ABSTRACT
This chapter describes two trends pointing to the upward rise in demand for nonprofit leaders. One is based on projections by the US Department of Labor and the other, on internal Revenue Service data on new nonprofit organizations. Every top manager must appreciate that for a nonprofit, unlike a firm, the structure of finances, both expenditures and revenues have very serious implications for the organization because they are used by the internal revenue service's IRS to determine the tax-exempt status of organizations. Sources of original raw data: Internal Revenue Service, Annual Report of Commissioner and Chief Consul and United States US revenue service. The need for due diligence over financial matters is increasing. Indeed, the more complex an organization and the more successful we are in insisting on ethical behaviour, the more important is due diligence in monitoring and disciplining financial decisions. The management has to view the organization as an economic institution with a welfare mission.
