Nonprofit Vs. Profit Analysis

According to Daft the main difference is that for-profit organizations’ bottom line is to earn money, while non-profit will focus on social impact (p.13). Therefore, the key stakeholders’ expectations would be within the increase profit and market position of their organization. In contrast, regarding the non-profit organization the expectations are parallel to diversity of the stakeholders. For instance in the case of the Salvation Army, the volunteers, customers, donors, and government agencies, will have different expectations of the organization, while the leadership would balance those expectations to achieve the non-profit goals.

According to our text, “Not-for-profit organizations lack a residual ownership claim and the organization’s purpose is something other than to provide goods and services at a profit.” “Because significant resources are provided to governments and not-for-profit organizations, financial reporting by these organizations is important.” (Page 2).

In contrast to corporations serving stakeholders and customers; nonprofits are ultimately directed to serving the public or specific groups and audiences. Unlike corporations who distribute a product, nonprofits services are delivered in the form of intangible or tangible products. Boards of these organizations are not structured in the same preciseness as those of major corporations. Companies with large resources have the

This paper was originally written for Financial Management for Nonprofits 380, taught by Professor Zelhart.

In this week’s lesson we are looking at the importance of having a chart of accounts in our nonprofit business. At HOPE which is the business that I support. The main focus is to house and provide support to those who are homeless, mentally ill and may be struggling with dual issues. Because there is a need in a nonprofit to show measurements to determine success in each area. Charts are created for every service area the HOPE supports ( Margolis, S. (2014, 11).

Over the course of my two years at Metropolitan State University of Denver (MSU Denver), a certain nonprofit organization has really stood out to me. This particular non-profit is a critical piece to the MSU Denver community and the greater Denver community as a whole. Food for Thought currently provides food for six impoverished title one elementary schools, where many children would go hungry over the weekends otherwise. MSU Denver students and Denver business leaders volunteer for Food for Thought on a weekly basis during the school year. Every Friday morning, volunteers pack sacks of food into crates, which later get shipped out to the schools in need. Ever since I volunteered for Food for Thought the second semester of my freshman year,

Throughout my life I have volunteered for a few organizations. During my underclassmen years I volunteered at Seven Bridges Ranch throughout my summers. My responsibilities included taking care of all their horses, which meant, feeding, watering, grooming, exercising, etc. I was also kept up with some of the simple yard keep. Another great organization I volunteer for is called, 15 Forever Community Foundation. This is a foundation that gives 15,000 dollars to non-profit organizations. I have been doing this for three years, and the board members and I discuss what we want our funding focus is for the year, and then read each application, and decide who is best fit to receive the money. I have always loved being outdoors, and one of the non-profits

Over the years’ volunteers,’ services have increased tremendously. These stakeholders participate in leadership roles in nonprofit and profit groups. Volunteers exert influence in the organizational decision-making process because their particular task gives them the authority to exhibit their skills. For example, I am a board member at a local nonprofit hospital. I collaborate with other volunteers offering advice and services that help influence the hospitals' daily operation, while improving my leadership and decision-making skills in the process. Ohmer (2007) discussed that "Citizen participation" actively involve selves in developing problematical situations in neighborhoods and leading policies and programs that affect the quality of

With an economy driven by our relationship with capitalism and bottom lines, it seems inevitable that nonprofits also tap into these business dealings if they are to survive. The third chapter of Leslie R. Crutchfield’s and Heather McLeod Grant’s book, Forces for Good: The Six Practices of High-Impact Nonprofits, titled “Make Markets Work,” delves into the strategies used by nonprofits who harnessed business tactics in an effort to increase their social impact. Using three overall strategies- change business practices; partner with business, and run a business- Crutchfield and McLeod Grant describe how non-profits have achieved successful leverage in the business world.

the most ethnically diverse of school districts of comparable size in Texas. Virtually every culture of the modern world is represented in its 45,000 plus student enrollment; more than 60 languages and dialects are spoken. A variety of guest speakers, culture clubs, and ethnic fairs help promote a multicultural appreciation. (http://www.imdhouston.org/) Alief ISD recently passed a $345 million bond referendum in May 2015 to enhance school facilities and programs. There is vigorous discussion between the IMD and Alief ISD to open the first International School public school within the District that will attract foreign students from abroad from all over the world to provide Alief students a true global experience and exchange.

The CEO of a nonprofit must distinguish himself not only as a financial manager but as a financial leader also by improving the nonprofit practice (Young, 2007). The CEO is commonly expected to collect data, produce reports, analyze findings, as well as offer financial solutions for short and long term objectives along with other daily operational duties. However, a CEO distinguishes him or herself as a financial leader by developing a business model that meaningfully impacts organizational productivity, sustainability, and propel nonprofits futuristic vision while remaining integral to its mission (Bell, 2016). This is accomplished in several ways such as, vigorous budgeting, attaining a net financial outcome, exploring futuristic expectations, performing financial projection assessments, evaluating income diversification options, etc. and work well with the organizational board.

In the modern fear of inflation and taxes a huge concern arises by allowing millions of dollars of taxes remain uncollected by religious exempt property (Hageman 405). Many wonder why they are forced to pay the tax burden when religious organizations could easily lessen the economic burden. Nonprofit property in all 50 states are exempt and this creates problems for assessors and tax departments. Assessors must determine if the activities of the non-profit organization like churches are providing a sufficient amount of charitable care. In a 2011 survey done among assessors by the Center for Business and Economic Researches, 96% of assessors say churches will become tax exempt after an evaluation.

When considering a budget, it is said that the value of money must play a significant role in this dialog. As money of one sum today will rise to a greater value tomorrow. Even if the nonprofit organization does not look at things from a stand point of inflation which is always in effect. Money is a tool that if we use it and the sooner we do in a productive way. The nonprofits money will produce value in the future. It is not by coincidence that the most successful nonprofit watches their finances very carefully. And often look at the progress of their financial goals (McLaughlin, T.A. 2002).

As an intern for a non- for profit I worked closely with community volunteers within the agency. The approach to network with the local community members and university to better provide assistance to families in need, worked best for this small community. As a university student of the Social Work program I brought ethical principles, classroom training and work history to the agency. In my position as a counselor, I interview clients utilizing an intake form to gather information about one’s household size, income, and services they required. I had developed a strategy to devote time to the client as well as collect their food and clothing items. An army veteran and long- term volunteer and I worked together to serve clients. I became

A not for profit organization is a corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive (Legal, 2013).” There are immense community benefits as a not-for-profit generally accepts everyone regardless of ability to pay. Nonprofit organizations are granted tax-exempt status which helps them to provide services to the public and are expected to be effective managers of their finances as well as being efficient (Financial Management, 2010). In doing so, they can gain exemptions from federal and state incomes taxes and have the ability to solicit tax-deductible contributions (Financial Management, 2010). Organization must follow legal financial