What is a Non-Profit Organization?
A non-profit organization is an organization that gives back to the community. These organizations can fall under the categories of charitable, educational, scientific or religious (Robert DeMartinis). A non-profit has to find a funder to help these programs prosper. Then, they benefit off of the surplus revenues by applying it to these helpful programs. When the organizations' utilize these revenues, they can possibly gain more services for their organization. Because these organizations help the community and reuse their revenues to help the future program, they are exempted from getting taxed by the government. This ultimately helps the organization because it is one less expense for them to pay for. Unincorporated …show more content…
In addition to the tax-exemption, member of the organization have the ability to apply for private and public grants, on top of funding they receive from donations. Another positive effect non-profits have, is that “the founders, directors, members, and employees are not personally liable for the nonprofit’s debts, (Grant Space) under the law of limited liability. Although these positive effects are helpful to the organization, it takes a lot of money and dedication. Organizations depend on donations from citizens and federal assistance from the government. On top of always waiting for funding, the organizations have to fill out a lot of paperwork such as 501(c) (3) and a Form 1023 to the IRS, which is, personal records of their “finances, activities, governance processes directors and key staff which are open to public inspection” (Grant …show more content…
A mission statement should show the sole purpose of the non-profit, and how it will benefit the community. When creating a business plan, it should describe what steps are required to fulfill the organizations missions, in a more detailed sense. Your boards of directors are volunteers who can carry out the responsibilities of the organization, by making sure they stay on task. Having a board that is fully engaged in the mission allows for great success to the organization. If the organization has a certain structure, it will be easier to help the community in the way the mission
A non-profit organization is an organization that gives back to the community. These organizations can fall under the categories of charitable, educational, scientific or religious (Robert DeMartinis). A non-profit has to find a funder to help these programs prosper. Then, they benefit off of the surplus revenues by applying it to these helpful programs. When the organizations' utilize these revenues, they can possibly gain more services for their organization. Because these organizations help the community and reuse their revenues to help the future program, they are exempted from getting taxed by the government. This ultimately helps the organization because it is one less expense for them to pay for. Unincorporated …show more content…
In addition to the tax-exemption, member of the organization have the ability to apply for private and public grants, on top of funding they receive from donations. Another positive effect non-profits have, is that “the founders, directors, members, and employees are not personally liable for the nonprofit’s debts, (Grant Space) under the law of limited liability. Although these positive effects are helpful to the organization, it takes a lot of money and dedication. Organizations depend on donations from citizens and federal assistance from the government. On top of always waiting for funding, the organizations have to fill out a lot of paperwork such as 501(c) (3) and a Form 1023 to the IRS, which is, personal records of their “finances, activities, governance processes directors and key staff which are open to public inspection” (Grant …show more content…
A mission statement should show the sole purpose of the non-profit, and how it will benefit the community. When creating a business plan, it should describe what steps are required to fulfill the organizations missions, in a more detailed sense. Your boards of directors are volunteers who can carry out the responsibilities of the organization, by making sure they stay on task. Having a board that is fully engaged in the mission allows for great success to the organization. If the organization has a certain structure, it will be easier to help the community in the way the mission