Non-profit organizations are raising funds from different entities and using them to reach their social goals (S.K. Devalkar 2017, p. 1035). They obtain the necessary financial resources from various public sources: national, regional or local. Usually, they have a legal form of association - a voluntary, permanent and self-non-profit. All funds of non-profit organizations are dedicated to achieving the objectives, which are set out in Statute. These organizations can run a business, but their income is spent to finance the business and statutory goals. It can not be split between people working in these organizations. Generally, in a non-profit organization, the board of management is responsible for leading the institution by defining its mission, goal, effective plan for the future and shaping its reputation (W. Jemaa 2018, p. 172).
Non-profit organizations are mostly social organizations and they are an elemental part of social systems whose role and scale are a side product of a complicated set of historical forces (K. Akingbola 2006, p. 267). Studies are showing that people, who work in non-profit organization appear to have higher satisfaction levels when it comes to their global life evaluation than people working in the private sector (M. Binder 2016, p. 65).
Non-profit organization sector
The sector of non-profit organization keeps spreading all over the world by presenting social, political, cultural and economic values for a country and a nation. It is said, that a country that has reasonable non-profit organization sector will make this sector to have a meaningful role in improving life for the whole community (World Bank 2010, p. 18).
Non-profit organization sector is guided by civil rules such as respect, tolerance and mutual relations. These norms and values are processed into a code of ethics to encourage dialogue and openness, citizens presence and government partnership (World Bank 2010, p. 18). The non-profit sector is embracing business-like technics, which are used in the for-profit sector. This is happening because of the fact that non-profit organizations have started to being faced with market pressures, which are characteristic for-profit organizations such as competing for funding (S. Dolnicar 2009, p. 3).
Types of non-profit organization
There are a few different types of non-profit organizations:
- Independent Organizations,
- Organizations of volunteers,
- Organizations exempt from tax,
- Non-governmental organizations.
- Akingbola Kunle (2006). Strategic choices and change in non‐profit organizations, Strategic Change, vol. 15, no. 6
- Binder Martin (2016). “…Do it with joy!” – Subjective well-being outcomes of working in non-profit organizations, Journal of Economic Psychology, vol. 54
- Devalkar S. K. (2017). Ex‐Post Funding: How Should a Resource‐Constrained Non‐Profit Organization Allocate Its Funds?, Production and Operations Management, vol. 26, no. 6
- Dolnicar Sara (2009). Marketing in non-profit organizations : an international perspective, International Marketing Review, vol. 26, no. 3
- Drucker, P. F. (2004). Managing the non-profit organization: Practices and principles. Taylor & Francis
- Jemaa Wassim (2018). Effective Information Control Systems for Primary Education Support in Developing Countries: An Investigative Field Study of a Voluntary Non-Profit Organisation in Tunisia, IFAC-PapersOnLine, vol. 51, no. 30
- World Bank (2010). Domestic Study on Non-Profit Organizations in Indonesia, World Bank, Washington
Author: Olga Marmuszewska