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Nonprofit organization

is also known for its other name as non-business entity. To simply define this, it is an association or a corporation created to conduct and serve a specific goal for the benefits of the general public without having a motive regarding on profit. The money that this corporation will gain will be used on some activities that have a good purpose like feeding the needy, providing shelters for the homeless and providing free health care services. Those were just some of the few things that this organization tends to provide which really how simple this organization works.

Organization objectives

This type organizations has a primary has a primary aim to make some improvement in a society helping each and every communities that they served become a better one. Basically monitor their own activities to simply ensure if their work is exact and matches with their objectives. By setting their objectives, together by applying it with their works ad activities, they can see some ways to improve the chance of their success.

In order for

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nonprofit organization to make their specific goals and purposes, it's necessary for them to consider these important factors when setting their goals:


Measurability
For an optimal effectiveness, it is important for a nonprofit organization to have objectives that are measurable. Considering this in place can surely help an organization and other companies that monitor them on determining whether they did or did not reach their goals. Say for example, the nonprofit organization sets a goal to assist 100 families to find an affordable housing on the specific year stated. By setting this goal, they can now surely determine if they can reach this target within the specific year provided. That's just how simple it goes.

Beneficiaries
Nonprofit organizations are created to help others, and it's necessary for them to have a list of their beneficiaries in their objectives. Say for situation like, a nonprofit organization seeks to helps elderly to maintaining their independence and homes, they must state it clearly within their objectives just to simply make it clear regarding on whom will benefit their efforts.

Projects
There are cases where some nonprofit organization carries assorted projects on their objectives that can somehow cause confusion for some people regarding on how can their existence will benefits the society. In that case, it is better for them to make a sum up of all those projects making it generalize and organize just to make it clear for people.

Time
The amount of time a nonprofit organization has to accomplish their target goals is usually limited. That is why it is important for them to list also the time regarding the accomplishment of their goals. Setting this on their objectives can also determine if they fail or success with their aims.


Considering all of these factors on the objective list will surely come up with a greater chance of accomplishing the goals of each and every nonprofit organization. For short, its objectives are just the determiner whether they do their job successfully or not.


Non Profit Advantages

Creating a nonprofit organization is somehow what other people's way to help others. They may find it an easy way for helping due to some advantages that comprise this type of organizations. Some of these advantages are as follows:

1. Tax exemption
Organizations that are qualified as public charities are permitted by the law to operate without having any obligation to pay some tax. That is how it goes with a nonprofit institution.

2. Eligibility for private and public grants
These organizations are allowed in soliciting charitable donations either on private or public, but most of the government agencies and foundations limit their grants when it comes to public charities.

3. Formal structure
This type of organization is considered to be a legal entity separated from the founder/s and has an own right regarding its operation. The organization is intended to put a nonprofit mission without considering the personal interest of each and every individual within the organization.

4. Limited liability:
Courts and creditors are limited when it comes to assets of a nonprofit organization as stated by the law. The directors, members, employees and even the founders are probably not liable for any of the nonprofit debts. But there are some exceptions. A person can't use the name or the corporation itself to shield irresponsible and illegal acts. Also, if directors are holding in trust for the responsibility, and they did not perform well with their jobs that results for the profit to harmed, then they can now be liable for that



There comes disadvantages also...


If there are advantages, it is expected for this type of organization to also have some disadvantages. These may be the reason to be considered why some other refuses to create and enter with a nonprofit organization. Listed below are some of the disadvantages of a nonprofit organization:

1. Cost
Founding this type of organization will surely take the efforts, time, and even money. Since it appears as legal entity with the consideration of the law, there are several thing to be consider regarding on making it legal like the use of accountant, attorney and other professionals needed for the process. Besides, applying for the organization for a tax exemption is requires an amount of money together with other requirements needed for it to become legal one.

2. Paperwork
As an exempted organization, they are required to keep a detailed record to be submitted annually on the state on within a specific period of time for the organization to keep its exemption active.

3. Shared control
Although the ones who create the nonprofit organization like to control and shape their creations, they are absolutely restricted to have their personal wants regarding with the money. This type of organization is subjected to regulations and laws. In some other states, it is required for this type of organization to appoint several directors whose only uncharged in electing officers that determines the policy.

4. Scrutiny by public
This organization is intended for public interest. Therefore, the finance of this is always open for public inspection. The public can also obtain the copies of federal and state filings of the organization for the public to learn about the salaries and expenditures.

The Bottom line:

A nonprofit organization is one of the best sways for other people to lend a help on people who's really in need it. It is good idea to acknowledge this type of organization for a reason that, all it has to offer is goodness especially for those who don't have much. There is no reason not to acknowledge things that offers nothing, but good intension.