Non-Profit Vs. Nonprofit Organizations

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).

In contrast to corporations serving stakeholders and customers; nonprofits are ultimately directed to serving the public or specific groups and audiences. Unlike corporations who distribute a product, nonprofits services are delivered in the form of intangible or tangible products. Boards of these organizations are not structured in the same preciseness as those of major corporations. Companies with large resources have the

The nonprofit sector in America is a reflection some of the foundational values that brought our nation into existence. Fundamentals, such as the idea that people can govern themselves and the belief that people should have the opportunity to make a difference by joining a like-minded group, have made America and its nonprofit sector what it is today. The American "civil society" is one that has been produced through generations of experiments with government policy, nonprofit organizations, private partnerships, and individuals who have asserted ideas and values. The future of the nonprofit sector will continue to be experimental in many ways. However, the increase of professional studies in nonprofit management and the greater

The variety of resources available for financing nonprofits may seem overwhelming and unmanageable, especially to someone looking in form the outside. The publication Financing Nonprofits: putting theory into practice (Young, 2007) addresses not only the variety of resources that are available but also the challenges of managing multiple revenue sources. This paper presents a brief reflection on some of the ideas presented in the publication.

This paper was originally written for Financial Management for Nonprofits 380, taught by Professor Zelhart.

There are millions of not-for-profit (NFP) organizations. Each organization has their own definitive set of rules on handling donor gifts. Every time a donor gift is made to a NFP; determination is needed on whether or not the gift needs to be restricted or unrestricted. There are times that gift donations are made at the end of the year so that the donor is able to file on their taxes. The NFP organization needs to have a certified public accountant (CPA) that can get involved in how the donation is given. The direct pupose of this paper is set up to explain the different acconting processes of NFP organizations.

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 United States has an extraordinarily large, diverse, economically powerful and politically influential nonprofit sector, distinct from government and business. It consists of more than 1.6 million registered organizations and institutions and perhaps an equal or even larger number of nonprofit associations that are not required to formally register or report their activities. The U.S. nonprofit sector is more broadly defined than elsewhere and includes schools, hospitals, museums, civil rights groups, labor unions, and many, many others. It accounts for more than six percent of the US Gross Domestic Product and employs more than nine percent of all US workers.

A nonprofit organization (NPO), can be self-sustaining by adhering to some very simple rules. A nonprofit is described as an organization that “Operates for the common good and not for generating individual wealth: does not distribute its profits to individuals who control the organization such as its members, officers, directors, or trustees. While a non-profit organization can make a profit, the profit it earns must be used toward the core missions of the organization and not towards any personal benefits” (Bennett, 2013). One of the enormous challenges that a

The goal for non-profit organizations its to set up a demographic for the certain charity and to reach these demographics in a proper way in order to receive donations. The donors do not just donate to anyone. It is important for the organization to first have a good reputation and a good standing. There are many non-profit organizations that do not stay true

Both organizations bring in a profit but what they do with the money is what makes them different. The main difference lies in the organization's mission. A nonprofit must have a strong mission that will greatly help the community and if they address this mission properly and effectively, it will not bring in any money to the company. This causes the company to lose money but what you typically don’t realize about nonprofits is that they have other activities that do bring in money to help balance out the money lost for the main mission that betters the community. This talk showed that nonprofits must have a strong mission in place in order to make the nonprofit a success but they also need to have other activities and projects to balance out the loss of money that comes from carrying out a strong

Nonprofit organizations have several functions, and not each one is alike. Essential to all non-profit organizations are four functions: planning, budgeting, funding and management.

Non-profit organizations do not belong to the commercial sector or the public sector, but occupy an intermediate position. It gives

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