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Non Profit Organization

The Rules of Non-Profit Management

The Rules of Non-Profit Management

Non-profit organizations must follow certain rules, regulations and laws in maintaining their structure. However, the structure of non-profits includes similar leadership roles to other companies. For example, non-profit management would likely include positions of power. In addition, non-profit management would likely include a higher salary than other employees at the organization, but those salaries may be limited by the law.  
Non-profit management may only be able to collect a salary up to a certain threshold. However, non-profit management has many of the same responsibilities as management in other companies. In fact, the information required from non-profits may even make this type of job more labor-intensive and time consuming than other management positions.
Non-profit management may utilize non-profit software, which helps to keep details about money brought in from the organization through donations and other income sources. Non-profit software would include a list of the names of individuals or entities that have donated money, as well as the manner in which that money was utilized. For example, non-profit software may analyze each dollar brought in and list the way each dollar was used in percentages for salaries, administrative costs and work which helps the organization reach its goals. The list may also have details about whether or not the organization has reached the goals set for that year.

Non Profit Corporations vs For Profit Corporations

Non Profit Corporations vs For Profit Corporations

Nonprofit corporations have a similar structure
than other types of corporations. Both entities will have leadership as well as
employees that answer to those in management. Corporations will likely
be
for
profit, while nonprofit corporations have income which is then funneled
back into the operations of that
organization. Those monies are then used to meet the
goals of the non
profit corporation, as well as paying the
salaries of those employed there.

 

Nonprofit corporations will likely take income and
distribute it as a percentage into several different pools. The first pool will
be the fees required to fund the operations of the organization, such as
administrative fees and costs. The next pool will include the materials and
work necessary to meet the goals of the organization. For example, this pool
would include monies for supplies in the field in organizations that assist
individuals after a natural disaster. The last pool would be monies used to pay
the salaries of the management and employees of that organization.

 

The monies brought in by a corporation, on the other hand, are used in a different way. The salaries of those that work there must be paid with
the profit of
the company, and those salaries would
not likely be capped as they generally are in an
nonprofit corporation. In addition, the profits
of the company must pay for administrative costs and supplies, as well as pay
for the building where the company exists.

Difference Between Not for Profit and Non-Profit Organizations

Difference Between Not for Profit and Non-Profit Organizations

There are many companies which conduct business without
the purpose of gaining a profit for the owners or shareholders. Instead, those
companies wish to take the income and utilize it to reach the companies
goals in the local community or on a global level. Both
non
profits and notforprofits use the income of the organization to
assist those that need it. For example, non
profits may use the income to feed the homeless or build
homes for those that have lost their home to a natural disaster such as flooding,
hurricanes or fires.

 

However, there are some differences in those
types of companies which do not profit. The main defen
se in notforprofit vs. nonprofit is the manner in which the organizations exists. Although the two terms are
often used interchangeably, the distinction in not
forprofit vs. nonprofit could be in its membership.

 

Nonprofits may have employees that get paid a salary, but
that salary is not contingent on the fundraising efforts of that company. There
may also be volunteers at the non
profit, but they fail to benefit from the income of the
company.

 

However, notforprofit organizations may include a membership
roster which does directly benefit from the income of the organization
. For example, an organization that has fund drives to send
children to a destination would likely be a not
forprofit if the children were the ones that
took part in the fundraising efforts, such as selling candy to raise funds.

Fundraising Ideas for Non-Profit Organizations

Fundraising Ideas for Non-Profit Organizations

Nonprofits rely on a variety of sources of
income in order to keep operations running, as well as
for
payment of employees  and other
expenses. That funding may come from grants or donations
, and fundraising is usually vital to the success of a nonprofit organization.

 

Fundraising ideas for nonprofit organizations may depend on several factors.
First, the type of organization may dictate the types of fundraising efforts
which would be appropriate. For example, food pantries may ask for donations as
well as hold food drives at which the local community can bring specific types
of goods.

 

However, fundraising ideas for nonprofits may include more creative ideas, such as joining
community efforts with the efforts of the non
profit organization. For instance, the food pantry may
ask local potters to make bowls in their pottery shop. Those empty bowls may
then be sold to the local community as a representation of those that go hungry.

 

Fundraising ideas for nonprofit organizations may also be dictated by local laws
and regulations. For example, certain types of fundraising efforts may not be
legal in certain jurisdictions. For instance, some communities may prohibit
door to door sales of candy, wrapping paper and other items sold for
fundraising.
However, that same community may allow those efforts at storefronts,
where volunteers can sell those items in front of the local grocery store.

The Fast Fact on Non-Profit Organizations

The Fast Fact on Non-Profit OrganizationsNon-profit organizations are those which are set up in order to raise money for a cause. The cause may be on the local level or the global level, but in either case monies raised are not used as profit, but are instead used to support the cause. Any income for the company is funneled back into the organization rather than used as a profit which gets distributed to shareholders, owners and employees, as it would in other types of businesses. 

A Guide to Non-Profit Organizations

A Guide to Non-Profit Organizations

Non-Profit Organization Background
Non-profit organizations are those which are set up to provide aid on a local or global level while continuing to funnel income into the cause. There are also non-profits, such as arts programs or trade unions, which utilize collected monies to help those causes. In any case, monies brought in through fundraising or other sources of income, such as dues, are used to help reach the organization’s goals.


History of Non-Profit Organizations
In the past, many organizations claimed to be non-profits so that they could take advantage of tax breaks. However, there are now very strict rules and standards which must be adhered to in order for an organization to be considered non-profit.


List of Non-Profit Organizations
Lists of non-profit organizations may contain important information, such as the amount of money raised by each organizations in a year. The list may also detail the manner in which each dollar is spent, such as salaries, administrative costs and towards reaching the organizations goals. This information can be vital when an individual has decided to donate time or money to a non-profit organization.

Non-Profit Fundraising

Non-profit fundraising must adhere to the laws in the jurisdiction where the fundraising takes place. For example, charities must provide a receipt for donations in case the individual wishes to use it for tax purposes. The non-profit charity may also be required to get a permit to hold certain types of fundraising events.

Non-Profit Management
Non-profit management has many of the same responsibilities as management in other companies. In addition, they may collect a salary similar to the management positions, but the amount may be limited by laws which govern non-profits in that jurisdiction.

Non-Profit Corporation vs. Corporation
Both non-profit corporations and for profit corporations have a similar structure, such as employees that answer to management. The biggest difference between the two is the manner in which profits are utilized and distributed, as well as differences in taxation.

Not-For-Profit vs. Non-Profit
Although the two terms are generally used interchangeably, the difference between a not-for-profit and non-profit may simply be in the structure or membership of the two. In not-for-profits, members may directly benefit from fundraising efforts, whereas those that work at a non-profit do not.

How to Start a Non-Profit Organization 
The manner in which a non-profit is created is similar to the way that an individual would start any business. However, the strict rules and regulations which apply to a non-profit must be followed in order to achieve tax exempt status.

Fundraising Ideas for Non-Profit Organizations
Fundraising for non-profits will likely depend on the type of of organization, as well as the local laws which may prohibit some forms of fundraising.

Understanding Non-Profit Organization

Understanding Non-Profit Organization

Non-profit organizations are those organizations which conduct business, usually to provide help or aid while gaining no profit for the company. Monies brought in, be it by fundraising efforts or other sources of income, are utilized to further the cause of non-profit organizations.
A non-profit organization usually has the goal of helping community members or providing aid on a global level. All monies brought in by the non-profit organization are utilized for those goals. The funds which exceed the need for non-profit organizations are not distributed to shareholders or employees, but are instead set aside for future activities, such as feeding the homeless.
Employees at nonprofit organizations are able to collect a salary, but in most cases, the salary is not excessive. The jurisdiction where the non-profit organization is located may, in fact, have limitations as to the amount of salary an employee is allowed to collect.
While many non-profit organizations conduct community outreach programs, such as feeding the homeless, there are many other types of non-profit organizations. There are companies which collect monies for the arts and they may sponsor shows or contribute money to artists for materials and education.
There are also non-profit organizations which are trade unions. For example, sheet metal workers have a union and that union is not supposed to profit from members’ dues. Instead , that money is meant to be utilized to help union members.

History of Non-Profit Organizations

History of Non-Profit Organizations

Nonprofit organizations are those which do not
have owners
, and any money brought in by the organization
is then used to reach the organization
s goals. While employees of the organization can collect
a salary, those salaries are not excessive and are not based on the amount of
money brought in by the organization. Surplus funds are funneled back into the
organization in order to continue meeting the goals of the organization.

 

Previous to laws and regulations, many nonprofit organizations utilized a large percentage of
monies brought in to pay the salaries of employees. Those salaries were
sometimes excessive and included bonuses for the president and those that held
certain positions within the organization. In addition, shareholders were able
to sell
their stocks for profit and any organization which
could be considered  a non
profit was
able to avoid taxes.

 

However, there are new laws, especially in
the United states, which govern the rules that make a business a non
profit organization. Shareholders are no longer able to
sell their ownership in order to make a profit. In addition, the salaries of
employees cannot be excessive and cannot exceed monies spent to reach the goals
of the non
profit organization.

 

While nonprofit organizations still receive tax breaks, they must
follow very specific rules to avoid paying taxes on the income of that
organization. They can also avoid taxes on the property where the organization
is located, as long as they adhere to the specific local and
Federal rules and laws that govern nonprofit organizations.

Finding a List of Non-Profit Organizations

Finding a List of Non-Profit Organizations

There are nonprofit organization lists which can help individuals to
determine which one they may wish to donate money to. Often, those non
profit lists will also include details about the
organization, such as the amount of money raised in one year. That list may
also give details as to how the money is spent.

 

For example, some nonprofits may include higher salaries for employees than
others with only a small portion of donated money being utilized to reach the
goals of the organization. There may also be administrative fees listed on the
list of non
profit organizations, which is also a percentage of donated money that is not used to reach
the goals of the organization.

 

When individuals have decided to donate their
time or money to a non
profit organization, they should consider the
manner in which each organization is run, as well as the length of time
that the organization has been around. By obtaining a list of non
profit organizations, individuals can conduct research to
fact check each organization.

 

Obtaining a list of nonprofit organizations is quite simple. Individuals simply
need to search online for non
profit
organizations and they can refine that list according to the type of goal each
organization has. There will be organizations that feed the homeless, help
build homes, fund the arts
, or present scholarships for college.
Individuals can easily refine their search by any number of factors.

How are Charities Rated?/How Do I Know A Charity is Legitimate?

How are Charities Rated?/How Do I Know A Charity is Legitimate?

 
 
Introduction:
 
 
Giving to unknown or unpopular charities may be a risky proposition if that organization is unclear or vague about operating costs and the financial feasibility of is organization. Several resources exist to help guide your giving decision.  Use these resources as a guide to determine if your giving decision is a wise one.
 
 
The American Institute of Philanthropy (charitywatch.org):
 
 
The AIP maintains rankings ranging from A+ – F with top rated charities generally ranging from B+ to A+.  This organization is funded by donations from the general public so membership that provides will cost you $40 and a sample copy of their charity rating guide will cost $3.   AIP justifies this practice as it keeps its rating impartial and not subject to pay-for-ranking schemes.  The rankings for top rated charities are available for no cost on their website – charitywatch.org
 
 
What are the rating criteria?
 
 
AIP generally focuses on charities that receive a million dollars of public support annually and are of interest to its members.  It does not respond to request from organizations to be ranked and does not rank private religious, social and cultural organizations.
AIP checks the charities financial records against state and federal government filings through an independent review. It prides itself on being an independent watchdog as charities have little incentive to “criticize” themselves.
 
 
Key criteria are as follows:
 
 
  • Percentage spent on charitable purpose – most efficient charities will spend 75% or more on programs.  Exceptions are made for organizations that do not receive tax deductable contributions
  • Cost to raise $100 – AIP considers $35 or less to raise $100 reasonable for most charities
  • Years of available assets – how long the charity can afford to operate without additional fundraising.   AIP considers assets lasting three years or less reasonable.  Charities with large amounts of assets receive lower grades as they do not have a pressing need for more donations.

  •  
  • AIP does not rank local organizations or national organizations comprised of local affiliates, only charities that have a national focus.
 
 
Charity Navigator (charitynavigator.org): 
 
 
Charity Navigator is a non-profit organization that serves as a guide to intelligent giving that has rated 5,000 charities and provides information to the public free of charge.
 
 
Charity Navigator does not evaluate 501(c)4 organizations as most of their donations are not tax deductable.  Other organizations that do not have to fill out tax Form 990 are not rated, due to a lack of information about the finances of the organization.  This organization also does not evaluate private foundations as these organizations do not rely on funding from the general public.
 
 
What does Charity Navigator require for evaluation?
 
 
A charity must have:
 
 
  • Public support of more than $500,00 and total revenue more than $1,000,000
  • 4 years of Form 990 filings
  • Operations based in the US and registered with the IRS, although the scope of the organization can be international.
  • Fundraising expenses
 
 
What are the rating criteria?
 
 
Charity Navigator analyzes organizational efficiency and capacity.  Some criteria categories include program administrative and fundraising expenses, revenue and program expenses growth and working capital ratio.  There are various adjustments for deficits, indirect cost allocation and programs that spend less than a third of its budget on program expenses.
 
 
Better Business Bureau – (bbb.org/us/charity)
 
 
The Better Business Bureau maintains a dedicated website to collecting complaints about charities and authorizes seals to verify that charities have been vetted by the organization.