Not-for-Profit Organizations



Not-for-Profit Organizations

Introduction

A group organized for purposes other than the profit generating is known as a not-for-profit organization. In a not-for-profit organization, no income part of the organization is dispensed to its directors, members, or officers. The not-for-profit organizations are usually termed as “non-stock corporations”. The not-for-profit organizations can acquire the structure of an unincorporated association, corporation, or an individual enterprise (for instance, individual charitable contributions) (LII, 2013). The not-for-profit organization can also take the form of foundation (trusteeship), partnership, or condominium i.e. joint ownership of same regions.

The not-for-profit organizations must be selected as nonprofit when they are created and developed. The main objectives of the not-for-profit organizations must follow by the statutes for the not-profit organizations. The not-for-profit organizations incorporate the public schools, churches, political organizations, public hospitals and clinics, and public charities. The not-for-profit organizations also include the labor unions, volunteer services organizations, museums, legal aid societies, research institutes, professional associations, and a number of governmental agencies.

Discussion

The not-for-profit organizations always search for the creation of public good. These organizations promote civic participation and engagement of community. These organizations take action for the needs of the community that may not symbolize an opportunity for-profit market and cannot be served optimistically through an approach of for-profit. As humans are more and more interlinked; they are searching for engaging in shared challenges, the not-for-profit organizations play a vital role in the human society. According to report in 2009, among the 1997 and 2007 the number of registered not-for-profit organizations increased by almost 30 percent and the reporting not-for-profit organizations increased by approximately 60 percent.

Law and Not-for-Profit Organizations

Under the state law, the not-for-profit organizations are organized. Some of the states have approved the Revised Model Non-Profit Corporation Act of 1986 for the not-for-profit organizations. A small number of states have also approved ...