Respond to the 2 peers below, please number separately. ----------------------------------------------------------------------------------Peer 1 What are the six forms of capital that are essential to nonprofit organization functioning?
In describing capital, Renz (2016) found, "A formal definition of capital is wealth in the form of money and other assets that generate value over time to serve the organization's purpose" (p. 482). NPO's require six forms of capital to stay afloat. The six forms, as described by Renz (2016), are-
1.Financial capital - Described as the money used by NPOs to fund campaigns and provide services.
2.Human capital – These are the knowledge, skills, and abilities of the NPO staff, including their board, enabling them to execute the tasks required by the organization.
3.Political capital - Refers to the trust, goodwill, and influence the NPO has with the public and with political figures. Influence with political figures helps in bringing awareness to critical community-related needs, as well as a source of grant-based funding.
4.Social capital – The value created across organizations and networks whose transactions are marked by trust, reciprocity, and cooperation.
5.Intellectual capital – Includes intangible assets provided to an NPO by its employees' efforts and knowledge assets, mainly because of innovation and thought.
6.Physical capital – This includes physical assets, such as buildings, used in the operation of the NPO.