Securities Law

Securities Law - 9. Securities Law What type of securities...

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9. Securities Law – What type of securities law issues will your business face? How will you attempt to raise money? What types of regulations will you have to comply with in this regard? Will your company be publicly-traded or privately-held? Why? SECURITIES ISSUES God Children’s will not face any type of securities law issues due to the fact that God’s Children is not a for-profit organization. Jennifer Mueller stated in her article that not-for-profit organizations often have investments in equity securities that are subject to restrictions, which vary and can be permanent or temporary (Mueller, 2003). God’s Children main focus is to provide medial supplies and the basic necessities (food, clothing, etc) for orphans and abused children through donations, fundraising activities, etc. Therefore, God’s Children will not invest in any stocks issued by another company due to God’s Children being a small non profit organization. RAISING MONEY FOR GOD’S CHILDREN A non-profit organization serves the community. Generally the purpose of a non- profit organization is to help a community or groups of individuals achieve a goal for their benefit and that of the society as a whole (Firoz & Wightman, 2002). An important distinction between for-profit and non-profit organizations is that the latter do not earn a profit from its clients (Firoz & Wightman, 2002). State laws define profit corporations as entities authorized to issue shares of stock to shareholders and pay them dividends in return for their capital investment, whereas non-profit organizations can neither issue shares nor pay dividends under state law (Mancuso, 2000). Fundraising is an important source of income for nonprofit organizations (Firoz & Wightman, 2002). According to Mancuso, a non-profit organization that plans to carry
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out fundraising and other broad base soliciting campaigns, and that will depend primarily on public and/or private donations, would most likely seek "public charity status" (Mancuso, 2000). In order to attract funds, God’s Children need to apply marketing principles similar to those utilized by for-profit organizations. It is important to choose a fundraising campaign taking into account the target audience, organization's goals and interests, resources, and number of volunteers (Firoz & Wightman, 2002). God’s Children will
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Securities Law - 9. Securities Law What type of securities...

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