...service. These organizations have helped millions of people around the world by providing a great deal of valuable assistance and support via educational, scientific, charitable, legal, and many other means. An NPO is “a group organized for purposes other than generating profit and in which no part of the organization's income is distributed to its members, directors, or officers” (law.cornell.edu). Types of NPOs include volunteer service organizations, public charities and schools, public clinics and hospitals, political organizations, legal aid societies, labor unions, churches, research institutes, professional and environmental associations, museums, and some government agencies (law.cornell.edu). Some of the purposes service for these organizations include working for social change, to help people help themselves, and to fight for the civil rights of others. NPOs are a vital part of our nation’s economy, as they not only provide much needed public services to all concerned citizens and inhabitants of the U.S., they also provide millions of jobs for nation’s workforce. This essay will discuss the application of financial management techniques in NPOs. A comparison and contrast of nonprofit and for profit organizations (FPOs) will be examined while focusing on the fundamental differences between the two. How NPOs and FPOs are affected by different laws that dictate their daily operations will be explored. Information regarding how sources of funds are generated, how the use...
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...Non-Profit Organization Management: The Holistic Highlights Non-Profit organization management is not very different from managing any discrete organization. A not so recent survey conducted by The National Center for Charitable Statistics states that there were over 1.5 million non-profit organizations in United States alone, in the year 2010. A footnote mentioned that this did not take into account those, whose income was less than $25,000. The above piece of trivia is just an indicative proof for the opening statement. While every non-profit organization has certain perks, and there are elaborate relaxations in context of taxation decrees applicable to such entities, the very large number indicates that every domain (well, we know each non-profit organization has its own domain of operations) still would have appreciable competition. But a chunk of Success lies in standing out. Identity and Branding Vision and Ideology When it comes to being an effective non-profit organization management: being very strict in its adherence and compliance with the ideology and vision of the organization at large is the cardinal rule of survival. No other organization or entity depends on branding and image as much as a Non-Profit Organization would ever do. The Vision of the organization is what classifies it, and sets its domain of operations. The Ideology and its vociferous publication of the same, is what creates the image and identity of the non-profit organization. Herein lays...
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...common aim and objective, working in a common platform. Profit making organization: The organizations which are working for their benefit as well as for the benefit of the common people are called as the Profit Making Organization, for example cooperatives. A profit organization exists primarily to generate a profit, that is, to take in more money than it spends. The owners can decide to keep all the profit themselves, or they can spend some or all of it on the business itself. Or, they may decide to share some of it with employees through the use of various types of compensation plans, e.g., employee profit sharing. Non profit making organisation: A non profit organization exists to provide a particular service to the community. The word "non profit" refers to a type of business one which is organized under rules that forbid the distribution of profits to owners. "Profit" in this context is a relatively technical accounting term, related to but not identical with the notion of a surplus of revenues over expenditures. The main aim of these organisations is helping the community and is concerned with money only as much as necessary to keep the organisation operating. TREASURY MANAGEMENT. Treasury management (or treasury operations) includes management of an enterprise's holdings, with the ultimate goal of maximizing the firm's liquidity and mitigating its operational, financial and reputational risk. Treasury Management includes a firm's collections, disbursements, concentration...
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...Financial Management in Non-profit Organizations and How It Compares to For-Profits Organizations are usually classified as either non-profit or for-profit. Business corporations are organized for-profit. While non-profits usually include associations, charities, and other voluntary organizations formed to further cultural, educational, religious, or public service objectives. Non-profits and for-profits do have some things in common. Both types of organizations attract individuals focused on maximizing income, minimizing expenses, and reaching their goals. While there are many similarities, non-profits and for-profits have many differences. The most fundamental difference between nonprofit and for-profit organizations is the reason they exist. A non-profit organization exists to provide a particular service to a community, while a for-profit organization exists primarily to generate a profit for the company’s owners and shareholders. A non-profit organization channels all of their income into services and programs aimed at their mission compared to for-profit organizations that distribute profits between owners, employees, shareholders and the business itself (Bottiglieri, Conway, & Kroleski, 2011). Financial management for non-profit organizations is similar to for-profit organizations in many ways however key differences shift the focus of a nonprofit manager. These differences include organizational structure, ownership, distribution of profits, generating revenue...
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...Issues and Problems Faced by Non Profit Organizations: Funding for Non Profit Organizations “Funding for Non-Profit Organizations” Introduction In general, non-profit organizations conduct business activities and actually raise revenues but their surplus funds are not distributed to owners or shareholders. They operate with the help of some staff who are, although paid salaries, do not earn as much as those who are employed in business corporations that operate for profit. There are also volunteers who provide manpower, skills and talents but are usually paid minimally or get no payment at all. As such, non-profit organizations are exempted from income and property taxation. While businesses and corporations are a source of funding, volunteerism renders the necessary fuel to keep non-profit organizations moving. By and large, non-profit organizations operate relying heavily on volunteer workers and generating funds through the assistance of business benefactors and foundations as well as through fund-raising activities. The number of people or staff that they maintain varies according to the size of the organization, but one thing that can be said about most of them is that they are generally understaffed primarily because of limited funds. DISCUSSION There are many existing international, national and local non-profit organizations. One common thread about them is that they exist for a cause, which...
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...Strategic management in an organisation is integral. However, the importance of knowledge management strategies and its effect on an organisation is perhaps debatable. In a not for profit organisation such as Teen Challenge, knowledge management strategies are vital and greatly affect the strategic management of the company. Teen Challenge is a Queensland based not for profit organisation that focuses on rehabilitation of young women. Founded in 1971, Teen Challenge has created a safe environment for 16 to 39 year old females with issues such as substance abuse, mental illness, addiction and homelessness (Teen Challenge, 2013). The necessity of knowledge management, its importance and specific strategies, will be discussed and a final outcome will be offered as to whether not for profit organisations need knowledge management strategies to operate. This outcome will be applied to the Teen Challenge organisation demonstrating that knowledge management strategies can be analysed in a local, not for profit organisation. A question to be considered when addressing non-profit organisations and their knowledge management strategies is the necessity of it in the scope of their operation. In a non-profit organisation such as Teen Challenge, the main knowledge management strategies that could be potentially utilised are codification and personalisation. Management strategies are a major part of strategic management as codification and personalisation influence many factors of the business...
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...Developing a non-profit organization is a challenging task. The process takes time and work whether it is starting a new organization from the bottom up, or developing a new non-profit department. Budget is a vital part of this process. Overestimations or minor mistakes in budget may cause long-term damage if the agency is not careful dealing with the financial management. Magnolia Case Study is a prime example of this. Even though the organizations reviews were strong and the organization received awards, a mistake in the budget caused the agency to go downhill unintentionally. Ultimately, I felt that the board should have reconsidered what Mary asked for. For the year Magnolia was awarded a grant that was not to extend past the year. The board should have examined the possible changes that may happen within a year. I felt like Mary asked for money that would not be needed for the following year and got a head of herself when she made her funding request. I understand that New York City needed an excess amount of help after the 9/11 terrorist attacks but requesting the money for the next year should have been considered a bit more carefully. Due to the organizational infrastructure possibly changing within the next year, a temporary grant should not be considered or budgeted as permanent funding. I felt that Magnolia was running smoothly and I would not have done anything different except the budgeting request. I would also have taken into consideration the hiring of extra...
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...Non-For-Profit Fraud Authors’ Note This paper was prepared for Advanced Accounting, Summer 2013. OUTLINE 1. Introduction 2. The Reasons of Fraud in Nonprofits. 3. Types of Nonprofit Fraud. 4. Recent Fraud Cases: A. $1,000,000 Charity Scam by John Cody. B. ASPCA International and $27,000,000 Fraud. C. Fraud Committed by Anita Collins, Church Bookkeeper. D. Fraud Committed by Hugh Blackburn. 5. Fraud Prevention in Nonprofit Organizations. 6. Conclusion. Introduction. Most of us are familiar with the organization ASPCA (American Society for Prevention of Cruelty to Animals) and some of us even donate or consider donating money or time. But not many of us know that only 5 cents of every dollar collected by ASPCA goes actually towards the organization’s primary goal, which is helping animals. Just a few months ago a disaster hit NYC and the areas around. It is hard to believe but it gave great opportunity for fraud. Consider the case of the couple John Sandberg and Christina Terrassino, who launched a charity website, The Hurricane Sandy Relief Foundation. According to DCA (Division of Consumer Affairs), they have solicited more than $600,000 from about 2,000 donors. However, less than 1 percent of the money was given to the victims of the hurricane (Rose, 2013). Beside, consider the case of Anita Collins, a 67-year old church bookkeeper. She is known for stealing approximately $1,000,000 from the church she worked in (Huffington...
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...Strategic Objective (“SO”) 1: Management Strengthening of NGOs USAID/Pakistan June March 2004 USAID/Pakistan has determined that this document is appropriate for public distribution on the Internet USAID/Pakistan has determined that this document is NOT appropriate for public distribution on the Internet TABLE OF CONTENTS ACRONYMS AND ABBREVIATIONS SECTION I. INTRODUCTION A. BACKGROUND B. USAID/Pakistan PRE-EXISTING SO 1 RESULTS FRAMEWORK USAID/PAKISTAN IMCP RESULTS FRAMEWORK B. LOGICAL CONSISTENCY OF THE RESULTS FRAMEWORK C. CRITICAL ASSUMPTIONS SECTION III. PERFORMANCE INDICATOR REFERENCE SHEETS Component One: Management Standards Component Two: NPO Certification Component Three: Dissemination and Outreach ACRONYMS AND ABBREVIATIONS iii SECTION I. INTRODUCTION 1 A. BACKGROUND 1 B. USAID/Pakistan PRE-EXISTING SO 1 RESULTS FRAMEWORK 1 USAID/PAKISTAN IMCP RESULTS FRAMEWORK 3 B. LOGICAL CONSISTENCY OF THE RESULTS FRAMEWORK 5 C. CRITICAL ASSUMPTIONS 6 SECTION III. PERFORMANCE INDICATOR REFERENCE SHEETS 7 Component One: Management Standards 7 Objective 1: To strengthen and increase the competitive base of Pakistani non-profit non-governmental organizations (NGOs) that meet the management standards required for a USAID award. 7 Component TWO: NPO CERTIFICATION 127 Objective 2: To orient NGOs in meeting the requirements necessary for certification as a non-profit (NPO) by the Government of Pakistan...
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...laying the foundations 2 Task Environment 3 General Environment 4 Non-Profit vs. For-Profit: perspectives on competition 5 Environment Characteristics 6 Opportunity or Threat? 8 Conclusion 8 References 10 Introduction “No organization can exist in a vacuum” (“Key forces in the external environment, Chapter 3”, n.d.). To a certain extent all types of organisations; whether private or public services, governmental bodies or charitable groups, are subject to and influenced by specific environmental factors. In this day and age with many existing classes of organisations utilising different approaches to management, there is a feasible assumption that a common change in the organisational environment may likely affect two separate organisations diversely. This response will identify how the environment directly impacts organisations, in relation to leadership roles and organisational performance. For the purpose of comparison, the point of focus will revolve around two major classes of organisations namely; ‘profitable’ verses ‘not-for-profit’ groups. The primary aim of this paper is to construct a foundational view of the external environment from a manager’s perspective. Theoretical key principles discussed will attempt to identify with the following statement - “In comparison to profitable groups; not-for-profit groups possess a different degree of vulnerability to the external environment”. The External...
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...Reduction of Workplace Stress by Promoting Interventions for Positive Professional Relationships Aminata Kamarah-Payne Tuesday, April 26, 2011 NPO 5080-01 Final Paper Dr. Christine Cugliari Introduction: The experience of workplace stress has been subject to a huge amount of research and interest. In American culture, it seems that stress is a regular part of everyday life. Emphasis is often put on getting many things done as quickly and efficiently as possible, even at the sacrifice of physical and emotional health. With the continuous introduction of new technology comes the expectation that projects should be completed even more quickly and more efficiently, and it seems that stress levels may only continue to increase, especially in the workplace. According to the National Institute for Occupational Safety and Health (NIOSH) (1999, p.5), “Three-fourths of employees believe the worker has more on the job stress than generations ago.” Without taking note of stress levels and properly reducing unhealthy stress, America will continue to see a rise in related mental and physical illness. Perhaps it will become even more crucial to study stress, particularly in the workplace, and to identify proper interventions. This prospective is no different in the nonprofit sector. Nonprofit organizations play an important role in such diverse areas as arts and culture, sports and recreation, literacy and skills development programs, health services, religious activity, and...
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...Discussion on Strategies of Internal Leadership in Chinese Non-Profit Organizations(NPOs) By Larkisha Danish BUS 510 Grants Management and Proposal Strayer University Thousands Oaks Memphis, TN Wei Li,(2011). Discussion on Strategies of Internal Leadership in Chinese Non-Profit Organizations (NOPs). Asian Social Science, Vol 7, No. 12 December 2011 pg.201 The name of the article examined in this review is “Discussion on Strategies of Internal Leadership in Chinese Non-Profit Organizations”. This article discusses, to some extent, the strategies of Chinese non-profit organizations in three aspects: the attribute of Chinese non-profit organizations and definition to the research subject, inadaptation of the traditional organization and leadership style to internal leadership within the non-profit organizations, and discussion on internal leadership strategies in Chinese non-profit organization. The attribute of Chinese non-profit organizations and definition to the research subject. The author believe that the organization should include two areas of content. One, he states that the non-profit organizations should have some type of organizational and public benefit features. Two, he also stated that an organization must have a definite mission. Mission is the premise for non-profit organizations to survive and is also the internal support of their non-profit feature and basic source power for development of non-profit organizations(Wei Li, 2011). Inadaptation of the traditional...
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...The 2013 Asia Pacific Fundraising Conference 8-11 April 2013, Manila, Philippines CONFERENCE SPONSORSHIP CATALOGUE Passion Forward: The 2013 Asia Pacific Fundraising Conference 8-11 April 2013, Manila, Philippines Unite. Ignite. The Passion Continues. Passion Forward 2013. Sponsorship Catalogue Page 1 of 9 About Passion Forward PASSION FORWARD: THE ASIA PACIFIC FUNDRAISING CONFERENCE is a four-day conference, conducted every other year, that aims to gather at least 150 champions, professionals, volunteers, sponsors, direct implementers, active promoters and benefactors of non-profit organizations. These individuals are specifically involved in the application and pursuit of innovative, excellent and sustainable solutions in resource mobilization and non-profit management. The history of Passion Forward Conference begun on year 2004, it was first dubbed as Asia Pacific Fundraising Summit. It was first conducted on the said year in Manila. Singapore took the lead on year 2005 in staging the summit. Through partnership with Resource Alliance-UK, FuND Philippines brought the summit back in 2007 in the Philippines and carried the brand name Passion Forward. With the clamour from the members of FuND Philippines and Asian Fundraisers to have a regular venue for sharing and learning, Passion Forward is then revived, this time as one of the programs of FuND Philippines. The 2013 run targets to assemble leaders, not only from the host country Philippines but from Hong Kong, Indonesia...
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...completing more appraisals forms than usual. He wanted to implement a system where persons understand and are able to complete the organization’s goals. Furthermore, after the society adopted the “Halogen Software’s eAppraisal System” they immediately saw results. More of the appraisals were completed and employees are more motivated than they were before. A performance appraisal is considered an evaluation that is recorded of an employee’s overall actions over a period of time. In other words, it is a report that a manager/supervisor should complete on how well employees fulfill their duties throughout the year. Furthermore, Non-profits need appraisal system as much as for profit organizations because it serves a vital pivotal role in the motivation of the employees. Additionally, even though non-profit organizations goals are not to maximize their profits, they still have goals to meet in order for them keep their customers and animals satisfied. Furthermore, organizations like the San Diego Zoological Society may need appraisal systems for the following reasons: * They provide reviews of an employee performance over a specific period of time. * They provide a structure where a manager can meet and discuss performance with an employee. * They allow a manager the opportunity to provide the employee with feedback about their performance and discuss how well the employee goals were...
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...organizations are to society. Nonprofit organizations exist to cater to the various needs of society, and to accomplish their charitable mission. The service and product offered are not for achieving profits, but to benefit society in a noticeable manner. However, in order for nonprofit organizations to maintain efficiency and meet their goals; it is essential for them to operate to their full capacity by implementing good financial management systems and procedures. Financial management plays a significant role in the overall management of a nonprofit organization. Implementing appropriate financial management systems and practices contribute to a successful business and provides...
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