Analysis of a Non-Profit Organization - Assignment Example

Answer 1 Every non-profit organization has a definite objective and uses its surplus revenues to achieve stated objectives. Most of the sections of the society do not show interest in forming a non-profit organization because these organizations do not serve the community for personal gains. The concept of non-profit organization has really caught my interest because delivering human and community services is a noble act and such responsibilities cannot be expected to be undertaken by every person in the society. Just as any for-profit business firm is important to balancing income and growth of economy, there is equal importance of non-profit organizations. It is moral obligation of every individual to give back something to the community that has helped the individual to earn a living. Therefore, some people just contribute back to society by providing financial assistance while others dedicate their lives just to serve the ones in need (Drucker, 2012). Non-profit organizations can operate in different fields like medical research, development programs, and health services and so on. The type of NPO that really interests me is Maryland Angels, which is a NPO that conducts research and treatments for cancer patients. Answer 2 Starting a non-profit organization is certainly one of the most inspiring way through which one can help those in need and give back to the community. The first and most important thing here is to always remember that serving community is more important than making money. Ironically, monetary contributions are equally important. Hence, the members serving the NPO will have to carefully balance monetary needs. This is also one of the reasons as to why it takes many years to sustain and grow a non-profit entity. I personally believe that it takes a lot of courage, dedication, sincerity and great determination to start and sustain any NPO. The following steps carefully discuss the other important aspects that need to be considered before starting a non-profit organization:- 1. Conducting a need analysis – This step is basically to find out what the society needs and how to provide it. 2. Solid foundation – The mission statement of the NPO is very important because people will put their trust on the basis of the NPO’s objective. 3. Board of committee – It is very important to understand the legal aspects and responsibilities. For long-term success, it is important to clearly assign roles to members, formulate an action plan, and define how the organization plans to spend their surplus revenues in helping the community. 4. Incorporation – A formal organization structure will be an important aspect for incorporation as it will clearly define social responsibilities and obligations of the member committee. Also, the liability of the appointed directors, officers should be decided. All the government policies regarding legal documentation procedure should be carefully followed. 5. File 501(c) (3) – By filing for 501(c) (3), the entity would be able to claim tax exemptions from IRS (Internal Revenue Service). There is a user fee that could range from $400 to $900, depending on expected annual gross income of the entity over 4 year period. 6. Current compliances – The members of the board should always register with state’s agency and comply with all rules and regulations that are followed by charitable organizations in the society. Answer 3 A non-profit organization’s success or failure is totally dependent on its foundations. The stronger the foundations the more people in the society would come forward to contribute. The following things can be done to make it acceptable to general public:- 1. Transparency – Non-profit organizations that conceal too many facts can never be successful in the long run. In the past it has been observed that only those organizations have been able to retain repute in the market that maintains complete transparency. 2. Objective – The objective of actions of the organization should match otherwise the general public can suspect fraud. For instance, if the objective of the NPO is to help cancer patients then it should not was too much money in doing other activities. 3. Follow rules and regulations – It is important to abide by all rules and regulations by the state and local authorities (Wendroff, 2004). Answer 4 Making a non-profit organization attractive to donors is probably the most difficult task. Not only has the very survival of the organization is depended on it but also an indication that the society is accepting it. The following strategies can be applied to attract potential donors:- 1. Raise awareness – The more the people know about it, the easier it would be for them to make donation decisions. Spreading awareness can be done by some asking a respectable individual in the society to stand by the organization’s cause help it to spread awareness. 2. Educate people – Provide free broachers to people and ask them to refer if they like your ideals. 3. Use the internet – This is the best way to reach potential donors and attract their attention. Answer 5 During the planning stage, it is important to consider a legal structure. There can be four basic types, 1. Limited liability – The organization could get disqualified to get federal 501(c) (3) status. 2. Unincorporated association – Cannot offer protection against the personal liabilities of board and committee members. 3. Fiscal sponsor – Allows 501(c) (3) status to be legal and offer administrative support. 4. Legal affiliations with another non-profit organization – Some permission are required and mutual benefits have to be clearly defined. Also, the philosophy of both organizations should coincide for success. Hence, the best structure if fiscal sponsor. Answer 6 There is a chance that the organization would attract the attention of wealthy investors if proper fund raising events are organized. Such events should clearly state the objectives of fund raising program to get donor’s trust. Events that would attract a lot of crowd like fair, public marathon, auction, etc. would definitely help to fund the non-profit organization. Special celebrities could also be asked to appear and motivate the society to contribute (Walford, Sandlin, and Helweg, 2010). References Drucker, P. (2012). Managing the Non-Profit Organization. London: Routledge. Walford, J., Sandlin, F. and Helwig, R. (2010). 199 Fun and Effective Fundraising Events for Nonprofit Organizations. California: Atlantic Publishing Company. Wendroff, A. L. (2004). Special Events: Proven Strategies for Nonprofit Fundraising. New Jersey: John Wiley & Sons. Read More