Issues Of Non Profit Organization

Presented by: Amit kumar Arpit uppal Nanki makkar Tarun kalra

What Is a Nonprofit?
Tax & regulatory definition: an organization that - Enjoys special tax status - Faces a non-distribution constraint (profit=0) Functional definition: an organization that forms to - Perform public tasks

environmental protection, social service provision

- Perform tasks for which there is demand but no supply from forprofits or governments

religious activity, art museum

- Influence the direction of public policy

political party, issue organization

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Cont.

Not conducted or maintained for the purpose of making a profit. not commercially motivated A nonprofit organization is one that has committed legally not to distribute any net earnings (profits) to individuals with control over it such as members, officers, directors, or trustees. It may pay them for services rendered and goods provided.

Types of Non for Profit Organizations

Foundations

Educational

Charitable

Cause Related
NPO Cultural

Religious

Social Service

Health Service

Associations

Public Sector

Significance of NPO
Accounts to 1/20 jobs in the world Number of jobs in this sector are growing It provides goods and services that for profit entities are unwilling or unable to provide.

Non Profits and Profits

These are permitted to generate profit However, they may not distribute their profits to their staff or directors Surplus may be used to furthur the mission of the organisation

FEATURES

 For welfare of the society. For providing services to its members.

Service motive

Main motive is to provide services

Separate legal entity

Not for profit organisation is an separate entity independent of its members. These are the separate entity promoted by individuals or companies, but these are not owned by the promoters or managers.

Profit- not a motivator

NPOs do not operate with the objective of earning profits. Their aim is to promote art, science, commerce, religion, culture, education, charity, sports etc. Some NPOs may involve in trading activities Main objective is not to earn the profit but to benefit the members and society. Any excess of income over expenditure is termed as SURPLUS while any excess of expenditure over income is termed as DEFICIT

Accounts

Required to prepare financial statements at the end of the each accounting period and the general principles of accounting are fully applicable in their preparation. The final accounts of a not-for-profit organisation consist of the following: Receipt and Payment Account Income and Expenditure Account, and Balance Sheet

Funding

Subscriptions from members, Donations, Legacies, Grant-in-aid, Income from investments, etc.

Form

Charitable hospitals Schools Trusts Colleges Clubs Hospitals Societies

Issues of non profit organization

Missions not profits Administrative costs Ethics of fundraising Management and leadership Media and public relations Poverty

Poverty is a relative concept, not an absolute standard.

Traffic or Transportation issues

Private owned cars vs. mass transit system Environmental concerns, historical sites vs. developmental issues (Hsuehshan Tunnel)

 Employment issues
Equal opportunity Free from discrimination Especially for the disabled and racial minority. Gender issues, equal pay Job security, workplace safety

Safety/security Issues
NPOs that deal with Terrorism Civil society and community Free from Fear for humans

Thank You ;)