What is a non-profit organisation, how does it survive?

Answer 1

A nonprofit organization is an incorporated organization formed for the purpose of serving a public or mutual benefit other than the pursuit or accumulation of profits for owners or investors. The nonprofit sector is a collection of entities that are organizations; private as opposed to governmental; non-profit distributing; self-governing; voluntary; and of public benefit. The nonprofit sector is often referred to as the third sector, independent sector, voluntary sector, philanthropic sector, social sector, tax-exempt sector, or the charitable sector. Nonprofit organizations provide programs and services to the community. Often times, nonprofits are formed or expanded to react to a community need not being met by the government. Nonprofits also tend to have the ability to act faster than government in response to an issue. Nonprofits do not have to wait for a majority of citizens to agree upon a proposed solution. Rather, they have the ability to react to a specialized need or a request by a small group of citizens.

Approximately 1.2 million organizations are registered with the IRS as nonprofit organizations. It is estimated that millions more small formal and informal associations exist that do not register with the IRS because they have revenues of less than $5,000 per year. Nonprofit organizations in America have combined revenues of approximately $621.4 billion, which represents 6.2% of the nation's economy. An estimated 10.2 million people are employed in the sector.

Nonprofit organizations are usually classified as either member serving (addressing the needs of only a select number of individuals) or public. They take many forms:

Charities - e.g. American Red Cross, Salvation Army, YMCA

Foundations - e.g., W.K. Kellogg Foundation, Ford Foundation, community foundations

Social Welfare or Advocacy Organizations - e.g., National Association for the Advancement of Colored People (NAACP), American Civil Liberties Union (ACLU), National Rifle Association (NRA)

Professional/Trade Associations - e.g., Chamber of Commerce, American Medical Association (AMA)

Religious Organizations - e.g., churches

When the United States Congress met to develop the first federal income tax laws they determined that nonprofit organizations should be free from the burden of having to pay income taxes and also called upon society to support these organizations. Almost all nonprofits are exempt from federal corporate income taxes. Most are also exempt from state and local property and sales taxes. Nonprofits have received this status because they relieve the government of its burden, benefit society, or fall under the provision of separation of church and state. It is important to point out that nonprofit organizations are not prohibited from making a profit. The IRS does however restrict what organizations can do with its "profits." All money must go back into the operation of the organization. Profits cannot be disseminated among owners or investors.

The National Taxonomy of Exempt Entities classify nonprofit organizations into nine major groups:
* Arts, culture, humanities
* Education
* Environment and animals
* Health
* Human services
* International, foreign affairs
* Public societal benefit
* Religion related
* Mutual/membership benefit

There are economic, historical, and political theories regarding the reason why nonprofit organizations exist in today's society

Answer 2

Non-profit means that the organization is not intended to produce profits to remit to stockholders, and the tax laws permit such organizations, if they meet appropriate requirements, to operate without paying income tax. A very common example is corporations exempt under Section 501 (c) (3) of the US tax code, which includes organizations for public benefit purposes such as museums, theaters, and anateur theater production companies. The organization must bring in sufficient revenue via donations and sales of its product (e.g., admissions) to pay its expenses.

Answer 3

basically volunteers who contributing their time and put in the efforts together by contributing to the society. thats way they get the contribution 'funds' from the public and these 'funds' shall not be used for any profitable gain. that is meant by "Non-profit" organisation.

Answer 4

non-profit is usually a charity of some description.

a board of directors usually funds a budget that they have designed according to the charity's mission thus its needs, wants and desires.
some are subsidized/assisted by some form of government. most are supplemented by solicited donations.
to some, volunteers are the very lifeline

Answer 5

maximum conservatives do no longer hate non-income agencies as witnessed through donation ratios to charities of about 2 to at least a million for conservatives as compared to liberals. something else of your "question" truly makes no experience, you're suggesting what? might want to you experience free if each and every agency in the rustic went out of agency and each and every you are able to fend for themselves? In that similar ineffective inspite of the actuality that agencies that produce a poor product or are poorly run deserve no longer something better than going bankrupt. and agencies/agencies have survived financial disaster and reorganization/restructuring.

Answer 6

non profit is like a charty type thing, They get money from people's donation's and from there they help people who don't have money like the food bank or the ywca