Nonprofit organization
The aspects of the course that appeared interesting involved issues related to nonprofit organizations. A nonprofit organization sometimes referred to as not-for profit organization or non-business entity (nonprofit institution) is an organized legal entity that operates for social, collective, and public benefit. It does not entail operating as a business that seeks to generate profit. It is usually subject to the non-distribution constraint. This implies that revenues exceeding expenses must be committed to the purpose of the organization that private parties do not take. Most organizations are often nonprofit such as most schools, political organizations, churches, business associations, consumer cooperatives, and social clubs among others. Generally, such entities usually seek government approval for being exempted from tax. Some can qualify to obtain tax-deductible contributions. However, an organization can incorporate as the nonprofit one without securing the status of tax-exempt (
Puyvelde, 2016).
Accountability, honesty, trustworthiness, and openness are vital aspects of nonprofits to every individual that has invested money, time, and faith into an organization. These organizations are accountable volunteers, donors, program recipients, founders, and the public community. For such organizations that aim to finance its operations through measures such as donations, the confidence of the public with regards to the amount that the nonprofit entity can raise. The confidence of the public increases the more the focus is on their purpose and mission. Consequently, it often results in more money for the organization. Notably, the activities in which the organization engages in is critical to helping in building the confidence of the public in
the nonprofit entity including how ethical practices and standards are (
Puyvelde, 2016).
