Quality attributes of a for-profit organization
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NOTE: Many people would argue that a nonprofit organization is also a business organization, if they believe that a business is an organization that provides value to consumers and gets suitable value in return. For-Profit (Business) OrganizationsA for-profit organization exists primarily to generate a profit, that is, to take in more money than it spends. The owners can decide to keep all the profit themselves, or they can spend some or all of it on the business itself. Or, they may decide to share some of it with employees through the use of various types of compensation plans, e.g., employee profit sharing. (We’ll read later about the legal forms of a for-profit, including sole proprietorships, partnerships and corporations. More information is available back in the main category Understanding Organizations. Nonprofit Organizations(The following information, in large part, was developed by Putnam Barber, President of the Evergreen State Society in Seattle, Washington) A nonprofit organization exists to provide a particular service to the community. The word “nonprofit” refers to a type of business — one which is organized under rules that forbid the distribution of profits to owners. “Profit” in this context is a relatively technical accounting term, related to but not identical with the notion of a surplus of revenues over expenditures. Most nonprofits businesses are organized into corporations. Most corporations are formed under the corporations laws of a particular state. Every state has provisions for forming nonprofit corporations; some permit other forms, such as unincorporated associations, trusts, etc., which may operate as nonprofit businesses on slightly (but sometimes importantly) different terms. The Internal Revenue Service (IRS) gets involved because corporations are, in general, required to pay federal corporate income taxes on their net earning (another technical term, pointing to a slightly different way to the idea of a surplus of revenue over expenses). Section 501 of the Internal Revenue Code lists several circumstances under which corporations are exempt from these taxes. Section 501(c)(3) — the famous one — describes corporations (1) serving charitable, religious, scientific or educational purposes (2) no part of the income of which “inures to the benefit of” anyone. Tax-exempt nonprofit corporations can, and do, operate in all other particulars like any other sort of business. They have bank accounts; own productive assets of all kinds; receive income from sales and other forms of activity, including donations and grants if they are successful at finding that sort of support; make and hold passive investments; employ staff; enter into contracts of all sorts; etc. There are some specialized tax rules and accounting practices that apply to nonprofit corporations. If they are of a certain size, they are required to disclose many details of their operations to the general public and to state regulators and watchdog agencies using IRS form 990. This form shows any salaries paid to officers or directors and to the five highest-paid employees and contracts if any receive over $50,000 in the tax year (at the time of this writing in 1998). The form also requires the organization to divide its expenses into “functional categories” — program, administration and fund-raising — and report the totals for each along with the amounts expended on each program activity. To understand more about nonprofits, see Additional Perspectives on Nonprofit Organizations
For the Category of Organizational Development:To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources. Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature. What are the characteristics of forA for-profit organization is one that operates with the goal of making money. Most businesses are for-profits that serve their customers by selling a product or service. The business owner earns an income from the for-profit and may also pay shareholders and investors from the profits.
What are the six characteristics of nonprofit organizations?The Structure of a Donor-Focused Nonprofit. Longevity of leadership.. Longevity of staff and volunteers.. Passion oozing out at every turn.. Polished practices and procedures.. Extraordinary lifetime value of donors.. A well funded mission.. Investment in the future.. What are the benefits of a forPerhaps the most obvious advantage of a for-profit company is the possibility of making money. Revenue generated above and beyond expenses is for the owner to do with what he will. That can include personal enjoyment or reinvestment in the company. The more successful the company, the greater the financial reward.
What are the characteristics of nonprofit organizations?7 Main Characteristics Exhibited by Successful Nonprofit Organizations:. They Are Agile.. They Are Focused On Their Mission, Always.. They Are Donor-Centric.. They Develop Diverse Funding Sources.. They Are Able To Mobilize And Inspire Others.. They Are Digitally-Savvy.. They Continuously Listen And Improve.. |
