Another in a series of articles related to association management selected from our reading list by:
Robert O. Patterson, JD
CEO/ Principal
The Center for Association Resources, Inc.
This article focuses on effective management of non profit organization’s
Providing service and help are the noblest of acts for a person to conduct. For meeting this purpose the establishment of nonprofit organizations is undertaken. The main sources of income for such organizations are not the sale and purchase of goods, but donations, grants etc. Nonprofit organizations should advertise their work so that more and more people are aware of the good work carried by them.
To maintain a healthy environment and good response, transparency of the work is very important. The details of the funds coming in and the service performed by should be brought to everyone’s notice. Pamphlets and monthly issues should be published of the work being conducted.
Nonprofit organizations may apply for tax exempt status, so that the organization itself may be exempt from income tax and other taxes. Organizations should issue a tax certificate when requested by donors which can be used as a tax deduction by the donor. Such steps make people more willing to donate.
The nonprofit is a trust or association of members. The organization may be controlled by its members who elect the Board of Directors, Board of Governors or Board of Trustees. They may have a structure for the representation of groups or corporations of members. It also can be a non-membership organization and the board of directors may elect its own successors.
The trend of openness, accountability, and understanding of grassroots concerns in nonprofit organizations should be maintained. Nonprofit organizations, unlike business corporations, are not subject to market discipline for products and shareholder discipline over their capital; therefore, without membership control of major decisions such as election of the board, there are few inherent safeguards against abuse of the funds.
Taking this in, notice the organization should have its own principles on which it is established and under any circumstances these principles should not be broken, with special care of transparency.
nonprofit organizations ,association management of non profit organization,The Center for Association Resources
