What is a non-profit exactly? A nonprofit organization (NPO, also known as a non-business entity) is an organization that uses its surplus revenues to further achieve its purpose or mission, rather than distributing its surplus income to the organization’s directors as profit or dividends. They have a tax exempt status granted by the Internal Revenue Service after conditions are met such as purpose, limitations on spending and external safeguards.
The main purpose of a nonprofit is to serve the needs of the communities they have indicated in their application. They are not “agencies” or “businesses” they are private as opposed to governmental, self-governing, voluntary and of public benefit. In the United States there are three main economic sectors that serve the citizens “wants” and “needs”. These are the government, the for-profits and the nonprofits. For- profits supply our “wants” based on supply and demand. These profits are based on delivering those products and services to the consumer for a price. These are the community’s desires beyond their needs.
The non-profit is responsible for “needs” that the government does not have a direct responsibility to deliver. These needs and a goal to achieve them should be instilled in the mission statement. The problem that often raises its head is when the aggressive hunt for money wedges itself between the mission and the survival of the organization.
Nonprofits begin their noble causes no doubt with services and programs to fill those gaps of need but they must be ever diligent they do not get engulfed by their collaboration with the donor class to the extent it offers only token assistance to the people it serves causing it to smack against their mission. Once they demoralize that, you must ask why their doors remain open at all.
Not all nonprofits fall prey to the irresistible security money and power offer. However, those that do, make you wonder if the acquired wealth they accumulate is for the advancement of who they serve or who serves them.
Nearly all men can stand adversity,
but if you want to test a man’s character,
give him power. — Abraham Lincoln