Non profits create activity statements that show how

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Non-profits create activity statements that show how funds are being allocated and dispersed to help drive the organization’s mission forward. Non-profits also provide balance sheets to show the organization’s assets and liabilities (Leonard, 2018). These documents are readily available to the public, as is required in order for an organization to maintain it’s not for profit status (Worth, 2017). For-profit organizations create quarterly income statements that review the company’s sales and profits (Leonard, 2018). Non-profit organizations are tax-exempt, while for-profit organizations are not. Non- profit organizations are typically registered as a 501(c)(3) or 501(c)(4) organization, which means that they are able to provide their services without needing to render a portion of their earnings back to the government (Worth, 2017). This allows all funding to be used to provide services. For-profit organizations, on the other hand, are required to pay taxes (Worth, 2017). The tax-exempt status allows non-profit organizations to accept charitable contributions (Henderson, 2018). Those who donate to 501(c)(3) organizations are able to write their contributions off as tax-deductible (Worth, 2017). Henderson, J.W. (2018). Health economics and policy . Boston, MA: Cengage Learning. Leonard, K. (2018, Jun 29). Non-profit organization vs. profit organization. Small Business . Retrieved from - organization-4150.html Worth, M.J. (2017). Nonprofit Management: Principles and Practice. Fourth Edition. London: Sage Publications.
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  • Spring '17
  • Non-profit organization, Voluntary association, profit organizations, types of organizations

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