Nonprofit Organizations : A Nonprofit Organization

993 Words4 Pages
A nonprofit organization is one that is tax-exempt and serves the public’s interest. Their purpose must be charitable, educational, scientific, religious, or literary. The organization does not declare a profit, instead uses all the revenue available after standard operating expenses in serving the public interest. The individuality of nonprofit organizations is not obvious, possibly they are no different from private organizations; they are influenced by business motives and opportunities for ambition just as private organizations. Nonprofits are not independent of private enterprise or the government. Nonprofits compete and collaborate with other organizations in many ways in order to finance theorganization, develop markets for…show more content…
Foundation grants and government grants are formal grant contracts that are normally long and detailed, designating the responsibilities of performance, how the payments will be made, the reports of accountability, the assessments of financials and performance, and the personnel, and settlement procedures that are required. Nonprofits of all sizes have grants and contracts with numerous official agencies and each has their own particular requirements for reporting, rules and regulations. Nielsen (1980) states that “private welfare agencies vary greatly in this regard, some receiving the bulk of their funding in the form of government grants and contracts.” The nonprofit organizations that rely on the government for funding have observed a decline over the last several years due to cut back by the government. In order to receive funding, nonprofits have become caught up in government rules and requirements and at the same time have lost authority over their own policies and programs. A private institution that provides funds may also require numerous amounts of paperwork and have administrative differences. Another issue is the larger number of requirements that are less defined and enforced by social legislation. These government funds must conform with legislation that relates to discrimination against women, minorities, and the elderly; to environmental
Get Access