NOT-FOR-PROFITSWeek 6 Continued

The Future of the Voluntary Sector

• Commercialization– Particularly important for nonprofit agencies

desiring to enhance their incomes– Unfair competition issue

The Future of the Voluntary Sector

Faith-Based Social Services– Conservative think tanks have sought an

alternative to federal social programs– Captured the imagination of international

development advocates

The Future of the Voluntary Sector

• Social Entrepreneurship- Proposes social capital as a vehicle

for revitalization- Pursues innovations through capital

and technology- Uses capitalism and business

principles as a means of measuring effectiveness

Social entrepreneurship is the attempt to draw upon business techniques to find solutions to social problems. This concept may be applied to a variety of organizations with different sizes, aims, and beliefs.

Issues Facing the Voluntary Sector

– Issues Facing the Voluntary Sector– Frivolity– Politicization– Property tax exemptions– Salaries

Group Discussion

• Choose a social issue as a group.– First consider how you would create a nonprofit to address

the issue. • Would your organization provide direct service or social advocacy?• Who would you recruit to be on your board? • Where would you solicit resources?

- Second consider how you would apply a business ethic to the same social issue.

• How does this change what your organization provides?• Who would you recruit to be a partner?• How would you solicit resources differently?

PRIVATIZATION AND HUMAN SERVICE CORPORATIONS

Chapter 7

Privatization Issues

• Commercialization• Preferential Selection• Cost-Effectiveness• Standardization• Oligopolization

– The control of a market by few providers • As organizations seek to reduce competition by

buying their competitors

The Challenge of Privatization

• For many health and human service professionals: – Privatization is contrary to social welfare

• Privatization reinforces a tendency in market economies to evolve: – Dual structures of benefits, services, and

opportunities

Unions and the Private Sector

• Unions of health and welfare professionals are one response to privatization

• Collective bargaining• Privatization and government cuts in

funding make the issue ever more urgent

Welfare Capitalism

• Benefit packages for employees• Corporate sponsorship of social welfare

initiatives activities• Commonweal

Corporate Social Responsibility

• The corporation is being attacked and criticized on various fronts

• Corporate social responsibility• Corporate practices have also been

applied directly to social problems

Corporate Influence on Social Welfare Policy

• AEI and the Heritage Foundation• Corporate influence in social welfare is

dynamic• Health care organizations unleashed a

legion of lobbyists on lawmakers– In anticipation of the Obama administration’s

health reform initiative

The Future of Corporate Involvement in Social Welfare

• “Decency Principles” proposed by Nancy Amidei– Equitable wages– Employee rights– Housing– Environmental responsibility

Human Service Corporations

• Continued demand for human services– Drawn the corporate sector directly into social

welfare in the United States

• Public policy decisions – Encouraged proprietary firms to provide

health and human services

Consolidation and Growth in New Human Service Markets

• Human service corporations have become prominent, if not dominant

• Nursing Homes• 2003 Medicare Reforms• Hospital Management

Consolidation and Growth in New Human Service Markets

• Health Maintenance Organizations– Was slow to attract the interest of the

corporate sector

• Child Care• Home Health Care• Corrections• Public Welfare

Conclusion

• Health and human service professionals – Slow to adopt the corporate sector as a

setting for practice

• The corporate sector – Can offers more opportunities for program

innovation than possible under other auspices

Midterm Exam Quiz

• Slides on Compass 2g to review

• Tuesday March 3, 2014

• Compass 2g

• Available all day

• Timed (should give yourself 1h15m)

• Office Hours Thursday or email

Extra Credit: 5 points for attending all day event

and submitting 3 page paper1 additional point for attending the pre-advocacy day event

Illinois NASW Advocacy Day Tuesday, April 14th in Springfield, IL

• The day will encompass a half day of educational seminars on lobbying in Illinois followed by advocating at the Capitol.

• The cost of attending the event is $13 if you register prior to February 28th. After February 28th, the cost goes up to $18.

You need to register individually, online at: https://naswil.wufoo.com/forms/advocacy-day-041415/

• The School of Social Work will be arranging for transportation for all students to Springfield and back on Advocacy Day. The event begins in Springfield at 8:15am and will wrap up at 3:30pm. Please plan to be at the School of Social Work to leave for Springfield at 6:15am. The bus will be leaving promptly at 6:30am, so please keep in mind if you are late, you will need to arrange for your own transportation to Springfield.

• Once you register, please also send an email to ksharmon@illinois.edu to let me know you are registered so I can keep a head count of how many people are attending.

• More information about Advocacy Day can be found at http://www.naswil.org/advocacy/advocacy-day/.

Next Class

• Karger and Stoesz, Chapter 8

• Social Policy Forum.

• 1st Exam is March 3. It will be administered on COMPASS.