StudentShare solutions
Triangle menu

Financial Management in Nonprofit Organizations - Essay Example

Nobody downloaded yet

Extract of sample
Financial Management in Nonprofit Organizations

wn that different objective of for-profit and nonprofit organizations are the major factor which requires the change in financial management processes. It has also found that financial management techniques may vary across for-profit and nonprofit organizations because of different governance mechanisms, tax treatment, stakeholders and accounting requirements. Therefore, for the financial health of nonprofit organizations and to facilitate them in achieving their aims, such changes have become necessary.
A nonprofit organization offers public services without any intention of achieving any personal gain or self interest and these organizations are exempt from paying federal taxes (Zietlow, Hankin, & Seidner, 2007). Under the selection 501(c) (3) of the Code, the described organizations are charitable organizations and they are eligible to get tax-deductible contributions and earnings of organization may not inure to private shareholders or individuals (Credit Infocentre, 2006). Actually the number of nonprofit organizations is increasing vary rapidly and it is becoming important to control and monitor the financial practices of these organizations. Although these organizations can earn money however, the money earned has to be used for public service purpose only. Therefore, the differences in financial management techniques appear right from the difference in financial objectives of the two kinds of organizations. The primary financial objectives of nonprofit organizations found through a survey in 2002 highlight that most nonprofit organizations aims to achieve breakeven point, followed by those which aim to maintain a significant level of cash reserves and financial flexibility. Moreover, the other primary objectives identified include maximizing cash flow, net revenues, net donations and surplus and reducing costs (Zietlow, Hankin, & Seidner, 2007).
Because of these financial objectives the financial management techniques of not-for-profit and for-profit ...Show more


The increasing number of nonprofit organizations has raised the concerns regarding the financial management procedures and accounting standards followed in these organizations. In this essay the different financial management practices of profit-for and nonprofit organizations…
Author : lanekutch
Financial Management in Nonprofit Organizations
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financial Management in Nonprofit Organizations"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Leadership strategy issues in NONPROFIT HOSPITALS concentrate on how leadership strategy involves a mission, financial manageme
Majority of non-profit hospitals in the United States are affiliated with a religious denomination and generally follow conventional means of offering medical care services. Non-profit hospitals are considerably different from government owned public hospitals and private for-profit organizations with regard to their features and functions.
4 pages (1000 words) Essay
Financial Management in Nonprofit Organizations
They accomplish a wide variety of tasks and services. Non-profit organizations can be public serving as well as member serving. Public serving are those which serve the public or charities and member serving are those that serve the interests of members. Non-profit organizations are applicable all over a country i.e.
9 pages (2250 words) Essay
Financial Management in Nonprofit Organizations
The researcher discussed various issues related to the financial systems of both types of organizations. The issues that the researcher discussed included sources of funds, use of debt, and organizational objectives. The researcher made use of online resources and journal articles to find support from literature.
7 pages (1750 words) Essay
Financial Management in Nonprofit Organizations
Nonprofit organizations have several ways of raising funds and they utilize debt as a secondary resource when compared to profit organizations that leverage through the usage of debt and most of them now consider it the primary source of raising funds. Accounting treatment for both the types differ and there is a certain degree of restriction is the usage of assets by the nonprofits.
8 pages (2000 words) Essay
Financial Management in Nonprofit Organizations
For example donations to the nonprofit organizations are tax deductible. Apart from that, the organizations are exempted from paying any taxes. This kind of tax exemptions are at heart of the strength for a nonprofit organization. In fact the source of the strength of the nonprofit organizations comes from such tax exemptions.
6 pages (1500 words) Essay
Management Accounting - Organizations
Financial accounting records are mainly therefore for external purposes whereas managerial accounting records are maintained for the internal purpose- the controlling of costs, budgets, schedules during the given financial year. "In the last few years the question has arisen as to how far the business-oriented concepts of management accounting and control could be employed for non-profit organisations (especially in the field of public management).
4 pages (1000 words) Essay
How the proliferation of nonprofit organizations impacts strategic management
Mostly, the NGO often strive to perform better than the government itself as a nation, and would prove that the product is qualitative. The NGO’s have created jobs opportunity for many near
1 pages (250 words) Essay
Nonprofit organizations
on, Salamon (1992) reveals that any profit or gain made by the organization is used back by the organization in achieving its organizational objectives and or purposes rather than distribute it to any of their members. This paper discusses the characteristics of non-profit
2 pages (500 words) Essay
Touched by nonprofit organizations
The benefits of many non-profit organizations include service to the community via low-cost centers as well as bringing awareness to certain issues of significance and attract a host of other people sharing a similar course (Shaffer, Deller and Marcouiller,
2 pages (500 words) Essay
Financial Management
nonprofit organizations and subsequently offers a comparison and distinction between the application of financial management techniques in nonprofit and for-profit organizations. In achieving this, this paper focuses on the sources of funds, use of debt, performance evaluation,
7 pages (1750 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Financial Management in Nonprofit Organizations for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
Join us:
Contact Us