Upgrade target acquisition and control system (TACS) for IAV stryker
Government and Institutional Accounting Non-profit Organization
The government is a vital aspect of sedentary human life, and now that we settle in one place for a reasonable length of time, it is important to think of ways in which we can sustain our existence. It is this thought that drives many people to work and engage in activities that will generate income. Some may be very economical in the sense that they would not like to see any waste or any misuse of resources because they know just how vital those resources are. Being able to account for those resources is a very important thing and for those who do not have access to these resources, it is not the end of life. There are systems that are in place to help those who cannot have them.
Non-profit organizations are some of the systems that may fall under this bracket. It may not in the strict sense mean that the organizations do not make a profit. Some organizations in this category do make a profit but this not the reason for their naming. It is the motive that they have at heart that leads them to choose such a name. The name was birthed from the reality that the organization uses the surplus amount in a different way unlike the expected.
In this article we will see the importance of the difference between these nonprofit organizations and charity, sober managements, and tax exemptions.
Keywords: non-profit organization, profit, surplus, motive, tax.
Just as mentioned above, a non-profit organization is an organization that utilizes the surplus or profit funds that they generate differently from those that are profit based. The motive as said is the difference (Gross 2010). Some people start an organization so as to make money while others may start a business so as to help others. These organizations are based on giving back to society; that is their goal. To ensure that society is a better place because of the input that they are having on it. Starting such an organization is not an easy task. It is something that requires focus and patience. They grow with time and the more the time, the better and developed the organization is. It does not apply to all organizations that fall into this category; it is dependent on many factors but primarily on management. The management is what determines a stable and solid foundation. Before it can start considering all other dynamics, it must have its organizational ethics sober and intact. Most people think that these organizations do not make a profit but they do, and they use it to better society.
Hopkins (2005) tries to distinguish and differentiate between a charity and a non-profit organization. He says that a non-profit organization is one that experiences deductible contributions and are under the law. It means that when an organization is legally considered non-profit, it experiences some exemptions. For example, GASB does not set standards for non-governmental, non-profit hospitals. Non-profit organizations are non-business entities, and here, shareholders do not receive profit or dividends, this is the distribution constraint. Often people cannot distinguish non-profit organizations from the not-for-profit organizations. The two may sound the same, but they are not. They may to the layman sound the same but they have different meanings across jurisdictions. These two terms have a different accountant and legal meaning that we will not launch into today.
Non-profit organizations are varied (Bryson 2011). They are numerous, and some even differ in operation and even structure. There are those that are member serving like the mutual societies, cooperative, trade unions, industry associations, sports clubs, and credit unions. These are organizations that have an aim of benefiting a particular group of people. Not just anyone can benefit from them but just a selected few. The second category would be one that is community serving. Here, there is a focus on providing for the community globally or locally according to the vision of the team and its plan. They include educational organizations, medical research, health services, and aid. What is to be noted is that this kind use the double bottom line model where furthering their cause is more important than profit making. However, both are important to ensure the organization’s sustainability. Some have an employed management while others have voluntary staff.
Non-profit organizations that are charity based have a favorable tax status because their motive is not to make wealth but to give value to those that they administer their services. The diversity of the operations may differ slightly and at times widely. It all depends on the objective of the organization. These may range from management provision to accountability and auditory provision to amendment of statutes of incorporation. Some aspects that may fall here are the provision of identity dissolution, the tax status of corporate and private donors, and tax status of founders.
A non-profit organization is required to fill a by-law document to signify that it is an entity and not owned by anyone, it may merely be managed, but it is viewed as an entity on its own. The management can be elected or delegated; some may be membership organizations while others can be board-only. It all depends on the structure that the management agrees to implement or the requirements that they must adhere.
The final major thing that will be reflected here is on tax exemption (John 2011). It is something that is highly viable when it comes to non-business organizations, and as it is, there are requirements that must be met before an organization qualifies to be in this category. The requirements are however not stereotypic because they vary. Their variance is according to jurisdiction, and they must meet the Internal Service requirements. Some educational institutions are headed by managements owing to a non-profit organization, and they have seen some of these offer degree courses. The main thing to note now is that the non-profit organizations are doing wonders. They are getting involved in various sectors so as to help out and ensure results. It has become widespread and soon it will possibly be in every sector. Life has meaning when you perform with satisfaction, and this is what non-profit organizations do. They harness a passionately skilled workforce and deploy it to bring change.
Bryson, J. M. (2011). Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. San Francisco, CA: Jossey-
Bass, a Wiley Imprint.
Gross, M. J., McCarthy, J. H., & Shelmon, N. E. (2010). Financial and accounting guide for not-
for-profit organizations. Hoboken, N.J: Wiley.
Hopkins, B. R. (2005). Starting and managing a nonprofit organization: A legal guide.
Hoboken, N.J: John Wiley.
The Jossey-Bass Handbook of Nonprofit Leadership and Management. (2011). New York, NY:
John Wiley & Sons.