This essay Diante Hardy Hardy 1 has a total of 1456 words and 8 pages.
Diante Hardy Hardy 1
9 December 2016
My dad once told me that non -profits are based on two concepts. Those concepts are voluntarism and market failure. I didn't quite understand what he meant by that. He then explained to me that Voluntarism is basically applied ethics, and action for the benefit for the public. Market failure basically explains the existence of non-profits.
Non-profit organizations are everywhere in Rhode Island. Wherever there are people, there are non-profits organizations. Non-profit or Not-for-profit organizations exist to preform or provide services for the people within the communities. Whether provided by a public organization or agency, or private organization or agency, they serve a purpose for the people. The Government, educational institutions, community organizations, and health care facilities are all examples of non-profit organizations. Some of these examples work within small neighborhoods with only a few employees and others work state-wide.
A nonprofit is an organization that does not seek to turn invested money into more money distribution to its owners. The donors have goals that they seek to acco mplish through the organization, but those goals do not include profiting directly from the organizations activities. Governments often encourage donations to nonprofits by making those donations tax-exempt. Nonprofits do not necessarily aim to lose money; some try to break even or even accumulate money through sale of products and investment of funds. Nonprofits receive treatment by being exempted from income taxes. In the United States, donors can in some cases write off their donations to nonprofits as a deduction on their income tax returns. This encourages the use of the nonprofit form of organization.
Since a not-for-profit organization is formed to accomplish a specific task, the profits raised by the organization must be given back into the organization so it is able to make sure their mission is completed successfully. This means all the money earned by the not-for-profit organization will be in the organization. However, money raised by the nonprofit organizations can be used to pay employees, and to complete other missions they may have. In the case for a for-profit organization, the money earned for the company may be given to the owners of the company.
A nonprofit organization may qualify for state and federal tax. The decision is made by the IRS as to whether an organization can be a 501c3. Designation as a 501c3 may give a nonprofit organization the chance from paying sales and property taxes on real estate owned by the nonprofit organization. A for-profit organization will not be granted a federal or state tax exemption. Furthermore, for-profit organizations are required to pay taxes on property owned by the company.
The main source of money for non-profit organizations is charitable donations. This is also helped by grants, contracts for service and sale of goods. Non-profit organizations are often evaluated on the relationship between contributions and expenses. Tis relationship will show the potential contributors the amount of money that will be used to meet the mission of the organization. Unlike for-profits, nonprofits money flows as the result of operations that are put back into the organization to further the group's mission.
Nonprofit organizations are vital to all communities. They provide much required services to those in need from the humanitarian, religious, healthcare, social service, educational, or environmental sector. While striving for success, nonprofit organizations are faced with many obstacles. These problems are hiring of qualified staff, unrealistic expectations, and bad facilities, to lack of people volunteering. Unrealistic goals can have a negative impact on the success of a nonprofit organization and also the relationship of the team involved; the funders and grantees.
Nonprofit organizations are very impactful on the communities. Nonprofits are a quality of life because of the valuable programs they provide for the local citizens, but also because of the positive economic impact within our local communities . Nonprofit organizations play a vital role in society by focusing resources and providing services to community needs without regard to profit. Nonprofits aid in the development and upkeep of such sectors of society as the arts, economic development, cultural awareness, spirituality, veterans affairs, and health and wellness. In general, nonprofit organizations have strong ties to their local