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Nonprofit Organization

Decent Essays

Certainly, nonprofit organization’s mission and fanatical factors are linked. Therefore, the nonprofit organization should develop a plan that meets the financial requirements as well as the programming. Negatively, the institution will be affected if these areas are not well managed.
Specifically, implementation and financial policies are one of the nonprofit’s tactics to maintain an excellent functioning. The goal is to provide more services with fewer resources. At the same time, it is an expectation that funding enhance the organization success. Funds should be used to grow programs, promote the agency and many others. Then, the organization expenses should be record on the balance sheet. Accordingly, managers make decisions on program …show more content…

In other words, these three elements have to work together in order to maintain the nonprofit’s balance. Equally, organizational capacity is the piece that connects the programs to market and the funds. Capitalization structure determines the operation costs. Mission and programing are directly connected. The organization’s program has to be compatible with the mission. Successfully, the board members, employees and stakeholders are essential leaders of a nonprofit organization. They support and implement the agency’s mission and the policy declaration. Indeed, organizational capacity is the “short-hand term used for the sum of the resources an organization has at its disposal and the way in which they are organized development skills, marketing skills, financial management skills, program delivery mechanisms, staffing, etc.” (Nonprofit Finance Funds, …show more content…

Congress in 2002. This SOX act propones to defend financiers from fraudulent bookkeeping activities. The Act directed modifications to influence corporations’ financial disclosure and other accounting fraud. Actually, The SOX Act was created in response to “accounting malpractice in the early 2000s, when public scandals such as Enron Corporation, Tyco International plc, and WorldCom shook investor confidence in financial statements and demanded an overhaul of regulatory standards” (Investopedia, 2017). The act rules and policies affected the legislation related to security regulations. The Sarbanes-Oxley Act Section 302 and Section 404 are the main points. The rules and enforcement policies outlined by the SOX Act amend or supplement existing legislation dealing with security regulations. The two key provisions of Section 302 is a mandate that requires senior management to certify the accuracy of the reported financial statement. Section 404 is a requirement that management and auditors establish internal controls and reporting methods on the adequacy of those controls. Section 404 has very costly implications for publicly traded companies as it is expensive to establish and maintain the required internal controls (Investopedia,

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