for delivering help is eight hours by air to two thirds of the world population some of the worst humanitarian crises that includes tsunami in Southeast Asia, recurring drought of Africa, Civil unrest in Afghanistan and Darfur and the 2010 earthquake in Haiti.

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IHC also has been engaged on emergency responses to Syria and Philippines

Characteristics of Nonprofit Organization

  1. Passion for Mission ( values Driven) - creativity, energy and dedication for the work
  2. Atmosphere of Scarcity – Shortage of resources, underdeveloped infrastructure may exist execution walls.

Bias toward informality, participation and consensus

  • Dual bottom lines;
  • Financial and Mission
  • Program outcomes are difficult to assess
  • Governing boards has both oversight and supporting roles
  • Mixed skill level of staff
  • Participation of volunteers

Public Sector

Composed of organization that are owned and operated by the government.

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Includes Federal, provincial, state, or municipal governments, depending on where you live. RTA( Road and transport Authority) a public sector organization responsible for transport network in UAE, a versatile entity mandated to manage marine roads , metro and public transport through sub agencies.

5 basic Characteristics of public sector

State Ownership

Owned by the state. It could be in the nature of Central, State or local government ownership or any instrumentality of the state too can have the ownership of public enterprise.

Controlled by the state

Its operation and administration controlled by government. The Government has the direct responsibility to manage the affairs of the enterprise through various devices and exercises control over it by means of a number of agencies and techniques.

Public Responsibility

Public Enterprises owe accountability to people as they are funded through public money. This accountability is realized through legislature and its committees, ministers, audit institutions and other specialized agencies.

Independence

Public Enterprises function with highest independence under given situations. They are free from day to day interference in their affairs and management.

Coverage

The public enterprise negotiates all areas and activities. There is hardly any field of activity, which is not covered by the operations of public enterprises.

  1. Stakeholder- a person, group of organizations that has interest or affect the organization or with reasonable interest to a given situation or enterprise
  2. Stakeholder Analysis- tools to identify the needs and concern of various stakeholders.

It is a useful tool for

  • Gaining understanding and building harmony
  • Communicating the benefits of a proposed project
  • Building strong inclusive campaigns that involve the public
  • Benefits; common problems that can be solves using analysis.
  • Unnecessary focus on analytical tools
  • Issues are too large of complex for decision makers
  • The scope of study is too large
  • Some stakeholder are left out
  • There is no local ownership
  • There is no commitment for implementation.

Kinds of stakeholder;

  1. Primary stakeholder- direct beneficiaries and direct concerned person
  2. Secondary stakeholder- mediators in the process of delivering aid to primary stakeholder
  3. Opposition Stakeholder- those who have the capacity to affect outcomes unfavorably through the resources and influence they command. It is crucial to engage them in open dialogue
  4. Marginal stakeholder- such as women, indigenous people, and other needy groups
  5. Key stakeholder- have significant influence upon or importance within the organization.

Stakeholder Analysis Process

  • Identify and man internal and external stakeholder
  • Assess the nature of each stakeholders influence and importance
  • Construct a matrix to identify stakeholder influence and importance
  • Monitor and mange stakeholder relationship.

Two type of stake holder

  • Direct stakeholder – directly connected to the organization
  • Intermediary- who represent others

Importance of stakeholder

Support the overall movement of the organization which involves providing quality service e.g medical assistance, recovery missions and distributing relief goods to affected areas. Influence the Non- profit organization- provides the opportunity to organization to share its goals and objective to join to other organizations which has the same missions and purpose. Clients and Volunteers – Free publicity from the clients who receive quality service from the organization and tell its story publicly, or shared it to their co- workers, friends and or can be featured to any media advertisement to support the cause and ask for funding.

Identifying Stakeholder:

Brainstorming-one way of identifying the stakeholder.Analyzing or making a list of stakeholder or even the type of stakeholder. Mapping-a usefull way of unlocking creativity and helping the ideas to flow. A diagram that shows a map or even a software that can use to map its stakeholder Stakeholder list- general list of stakeholder are the starting point to identify them. Doesn’t include many specialists in the industry or industry specific job titles.

Previous projects- documentation from previous projects and communicating the projects team who is involve on the particular project or a particular client. Organization charts and directories- Company organization or directory also can help to identify a particular stakeholder. Reviewing the Social network sites, like LinkedIn advance people search to look for company stakeholder, industry, job title and seniority. OGC Stakeholder categories- finding it hard to find a potential stakeholder company can do the categorization process. Below is the category can use for identification:

  • User/beneficiaries
  • Governance
  • Influencer ( trade unions, media )
  • Providers ( supplier, partners)

Below diagram is a stakeholder mapping;

  • Internal Stakeholder; ( IHC-non- profit Organization)
  • Board Members

Staff members/employees- the one who has direct interaction and involved during the crisis. One of the most important stakeholder on the organization, initiates activities of IHC consequently, concentrating on IHC mission and vision.

  • Volunteers- individuals who are willing to help, lend a hand during the crisis
  • Donors / Fund raiser– an individual or association that contributes in terms of kinds, monetary during crisis. Former member of the organization are still one to consider, provided they are still active in promoting it.
  • Publicity- a person that may be an instrument for public awareness regarding the organizations existence.
  • Fund raiser- a person who is involved for collecting funds from any group or individual who is willing to give their part. A fund raiser can collect through media and other concert for a cause.

External Stake holder (IHC-Non- profit organization)

Employers or politicians that create legislation encouraging the hiring of ex-addict. Suppliers of like foods and clothing to be distributed to the affected area they can take advantage of the event like selling other goods to other distributor on the market. Governmental bodies/civil society- a non- governmental society working in the field of exclusion. Competitors- Who has the same structure of business

  • Media- TV, newspaper , TV channels
  • Environment – place where humanitarian city is built, should have a friendly neighborhood, safety for the victims, stress free.

Internal stakeholder ( RTA)

  • Customer/Travelers- individuals who are rail users , who are experiencing the benefits
  • Employees- who has direct interaction with the commuters
  • Guards- Who assures safety of any travelers/ tourist, executed rules and regulations ,
  • Maintenance- who maintain the technical and mechanical problem of the RTA
  • Cleaners- individuals who are responsible for cleaning the area including toilets, labatories and prayer rooms. Convenience store and other kiosk that are found on the station

External Stakeholder (RTA)

  1. Governments- a group that executed/implements rules and regulation.
  2. State/federal agencies. Government agencies often devise and issue regulations and reporting requirements, and can sometimes make or break an effort by how they choose to regulate and how vigorously they enforce their regulations.
  3. Policy makers. Peoples or groups often have no official power – they may be “advisers” to those with real power – but their opinions and ideas are often followed closely. If they’re on your side, that’s a big plus.
  4. Media- commuters awareness (rates , maps and direction,) TV, Radio, Newspaper and magazine.
Updated: Jul 07, 2022
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Internal And External Stakeholder of Nonprofit Organization. (2016, Sep 02). Retrieved from https://studymoose.com/internal-and-external-stakeholder-of-nonprofit-organization-essay

Internal And External Stakeholder of Nonprofit Organization essay
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