non profit pp Flashcards
What are nonprofit organizations?
Entities that operate to serve a public or community rather than to generate profit for owners or shareholders.
Their primary focus is on addressing social, cultural, environmental, and humanitarian issues.
What are common areas of nonprofit activity?
- Education
- Healthcare
- Environmental conservation
- Social services
- The arts
These areas reflect the diverse missions of nonprofit organizations.
What is one advantage of a nonprofit organization?
Limited Liability Protection
Protects directors, officers, and members against being held personally responsible for the organization’s debts and liabilities.
What tax benefit do nonprofit organizations receive?
Tax Relief on donations
This helps incentivize contributions to nonprofits.
How does being part of a nonprofit organization affect individuals?
It makes people feel that they are contributing to society.
This sense of contribution can enhance personal satisfaction.
What motivates employees in nonprofit organizations?
Motivation and Leadership
Employees often work for the betterment of society, which drives their commitment.
What is a disadvantage of nonprofit organizations related to funding?
Limited fundraising options
Nonprofits rely on grants, donations, and authorized investments to fund their projects.
What is a risk associated with nonprofit organizations?
Risk of losing tax-exempt status
This can significantly impact their operations and funding.
True or False: Nonprofit organizations can distribute profits to founders.
False
Nonprofits cannot distribute profits to founders.
What kind of social pressure do nonprofit organizations face?
Immense social pressure to remain in business
This is especially challenging for organizations supporting underrepresented groups.
What is often a drawback regarding compensation in nonprofit organizations?
Low pay
Nonprofits typically do not offer as high compensation as for-profit corporations.
What is the primary job of a nonprofit organization?
To serve a charitable purpose to society and have no aims to make profit.
This distinguishes them from for-profit entities.
What are some examples of nonprofit organizations?
- Churches
- Public schools
- Public charities
- Public clinics and hospitals
- Amateur sports organizations
- Political organizations
- Legal aid societies
- Volunteer services
- Labor unions
- Professional associations
- Research institutes
- Museums
- Some governmental agencies
These examples illustrate the wide range of nonprofit entities.
What are some recommendations for starting a nonprofit?
- Ensure financial backing
- Explore the correct field
- Strong leadership
- Ongoing evaluation
- Strategic planning
- Clear mission
These elements are crucial for the sustainability and effectiveness of a nonprofit organization.
