How Have Distinct Developments in the Law on Non Profits in the Us, Helped to Shape the US Non Profit Sector, Research Paper Example

Review of the Literature

The concept of non-profit organizations in the US is to provide an entity that exists to create services and programs purely for self benefit.  Any surplus of earnings being retained by the organization for expansion and future development. Unlike profit organizations where the surplus is distributed by way of dividends to shareholders.  The emphasis on non profits relates to award of the Executive and senior leadership, whereas middle management and workers are often comprised of part-time support and volunteer staff. Since the 1980’s there has been a bit of a paradigm shift with slightly more emulation of for profit enterprises.  This particularly in areas of  leadership, performance measurement and goal attainment.

The legal considerations covering the law of non profits has started to both influence and shape how this business sector is structured in the US.  This paper addresses the following key issues with regards to non profit businesses in the US:

1. Definition of non profit business in the USA
2. Overview of the relationship with Government
3. How non profits are being shaped in the USA
4. The evolving legal situation and how this is shaping the business
5. The position of non profits and taxation exempt status
6. A model for future growth of non profits, considering legal influences
7. A new approach towards management of non profits

Definition of Nonprofits in the USA

Obtaining a precise formal definition of non-profits is somewhat difficult.  A better description might be to say that it is a legal business entity that contains five key characteristics: (1) They are organized : containing some form of institutional constituency, thereby differentiating them from informal groupings like families, gatherings or types of movements (2) They are private: they are separate from Government and equally not part of the private (for profit) sector (3) They are not profit generating : any surplus funds are ploughed back into the business for expansion or development (4) They are Self governing: They administer and control their own activities and (5) Voluntary : They contain an element of voluntary input and are more driven by a championship of cause as opposed to the pursuit of money or wealth.  ” Like all organisations, non-profit organisations vary much in terms of mission, size, mode of operation and impact, particularly in a cross-national sense. Some are closer to the model of a government agency; others may indeed resemble the business firm; and yet others may be little  more than an informal network.”  (Anheie, January 2000). ” Many non-profit organizations also seek tax exempt status, and may also be exempt from local taxes including sales taxes or property taxes. Well-known non-profit organizations include Habitat for Humanity, the Red Cross, and United Way.”  (Investor Worlds.com, 2010).

It is estimated that there are some 1.2 million non profit organizations registered with the IRS in the USA.  It is considered that millions more exist that have not found their way on to the register because they generate revenue of less than $5,000 per year.  It is estimated that the combined revenues of non profits in the USA amount to around $621.4 billion  and account for around 6.2%  of the nations economy.

The considered advantages of forming a non profit businesses are as follows:

1. As a non profit business you are eligible for State and Federal exemption for the payment of Corporate Taxes . Considering that these can be as high as 34% this represents a considerable tax saving advantage.
2. You will be in a position to receive grants and donations [ 501(c)(3) ] these include both private foundations and tax-exempt government foundations. The donors can also claim federal income tax deductions and any bequests are free from federal estate taxes.
3. The Executive and Board members of non profit corporations are shielded from personal liability of the organization. Creditors may only lay claim against the Corporate assets and not the personal assets of those responsible for managing the Company or volunteers working for same.
4. Being part of a non profit corporation  provides the opportunity  for employee benefits such as group life insurance, health insurance, a pension plan, etc.  Such benefits are not available to unincorporated businesses.
5. Perpetuity – The non-profit corporation exists beyond the lifetime or involvement of the people  who started or managed the business . This becomes attractive to sponsors or donors  who wish  to fund a cause over the long term.
6. Other benefits include certain exemptions from county real and personal property taxes; lower postal rates on third-class bulk mailing; low cost advertising rates; prospect of free  air free radio and television public service announcements .

The considered disadvantages of forming a non profit businesses are as follows: The main disadvantages of the non profit is that corporations are very paper work intensive and as such you need to be able to afford business expertise to deal with it i.e. Lawyers, Accountants, Bankers etc.  The increasing amount of regulatory demands and forms to complete is very time consuming.  You also have to deal with the government restrictions imposed on non profits i.e. inability to pay directors, no political lobbying, if the business closes, then the assets must be transferred over to another non profit business.  It is clear however that the benefits more than outweigh the disadvantages and it is really a question of being aware of the requirements and working within the boundaries specified.

Overview of the Relationship With Government

In the US there are three main types of relationship that exist between the non-profit sector and that of Government.  All three of these are both valid and multi-layered by concept and design. Hence: (1) An entity that operates independently to Government (2) One that compliments or partners with government in a mutually exclusive relationship and (3) One of an adversarial relationship with government or mutual accountability  e.g. the concept of environmental lobbyist groups like GreenPeace.  (Young, 2000)

It is interesting to note that in the USA the non profit sector receives more income from the Government than any other single source.  As such it is a fair assumption that the Government relies heavily on the performancer of the non profit sector to deliver maby of its’ “on the ground” policy action statements.  This fact often being overlooked in terms of the voluntary contribution and the business carried out in the Welfare state.  (Salamon, 1987)

Nonprofits have been described as falling “under the rubric of civil society” in so far as they are responsible for such items as fostering community engagement, participating in civic events, promotion of both cultural and religious values etc.  Such roles normally being financed by voluntary contributions. The relationships with government in normal terms are outside of government jurisdiction but may be either collaborative or hostile.  Research has indicated that the role non profits make in the community setting is “the glue” that makes civic society robust and brings community spirit together.  In summary Nonprofits are generally considered as “champions” of the public welfare as they both promote and defend the values of the public, thereby providing the necessary help and resources that are needed to deliver real assistance and support when needed.  (Elizabeth T. Boris, 2006)

Development of Non Profit Organizations in the USA

Non Profit Organizations are in the process of a global business transformation.  As the world economy becomes more integrated and global by nature, so does the challenges for the non profit sector in both the US and the global picture.  The end result being a massive build up of self-administering organizations.  This non profitable framework creating a viable third sector of the world economy dedicated to public needs and working outside of the traditional business framework. ” The proliferation of these groups may permanently alter the relationship between  States and Citizens, with an impact extending far beyond the material services that they provide”  (Salomon, 1994).

The concept of the  third sector, as it is widely becoming known, represents a relatively new phenomenon in the USA.  Perhaps really surfaced in the late 90’s at a time when western plicy makers and politicians were re-examining the division of labour between that of public and private sector, with the objective of reducing state responsibilities.  Within the USA the state of the Welfare and Health status gave this real impetus and serious consideration for Government support.  Research indicated that the third sector had considerable overlap with with Government policy levels and that these were multi-layered at international, national, regional anmd local levels.  The concept of policy formulation being particularly important to government and as such the need to both influence and guide the third sector to ensure alignment with government political and policy objectives.  It is this latter point that has raised the non profits to such a prominant status in the business world today.  (By Helmut K. Anheier, 1990)

It is perhaps the historic reliance on government funding that has caused the biggest paradigm shift in the Non profit sector.  The cutbacks of funding in the 1970’s and 80’s within the health and welfare sectors having the most significant toll.  Some $38 billion dollars of Federal Revenue between 1980 and 1994.  Social Welfare cuts in 1996 slashing support by some $8.5 billion at the same it was unanticipated that the provate sector would cut back voluntary donations by 26% . Hence the changes have driven the non profits to become much more commercialised in their operations.  (Eikenberry, 2004)

The significant dependence of the government on the non profit organizations  raises some important questions for the Welfare State in the USA.  For example : If the State ceases to deliver services and relegates this responsibility to the non profit sector, then there becomes the question of accountability and responsibility.  The lines of demarkation become blurred. Historically too much dependence on the non profit sector has resulted in more government intervention, paradoxically changing the objectives it set out to achieve.  Neveertheless, the trend seems set to proceed as the government fails to grasp the size and complexity of the reformation required.    The remaining key question concerns the actual legitimacy of handing over state power to the non profit sector.  The concept of electoral values and the need for the State to control the needs of its peoples by democratic processes and safeguards managed by the Government. To an extent delegation abdicates accountability and the responsibiity for overseeing important decisions, paryicularly those who fall under the category of the more vulnerable sectors of society.  (Steven Rathgeb Smith, 1998)

Overall the Not for profit sector budget is around $700 billion, this excluding the 20 billion of volunteer hours which is considered to push the budget over the $900 billion mark.  The US people, along with the UK are amongst the most charitable people on the planet. In the US it has been equated to around 2% of Gross Domestic Product (GDP).  People continue to support those charities and causes that they identify with and believe in.

The Evolving Law Related to Non Profit Organizations

To the legal profession the Non Profit corporations are an endless source of worry and troubles.  The litigation issues seem almost endless in terms of how they solicit donations and derive revenues for their business.  Equally, how much of this gets interpreted from a revenue and taxation viewpoint.  In 1985 alone we witnessed 6 cases brought before the Supreme Court and 16 more before the US Court of Appeals. Although the numbers may seem insignificant, given the number of non profits and overall revenue generated, it is both time consuming and expensive to process and adjudicate.  The public often view non profits as an irritant, constantly pleading for donations, however they do form an outlet for expressing social concerns and getting important subject matters out into the open for debate and discussion.  The non profits see themselves as fulfiling a vital need in society but other consider are they worth the bother?  (Weisbrod, 1988)

In the United States the law is often considered diluted or weak in terms of how it is both interpreted and treated relative to non profit organizations.  There are no specific prescriptive ways of how charity business should be carried out or conducted.  “The American legal structure excels at establishing or requiring process in which individuals may make substantive decisions and falters at dictating results”  (Walter W. Powell, 2006).  When trying to sort out legal issues with non profits this can be very troublesome as most charities have no real members and these positions are often transient, voluntary or self perpetuating boards.  The law does not impose term limits on such boards or the people occupying these positions.  Hence legal accountability can prove difficult to define.  The law does retain right in the case of misfeasance  by non profit fiduceries.  Issues arise because a lot of charities act in secrecy and disclosure of responsibilities is never clearly defined.  It is really unclear how big a legal problem this is and equally what steps the government is taking in order to address this.  This all leads you to the question of how you seek legal remedy in the event of an infraction.  With Private Companies the Board of Directors are appointed by the Shareholders to manage and regulate the affairs of the business. This is legally well defined.  It is the question of who is legally responsible and who decides in the non profit organization.

As most legal decisions use case law as the basis for interpretation and evaluating current cases; very little case law and legal precedence exists in the areas of non profit organizations.  The decentralized US Federal system regulates non profit issues to the State where the business operates, hence it becomes a state concern and not a national one.  Issues regarding Federal level rarely arise and these are then referred to the Supreme Court.  The Common Law of Charities addresses most of the minor issues and infractions.  Very few cases that involve nonprofit fiduciery issues ever actually arrive at court. The charity regulars often opting for reformations as opposed  to punishments.  This being to avoid potential embarrasments and disclosures in the media.  Settlements are often agreed in private and rarely become common knowledge. Such out of court settlements rather dealing with reformations of the charities and change of governance.  Hence it becomes difficult to determine how effective these are from a legal perspective.

The most fristrating legal aspect is that there is not a single component of law that specifically deals with non profits and charities.  Most of the common law attributes are embedded in State statutes.  Ironically the lawyers have indicated that the very reforms required to improve the situation might in actual fact worsen it.  Considering that what plays out between theory and practice  can happen in a contradictory way.  The concept of invoking fear in the Directors of high monetary liability may prevent them from taking office in the first place.  In the same instance the desire to safeguard Directors from financial ruin will result in the courts and regulators degrading the legal system.

In legal terms all Non Profit organizations must be so designated at initial start up of business.  The types of such organizations include :  ” churches, public schools, public charities, public clinics and hospitals, political organizations, legal aid societies, volunteer services organizations, labor unions, professional associations, research institutes, museums, and some governmental agencies.”  (Cornell University Law School , 2006).  The non profit entities are organized under State Law, primarily falling under the Non-Profit Corporation Act (1986).  Certain States exempt the non-profits from state tax , in addition some also provide immunity from tort liability. ” Each state defines non-profit differently. Some states make distinctions between organizations not operated for profit without charitable goals (like a sports or professional association) and charitable associations in order to determine what legal privileges the respective organizations will be given.  (Cornell University Law School , 2006).

Non Profits and Legal Position on Tax Exemption Status

The legal position concerning tax exemption status of nonprofit organizations in the USA is that whilst some may be given exempt status, there is no nonprofit that is excused from paying some form of federal tax.  At the State level it is possible to gain exemptions from such items as income, sales, use, excise and property taxes.  In recent years we have started to witness a lot more challenges to the tax exemption status of Non Profits.  This particularly in the Health Sector where both State and local government  owned hospitals question some of the rationale behind the exemptions and the services provided.  One such example being in the Pennsylvania Health Care system.. “. They collectively received $6,562,540 in tax exemption  benefits, but provided only $2,468,563 in charity care to their local communities. Data for this study was collected from public sources, including tax assessment records and reports from the Pennsylvania Health Care Cost Containment Council.”  (Jeane E Harris, 1997).

Benefits of Tax-Exempt, Not-for-Profit Status

The obvious financial benefit is that all the revenue made by a non profit tax-empted company is free from payment of state, local and federal taxation. Hence the retained finds can be used for internal development and future growth potential.  Owing to the fact that donors favour the tax exempted companies they will gain increased contribution revenue.  Equally the tax exempt status is often a pre-requisite required for government funding and private grants. Under the tax exempt status donors can write off their contributions as a personal tax allowance.

Drawbacks of Tax-Exempt, Nonprofits Status

There can be certain drawbacks associated with the tax exempt status of non profits, for example:

• Profits of the organization cannot be divided among workers or directors (although workers and directors may be paid reasonable salaries).
• Only a small amount of the group’s income can be earned from sources unrelated to the organization’s reason for receiving tax-exempt status.
• The assets of the group cannot go toward purposes other than those that warranted the tax-exempt status.  (Guide to Illinois Law, 1987)

The legal definition of the non profit organization, in the eyes of the law, is not changed between those that are tax exempt and those which are not.  This being for the reason that the tax exempt status is not considered relevant to either subject.  In essence  there are 6 basic criteria that qualifies a non profit organization as eligible for exempt status.

Non Profits a Model for Growth: Legal Influences

More recent years has shown a dramatic increase in the interest of voluntary work within the non profit sector.  Although this might seem good, nevertheless the non profits have to face a number of realities.  In the first instance they can no longer depend on the traditional sources for support. Secondly they are competing for resources with other non profits in a highly competitive market place.  The marketing people for non profits are now faced with a challenge of opening up new markets and territories.  Hence marketing strategies now become an important focus for all non profits in the new millennium.  This means getting to grips with three main factors:  (i) An understanding and interpretation of the philosophy behind marketing strategy (ii) A more systematic approach towards problem solving and the ability to deal with market issues and problems (iii) The ability to leverage concepts and techniques from the Private Sector and apply that knowledge into the not for profit sector.

The starting point for the non profit organization is to gain a good grasp and understanding of the business environment they are operating in.  This means defining and understanding the marketing goals and objectives for the business.  This is more crucial than understanding the legal niceties.  The mission statement will vary upon consideration of the type of demands they wish to influence… ” Target customers are asked to pay ‘ economic costs’ , sacrifice old ideas, values, and views of the world; sacrifice old patterns of behaviour, or sacrifice time”.  (Baker, 2000). It is clear the moving forward in the development of the business models for non profits, we will see an increasing move towards market examination. They will have to question their need for existance in the marketplace; in a a merket that bases its rewards on performance and discipline. Such forces are not pedestrian by nature but dynamic market forces.

One of the most significant recent changes in the service delivery model is the move towards ‘outsourcing’ in both Government and the Private Sectors.  These being primarily cost reduction measures.  Thus big government spending may be a thing of the past as government policies towards the social services sector change.  We are already witnessing some 50% of  Government expenditure being  moved into the private sector marketplace.  Despite the inroads of the private for profit firms, into the social services sector, it is unlikely that they will move the non profits out of this business space.  They will however stimulate the market place and cause the non profits to fight for market share.  The concept of a drawn out recession with reduced government spending is likely to make the non profits retreat back into their home domains.

Professor and author David Rendall considers that the future for non profits in the USA will continue to evolve whereby ‘ social enterprise could be the future of non profit funding’.  Current research studies indicate a degree of burn out in the non profit sector.  The ever increasing work loads, inability to match work/life balance and intolerable working hours ” Today the U.S. government no longer considers nonprofits to be entitled–or even best qualified–to provide social services. Profit-seeking companies like Lockheed Martin are now winning contracts for such services (…) The change raises fundamental questions about the mission and future of nonprofits. Because nonprofits now find themselves sharing territory with for-profits, sometimes as collaborators and sometimes as competitors, the distinctions between these organizations will continue to blur” ( source : Harvard Business : New Landscape for non profits.)

Non profits are likely to be rebranded or reimaged in the future and one suggested title is called ” the voluntary sector”.  Without a doubt improved communications and information technology will change the business model of how this sector functions.  You will see much more networking on an international scale and increased collaboration in order to run projects more efficiently and take advantage of economies of scale.  The focus will be much more globalised on world issues than on single domestic problems e.g. those contained purely within the USA.  We are already seeing the increased use of blogging, social networking sites, information sharing and use of video conferencing as a shift in operational emphasis. ” Social service workers will roam the streets using mobile devices as their “office”. Such devices will register and transfer clients from service to service so that single agency staff can be working for multiple agencies simultaneously. The distribution of services will occur in real time and come directly to clients where they are located. Clients themselves will also have the capability to register for, rate, trade, and access multiple services via mobile devices and one-stop-shopping kiosks.”  (Lamb, 2006).  The Meyer Report indicated that there was a great deal of self-reform required in the non profit sector and this should be the emphasis for action planning in moving forward.  ‘ As of 2006, there were nearly 1 million 501(c)(3) organizations in the US — a nearly 70% increase from the 536,000 there were ten years earlier — and I’ve heard that number currently grows at a rate of 1,000 per month. As the number of non-profits grows, inefficiency within our field goes up while the pool of available donors shrinks. Competition will be high for donations, and only well-oiled organizations will be able to thrive in the super-saturated market.’ ( Derwin Dubose).

Professor David Rendall made a number of suggestions for improvements in the model:

1. Become a social enterprise :  protect yourself from adverse market conditions and generate earned income to support a social purpose.
2. Participate in the experience economy:  New fund raising mechanisms to include such items as eco tourism, travel, direct service opportunities etc.
3. Do not accept rejected private sector business models: He cited e-bay as an example and that non profits should not emulate it by developing more thrift stores.
4. Look for alternate audiences.  Diversify certain groups are dismissive  of social enterprise because they cannot afford to pay
5. Start a social enterprise that can make money first:  Ensure the business is viable before heavily pursuing the charitable objectives. The bait and switch concept.  (Royer, 2009)

New Approach to Managing Nonprofit Organizations

This needs to be examined from two different perspectives.  The first of these relates to current status and what is happening right now and second the projected outlook looking at how management might change in the future.

The Current Perspective

The full impact of the recession and downturn in the US economy will not be known for some time.  As such the data is not yet in with regard to how non profits will be impacted.  Whilst the management are positive and optimistic it is considered that few organizations will escape some form of significant impact.  As such this may be the time for realism and pragmatism in terms of considering potential remedial action statements.  The Managers will need to carefully examine the financial position of their respective organizations. In particularly focusing on revenues. cash flow, inventory and assets.  Consideration of potential cost reduction programs to streamline the organization in order to meet the recessionary challenges of the future.  The current situation may also test the resolve of the Executive to stay within a legally compliant position. ” Virtually every step that a non profit can take to protect itself has legal implications, and many strategies that may be considered to shore up finances or control costs could place the organization in legal jeopardy. ”   (Delanney, 2009)

Future Perspective

A great deal of future planning must be involved around business reformation and avoiding some of the more common pitfalls.  A brief analysis of these provides some insight into the type of elements that will need to be addressed:

Failure to Remit Withholding Taxes

This becomes a potential danger for those non profits that are experiencing cash flow difficulties.  It relates to the deduction of payroll taxes from employee cheques and then withholding payment to the federal taxation authorities. These funds created are known as ” trust fund taxes”.  Failure to pay these taxes on time will hold the board members as liable and subject to penalties.  In this instance even volunteer board members can be held liable for payment.  The tax authorities have the position to place a lien on the non profits bank accounts.

Misclassifying Employees

This is where non profit organizations decide to classify certain workers as contractors as opposed to employees. This lowers the fringe benefit costs.  If the tax authorities

“If the employee was an hourly employee that did not receive proper overtime payments there could be a violation of the wage and hours laws.  Also, employers are required to pay for unemployment, workers compensation insurance and disability insurance.  There are further penalties that can be assessed for failure to make these payments. ”  (Delanney, 2009)

Commingling Contract Funds

This relates to those government contracts that require their funds to be maintained in a separate bank account.  They do not permit co-mingling with other funds. As such the funds are not available for paying expenses to any other non related projects. Non profits facing cash flow difficulties have historically used such funds for non related purposes.  This is essentially illegal being a breach of contract.  Non profits need to ensure they understand the legal obligations and bring financial systems to the appropriate level of compliance.

Legal Support

Owing to a rapidly changing landscape, the boards of non profits need to engage in business contingency planning.  They need to be in a position of expedient decision making in a rapidly changing environment. They need to integrate more legal support into their strategic planning process i.e. an attorney should be reviewing the contingency plans to ensure that they are legally viable.  They should work with the legal advisors to ensure all of the important document sets are kept up to date and maintained.

” The Lawyers Alliance website contains information about how to request pro bono legal assistance and Board Talking Points that will facilitate planning and action by non profit board members and managers http://www.lawyersalliance.org/economic_downturn.php.  Through our Resource Call Hotline (212) 219-1800 x. 224 Lawyers Alliance can provide general information over the telephone on legal issues of importance to non profit staff and Board members including those related to preservation of programs. ”  (Delanney, 2009).

Summing Up

It is always useful to look for some barometer that will provide an insight as to how the nonprofit sector will look in the future.  New York is perhaps one of those barometers.  The nonprofit sector is by far the City’s largest private employer.  Last fall we witnessed the crash of the stock market and today there is still no recovery in sight.  It is notable that the charity market went into a sharp decline, the first time since 1987.  By contrast the recession hit New York people hard and increased the demand for social services to unprecedented highs.  Hence we have an out of balance situation of falling revenues and increased costs by greater demands on the social services apparatus. ” We have a perfect storm,” said Michael Clark, executive director of the Nonprofit Coordinating Committee of New York. “We have shrinking revenues and then we have rising demand, so it’s about as bad a bind as you can be in.” (Sani, 2009).

So one year on from the Financial crisis the non profit sector in New York is considered as ‘badly stressed’  but not knocked out.  It is estimated that the City lost around 110,000 payroll jobs ( between July 2008-9) with cultural non profits adding a further 9,700 jobs.  The City has some 42,000 non profit organizations and there have been relatively fe closures.  So whilst we have not seen wholesale closure of non profits, nevertheless we have seen many programs and projects completely shut down. ” At the end of June, Insideschools.org, which provides independent reviews of the city’s public schools, laid off all four of the on-staff journalists who had been researching and writing the site’s school reviews. The layoffs came after the site’s budget was reduced by nearly three-quarters when its deal with a children’s magazine was cancelled. The site remains alive, if changed, through volunteer efforts. ”  (Sani, 2009).

The situation for non profits in New York is expected to become even bleaker in the short term. The prediction for 2010 ande 2011 to be particulary  rough years for the sector.  With the current injection of federal monies being temporarily suspended and the City predicting large across the board deficits.  It is considered that this will be even more cuts in contracts and losses of projects or programs.  The charities are predicting that 2010/11 will be particularly bad years for helping those sections of society most in need.  ” The Nonprofit Finance Fund’s Kristin Giantris agreed. “It’s the 2010 year that is actually the harder year,” she said. “This is when the decisions become much more strategic, and some nonprofits may have to cut into the bone. It’s really 2010 that worries us more than the last year.”  (Sani, 2009)

Recent quotations include:

• ” The Nonprofit Finance Fund’s Kristin Giantris agreed. “It’s the 2010 year that is actually the harder year,” she said. “This is when the decisions become much more strategic, and some nonprofits may have to cut into the bone. It’s really 2010 that worries us more than the last year.”
• Gary Carter, Little Sisters Family Health Service’s executive director, has already prepared a contingency plan that calls for cuts to both programs and staff. “My plan for 2010 is that every program is going to experience a layoff, unless the economy changes drastically,” he said. (Sani, 2009)

Works Cited

Anheie, H. K. (January 2000). Managing non-profit organisations:. London UK: London School of Economics.

Baker, M. J. (2000). Marketing Theory a student text. In M. J. Baker, Marketing Theory a student text (p. 314). Int’l Thomson Business Press .

By Helmut K. Anheier, W. S. (1990). The Third sector: comparative studies of nonprofit organizations . New York: Walter de Gruyter.

Cornell University Law School . (2006). Cornell University Law School . Legal Information Institute .

Delanney, S. (2009, 1 2). Coping with Economic Downturn: Weathering the Storm without Legal Trouble . Retrieved 1 8, 2009, from New York Non Profit Press: http://www.nynp.biz/index.php/strengthening-nonprofits/186-coping-with-economic-downturn-weathering-the-storm-without-legal-trouble

Eikenberry, A. M. (2004). The Marketization of the Nonprofit Sector: Civil Society at Risk. Public Adm Rev 64 no2 Mr/Ap 2004 .

Elizabeth T. Boris, C. E. (2006). NonProfits Government collaboration & Conflict. In C. E. Elizabeth T. Boris, NonProfits Government collaboration & conflict (pp. 2-5). Washington DC: Urban Institute Press.

Guide to Illinois Law. (1987). Illinois Associations & Nonprofit Law . Retrieved 1 7, 2010, from Guide to Illinois Law: http://www.weblocator.com/attorney/il/law/assocnon.html#50

Investor Worlds.com. (2010, 1 5). Non Profit Organization. Retrieved 1 5, 2010, from Investor Worlds.com: http://www.investorwords.com/3331/non_profit_organization.html

Jeane E Harris, W. J. (1997). A Cost/Benefit Analysis of Providing Tax-Exempt Status to Non-Profit Hospitals . Pennsylvania : Pennsylvania State University.

Lamb, P. (2006, 6). Nonprofits of the Future: NGOs in 2016. Retrieved 1 8, 2010, from Social Edge: http://www.socialedge.org/discussions/business-models/nonprofits-of-the-future-ngos-in-2016/

Royer, B. (2009). Duke University: The Future of Non-profits is Social Enterprise. Retrieved 1 8, 2010, from Brice Royer: http://blog.briceroyer.com/duke-university-the-future-of-non-profits-is-social-enterprise/

Salamon, L. M. (1987). Of Market Failure, Voluntary Failure, and Third-Party Government: Toward a Theory of Government-Nonprofit Relations in the Modern Welfare State . Sage Journal : Nonprofit and Voluntary Sector Quarterly, Vol. 16, , 29-49.

Salomon, L. M. (1994). Rise of the Non Profit Sector. Heineonline Law Journal , 73 Foreign Aff. 109 (1994).

Sani, N. (2009, 8 31). Nonprofits’ Outlook After After a Year of Living Dangerously . Retrieved 1 7, 2010, from City Limits: http://www.citylimits.org/content/articles/viewarticle.cfm?article_id=3794

Steven Rathgeb Smith, M. L. (1998). Non Profiots for hire: The Welfare State in the age of contracting. Boston MA: Harvard University Press.

Walter W. Powell, R. S. (2006). The non profit sector : a research handbook. New York : Yale University Press.

Weisbrod, B. A. (1988). The Non Profit Economoy. Boston MA: Harvard University Press.

Young, D. R. (2000). Alternative Models of Government-Nonprofit Sector Relations: Theoretical and International Perspectives . Sage Journal : Nonprofit and Voluntary Sector Quarterly, Vol. 29, No. 1, , 149-172.