2. I. Historical Perspective
Nonprofit organizations comprise the newest and fastest growing
category of organizations in America.
Charitable tax-exempt organizations date back to more than thirty
years ago.
Ninety percent of nonprofit organizations currently in existence
were established since the Second World War.
Among the growth is a new wave of grassroots organizations and
ministries who have little or no experience in organization
development and very little money.
The last fifteen years, publications about nonprofits have
proliferated; universities and colleges have developed courses and
degree programs in related nonprofit areas. Thus as the sector
grows, leadership and management challenges facing nonprofits
have increased.
3. II. Nonprofit Organizations, Businesses and
Government: Similarities and Differences
Non-profit organizations, like businesses, rely on voluntary
exchanges to obtain revenues and other resources.
In business, customers supply the resources for the service
they receive. Businesses focus on making a profit for
shareholders.
Unlike businesses, nonprofit organizations (especially publicly
supported charities) typically depend on one group (the
donor) for resources necessary to provide a different group
(the clients or beneficiaries) with services.
Nonprofit organizations, like governments, generally supply
public-goods and services, but unlike government, they
cannot compel users to pay for those services.
4. III. Characteristics of Nonprofit Organizations
Nonprofit organizations may not distribute profits to
their members.
A public benefit nonprofit organization has a charitable
purpose, derives much of its support from contributions,
and is prohibited from distributing its income or its
assets to its members.
A mutual benefit nonprofit organization primarily
benefits its members, derives most of its support from
the sale of goods, or the rendering of services, and upon
dissolution, may distribute its assets to members.
A nonprofit organization may also be classified as a
cooperative or a religious corporation.
5. IV. Benefits of Nonprofits Status
A nonprofit enterprise may apply for and receive
exemption from federal and some state income taxes
and property tax.
Reduced postal rates are available to nonprofit
enterprises.
Liability protection in the event of legalities.
6. V. What’s “Nonprofit Organization” Got to Do
With Ministry?
Luke 14:28 states: Suppose the two of you
want to build a tower, will you not first sit
down and estimate the cost to see if you have
enough money to complete it.
First Corinthian 14:40 states: But everything
should be done in a fitting and orderly way.
Faith-based Organizations Differ from
secular Nonprofits. They are both “mission”
and Great Commission Driven.
7. V. What’s “Nonprofit Organization” Got to Do
With Ministry?
Luke 14:28 states: Suppose the two of you
want to build a tower, will you not first sit
down and estimate the cost to see if you have
enough money to complete it.
First Corinthian 14:40 states: But everything
should be done in a fitting and orderly way.
Faith-based Organizations Differ from
secular Nonprofits. They are both “mission”
and Great Commission Driven.
