Non-profit organizations take their distinguishing aspect from the fact that their major objective involves running operations without pursuing profits. All the same, a vast difference exists between profit and revenue in that revenue stems from the regular business operations, but profit comes in as the remainder revenue after settling expenses. Essentially, every organization incurs expenses from different sources that arise from direct or indirect operations. With different assets such as infrastructure and buildings, non-profit organizations have not the drive to pursue profits. Instead, such an organization clearly specifies that it is not for profit to owners or shareholders. As a result, it implies that any revenue that exceeds expenses goes to expanding operations rather than dividing it among shareholders (Drucker, 2012). All the revenue, though, must fund the organization’s objective without using some of it as personal salary. Such dishonest use is considered criminal and avoiding it requires accountability on the part of the senior executives. For instance, a non-profit institution of higher learning stands on the premise of providing quality education to students deemed unable to raise tuition fees. Therefore, despite having funds from donors and other sources, the goal is to channel all of its revenue into providing education to the underprivileged in society. From the pool of funds obtained, none of it should be used as personal income as doing so would go against the principle of being a non-profit organization.
On my part, my idea for a non-profit organization stems from the observation of the difficulties endured by underprivileged children. As such, the organization would endeavor to improve the set of skills among underprivileged children. It is correct to say that accessibility to education and skills remains a huge part of maintaining productivity in America and in the global sphere. Nevertheless, it remains a fact that the underprivileged exist within society and in some groups, the disadvantage weighs heavily to the extent that without deliberate intervention from early in the lifecycle, members remain in a grim situation that significantly reduces their chances of achieving their educational and economic goals. Skill acquisition needs to focus on the utmost vital sets of skill which remain sought after in the formal sector. Such skills include arithmetic, reading, as well as writing capabilities. Gaining basic level knowledge and decent scores in each of the areas guarantees that the individuals stand a chance and eligibility for entry-level work in any industry.
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My interest in non-profit organizations is based on the massive impact that such organizations exert in society. Firstly, a non-profit organization presents the opportunity to apply my aptitude and capabilities for the improvement of certain areas in society. Secondly, through such an organization, skills and funds can be used for noble purposes that help people without pursuing material gains. Thirdly, the fulfilment that comes from pursuing a greater cause than personal goals presents immense motivation. Imparting knowledge and skills unlocks a perpetual desire to extend limits, making it necessary to pursue a greater cause than the basic necessities of life. The power that comes with knowledge gives clarity of thought, guides action and predicts future. Ultimately, through acquisition of knowledge and skills, it becomes possible to conquer adversities and make the world a better place.
With the idea clearly set, the consideration on starting a non-profit organization sets off. In starting a non-profit organization, the first important step involves acquiring registration as per the demands of the internal revenue code Section 501(c) (3) (Drucker, 2012). Upon registration, the next step will involve conducting preliminary surveys to understand the location as well as the dynamics of the population of interest. With a clearly established location, it becomes possible to set the organization’s offices in close proximity to the population to ensure that the service facilities occur in the most convenient position. Another important step involves clearly defining the scope of services to be provided and planning for the same. It is crucial to define the resources that will be needed to allow for concerted efforts in acquiring the resources. Knowing the resources needed will also allow for quick estimates on the time needed to acquire a substantial amount of the resources. The other step involves determining the process of rolling out the resources and areas to invest them in line with the time needed to raise funds. The next step involves determining the minimum cost that the community will have to raise as a motivation to sustaining sufficient interest in the organization’s operations. Ultimately, there will be need to find like-minded persons with the willingness to volunteer their time to the achievement of this noble cause.
Since the non-profit organization targets the people, it is imperative to make it acceptable to them and in so doing, ensure the realization of its goals. A major element in making it acceptable is spelling out its aim which is to help the community in skill acquisition which translates to improved chances of earning a living. The practicality of the solution offered will make it acceptable to the people as opposed to giving out cash or handouts. Likewise, the organization seeks to have the beneficiaries input into consideration. As such, the people’s input will matter, making them feel part of the endeavor. Rather than playing a passive role of receiving aid, they will serve an active role through having them contributing actively towards the improvement of their lives.
As the goal of such the non-profit organization is not profit but philanthropic, attracting donors remains a major consideration. Since donors focus on the impact of an organization, a major step will involve describing that every dollar contributed to the organization will help an underprivileged child gain vital skill sets and raising their chances of gainful employment in the long term. Another way involves using direct stories of children, detailing their need for skill sets especially due to their less fortunate status. This involves presentations of success stories of those who benefited from a similar cause. Its relevance will certainly appeal to donors and attract investments.
As pertains the legal structure for the non-profit organization, registering it under the applicable IRS code forms a major step. Preferably, the choice will be a non-profit corporation as it will only require the formation of a board of governors (Drucker, 2012). The board will be formed with the mandate to see to it that the organization adheres to consistent compliance with all the rules and ensure that no violation occurs on the non-profit status of the organization. The board will also have legal duties to ensure that the activities conducted remain devoted to the organization’s mission.
The initial funding the non-profit organization will require an event that will result in generation of sufficient funds to commence operations. In this case, the event will be a half marathon that will have participation from people of all ages and walks of life. The half marathon will allow the organization to obtain sponsors such as popular brands, media companies and banks. As for the participants, a fee will be charged for participation while offering t-shirts and arm bands bearing the message ‘I support skill sets to underprivileged children”. As such, the input of everyone will count to the overall funds raised thus providing the needed resources to commence operations.
Reference
Drucker, P. (2012). Managing the non-profit organization . Routledge.
