What Are the Rules for Non Profit Organisations?

What Are the Rules for Non Profit Organisations?

What Are the Rules for Non Profit Organisations?

One of the main requirements for a non profit organisation is to serve the greater good of the community in which it operates. Conversely, a corporate business organisation is driven by a profit motive. However, both non profit and for-profit organisations must adhere to government rules and regulations irrespective of their objectives. As most non profits are exempt from paying government taxes, record keeping and adhering to financial reporting take precedence. What are the rules for non-profit organisations? Keep reading to stay up to date on this critical topic.

What Are the Rules for Non-profit Organisations: Governed by Country Laws

Non profit organisations are founded and run under the country’s laws in which they are registered. For example, a non profit organisation’s parent organisation may be in the United Kingdom, but it must follow Sri Lankan legislation if it operates in Sri Lanka. Simply put, each country has requirements to fulfil when setting up a non profit organisation to carry out activities for the greater good of the community.

Tax Regulations and Exemptions

The type of nonprofit organisation determines the tax-exemption standards. In order to qualify for specific tax breaks, the non profit must be dedicated to carrying out charitable missions, while earnings can’t be used to benefit individuals, directors, or employees. Furthermore, if a person or a private organisation makes significant donations to a registered charity, such individuals are excused from paying certain taxes. The charity must be registered with the relevant government.

Non Profit Incorporation Requirements

The regulations for forming a non profit organisation are similar to a for-profit firm. Non profit corporations can receive grants and donations, and acquiring tax-exempt status is simpler. Organisations that wish to incorporate must file articles of incorporation or similar documents with the relevant government office in the country where the charity organisation operates.

Non-political in Nature

Non profit organisations are prohibited from engaging in political activities or incurring political expenditures. They must maintain a nonpartisan approach and refrain from participating in political campaigns. When registering as a non profit, they must specifically affirm that they will not engage in or be a part of the country’s political landscape in which they operate.

Raising Money

Donations from supporters, businesses, and foundations are the primary funding sources for non profit organisations but relying on donations and sponsorships may cause cash flow issues. Non profit organisations should broaden their financing sources to include fundraising activities and item sales to bridge the gap. The funds provide goods or services to beneficiaries, finance community projects and cover office expenditures.

In Conclusion

Non profit organisations differ from businesses as they operate with the specific objective of bettering lives through improving areas such as education, housing and vocational opportunities for communities. However, for a charity to function and perform efficiently, like a business, it must follow the rules and regulations set by the country of operation. 

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How to Plan an Event for a Non Profit?

How to Plan an Event for a Non Profit?

How to Plan an Event for a Non Profit

Most non profits host fundraisers for several reasons, including generating much-needed monetary donations, creating awareness and expanding a charity’s non profit donor database

Organising successful events that bring in donations and potential donors can aid a non profit in achieving its mission and cause. The collected funds can be used to improve the ongoing programs and implement new ones that benefit the communities they support. 

As the preparation and planning of an event can feel overwhelming, we’ve  gathered some tips and tricks on how to plan an event for a nonprofit to make it easier to host your next fundraiser. 

How to Plan an Event for a Non Profit?

Identify a Clear Goal for Your Event

While the primary goal may be to raise money, before you dive in and start planning, take some time to identify and list down your sub-goals and mission. What are you raising money to accomplish? First, determine whether the funds will be for an internal need (like updating facilities or buying much-needed equipment) or an external need associated with a project or local cause.

Assemble Your Planning Team

Many non profits rely on committees to do most of the work:  planning and executing a fundraising event. An excellent committee can take charge of planning everything from behind-the-scenes details and major logistics to marketing, advertising and entertainment.

Identify Your Ideal Audience

Your events aren’t for just anyone. Fundraising events can target or attract many demographics. The details of your event should reflect the characteristics of your ideal audience, as it will increase attendance and guarantee the success of your event.

Set a Budget for Your Non Profit Event

No matter how big or small, your event needs a budget. Having a set budget helps you invest your resources wisely and get the best return on investment possible. As it’s essential to have more income than the event costs, a budget will help you achieve that.

Choose Your Non Profit Event Type

Now that you understand your goals, target audience, and budget, it’s time to get into the “meat” of event planning. Choose a type of event that fits your organisation and your goals. Choosing the right kind of event can also help with effective branding, and your audience will better understand your mission.

In Conclusion 

Even after the event is over, your job isn’t entirely done yet. It’s time to send thank you notes, get guests’ feedback, and build relationships with potential donors you met. Adding this step to the event planning list ensures your team is prepped and ready for follow-up. 

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How Is a Non Profit Organisation Structured?

How Is a Non Profit Organisation Structured?

How Is a Non Profit Organisation Structured?

An organisational structure is one of the key elements that determine the success and growth of a non profit or charity. The primary operational system of a nonprofit generally includes functional areas such as management, executive and administration, which are divided into subcategories. 

A structure can benefit a non profit in many ways, varying from fundraising to recruitment. The management, which includes the board of trustees and founders, can network and connect with individual donors for non profits and corporations. Meanwhile, the administrative employees can employ those looking to find a charity to support while recruiting skilled persons looking to find a charity to volunteer at. 

How is a Non Profit Organisation Structured? 

Each non profit is different, so it’s vital to develop a structure that best works for your organisation. Keep reading to find out the various functional areas you could include in your non profit to help operations run smoothly while furthering your organisation’s mission. 

Management 

This includes the board of directors, founders, chairperson and treasurer, who are solely responsible for the non profit organisation. They are involved with all aspects of the organisation, from the code of conduct and rules & regulations to overseeing finances and marketing plans. 

Most nonprofits approach well-known industry leaders to join their organisation’s board of trustees as their expert contribution in their respective fields, such as advertising, law, HR and accounting, helps create an effective and efficient workflow. 

Executive 

Responsible for the day-to-day functions, the executive staff operate under the guidance and supervision of the management. The executive staff work closely with the management to execute fundraising events, recruit volunteers and employees, find donors online and network with potential donors to secure funding. Executive staff, which include program managers, HR managers, etc., all function as mentors and leaders to the other employees and volunteers of a non profit organisation. 

Administrative 

A non profit organisation needs a team of capable administrative employees to ensure that daily, weekly and monthly objectives and goals are achieved. Administrative employees include secretaries, assistants, bookkeepers, and data entry operators. Individuals holding administrative positions are vital to a non profit organisation as they help with all aspects of functions, including letter-writing, grant applications, corresponding with donors, volunteer allocation, event planning, record keeping and documentation. 

Why is a Non Profit Organisation’s Structure Important?

 A well thought non profit organisation structure where everyone understands their roles and tasks can help:

  • The nonprofit to grow and prosper 
  • Provide more clarity and enable better decision making
  • Better serve its beneficiaries and the community through more programs and donations
  • Create more job opportunities