Non-profit Organizations: Building A Better Community

What Are Non-profit Organizations?

A nonprofit organization is one kind of organization which have been made by a group of people who are work according the non-profit business concept. The non-profit organizations always have the motives to work for the society which are neglected by the other human ("Non-profit organisations | australia.gov.au", 2017).  It always makes sure that they will only work for the social activities where they can do without any profit. It has purposes where they can achieve their goals or mission rather than make any incomes. In this kind of organization, the authority always distributed their dividend amount of shareholders for achieve their goals (Galaskiewicz, 2016). They have a proper legal structure to running that non-profit business. The non-profit organizations provide the Internal Revenue Service (IRS) ("Legal structure", 2017)

Therefore, they work in all over the world and according the country’s jurisdiction and it may vary. For the non-profitable organization, they are enjoyed different types of exemptions of income tax, charitable status etc (Butler & Wilson 2015). compassion Australia is a non-profit organization which work for the releasing children from the poverty. It is one of the recognized organizations which work only in charities. They have dedicated themselves in the distribution of their love and charities towards the children ("Non-profit organisations | australia.gov.au", 2017).

The non-profit organizations always work according to the public interest in state and country. They get the exemptions of the income tax for the exchange of those works and set their goals for work in those charity works. In the NPO many people come to join for associating with them. They join those organizations for work through the organization. The profit they make always used for the community service (Butler & Wilson 2015). It includes mutual societies, cooperatives, trade unions, credit unions, industry associations, sports clubs, retired serviceman's clubs and advocacy groups or peak bodies where the amount of benefits use for the human services ("Non-profit organisations | australia.gov.au", 2017). They organize many services and development programs which work in their medical, health, education and development of their mental strength various work perspectives (Butler & Wilson 2015). Some examples are like when any disease affects any particular of community, then this organizations work in those societies for their medical checkup and health issues ("Legal structure", 2017).

Sometimes this organizations works according to the double bottom line model which work on the sustainability of the organizations rather than their profits from the works. The government of every country gave them such permission in the surplus revenues which help them to self-preservations, expansion or plans of the organizations. They have their own board of directors like other companies who controlled the whole organization through the board members ("Non-profit organisations | australia.gov.au", 2017). The organizations also have staffs that are paid by the organization out of their profits and some unpaid volunteers who involved themselves in those non-profit organizations (Butler & Wilson 2015). The executive members and the volunteers who are work without the compensation, occasionally they are being paid by the organization but normally they know the consequences (Galaskiewicz, 2016). The nonpaid organizations always include those executive and volunteer members according a legal contract with mentioning legal requirements. The university president and hospital CEOs are work always work under the non-profit organizations and they earn their salaries same as the profitable organizations where, the person who are work for the animal rescues they earn less that human service in any non-profit organizations (Butler & Wilson 2015).

Their Purpose and Benefits

Compassion is the non-profitable organizations which provide the children proper care and guidelines who are suffering from the poverty. They believe the facts that the children are belongs from the heart of Jesus. They used the Christ Centered, Child Focused and Church based service to the children who are under poverty ("Non-profit organisations | australia.gov.au", 2017).

Normally there are no owners who own the non-profit organization because they do not have any intension to make any profit from the organizations. They have a common fund from where they use their amount for giving service to any social services. The fund amount never use for the owner or any member who are in the board authority (Galaskiewicz, 2016). However in Australia the non-profit organizations always include several organizations like trade unions, charitable entities, co-operatives, universities and hospitals, mutual societies, grass-root and support groups ("Legal structure", 2017), political parties, religious groups, incorporated associations, not-for-profit companies, trusts and more. The government of Australia gives the permits to the authorization to become the non-profit organizations according the activities and the needs of the organizations. They also work with the different dominions of human services like health, employment, disability and other human services to local sporting clubs, credit unions, and research institutes who are work under the non-profit organizations. The Associations Incorporation Act 1985, incorporated association or council by the Commonwealth Aboriginal Councils and Associations Act 1976 all are work as a non-profit organization in the Australia ("Legal structure", 2017).

In this country the organizations who are represented their organizations as non-profit organization are always work in different ways and normally they use three methods by the companies limited by guarantee, trusts and incorporated associations ("Non-profit organisations | australia.gov.au", 2017). However the all above methods are applied in the jurisdictions of the Australia. The organizations always establish their presence across Australia which is considered by the incorporation as accompany or nay trust (Doherty, Haugh & Lyon 2014).

The Compassion Australia was establishes in the year of 1979 as per the rules and terms of the Australian Charities and Not-for-profits Commission. It was first started their work from the living room of Laurie and Olive McCowan’s home. Later it is became of the reputed and recognized organization in the Australia. They work on the different programs on those children who are under poverty (Galaskiewicz, 2016). They arranges the Child Survival Program which represent those children from the Womb to up to 3 years, Child Sponsorship Program for the children who are 3 to 22 years and the Leadership Development Program for the children who are became adult or 18 years ("Non-profit organisations | australia.gov.au", 2017).

Legal Structure and Incorporation

When a non-profit organization formed they have to follow some structures which helps to form best organizations. The trust, unincorporated associations, corporations without the share capital and cooperative without the share capital are the main structures which help to form the legal frame work of the non-profit organizations (Doherty, Haugh & Lyon 2014).

Trust is normally formed for the establishment of the documents that are entitled to the reorganizations by the courts and therefore they include the intension, subject matter and the objects of the organizations. When trust holds any property they determine the beneficiaries or the trustees and the property which is manages by the trusts (Galaskiewicz, 2016). The Unincorporated associations make such organizations which are recognized as similar organizations and managed according to the directors of the trusts. They create the legal relations between the organizations and the beneficiaries. The Corporations without share capital never issued their share capital without the letters patent to incorporate a corporation. It is always acts as an individual organization where they act behalf of the carrying objects. Co-operatives without share capital is specialized in carrying any enterprise according the terms of the co-operative basis. It is normally formed according the Co-operative Corporation Act through the articles of incorporation. It either shares capital or similar to the business corporation without the non-for-profit in nature.

However, the Compassion is also made the organization structures according the structures of the non-profit organization.  It is registered under the Australian Securities and Investment Solutions as an Australian Public Company, Limited By Guarantee. They always prepare their financial report, a director’s report and the financial audits which always elected according to the Corporation Act 2001. The financial report always formed for managing their fundraising and the administrative expensive according to the rules of the structures of the non-profit organizations. The directors report are related with the financial report of the organization where they make the outlines and guidelines for the up gradation of the organizations. in the process of Audit they make sure that the sec-307 of the Corporation Act of the Australia have undertake their financial liabilities. The financial report of the Compression helps to pay the debts of the shares which help them to build the better structures for their company (Doherty, Haugh & Lyon 2014).

Australian Securities and Investments Commission make the limits of the appointment of the directors for the non-profit organization where they can appoint three directors and one secretary who will act as one member. The board of the directors can only help to develop the future of the organization that are work as non-profit organizations (Butler & Wilson 2015).

However, it can be stated that the non-profit organization only work according to the unincorporated association where they apply the rules of incorporation of Australian government. They only look after the human and some organization works for the animals too. The organizations are help to those persons who are under any tough poverty. The make the concern of the human activities that help the person to became free from their situation. They not work for their profit but the service they provide if profitable for the needy people. They never take the profits from their organization. However, the proper structures help them to build more helpful organization in every country.

Reference

Butler, R., & Wilson, D. C. (2015). Managing voluntary and non-profit organizations: Strategy and structure. Routledge.

Cornforth, C., & Brown, W. A. (2013). Nonprofit governance: Innovative perspectives and approaches. Routledge.

Cunningham, I., Baines, D., & Charlesworth, S. (2014). GOVERNMENT FUNDING, EMPLOYMENT CONDITIONS, AND WORK ORGANIZATION IN NON?PROFIT COMMUNITY SERVICES: A COMPARATIVE STUDY. Public Administration, 92(3), 582-598.

Doherty, B., Haugh, H., & Lyon, F. (2014). Social enterprises as hybrid organizations: A review and research agenda. International Journal of Management Reviews, 16(4), 417-436.

Galaskiewicz, J. (2016). Social organization of an urban grants economy: A study of business philanthropy and nonprofit organizations. Elsevier.

Legal structure. (2017). Acnc.gov.au. Retrieved 8 June 2017, from https://www.acnc.gov.au/ACNC/Register_my_charity/Who_can_register/Legal_structure/ACNC/Reg/Legal_structure.aspx?hkey=b75693e4-e334-41ff-b1eb-a0c325abbee5

Non-profit organisations | australia.gov.au. (2017). Australia.gov.au. Retrieved 8 June 2017, from https://www.australia.gov.au/information-and-services/business-and-industry/abn-acn-business-management/non-profit-organisations

Palmer, P. D. (2013). Exploring attitudes to financial reporting in the Australian not?for?profit sector. Accounting & Finance, 53(1), 217-241.

Scott, W. R., & Davis, G. F. (2015). Organizations and organizing: Rational, natural and open systems perspectives. Routledge.

Tricker, R. B., & Tricker, R. I. (2015). Corporate governance: Principles, policies, and practices. Oxford University Press, USA.