Non-Profit Organizations Essay

Non-profit organizations include, but are not limited to: Fraternal beneficiary societies, orders or Associations, cemetery corporations and corporations organized or trusts created for religious, charitable, scientific or educational purposes or for the prevention of cruelty to children or animals, home owner associations, business leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, as well as clubs organized and operated exclusively for pleasure, recreation and other non-profit purposes. The net profit of these organizations cannot benefit any private stockholder or member. An unwarranted salary, however, may cause a corporation or organization to lose its nonprofit status.

When one talks about ‘Nonprofits’ many things come to mind; People often use phrases such as 501c3’s, charitable, ambassadors of the poor, and tax free organizations to umbrella the whole nonprofit sector. However, what large portions of our country fail to note is that there are differences within the nonprofit branch. There are two man categories of Nonprofits: Public, and Private; within those categories there are differing distinctions that allow for the separate identities of these organizations to in function and scope.

Many companies provide products and services that help better people's lives. Non-profit organizations support many different causes that are prevalent in our communities.

Not for profit organisations consist of organisations that are not run for the profit or personal gain of individual/s. They are often referred to as charities and provide benefit services to society, often encouraging people to band together by sharing resources to achieve a common goal. Profits can be obtained by these organisations but must applied for the organisations purposes. These organisations include Surf life-saving, Churches, and Salvation Army etc. (Sessoms, 2014).

A nonprofit organization, as the name suggests, is an organization that is not in the business of making money. Usually founded around a common goal or mission, they are formed in response to a social problem, in the attempt to aid a distinct public interest. According to statistics, in 2016 there are 1.6 million nonprofit companies registered with the Internal Revenue Service (IRS) (www.nccs.urabn.org, 2016).

Non Profit Organization is that organization whose main purpose is other than earns money or profit for their business. They are much more connected to the social causes. Non-profit organizations gather money from donations these are often came from the government grants, donation or the big company contributions.

There are structure and terminology misunderstandings when defining a nonprofit organization. While acting in the benefit of the public, a group cannot convene and label themselves a nonprofit organization An organization must establish an organizational structure, develop bylaws, obtain a legal charter, elect officers, or exercise another process of demonstrating some degree of institutionalization. This relates to an organization's ability to control its management and operations activities. While non profit organizations operate without shareholder and cannot distribute profit to members, founders, or governing boards, organizations are able to accumulate a surplus. This revenue must be retained by the organization to further its mission,

According to Frumkin, a nonprofit organization fills the gap between governments and the market where public and private needs meet and where individual and societal efforts are united. NPO are comprised of a multitude of disparate entities that nevertheless share three major components: no coercion, no distribution of profits and no clear lines of ownership. NPO’s main feature is not to coerce participation because they thrive to benefit from willing members. Unlike for profits, they operate without distributing their profits to stakeholders. All of their profits are to be used to further their cause. No distribution of profits leads them to distance themselves from the much needed money and resources available from the private

A not for profit organization is a corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive (Legal, 2013).” There are immense community benefits as a not-for-profit generally accepts everyone regardless of ability to pay. Nonprofit organizations are granted tax-exempt status which helps them to provide services to the public and are expected to be effective managers of their finances as well as being efficient (Financial Management, 2010). In doing so, they can gain exemptions from federal and state incomes taxes and have the ability to solicit tax-deductible contributions (Financial Management, 2010). Organization must follow legal financial

Non-Profit-Organizations (NPO’s) often rely on the support of donors and volunteers who pursue a mission that is derived from values and principles. (Worth, pg. 6) The economic model and the voluntary spirit model are contrastingly different. The economic model is referred to the growth philosophy, encompassing the market mechanism and organizational hierarchy. This model operates on the premise that there are three basic types of incentives to include materiel services (money, goods and services), solidary (social interaction) and purposive (rewards from participation). In addition the model mimics that of the private sector by highlighting marketing and competition by nonprofit organizations. Hence the hiring is “hierarchically organized professional staff determines the goals and activities of the

So how can that definition be taken in? Is a non-profit organization just a business trying to avoid paying taxes? That could be the case though let us delve a little deeper.

I will here explain the differences between non- for profit, for profit, and governmental organization. First, I will start with the purpose of each of them consistently, non-for profit does not prioritize profit however, they are dedicated to provide welfare services to members and society. For-profit, the primary purpose is to generate profits. Governmental organizations, provide special services such as social amenities. Second, source of revenues, non for profit get it from exchange transactions, support, donated materials, special events, pledges, and contribution services. For profit, usually gets the revenue from sales of gross and advertising. Governmental organizations, usually gets their revenue from taxes, fines, and rents. Moreover,

Non-profit organizations are the way of life, they are the reason why people of society care about the “little” people. Individuals who start a non-profit, usually start with the mission of helping others. They want to make a change in the world and be the hero that helps every individual who is struggling or trying to cope with life. Some non-profits are not as sappy as others, but most are geared towards community building and forming relationships. The relationships that are formed last for a lifetime, mainly because of the rawness of the individuals within the organization.

During the past 25 years, awareness of the environment has increased tremendously. Non-profit organizations look beyond institutional goals, and instead, try to find a shared vision that works for everyone in the society. Our society needs to stop consuming as if we have an infinite planet; we have to have integrity for the world we live in because the natural resources that have been sustaining us will not last forever. Companies need to evolve with the modern age and changing consumer market. For example, Netflix never thought they would produce their own shows, however, with the changing consumer market, they have done just that. Also, NGO’s sometimes have to partner with bigger for-profit companies in order to target a larger consumer base, thus, solidifying the fact that the for-profit and non-profit sector have to team together in order to sustain the environment in which we inhabit.

P1 Explain different types and purposes of organizations; public, private and voluntary sectors and legal structures. [AC 1]