Importance Of Internal Control Of Nonprofit Organizations

1794 Words8 Pages
Importance of internal control in nonprofit organizations ABSTRACT The nonprofit sector has been one of the largest share of the United States economy. However, for the unique feature of nonprofit organizations, they rise there operation source from donors, but not shareholders. It is difficult to disclose the problems of internal control. Thus, public always ignore the importance of internal control of this kind of organizations. This study first states what internal control is and why internal control is so important. Then I collect the problems existing in internal control of nonprofit organizations and analyze the reasons for those problems. Finally I give several reasonable suggestions to nonprofit organizations to enhance internal control. The nonprofit sector has been one of the largest share of the United States economy. According to a report of THE NEW YORK TIMES, in the period of 2001-2011, the growth number of nonprofit business was 25%, while the growth of for-profit business was only 0.5%. In 2010, 1.6 million nonprofits provide 10% working position for contour and accounted for 5% of GDP (ANNA BERASEK, For Nonprofits, a Bigger Share of Economy 1). In year 2012, nonprofit sector contributes 5.5% of GDP for USA. By June 2014, there are 1,429,801 tax-exempt organizations in United States, which including 966,599 public charities and 96,584 private foundations (NCCS, Quick Facts about Nonprofits 1). With the greater demand for health care services, the number of
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