FINANCIAL MANAGEMENT IN NONPROFIT ORGANIZATIONS

Financial Management in Nonprofit Organizations

Abstract

Although small, religiously affiliated nonprofit organizations share financial management and responsibility challenges with other small nonprofit organizations, they are inclined to face issues and problems that disagree from those of small secular nonprofit organizations. Exploratory study methods were used to develop hypotheses about the environment and probable sources of the financial management trials of small, religiously affiliated nonprofit organizations. The article delineates financial management and responsibility trials widespread to all small nonprofit organizations and compares them to small businesses. It then suggests and talks about the hypothesized sources of financial management and accountability matters exclusive to or distinct in small, religiously affiliated nonprofit organizations. A life-cycle structure for small religious nonprofits is developed and differentiated from the life cycle of small secular nonprofit organizations.

Financial Management in Nonprofit Organizations

Introduction

According to idea of Social structure, communal association of up to date humanity is split up into governmental associations, for-profit associations and three kinds of non-profit associations, which are political, Economic and communal spheres of the major pattern of organization. Non-profit organization's Development has become an inescapable tendency of up to date socio-economic development, Financial Management is a non-profit association a essential status for sustainable development. This paper endeavors to right the financial administration of nonprofit associations to make more of a couple of rudimentary questions (Drucker 1989). 1. Non-profit organization's financial management objectives An organization's financial management objectives very resolute by the objectives of the association itself. As we all understand, as for-profit associations, enterprises, the beginning issue and place travelled to be for-profit. Business objectives can be summed up as survival, development and profits. Survival is likely only money-making enterprise, and only development can endure, and only have a earnings to survive. Correspondingly, business financial administration and profitability objectives are nearly connected, whereas the exact signs are to maximize earnings, profits per share to maximize shareholder riches maximization distinct viewpoints. Non-profit organization's financial administration objectives very resolute by the identical non-profit organization's own goals, then the non-profit organization's aim of what is it? Japanese scholars Kawaguchi Qing said: non-profit associations usually mentions not to a earnings for the reason, while committed in product output, circulation, supplying Services to municipal humanity organizations (Glasius 2005). American scholar Salomon (Salamon) that the non-profit associations have the characteristics of six areas: First, 'organization', that is, non-profit associations have some of the schemes and structures; second is 'non-governmental nature', that is, non-profit associations in the scheme with the stage separation; 3 is 'profit', that is, non-profit associations, not to their operators or 'owners' to supply a profit; 4 is the 'autonomy', that is, vitally is an unaligned non-profit associations considering with their own affairs; 5 is 'voluntary', that is, non-profit association formed for constituents are not needed by regulation, these associations accept a certain grade of voluntary donations of time and money; 6 is the 'public interest', that is, non-profit association subordinate to a specific some public reason and for the public dedication (Deng ...