IV. Field Guide to Nonprofit Organizations
Most Forest Service partnerships with non-federal entities are with nonprofit organizations, also called nonprofits. Familiarity with the mission, vision, and goals of nonprofit partners is essential for developing successful partnerships that address relevant objectives. This chapter:
- Explains what are nonprofits and how are they organized, funded, and managed
- Describes the National Forest Foundation, a key nonprofit partner of the Forest Service
- Describes the unique partnership between the Forest Service and interpretive associations
There are hundreds of different types of nonprofit organizations, and they exist for as many different reasons. Nonprofits can be local, regional, national, and/or international in focus. They can be organized around and accountable to members, volunteers, communities, or like-minded peers. Some are established to implement specific projects, while others focus on research, policy, education, or other goals.
Structure and Management of Nonprofit Organizations
Organization
All organizations that incorporate as nonprofit organizations exist for the public good rather than for the financial benefit of an individual or stockholders. Although it is legal for these organizations to make a profit, all profits must be channeled back into the management and implementation of the organization's mission. Profits cannot be used, in whole or in part, for the benefit of private shareholders or individuals.
For an organization to incorporate as a nonprofit, it must register with a state. Most organizations also apply to the Internal Revenue Service (IRS) to receive the proper federal tax-exempt designation, which allows contributors to enjoy tax deductions according to federal law. The most commonly known tax-exempt designation from the IRS is 501(c)(3), although other nonprofit designations exist.
Qualities of Strong Nonprofit Partners
Nonprofit organizations with the following qualities often make successful partners:
• Vision, mission, and values are clearly articulated.
• Financial planning, practices, and policies are sound.
• Operating reserves are appropriate for the size of the organization.
• Internal and external communications are effective.
• Bylaws, operational policies, and procedures are developed, reviewed for adherence, and updated as necessary.
• The board of directors is well established. Its role is clearly defined and it is not overly involved in day-to-day operations. Its members have a passion for the organization's mission, represent members' interests, bring expertise and special skills needed by the organization, demonstrate credibility, and have links to others for funding and resource development.
• Term limits exist for board membership.
• Board member participation in board meetings is high.
• Decisions are made openly and are well documented.
• Staff are dedicated to the organization's mission and have the capabilities and skills appropriate for their positions. Their roles are clearly defined.
• Programs and activities are focused to carry out the organization's mission.
• Federal and state reporting requirements are followed and documented.