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Non Profit Organization Homework Help


It is an organization that makes use of the revenues that are generated in excess by it to achieve its goals. They would not be distributed as dividends that are earned as profits. These organizations are let to make profits and generate more that the costs that they are incurring.

But these must be preserved by them for the organization’s welfare only. It could be made use of for the expansion or for other plans that the organization has to develop itself.

These non profit organizations have control members or boards for their own. They have staff that is paid for the work they do there. It also includes the management. There are other employees and executives too who work there as volunteers. They work without any payment and they do not expect any compensation for the work that they do. If they expect anything that would just be a token fee. In these cases there are legal contracts that are signed between the organization and the executives.


The goals of the organizations:

The main aim of these organizations is to provide service on a charity basis.  They can be either a trust a not-for-profit or co operative organizations as such. They are keen on helping people on whatever area they working.


The legal issues:

There are a number of important legal aspects that have to be taken care of by these organizations. They include the economic activity, the supervision of the provisions, accountability aspects, auditing, dissolution of entity provisions, tax of the donors who could be corporate or private, and many more. They are certain things that are considered a must to be expressed in the papers when the organization is being established.

The laws and rules that are to be followed by these organizations vary from country to country. Most of the larger organizations are required to publish their financial reports in detail. They are very much similar to the corporate business in case of the larger organizations, but the profit factor is the only one that varies. They should not share the profit but use it for the welfare of the organization, which is not the case in the corporate sector.


The exceptions:

There are a very few exceptions to this rule of disclosure of financial details. One of them is the churches. They do not have to tell about their financial details to anyone.