Management of Nonprofit Organizations

Topic: Third Sector, social

enterprise, Non profit

organizationAsmaalsadat mousavinia

‘A’ Section , ‘A1’ Batch

M.com, CM112016

Manasagangotri

Introduction of NPO Meaning of NPO Key characteristics of Npo Third sector Social enterprises Difference between social enterprises and

NPO Conclusion

Contents

Nonprofit OrganizationDefinition: An organization in which no owner, stockholder or trustee shares in profits and losses, and which exists not to earn revenue but to promote a mission that enhances the public welfare. These organizations are often eligible for tax-exempt status and some, but not all, can receive tax deductible contributions.

Nonprofit refers to groups whose purposes are to benefit the public. A nonprofit is exempt from income tax under Sections 501(c)(3) or 501(c)(4) of the federal Internal Revenue Code. There are actually 20 categores of tax-exampt organizations under Section 501 of the tax code. All of these are considered "nonprofit" organizations.

Charities are classified as 501(c)(3) tax-exempt organizations. These include organizations whose purposes are:

charitable religious educational scientific literary testing for public safety fostering national or international amateur

athletic competition preventing cruelty to children or animals. Furthermore, "charitable purposes" are defined

as activities beneficial to the public interest and serving an open class of people, not a limited number of identified people.

01. purpose

02. ownership

03. control

04. accountability

Key characteristics of a non profit corporation:

The voluntary sector or community sector (also non-profit sector or "not-for-profit" sector) is the sphere of social activity undertaken by organizations that are not for profit[1] and non-governmental. This sector is also called the third sector, in reference to the public sectorand the private sector. Civic sector is another term for the sector, emphasizing the sector's relationship to civil society.

THIRD SECTOR

The Cabinet Office defined the ‘Third Sector’ as “the place between State and (the) private sector”.[1]

In India this sector is commonly called the "joint sector", and includes the industries run in partnership by the state and Private Sector. In a wider sense the initial investment is made by the state and later the handling is done by the private sector.

Social Enterprises

A Social Enterprise has been defined by the UK government as:

‘a business or service with primarily social objectives whose surpluses are principally reinvested for that purpose in the community, rather than being driven by the need to maximise profit for shareholders and owners.’

Social enterprises

Non profit

Can have for profit, non profit or a hybrid of the two models

Strictly non frofit model

Driven by social and finacial goals

Driven only by social goals

Rely primarily on their earned income making it-self sustainable

Rely primarily on individuals donors,charitable contributions

Recruit employees like other business

Mostly depend on paid or unpaid volunteers

Markets itself using commercial and social adv

Markets the social cause to publicise and advertise itself

Income makes it sustainable Increasing the risk of non sustainability

Ex :Grameen bank , Aravind eye care

Akshara foundation, help age

Nonprofit organizations serve the public, providing a

wide range of services to improve the quality of life

of individuals or communities. They are often

heavily staffed with volunteers or temporary

workers with diverse skill sets, who are strongly

motivated by altruism,The transient nature of

personnel and short-term inconsistent funding,

contribute to nonprofits’ general lack of ability to

provide for long term technology plans and budgets.

CONCLUSION