A Guide to Non-Profit Organizations

Non-Profit Organization Background

Non-profit organizations are those which are set up to provide aid on a local or global level while continuing to funnel income into the cause. There are also non-profits, such as arts programs or trade unions, which utilize collected monies to help those causes. In any case, monies brought in through fundraising or other sources of income, such as dues, are used to help reach the organization's goals.

History of Non-Profit Organizations

In the past, many organizations claimed to be non-profits so that they could take advantage of tax breaks. However, there are now very strict rules and standards which must be adhered to in order for an organization to be considered non-profit.

List of Non-Profit Organizations

Lists of non-profit organizations may contain important information, such as the amount of money raised by each organizations in a year. The list may also detail the manner in which each dollar is spent, such as salaries, administrative costs and towards reaching the organizations goals. This information can be vital when an individual has decided to donate time or money to a non-profit organization.

Non-Profit Fundraising

Non-profit fundraising must adhere to the laws in the jurisdiction where the fundraising takes place. For example, charities must provide a receipt for donations in case the individual wishes to use it for tax purposes. The non-profit charity may also be required to get a permit to hold certain types of fundraising events.

Non-Profit Management

Non-profit management has many of the same responsibilities as management in other companies. In addition, they may collect a salary similar to the management positions, but the amount may be limited by laws which govern non-profits in that jurisdiction.

Non-Profit Corporation vs. Corporation

Both non-profit corporations and for profit corporations have a similar structure, such as employees that answer to management. The biggest difference between the two is the manner in which profits are utilized and distributed, as well as differences in taxation.

Not-For-Profit vs. Non-Profit

Although the two terms are generally used interchangeably, the difference between a not-for-profit and non-profit may simply be in the structure or membership of the two. In not-for-profits, members may directly benefit from fundraising efforts, whereas those that work at a non-profit do not.

How to Start a Non-Profit Organization

The manner in which a non-profit is created is similar to the way that an individual would start any business. However, the strict rules and regulations which apply to a non-profit must be followed in order to achieve tax exempt status.

Fundraising Ideas for Non-Profit Organizations

Fundraising for non-profits will likely depend on the type of of organization, as well as the local laws which may prohibit some forms of fundraising.

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