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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. 

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.
 

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.