The organizations that are not working for profit are called non-profit organizations. As the name indicates, these are legally designed non-business entities working for a collective aim. They work to attain a social and public benefit and turn out to be beneficial for society compared to any other business that works to earn profits.
Role of Non-Profit Organizations:
The non-profit organizations in North Hollywood play a significant role in providing economic, social, and financial well-being and benefits to society. These non-profit organizations provide multiple beneficial services and goods and different resources to meet the community’s different requirements.
These are often charitable organizations and help different businesses lead towards the path of development, growth, and success. These promote cultural awareness among people and prove to be beneficial in terms of education and health.
Thus, we can say that non-profit organizations serve the community to benefit socially, spiritually, and virtually in almost every field of society. Since non-profit organizations do not work for profits, they continue to serve the community and produce different skilled individuals in society.
Goals of Non-Profit Organizations:
As mentioned before, non-profit organizations provide charities and different services to a community. They work co-operatively with different organizations and trusts, or sometimes they may work individually.
Sometimes, a non-profit organization is considered a trust or foundation as it may provide grants and donations to other organizations. The working of a non-profit organization can be simple or complex depending upon its function.
Examples of non-profit organizations include different healthcare settings, universities, schools, film producing companies, book publishers, etc. The non-profit organizations are usually operated by volunteers and thus turn out to be voluntary associations.
Some of the most important goals of non-profit organizations are following:
· Non-profit Organizations Play an Important Role In Generating Revenues:
Since non-profit organizations work by offering different services and goods, they buy different items from different sources. A non-profit organization requires computers, all necessary stuff for the office, building materials, and other utilities.
These are purchased from different companies which earn great profits through it. Thus, we can say that a non-profit organization contributes a significant role in generating revenue and proves to be helpful for suppliers, distributors, and manufacturers.
· Non-profit Organizations Restore Economy Up To a Great Level:
Non-profit organizations contribute a vital role in uplifting the economy. When people have enough resources, they spend more money on different items. They also pay their utility bills, taxes, and mortgages on time.
The money other than their basic requirements and needs is spent on different recreational activities such as theatres, entertainment, and restaurants. All of this results in playing a huge role in restoring the economy of a country.
· Non-Profit Organizations Provide Jobs To People:
Though non-profit organizations do not work for earning profits, they work in the same way as any for-profit-organization. They require staff members for the proper functioning of their organization.
For example, a non-profit organization may require directors, managers, accountants, computer operators, and other staff members. For this purpose, they recruit different people and thus have to pay them for their services.
This results in providing jobs to multiple people. This also contributes towards the stimulation of the economy.
Types of Non-Profit Organizations:
The non-profit organizations are categorized into two main types. This division of non-profit organizations is based on their difference in their functions and responsibilities. The two main types of non-profit organizations are mentioned below:
- Membership Corporations
- Charitable Corporations
· Membership Corporations:
The non-profit membership organizations perform such activities that prove to be beneficial for their members. Such non-profit organizations are operated with donations, fees, and loans provided by their members.
Examples of Membership Corporations:
Examples of membership corporations include the following:
- Special Interest Organizations
- Golf Clubs
- Social Clubs
· Charitable Corporations:
As the name indicates, charitable corporations work for charity purposes which appear to benefit the local community and public. These non-profit charitable organizations are operated with the help of donations from government agencies and the public.
Just like membership corporations, charitable corporations also hire different individuals from different fields as their staff members. The non-profit charitable organization members enjoy the same status as that of shareholders and can be afforded easily by the non-profit organization.
Differences between Membership and Charitable Corporations:
The membership and charitable organizations differ in the following ways:
- The members who seek advantage from these organizations are different. In the case of membership corporations, members get benefited, while in charitable corporations, it is the public that gets the most advantage.
- The financial supporters of the charitable and membership organization vary.
- How surplus is distributed after dissolution also varies for both organizations.
Examples of non-Profit Organizations:
Following are some of the most renowned, reputed, and successful non-profit organizations:
- Boy Scouts of America
- Big Brothers Big Sisters of America
- Amnesty International
- Edhi Foundation
- Amnesty International
- ChildVoice International
- Cato Institute
- Global Living
- The Nature of Preservancy
- Red Cross
- Special Olympics
- The Rotary Foundation
- World Wildlife Fund
- Women’s Vices. Women Vote
Non-Profit Organizations Using Technology:
Non-profit organizations are making use of technology to render certain benefits. It is usually a good approach to adhere to the modern trends in any industry. As almost all fields use technology, non-profit organizations are also taking several advantages out of it.
Technology is playing an important and effective role in helping organizations achieve their goals. Every non-profit organization is different from others as it works for a different purpose. Thus, the use of digital technology by these non-profit organizations is also different.
Digital technology has made it very easy for a non-profit organization in the fundraising processes. By making use of digital technology in an effective way, one can save a lot of time as well as money.
Digital technology has taken over the traditional trend of physical fundraising, and thus one can get more funds through online means. Through digital sources, these organizations can collect & utilize funds to better non-profit organizations in many ways.
Denis Ilya is a focal person of a reputed non-profit organization and associated with non-profit organizations in North Hollywood for a long time. He loves to share his thoughts about non-profit organizations to spread awareness among people.