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Management - Essay Example

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A non-profit making organization Refers to an organization that uses surplus revenue to expand and give social services to the people (Gary 2006). These social services may include provision of healthcare, education, environmental conservation and even food (Worth 2011). …
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Download file to see previous pages It must be noted that the revenues generated by these non profit making organization are retained in the organization for self preservation or even for expansion (Worth 2011). In most countries, nonprofit making organizations are exempted from taxation. The Nonprofit making organizations employs many people and offers services to the masses freely. It is in this regard, that the Government pardons them and exempts them from the compulsory tax (Gary 2006). An example of a nonprofit making organization is the Nature Conservancy. It is a charitable association based in the United States of America that works to preserve animals, plants and the natural communities which represent Earth’s diversity. They do this by protecting the environment. The organization has helped plant over a billion trees all over the world and it intends to plant 2 billion trees by the year 2015. It has an effort to reclaim 2,500,000 acres and make the place habitable for animals. It selects areas it seeks to preserve by analyzing what is needed in those areas and what can be done to ensure that the preservation of local ecosystems is done. A nonprofit making organization should work with almost all sectors of society in order to achieve its goals (Worth 2011). This includes businesses, partner organizations, government agencies and individuals. The company has also embraced Debt swaps. This is a tool which is used to encourage third world countries to set land aside for conservation in exchange for forgiveness of foreign debt. In the past, nonprofit organizations have relied on donor giving and public funding as their main source of revenue (Hartigan 2006). However, after the 1970’s the many of the nonprofit making organizations have become increasingly involved in the selling of services and many other commercial activities (Worth 2011). This trend has been referred to by many as the commercialization of nonprofit organizations. This trend of commercialization has resulted into a fierce debate which up to now remains unsolved (Gary 2006). There are those who support commercialization and there are those who reject it. Those who are in favor of commercialization argue that, commercialization has allowed the nonprofit organizations to be more self sufficient at this time when government funding for nonprofit organizations has been drastically reducing (Worth 2011). On the other hand, those against commercialization have argued that with commercialization, nonprofit organizations will focus on making more money and thus deviate from their original goal which was to offer services to the masses (Hartigan 2006). The risks associated with having a nonprofit enterprise are many. For example, due to the tax exemption the managers of nonprofit making organization can fraudulently steal money from the association as the organizations are not audited by the IRS (Gary 2006). On the other hand, the societies can also lose sight of their mission by engaging too much in business. The benefits of having a nonprofit organization are also many for example, the organizations can sufficiently run their own activities without the need for donor funding (Alvarado 2000). It becomes hard for nonprofit organizations to sufficiently plan for certain activities because donor funding is not constant. However, with sales they can predict the patterns and thus sufficiently plan for the future (Hartigan 2006). Part III: Long Essay Question In this study we are going to review the nonprofit organization Nature conservancy. The organization had an income of approximately $925,817,441. The organization used approximately $525,789,657. The fundraising costs thus seemed balanced. The expenses used in fundraising should not be more than the ...Download file to see next pagesRead More
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