Debt Financing in Non Profit Organizations

Debt Financing in Non Profit Organizations

Introduction

Non profit organizations are those business entities that have received tax exemption by the Internal Revenue Service. Welfare maximization of the society is the basic purpose of such organizations. The accounting and financing of such entities is different from that of commercial organization. Schools, Hospitals and Churches are included in the category of non profit organizations.

In this assignment, we are going to discuss the overall sources of finance available to a non profit organization. Secondly, we will elaborate the advantages and disadvantages associated with debt financing from the perspective of ...