Why nonprofit organizations?
I have 20 years of personal and professional experience building and sustaining nonprofit organizations such as KAGL & Affiliates, and presently, Consultation, Education, Evaluation (CEE), Incorporated, which is an NGO in consultative status with UNESCO. This blog is to ask (and answer) the important question: Why nonprofit organizations?
What is a nonprofit organization (NPO) and why do they matter?
NPOs are corporate entities if registered with the state department of corporations and granted tax-exempt status from the Internal Revenue Service (IRS). NPOs operate as a public, social, religious benefit than for-profit. These organizations have various purposes that include advancing health & welfare, culture, religion, human rights, among others social causes. Nonprofits that work alongside governments and with the Civil Society, are nongovernmental organizations (NGOs) such as CEE, Inc.
NPOs and NGOs give a voice to marginalized groups, advocate for public policy change and mobilize citizens to participate in social causes. These organizations do contribute greatly to the American economy through job creation, income and investments. You may recognize some nonprofits such as:
UNICEF, which works to protect the rights and well-being of children around the world,
Doctors Without Borders, which provides medical aid to people affected by conflict, epidemics, disasters, or exclusion from health care, and,
The Nature Conservancy, which conserves the lands and waters on which all life depends.
NPOs are different, however, and their work must reflect the mission and goals. The size, scope and stability of the nonprofit depends on the management.
Management is responsible for organizational design (structuring people, technology and finances) for effective (goal attainment) and efficient operations. Otherwise, the NPOs/NGOs will fail. In the United States there are some 1.5 million registered nonprofit organizations, according to the National Center for Charitable Statistics. These include public charities, private foundations, and other types of nonprofits, such as social welfare organizations, labor unions, and trade associations. Each type of nonprofit has different rules and regulations regarding its formation, governance, taxation, and reporting. The failure of NPOs is a problem.
Yearly, hundreds of NPOs experience revocation of their tax-exempt status. Why? According to the IRS (revocations) failure to complete annual financials, operate and “off mission” are a few reasons for failing to maintain nonprofit status. Nonprofit organizations are an essential part of our society and our world. CEE, Inc., will continue its mission to help nonprofit managers become effective and continue work that is appreciated by everyone.
Dr. Kimberley Garth-James, MPA, MBA, ME