The document discusses the nonprofit sector in the United States. It defines nonprofits and their characteristics, including their legal structure, public service mission, and lack of profit motive. It outlines the scope of the nonprofit industry, noting there are over 1.4 million organizations employing millions of people and accounting for 5% of GDP. The document also examines nonprofits as an economic force and the challenges they face in areas like funding, administration, and the current economy. It concludes by describing services available to nonprofits through CharityNet USA like tax exemptions, registrations, planning, and financial services.

1. Partner Service & Sales TrainingThe Nonprofit Industry

2. Defining the Nonprofit SectorI. Defining the Nonprofit SectorII. Characteristics of NonprofitsIII. Scope of the U.S. Nonprofit IndustryIV. Nonprofit Industry as an Economic ForceV. Challenges Faced by NonprofitsVI. CharityNet USA: Services for Nonprofit Organizations

3. Defining the Nonprofit SectorNonprofit Organizations:AreLegal entitiesMost incorporated under state lawSome eligible for tax exemption with the IRSMost have public service missionGovernance structure eliminates self interest and private financial gain

4. Defining the Nonprofit SectorThe concept of ownership is completely absent from nonprofit organizationsMay make money, but that money must be directed toward the public purpose for which the organization was formed

5. Characteristics of NonprofitsI. Defining the Nonprofit SectorII. Characteristics of NonprofitsIII. Scope of the U.S. Nonprofit IndustryIV. Nonprofit Industry as an Economic ForceV. Challenges Faced by NonprofitsVI. CharityNet USA: Services for Nonprofit Organizations

6. Characteristics of NonprofitsNonprofits have distinctive characteristics that equip them well to contribute to the solution of social problems. These characteristics include:FlexibilityResponsiveness Value Focus Public Service ComponentCredibility & TrustAdvocacy RoleAbility to Adapt

7. Structural ConstraintsLimitations on the performance and contributions that nonprofits make to social improvements arise from the fact that they must operate under government mandates.Government mandates=regulatory compliance.

8. Resource ConstraintsNonprofits often face serious resource (money) constraints in performing the roles of which they are capable.This leads to a reduction in service deliveryTherefore, fundraising is essential!

9. Scope of the U.S. Nonprofit IndustryI. Defining the Nonprofit SectorII. Characteristics of NonprofitsIII. Scope of the U.S. Nonprofit IndustryIV. Nonprofit Industry as an Economic ForceV. Challenges Faced by NonprofitsVI. CharityNet USA: Services for Nonprofit Organizations

10. A World of OpportunityThe nonprofit sector is growing. Between 1995 and 2005, the number of organizations registered with the IRS grew by more than 27 percent.However, the number of public charities—those classified as 501(c)(3) as described above—grew at a rate greater than 50 percent over ten years. More than 100 new nonprofit organizations file with the IRS every day.

11. U.S. Nonprofit SectorFast Facts:The newest and fasting growing sector in U.S.Number of organizations has doubled over last 25 yearsOften referred to as “third sector”

12. U.S. Nonprofit SectorComposed of charitable, advocacy, mutual benefit, scientific, educational, and religious organizations.There are over 1.4 million public-serving organizations (501 c 3).There are over 400,000 member-serving organizations.

13. Size & ScopeThe nonprofit sector spans a wide range of organizations, from neighborhood associations that have no paid staff to multibillion-dollar hospitals and universities.The vast majority—and those holding most of the sector’s revenues and assets—are registered with the IRS as 501(c)(3) “public charities,” a category that includes most arts, education, health care, and human service organizations.

14. Size & ScopeThe nation’s approximately 350,000 religious congregations are also considered public charities but they are not required to register with the IRS, (although about half do so).

15. Nonprofit Industry as an Economic ForceI. Defining the Nonprofit SectorII. Characteristics of NonprofitsIII. Scope of the U.S. Nonprofit IndustryIV. Nonprofit Industry as an Economic ForceV. Challenges Faced by NonprofitsVI. CharityNet USA: Services for Nonprofit Organizations

16. Economic ForceThe nonprofit sector has proven to be an economic force:Rapidly growing service sectorPotential direct contributor to employmentIn many areas, employment in nonprofit sector growing more rapidly than in business sector.When compared to other sectors of the economy, the nonprofit sector accounts for 5.2 percent of gross domestic product (GDP) and 8.3 percent of wages and salaries paid in the United States.

17. Economic ForceThe finances of nonprofit organizations also grew at a healthy rate from 1994 to 2004. While the U.S. GDP increased by less than 37 percent over this period after adjusting for inflation, all three of the major financial measures for nonprofit organizations increased by at least 56 percent—a difference of nearly 20 percentage points. Total assets, in particular, rose the most rapidly, with an increase of approximately 90 percent for both public charities and the sector as a whole.

18. Economics of Charitable GivingAccording to the latest estimates from Giving USA, private charitable contributions from households, private foundations, and businesses increased by more than 13 percent from 2000 to 2005.In 2005, individuals, corporations, and foundations gave $260 billion in charitable contributions to nonprofits!

19. Challenges Faced by NonprofitsI. Defining the Nonprofit SectorII. Characteristics of NonprofitsIII. Scope of the U.S. Nonprofit IndustryIV. Nonprofit Industry as an Economic ForceV. Challenges Faced by NonprofitsVI. CharityNet USA: Services for Nonprofit Organizations

20. Challenges Faced by NonprofitsLack of RevenueLack of Diversified Fundraising PlanCurrent Economic EnvironmentLack of Business Skills Among AdministratorsPoor Volunteer Recruitment

21. Administrative ChallengesIn many cases, nonprofits are founded by individuals with a passion for a specific cause, but who may not have adequate business education or experience. In order for nonprofits to remain financially stable and thus have the ability to fulfill their missions, they should be run like a business.Education in nonprofit management, or the assistance of an educated professional, is essential!

22. Economic ChallengesA lack of revenue is the main reason why many nonprofits fail. In order to avoid this, nonprofit organizations should have diversified fundraising plans– they should be receiving funding from multiple income streams.For example, a successful nonprofit organization will gain income from individual donors, corporations, grants, service fees, and fundraising events.

23. Economic ChallengesThe role of the nonprofit advisor or consultant, in the current economic environment, is to reinforce the importance of working hard to generate funding.NPOs need to be provided with assistance in exploring a variety of fundraising initiatives.If you’re able to help the organization raise funding, they’ll be able to then cover the expenses related to proper organizational administration. This in turn leads to additional service orders!

24. Services for Nonprofit OrganizationsI. Defining the Nonprofit SectorII. Characteristics of NonprofitsIII. Scope of the U.S. Nonprofit IndustryIV. Nonprofit Industry as an Economic ForceV. Challenges Faced by NonprofitsVI. CharityNet USA: Services for Nonprofit Organizations

25. Opportunities to Serve Nonprofit OrganizationsIt is clear that the size and scope of the nonprofit sector creates a world of opportunity for those who provide these organizations with essential administrative services.As a partner serving the nonprofit sector, there are limitless opportunities to make CharityNet USA services available to the nonprofit organizations within your community.

26. CharityNet ServicesCharityNet USA provides:501c3 tax exempt servicesState tax exemption & Charity RegistrationsArticles of IncorporationGrant writing ServicesStrategic Planning ServicesWeb development ServicesBookkeeping and Accounting Services