What are valid weaknesses of NPO?
What are valid weaknesses of NPO?
Not for profit organization have certain weaknesses. some for them are-
1. Limited Purposes
In order to be exempt under the tax laws, a nonprofit organization can only perform certain functions listed in those laws. If it goes outside those limits, the nonprofit may have to pay taxes on some of its income, pay penalties, or lose its exemption entirely.
2. Lobbying
Most types of tax-exempt, nonprofit organizations are forbidden from contributing to political campaigns and may only do a limited amount of lobbying.
3. Public Scrutiny
Another disadvantage is public scrutiny. Because a nonprofit organization is dedicated to the public, its finances are open to public inspection. This means that the public can obtain copies of any nonprofit's tax returns, and can find out its salaries and other expenditures.
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