Characteristics of Non Profit Organizations
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Can someone please provide some assistance with this question. Its for an MBA course and needs to be between 550 and 650 words or so. Explain and elaborate on each of these points.......
Professor Lester Salamon of Johns Hopkins University has written that nonprofit organizations have the following characteristics. They are,
1. Organized activity
2. Private, independent organizations, not extensions of government
3. Voluntary in participation; free from coerced or mandated participation
4. Self-governing. They govern themselves and are not directly controlled by government.
5. Not profit distributing. Excess revenue is directed to mission not to individuals or owners.
6. Of public benefit. They provide a public good or contribute to the general welfare
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Solution Summary
This solution briefly explains each of the key characteristics listed regarding nonprofit organizations.
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I can certainly understand and appreciate that Professor Salamon defined nonprofit organizations under certain characteristics; however, it is important to note that the actual determination of a nonprofit organization is determined by the Internal Revenue Service at the time the organization originally applies for said status. With that being said, Professor Salamon is correct and his characteristics also agree with Internal Revenue Service standards as far as what does constitute a legitimate nonprofit organization.
A nonprofit organization must have an organized activity. Essentially, the nonprofit organization must have a mission as to why they have formed and what their purpose is, whether it's in the community or in some other area. The nonprofit organization cannot be an extension of government. Basically, this separates the nonprofit organization and creates a private organization. One of the main reasons for this characteristic is to ensure that the organization ...
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