Non profit organizations - Research Paper Example

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Running Head: Non-Profit Organizations Non-Profit Organizations Non-Profit Organizations Executive Summary The paper includes description of non-profit organizations and their existence in the global society that has resulted in noteworthy contributions in different parts of the world…
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Download file to see previous pages Non-Profit Organizations Every firm is driven by a motive. The early stages of business school usually teach students only about one such motive, which is profit. They learn the marketing strategies, management techniques, and accounting methods as required by profit-driven organizations, because such firms make up majority of the firms in existence today. There is, however, a whole other side of business, which involves in running a business for reasons other than profit. The reason may be to collect charity, provide a social service or to bring together a certain community of people (Anheier, 2005). These organizations are non-profit organizations, and carry out their operations and procedure very differently than those carried out by profit-driven firms. Non-profit organizations operate for the good of community usually, instead of any personal interests, which are why they are not required to pay taxes on their incomes to the government (Holland & Rivto, 2008). The money they earn is not called profit, but income, and they are not allowed to distribute this income amongst owners or other stakeholders; instead, they have to invest that income back into the organization, in order to accomplish the mission that the organization revolves around. For example, a cancer research organization will work on raising funds through donations and fund-raisers, which it will then invest in research to find the cure for cancer. Any money it raises that is left over after their expenses have been covered, will all be invested in research once again, and will not be claimed by any party as ‘profits’. Non-profit organizations typically take up causes, which they feel are important but not given the required attention by the government or those responsible. These motives can include a variety of causes (Holland & Rivto, 2008). One common example is organizations aiming to conduct research on highly dangerous diseases with no known cure, such as AIDS or cancer, in order to find a cure and decrease the number of sufferers per year. This includes organizations such as AKDN, founded with the aim to continue research to find the cure for social, cultural, and economic poverty. Other examples include those organizations who are dedicated to preserving some form of nature before the constant industrialization and reckless treatment of animals and their habitats leads to their extinction. Examples of such organizations and societies are those who aim to prevent the extinction of animals, which are dying off, such as rare birds or insects such as WWF, the World Wide Fund for Nature. Other types of non-profit organizations are those firms, which work to provide a service to the community, which they feel that it needs but is incapable of providing for it, or a service, which they feel the government should be providing to the community but is not. This includes organizations that provide scholarship funds to deserving students who cannot afford education. They also include organizations, which form schools and similar organizations for special children belonging to poor families who cannot afford to enroll them in proper institutions, which will cater to their needs and educate them in the manner that they require, such as different societies for rehabilitation of special children. These are all a few examples of the many ...Download file to see next pagesRead More
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