QUESTION
Compare and critically review two articles (which are provided)
You should use headings and clearly cover the key sections below:
a. Outline the most important arguments in each article giving an example of what is recommended and why that is recommended
b. Critically evaluate how the two articles differ, particularly in terms of the evidence provided to support the main arguments
word limit: 1500 words (max.) plus References / Appendix.
(pls give references and appendices as per Harvard system of referencing and citation)
ANSWER
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Outline the most important arguments in each article giving an example of what is recommended and why that is recommended.
Ans: Charities are a basic piece of the texture of Australian culture and venture into each network crosswise over Australia, just as past the shores.
They advance the way of life, secure condition, teach kids, empower to rehearse the confidence, advance wellbeing and prosperity, reinforce majority rules system, add to great open approach and supporter for the benefit of people and networks (Australian Institute of Company Directors,2013).
Charities can do none of this without their board individuals. These individuals have a definitive obligation regarding running the philanthropy, dealing with its funds, its tasks and overseeing staff and volunteers. Being a board part can be diligent work and is regularly unpaid, however it can likewise be gigantically fulfilling (My charity and the ACNC,2015).
This guide is for those who are going to be the board member of a charity registered with the Australian Charities and Not-for-profits Commission (ACNC). For the person and the charity to succeed one should know the roles and responsibilities and help the charity achieve the goals.
Not-profit driven associations assume a basic job in the American economy. In human services, instruction, culture, and religion, we trust not-profit driven firms to serve the interests of their contributors, clients, workers, and society on the loose.
The main things recommended in this article are the various duties and responsibilities as a board member like acting with care and diligence, acting in the best interest of the charity, not to take advantage of the position, to maintain financial fair play. These things are recommended as it will help in maintaining the five governance standards and will be value addition for the person and also the charity. The different governance standards mentioned are purpose and not for profit nature of the entity, accountability to members, compliance with the Australian national law, suitability of the board members and the duties of the board members.
Not-profit driven associations assume a basic job in the American economy. In human services, instruction, culture, and religion, we trust not-revenue driven firms to serve the interests of their givers, clients, workers, and society on the loose.
This book endeavors to respond to that question, gathering driving specialists on the financial aspects of the not-revenue driven division to look at the issues of the social insurance industry, workmanship galleries, colleges, and even the medieval church. Supporters take a gander at various distinctive parts of not-revenue driven activities, from the issues of raising support, blessings, and administration to explicit issues like medical clinic publicizing.
The image that rises is mind boggling and astounding. Now and again, not-revenue driven firms seem to work incredibly well: rivalry for specialists, clients, and benefactors leads not-revenue driven associations to work as effectively as any revenue driven firm. In different settings, substantial blessings and feeble administration enable world class laborers to expand their very own advantages, as opposed to those of their contributors, clients, or society on the loose.
Taken together, these papers incredibly advance our insight into the elements and activities of not-revenue driven associations, uncovering the under-investigated frameworks of weights and difficulties that shape their administration (The Governance for Non-profit organizations, Edward L. Glaeser).
This article recommends tackling different issues and problems in good governance of the charities. There might be many problems which will cause barrier in the implementation of good governance. This is detrimental for both the charity, the individual board members and the Australian economy as a whole. This is the reason the recommendations are made so that it is beneficial for all.
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Critically evaluate how the two articles differ, particularly in terms of the evidence provided to support the main arguments.
Ans: Non-profit firms have charge benefits: gifts to them are charge deductible and non-benefit firms are themselves free from many taxation rates. These assessment preferences lie at the core of numerous non-benefits and it is difficult to envision that America would have its flourishing non-benefit segment without assessment deductibility. A second contrast is the non-appropriation limitation. Non-benefit firms are not permitted to dispense benefits to proprietors or representatives and this impacts the idea of non-benefits in vital ways; for instance, sometimes it empowers non-benefits to more readily submit not to swindle givers, clients and laborers (Hansmann, 1980, 1996, Weisbrod, 1988 and Glaeser and Shleifer, 2001). For sure, the non-distribution requirement is the characterizing component of non-benefits. Some non-benefits don’t have charge preferences, however every one of them face a non-dissemination requirement.
As striking as these distinctions may be, a third contrast between non-benefit and for-benefit firms might be as essential in clarifying the conduct of non-benefit firms: non-benefit firms try not to have proprietors. The non-circulation imperative guarantees that the general population who support non-benefits are not leftover petitioners to the incomes and resources of the non-benefit, however the confines on the forces of benefactors goes past constraining the capacity of givers to gather rents.
The general population who support non-benefits, through gifts, regularly don’t have control rights over the firm by any stretch of the imagination. Non-benefit firms do have sheets, which at last do have control rights, also, these sheets are frequently halfway made out of contributors and their delegates, yet non-benefit sheets are at last not responsible to investors or benefactors and they are for the most part self-sustaining.
Crosswise over non-benefit firms, the level of laborer control will ascend with the abundance of the firm. Firms that are well off can bear to take into account their own advantages as opposed to centering on pursuing new benefactors or on profiting through clients. In reality, the model recommends that non-benefits will have an actual existence cycle where they are initially constrained by starting contributors who select the board and keep on giving financing to the firm. In any case, after some time, as the underlying benefactors cease to exist and as the firm ends up more extravagant, the inclinations of specialists will in general rule the inclinations of givers. In the event that there is a stun to the pay dimension of the firm, brought about by an exogenous fall in cost or increment in expenses of creation, at that point non-benefit firms will turn out to be increasingly business, for example cook more to the interests of buyers, and the inclinations of the executives and laborers will turn out to be less vital. The model suggests that the Pauly and Redisch (1973) perspective on emergency clinics as specialists’ cooperatives is probably going to be connected to numerous territories of non-profits. Instead, the for the most part frail administration of non-benefit firms implies that if the organizations get wealthier after some time, they will perpetually end up arranged towards the interests of their first-class laborers. For sure, in huge numbers of the most essential non-benefit areas, including religion, craftsmanship galleries also, the scholarly community, the development of the business was firmly connected to no less than an incomplete catch of the wealthier firms by their laborers. Unquestionably, as we have known since Berle and Means, revenue driven enterprises likewise face this issue. In any case, the systems that have made revenue driven firms in any event to some degree responsible to investors are at last much more fragile in non-benefit firms, and in that capacity tip top laborers in non-benefit turn out to be substantially more dominant (McCormick and Meiners,1988).
Board control is most grounded in territories that are obviously recognizable, for example, the measure of compensations what’s more, choices about development. This will in general point of confinement the degree to which laborers are ready to campaign for higher pay rates and will prompt laborers to concentrate on less quantifiable comforts. Without a doubt, if sheets can constrain compensations to be aggressive (for example to ensure that there are not enormous lines for occupations in the non-benefit), at that point the level of specialist impact over firm generation can clarify the verifiable truth that compensations in philanthropies are for the most part lower. On the off chance that the compensations of non-benefit laborers are restricted by rivalry, at that point pay rates in non-benefits will be pushed down to mirror laborers’ more prominent capacity to impact the firm. Regardless of whether full pay doesn’t happen, and non-benefit laborers end up with rents, rivalry for occupations will commonly imply that more prominent control over creation is joined by lower compensation (Jencks and Riesman,2002).
The first article lays down the different rules and regulations for a good governance which will help in compliance with the Australian governance laws. The second article mostly points out the ways to tackle the different problems in good governance and why it is beneficial.
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