subject: When Youre Not Aiming For Profit [print this page] There are hundreds of non profit organizations in the country. Some of them are devoted to causes such as continuous medical assistance, promotion of cultural arts, and equality at work. They could advocate any number of causes, but they all have a common denominator: being non profit means these organizations do not have ownership interest such as that of businesses and corporations.
By definition, a non profit organization is an entity that receives a considerably large amount of revenue that operates for purposes other than the selling of products and services for profit. Unlike businesses and other profit organizations, non profit organizations do not hold ownership to whatever revenue they receive but instead manage this revenue for their specific causes.
Some examples of non profit organizations include health care service providers such as hospitals, clinics and health agencies, colleges and universities that provide educational services, and other organizations such as labor unions, libraries, political parties, civic organizations, and fraternal organizations.
Because of the fact that the resources that non profit organizations have access to are usually in the form of donations or grants, integrity is critical especially when it comes to financial management. Accounting for non profit organizations can be a challenge to the inexperienced accountant. Non profit leaders need to assure their donors that bookkeeping is taken seriously and that their donations are handled under strict directives.
That is why most non profit organizations do not rely on others in order to manage heir finances. Non profit leaders need to have some basic accounting knowledge in order to maintain integrity. When it comes to accounting for non profit organizations, integrity is the key. Aside from satisfying donor conditions, there is also the matter of the law. There are laws that directly affect the way non profit organizations mage their finances internally.
In the age of computers non profit organizations have taken to using technology in handling their finances. Many of these accounting programs can be tailored to fit the needs of any non profit organization. Accounting for non profit organization requires the flexibility to solve unique requirements such as fund accounting and donor management.
