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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. 

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.
 

Charitable Organization Questions Answered

Charitable Organization Questions Answered

 
 
Introduction
 
 
A charitable organization is an organization that relies on public, private sector or government support to provide social services, educational awareness and other causes to benefit society.  Charities may become tax exempt legal entities by meeting and sustaining the requirements for non-profit organizations.
 
 
What are some examples of charities?
 
 
The Salvation Army, Toys for Tots and the Make a Wish foundation are three examples of well known charities.  These organizations deal with a range of issues from homelessness, poverty and child welfare.  Most, but not all charities rely on public support through grants and donations to operate and provide for public benefit.  Charities can be faith-based, community-based and also have cultural and social motivations.  Catholic charities for example, have a length history as the second largest provider of social services in the United States.
 
 
Are all non-profit organizations also charities?
 
 
Non-profit organizations are tax exempt entities that under sector 501(c)(3) of the Internal Revenue Code.  These organizations must meet a strict organizational structure, refrain from political activities and maintain all of its profits and assets for charitable causes.  However, all non-profits are not charities.  Non -profit organizations may include private foundations, social welfare organizations, labor and agricultural associations, business leagues and fraternal beneficiary societies.  Not all nonprofits require public funding.  In fact, some organizations, such as foundations exist to distribute grants to other public charities.
 
 
What is a “non-operating” foundation?
 
 
Non-operating foundation generally refers to organizations that engage in charitable work through grant writing and distributing money to other organizations.  They are called this as they do not directly engage in the missions of their foundation but rather entrust other organizations to that duty.
 
 
How do I know if a charity is legitimate?
 
 
There are several not-for-profit organizations that act as watchdogs for charities and release non-biased ratings based on internal ranking criteria.  The Better Business Bureau also releases reports on safe giving and informs consumers of the risks associated with charitable giving. 
What are the benefits of charitable giving?
 
 
Aside from a sense of personal satisfaction, most charitable donations are tax deductible.  Many charities rely on public support to achieve their goals.
 
Source: https://nccs.urban.org/FAQ/index.cfm
 

What are Charity/Non-profit Jobs?

What are Charity/Non-profit Jobs?

Introduction
 
Charity and non-profit jobs are careers in social work.  These jobs are usually in non-for-profits and involve all facets of their administration from upper management to lower level distribution of charitable goods and services.  To reach the highest levels of non-profit management requires advantaged degrees and years of practical experience working in non-profits.
 
 
How does one get a job in social work?
 
 
Most job seekers typically start as unpaid volunteers for charities, proving that they are committed to the goals and ideals of the charitable organization.  Typically after a trial period, some individuals will be able to move into a paid position assisting in running the lower level administrative functions required by the charity.  Students should focus on subjects such as sociology, psychology, human development and administration in order to develop a well rounded liberal arts education required for a career in social work.  Like most professions, an advanced degree is very important to earn promotions and advance to large, higher profile charities.  Ultimately, the highest levels of non-profit administration require a Master’s of Public Policy with specialties in non-profit administration.  
 
 
What are some types of non-profits and charities?
 
 
Religious and ethnic organizations make up the lion’s share of charities and non-profits.  Although these groups can be limited in the community they serve, many others aim to serve a broader constituency.  In addition, there are a growing number of secular charities and benevolent organizations that seek to advocate for social causes in local communities and abroad.
 
 
What are some functions of individuals in social work?
 
 
While most charity jobs deal with the administrative functions of charities, many charities, especially ones that offer expended community services require psychologists, counselors, day care specialists, ESL educators and logistics specialists.  Large charities usually maintain some form of community services for children and the elderly, serving as a safety net for its most vulnerable citizens.  Therefore, it is paramount for these charities to employ specialists that can best determine the individual needs as well as the needs of the community as a whole.
 
 
What are keys to succeeding at a charity job?
 
 
All charities are different and will require different sets of skills and experiences, but there are a few general qualities that are useful to those who want to work in this field.  Patience and empathy are critical values, especially when working with the disadvantaged and needy individuals that seek help from charities.  Additionally, team management and the ability to cultivate a productive team dynamic are essential as charities rely on individuals working cohesively and filling multiple roles as budgeting concerns usually prevents a larger, more specialized staff.
 
 
Where can I get started in charity work?
 
 
There are many local charities that willingly accept volunteers on a part time basis.  These organizations tend to be chronically understaffed and will happily accept your help.  This will help you cultivate the experience necessary to get a paid job in the future.  Additionally, there are online resources such as craigslist.org and idealist.org where non-profits search to fill positions from high level executive to entry level personnel.  Larger charities and non-profits will maintain independent websites with job boards and recruitment notices to the general public.
 

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.