Does a NGO can make a profit? If so, what is the rule?...What the law has to say about it?
2006-11-02 20:02:28 · 9 answers · asked by emafgdr 1 in Society & Culture ➔ Community Service
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nonprofit organization (abbreviated "NPO", or "non-profit" or "not-for-profit") is an organization whose primary objective is to support some issue or matter of private interest or public concern for non-commercial purposes. Nonprofits may be involved in an innumerable range of areas relating to the arts, charities, education, politics, religion, research, sports or some other endeavor.
2006-11-02 20:06:08 · answer #1 · answered by mallimalar_2000 7 · 3⤊ 1⤋
A non profit organization is a economic institution that operates like a business. However, does not seek financial gain. Examples would be schools, churches, community services organizations. Non-profit organizations often provide services and goods to consumers while they pursue other rewards. Such as improving educational standards, helping those in need, seeing the sick become well.
Generally they are the business organizations that exist to serve the public without the intent of making a profit. Non profit does not always mean charitable organization.
Not to be confused with Not for profit: this referes to an activity, for example fishing or hiking.
Non-profit: An organization established for purposes other than making a profit.
Good luck and I hope this explanation is help ful to you.
2006-11-06 02:23:33 · answer #2 · answered by ? 7 · 0⤊ 0⤋
With the exception of some informal groups and assocations, a non-profit organization is a corporation or other legal entity established under state law which has applied for, and recieved, tax-exempt status under one of the IRS 501(c) codes.
In doing so, the organizers of the corporation relinquish ownership rights to the corporate assets (including profits) and agree to act as public trustees. The assets are then "held in the public trust" to be used in accordance with the purposes established in the application for tax-exempt status.
Contrary to popular belief, tax-exempt organizations can make a profit. The distinction is that the profits are held by the corporation for its approved tax-exempt use. They are not distributed to owners or shareholders. That said, excessive profits could raise concerns among funders. Also, the states' attorneys general and the IRS will both look closely at executive pay and all expenditures to ensure that the organization is not being used as a "pass-through."
2006-11-06 09:13:39 · answer #3 · answered by QA-Thanks 2 · 0⤊ 0⤋
An NGO is a non-profit group or association.
I suggest you visit the following site to get a clear idea of NGOs.
http://www.ngo.org/index2.htm
This site is the home page for global NGO community (Non-governmental organizations associated with the United Nations).
2006-11-06 03:18:52 · answer #4 · answered by Pran Nath 3 · 0⤊ 0⤋
A non profit organization is just that. They don't make a company profit, all the money that comes in goes into the business and paying the employees.
2006-11-02 20:06:09 · answer #5 · answered by vampire_kitti 6 · 1⤊ 0⤋
A non-profit organization (often called "non-profit org" or simply "non-profit" or "not-for-profit") is an organization whose primary objective is something other than the generation of profit. Such organizations are typically funded through a mix of private or public (ie. government) donations. ...
2006-11-03 04:26:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I artwork for a well being center it incredibly is a non-income organization. It capacity that they supply a service (for a value), yet that they supply returned any income that they make. So, the owner isn't charging a fortune for some thing and making a killing from it. certainly everybody gets paid a salary interior the well being center, yet that the tip of the economic year, if there's a income, all workers get a share of it. We get an advantage examine. in addition they donate a lot to the community. So, it incredibly is in basic terms a company that factors a service and then distributes any income to others.
2016-10-21 04:42:36 · answer #7 · answered by casaliggi 4 · 0⤊ 0⤋
A non for profit org, is a organization that what ever money they take in, they have to use for the agency they use it for. they are not allowed to show a certain about of money left over.
2006-11-03 11:08:48 · answer #8 · answered by Mike 3 · 0⤊ 0⤋
interesting topic for discussion.
an organisation which serves the concern for good with out profit.
2006-11-03 06:20:57 · answer #9 · answered by prince47 7 · 0⤊ 0⤋