The media pays lots of attention to private corporations and publicly traded corporations on a daily basis. They garner much of the headlines and their profits are discussed by individuals across the nation. Many media outlets however miss the work that is done by other organizations which goes on in anonymity.
These overlooked organizations are known as not for profit organizations. Let's take a look at what nonprofits are and the role that they serve. You can also get the best nonprofit accounting service through various online sources.
What is a nonprofit institution?
Nonprofit institutions are organizations that are created to serve a goal or specific purpose and whose primary purpose is not to earn a profit. Nonprofit institutions are not motivated by making profits but by accomplishing their organization's chartered purpose which is to offer some benefit to the general public.
Not for profits may seek to do good through activities like providing shelter to the homeless, feeding the needy, and providing free health care services. Those are just a few examples of some of the services that nonprofits provide.
How are nonprofits governed?
These organizations are governed by their bylaws or articles of incorporation which lay out the founding mission of the entity as well as the duties and responsibilities of each member as well. Nonprofit institutions play a very important role in the economy as they help to fill a need that for profit companies will not often perform.
What are the types of nonprofits?
Nonprofit organizations come in all shapes and sizes. Educational organizations, churches, and trade associations are all types of not for profits. Charitable organizations may be the best examples of not for profits.
Organizations like the Red Cross and the Salvation Army are great examples of charitable nonprofits that use their resources to help the community and aim to improve the lives of others. Since these organizations are not in business to make profits, they are often exempt from taxes at the state and federal levels of government.
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