...Challenges of Managing Non-Profit Organizations There are different challenges a non-profit organization face, although I believe that these challenges are also faced by for profit organization at the same similar level. Trust is an issue that both non-profit and for profit organizations encounter at some point in their business, therefore transparency is very important. Transparency warrants organizations to provide clear statements of where their money goes, how it is utilized, and how it is making the organization accomplish their goals. These are not the only factors that are essential to make the stakeholders or anyone interested in the cause to trust the organization. For a non-profit organization trust is a key element to engage volunteers, donors and other business; without trust chances are that the organization might fail to achieve their mission by raising funds. Trust is acquire by performing the goals you have set for your mission and not deviating from it, at least not too far from achieving the organizations goals either for non-profit or for profit organization. It is also important to have a plan (Taylor-Hamm) in case there is a catastrophic event that might jeopardize your organization, it will help you foresee adverse situations and you will be better prepared in case your first plan fails. Performance challenges are faced in the same manner on both types of organizations non-profit and for profit organization. However they might be measured in a different...
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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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...Case Study Name Personal & Organizational Ethics Instructor Date Case Study Abstract: A Not-for-profit organization has similar issues like a for-profit organization. This case study examines Community Development International, a Not-for-Profit organization, and The Home Depot, a For-Profit organization. It examines both organizations from the beginning to now. It states the mission statements of each organization and describes the work each has done or is doing. It examines the ethical values of each organizations and the issues each has gone through or is going through with solutions as to how to fix each issue. Introduction: When analyzing an organization one should know what type of organization it is. There are two types of organizations, Not-for-Profit (Non-Profit) and For-Profit. According to The Macquarie Dictionary, a Not-for-Profit organization is “formed for the purpose of providing goods or services, but not for the purpose of making profit.” A For-Profit is described as “often plural pecuniary gain resulting from the employment of capital in any transaction”. (The Macquarie Dictionary, Profit, para.1). Community Development International, a Not-for-Profit organization, and Home Depot, a For-Profit organizations, are two different kinds of organizations, yet have similarities when it comes to ethical perspectives. Three ethical perspectives that were utilized to generate this study are Consequentialism, Deontology and Virtue Theory. Each...
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...One day I hope to be able to create my own non-profit. The goal for this organization would be to open and maintain teaching hospitals in developing countries that suffer largely from the “brain- drain”. The brain drain is a phenomenon in which intelligent people that want an education leave their home country in search of a better life and prosperous education. These people would greatly benefit their native country if they could learn and practice medicine (often the occupation of choice) there instead of going to Europe or America where there is already an abundance of medical care facilitators. This is non-profit is different from organizations that already exist because existing programs bring in volunteers who come in and take up jobs from native people and as soon as resources are gone have to leave. This is unsustainable in many areas and often leaves the cities in more need then before outside sources had come in. This is not a “feel-good” organization; it is not supposed to make outsiders feel like they are helping and being good people. It is supposed to help the people that already have the ambition to practice and study medicine, be able to accomplish that with residencies and then inspire other people in the area to do the same. The first part of Drucker’s Managing the Nonprofit Organization explains what makes up a good mission and the benefits of sticking true to it. The mission statement for the organization that I have yet to create will probably...
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...donations to individual contributors. Nonprofit organizations formed to promote social and community welfare can apply for federal tax-exemption under Section 501(c)(4) of the Internal Revenue Code. To qualify, organizations must provide a benefit to the general public. Organizations catering to a private group of people do not meet eligibility requirements. An example of a 501(c)(4) is an organization that provides social resources to retirees. Charitable, educational and recreational organizations that do not qualify for 501(c)(3) status can apply under this section. Unlike 501(c)(3) nonprofits, 501(c)(4) organizations can participate in lobbying activities. Organizations whose primary business with the public reflects that of a for-profit corporation cannot qualify as a 501(c)(4). Nonprofits must apply for this status by completing Form 1024. Social clubs...
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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 and...
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...ReadingNote that the reader might best be served to first read the document Introduction to Organizations to understand the overall general nature of all organizations. As noted in that document, today's leaders are faced with continual change in their organizations. Consequently, today's leaders should have a strong sense of what their organizations are about. This document will accomplish that for nonprofit leaders. An organization is a collection of resources arranged to accomplish an overall goal. The purpose of a nonprofit organization is to meet one or more needs in a community. Each nonprofit describes its overall purpose in a mission statement. (Very simply put, the word "nonprofit" means an organization that does not distribute a profit.) Typical types of nonprofit services are advocacy, arts, civic, cultural, education, health and human service. Nonprofits range in size from extremely large (e.g., Red Cross, large hospitals, etc.) to...
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...everyday aspects of the corporation being ran with precision. So what happens when an organization is not ran financially like a corporation yet deals with almost the same kind of aspects? A non-profit organization can be one of the trickiest functions of business as well as be the hardest type to run on the grounds of the underhandedness that it can usually entail. While it may not come with the great financial payday, running a successful non-profit often requires twice the effort, time that it would take, as well as encouragement to run a successful multi-platform business or corporation. Non-profit organizations are for people who are passionate about a specific cause along with willing to sacrifice financial benefits in order to ensure the ultimate goal which usually is assisting the common good of the public. Although like any other businesses, some non-profit organizations have to deal with fraudulent activity as well as money hungry individuals. Non-Profit Organization So what exactly is a non-profit organization? The word non-profit invokes many sentiments that would often turn many inquirers in today’s money hungry society. However, there are many benefits affiliated with a non-profit organization both financial and otherwise. First let us properly define the term non-profit organization. According to UMUC library search a definition...
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...| MARKETING FOR A NON-PROFIT ORGANIZATION By: Ahmed Alhalal, Charles Hazzard, Dreu dixon, Faisal Al Mubayedh, Kelly Walker April 11, 2013 Introduction to Engineering Management- 2111-001 MARKETING FOR A NON-PROFIT ORGANIZATION By: Ahmed Alhalal, Charles Hazzard, Dreu dixon, Faisal Al Mubayedh, Kelly Walker April 11, 2013 Introduction to Engineering Management- 2111-001 | EXECUTIVE SUMMARY At the start of this project, our team was given a special opportunity to develop a hands-on marketing project with a non-profit organization. This non-profit organization goes by the name of The Lightfactory, and is known as one of four museums of photography and film in the United States. The board of directors requested our team to develop an e-mail campaign strategy to improve membership and donor rates. However, as systems engineers, none of our team members had any prior knowledge of marketing or segmenting. Therefore our team was forced to do some extensive research on non-profit marketing, as well as database segmenting. The ideals and concepts learned throughout the research process were eventually used as a foundation for completing the project objectives proposed by the Lightfactory board of directors. Segmenting the database was a success and provided some key insights about the LightFactory’s customer base. Most of the customer’s in the database were segmented into three major populations: Big givers, Middle givers, and Low givers. These segments are customers...
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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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...Dear Mr. Wilson, I have been working for this company for many years now and I believe that, when we are choosing the non-profit organization to support, we should be choosing carefully and strategically. I have researched and studied many non-profit organizations to choose this year and I believe there is one that stands out to me the most for very many reasons. Our company should be choosing a non-profit organization that is very successful in what they do, which is helping the less fortunate to live a better life. In my opinion, United Way has been very successful and is a very deserving organization that our company should be supporting. United Way helps out the community in many ways, such as helping the children achieve their potential, promoting financial stability and independence and they are improving people’s health all over the world. They believe it takes everyone in the community working together to create a bright future, and shouldn’t everyone believe in this message to make this work? If our company supports this organization, it will send the message to our community and we will be a part of this big movement. Don’t you want to look back and say that you were part of something great, which impacted the whole world in a positive way? In order for this to happen, we must first start by choosing the right organization to support. I hope you will take this into your consideration and make the right choice. Regards, Shilugei...
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...Profit vs. Non Profit Healthcare Organizations Prepared By: Milton Flores Table of Contents I. Introduction……………………………………………………………………………………………………………………………………3 II. Definition of Non Profit Health Care Organization………………………………………………………………………….4 III. Definition of Profit Health Care Organization…………………………………………………………………………………4 IV. Issues facing Non Profit and Profit Health Care Organizations……………………………………………………….5 V. Options to improve operations……………………………………………………………………………………………………….6 I. Introduction The debate on whether all healthcare institution should be non-profit rises many issues and they have been heavily debated. The best way to examine this to analyze if non-profit hospitals are in fact better that for profit hospitals and whether there is enough evidence data to support policies dictating ownership. Hospitals in the United States are the largest health care organization in this country. Private hospitals may either be classified as non-profit or for-profit institutions. The majority of the hospitals within the United States are non-profit. The main difference between non-profit and for-profit hospitals is the regulatory rules. Non-profit hospitals are not required to pay property, sales, or income tax. The reason that non-profit hospitals and other organizations were established was with the intention of servicing the needs of the poor. This is the reason that not-for-profit health care and hospitals are exempt from taxes, it was due to the...
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...difficulty many non-profits encounter is lack of monetary resources which hinders its ability to deliver services/goods to the public. The frequent solution is for non-profits to form partnerships with organizations that have the desired resources: “cross-sector partnerships enable organizations to increase the likelihood of success in creating social value” (Shier & Handy, 2016). Countless non-profits are unable to form successful partnerships with cross-sectional organizations (for-profit and government); they reason that these failures are due to the disparity of values and objective between their former partners. However, Martha Reeves analyzes several steps for non-profits to take to ensure their potential partnerships are...
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...Ali | 079 | Chanchal Das | 147 | Md. Suman Miah | 153 | Md. Manik Uddin | 159 | Moklesor Rahman | 179 | Md.Humayun Rashid Bhuiyan | 135 | Ten non profit organizations in Bangladesh: 1) Government of Bangladesh 2) National University 3) Abahoni Limited 4) Anjuman Mofidul ISslam 5) DESA 6) DESCO 7) WASA 8) Quantum Method 9) ASA 10) Action aid Bangladesh Introduction: A nonprofit organization is formed for the purpose of serving a public or mutual benefit other than the pursuit or accumulation of profits for owners or investors. "The nonprofit sector is a collection of entities that are organizations; private as opposed to governmental; non-profit distributing; self-governing; voluntary; and of public benefit" (Solamon 10). The nonprofit sector is often referred to as the third sector, independent sector, voluntary sector, philanthropic sector, social sector, tax-exempt sector, or the charitable sector. Non-profit organizations play a major role in all nations. Non-profit organizations do contribute in several areas of society and economy without any profit motto. In modern days economy is handled by State and Capitalists (Business community). At some point they work together while at other they compete with each other. State/Government though itself is a non-profit concept, but still they work under strict governmental procedure, constitution and budget with popular consent and vote. On the other side profitable...
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...I. What is a Non-Profit Organization? A. The basic definition of a non-profit organization is not established for the purpose of making a profit; not entered into for money: a non-profit organization (dictionary.com). In a society where everything costs, how can it be that an organization can exist that is not established for the purpose of making a profit? What is their purpose? By answering these questions, one will gain an understanding of what a non-profit organization is as well as the history of how non-profit organizations came into existence. B. Digging a little deeper, the premise of a non-profit organization is that a non-profit organization is an organization which exists for educational and charitable reasons, and from which its shareholders or trustees do not benefit financially from. Any money earned must be retained by the organization, and used for its own expenses, operations, and programs. Many non-profit organizations also seek tax exempt status, and may also be exempt from local taxes including sales taxes or property taxes. (investorwords.com). Bottom line, their purpose of existence is for the greater good of the community by the services they offer. A few well-known non-profit organizations are Kaiser Permanente, Easter Seals, Habitat for Humanity, the Red Cross, and United Way. Although many of the aforementioned organizations have a different look and feel, they all share the same unique key characteristics of a non-profit organization. C. Some of...
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