Non-Profit Vs Nonprofits

Since a non-profit organization provides community services without monetary profit, the external environmental conditions that exist outside of the non-profit significantly influence its growth and survival. Specifically, economical elements such as disposal income levels, unemployment trends, taxation rules, inflation, and cost of living may impact the likelihood of obtaining new donors or continuing donations from existing donors. In an economic climate of decreasing disposable income may result in decreased donations. Furthermore, increasing unemployment rates may increase the need for public assistance wherein the non-profit organization may find it difficult to obtain increased funding to provide their philanthropic services.

According to our text, “Not-for-profit organizations lack a residual ownership claim and the organization’s purpose is something other than to provide goods and services at a profit.” “Because significant resources are provided to governments and not-for-profit organizations, financial reporting by these organizations is important.” (Page 2).

receive donations which is the lifeblood of an charity or non-profit. This paper will discuss the

1. Connors, T. D. (2001). The Nonprofit Handbook. New York: John Wiley & Sons, Inc. [US].

Until spending time in the nonprofit program at Johnson, I never considered the many different tasks associated with starting a nonprofit. Additionally, through growing up at a long-established nonprofit, I took for granted the work involved in establishing it as a 501(c)(3) nonprofit. The IRS website provides explanation for the many these required tasks needed to file for tax-exemption status. Filing the articles of incorporation and establishing bylaws remain crucial for an organization to receive recognition as a legal entity. However, establishing a nonprofit involves a great deal more than simply attaining tax-exemption status. Tschirhart and Bielefeld highlight many of these aspects, such as developing the mission and vision statements of the organization (Tschirhart and Bielefeld 49). As the reading from last week discussed, evaluating and acquiring resources for an organization should stem from the mission of an organization. Even more so, in order for that to take place, the organization needs established with a mission that will keep it rooted in its cause and a vision

Nonprofit entity may assume a critical part in income broadening from an administration point of

Nonprofit organizations have similar financial transactions and needs as for-profit businesses (Viader, & Espina, 2014). Their financial statements describe and summarize operating activities, obligations, and economic resources for a given period, usually one year (Viader, & Espina, 2014). A nonprofit is defined as a legal entity that does not conduct substantial commercial activity or earn a profit as its primary purpose (Viader, & Espina, 2014). The goal of the nonprofit is typically to provide services (Epstein, & McFarlan, 2011). In nonprofit organizations, management decisions are intended to result in furnishing the best possible service given resource constraints (DioGuardi, 2014). Basically, the success of a nonprofit entity is measured

The White Paper released by the Camden Group and presented for review by the contributing authors (Rebecca Bales, Kelly Tiberio, and Tara Tesch) offers a perspective from one of the nation’s leading Health Care advisory firms. The paper brings to the forefront the characteristics of Non-Profit and for-profit hospitals, and the outlook for conversion from one industry classification (Non-Profit into a For-profit) business entity. Contained within the paper are a wide-range of topics with regards to the similarities between the two health care models, laws and regulations from both the State & Federal levels that guide their respective classification, market outlook for the health care industry and case studies that highlight the impact of actual conversion from Non-profit to For-profit hospitals from an industry standpoint. The health care is a challenging and competitive environment, therefore the paper focuses on providing insight on a strategy based on adapting from one business model into another in order to remain competitive.

The ability to convey financial information in a simplified manner without hiding or misrepresenting the financial standing can be challenging. There are many different types of nonprofit organizations and each meets a specific need. I work for an organization that began serving a particular population of homeless individuals in Jacksonville Florida in 1972. We have grown, changed and adapted over the years, which has been determined by data, changes in need, and governmental indicators. This nonprofit has grown from a small, two-person organization to an agency employing thirty full time employees. As a result, capacity has increased, as well as funding of which is now approximately $7 million in Federal and State grants serving Northeast Florida. These funds need to be represented in a financial statement that is consistent with regulations that have been established for nonprofits. The Financial Accounting Standards Board (FASB) is an

What a great post. You stated that, “Collins (2005) rejected the notion that the best way for organizations in the social sector to become great is to operate like a business; “many widely practiced business norms turn out to correlate with mediocrity, not greatness” (p. 1). However, the same sentiment may be applied by some to MDO norms” (Scruggs, 2016, para.1). I absolutely agree. I have had the privilege of serving in leadership positions for a variety of organizations. Collins (2005) makes an excellent point regarding the practices of the modern business in that often these should not be emulated. At the same time however, I have also worked for nonprofits where the same is also true. Both for-profit and non-profit organizations

Charitable nonprofits around the world, rely on the public trust to achieve their mission. The importance that charitable nonprofits continuously earn the public’s trust through their commitment to ethical principles is paramount. Public mistrust in one organization could lead to the mistrust in all Non-profit-organizations ("Ethics and Accountability for Nonprofits", 2017).

Raffles are an excellent way for nonprofit organizations to raise money due to the low cost, competitiveness between ticket sellers, and people’s desire to get something expensive for a cheaper price. All of these qualities of a raffle allow the organization to raise awareness about their cause as well as promote more people to buy tickets in order to support it.

Stakeholders play a critical role in the management and decision-making process of an organization. An example of a stakeholder includes employees, managers, patients, vendors, suppliers, the community, creditors, customers and the government (Daft, 2013). Also, Daft (2013) says, “Stakeholders are groups “within or outside of the organization that has a stake in the organization’s performance” (p. 23). There are a few differences surrounding stakeholder expectations between non-profit and for-profit organizations. The differences in nonprofit organizations and for-profit business organizations are the direction of activities for the end goal (Daft, 2013). Although it is very difficult to measure the impact that a nonprofit has on society, community, or a particular group as opposed to evaluating an income statement from a for-pro-profit organization. The same level of attention should be paid to stakeholder for nonprofit organizations as stakeholders of for-profit organizations.

Nonprofits organizations make money as a result of their plans and activities and use it solely to cover all the expenses. The benefits of nonprofit’s expenses is that as long as the costs are associated with the organization’s purpose, profit made isn’t taxable.

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