The Non Profit Organisations Commerce Essay


The non profit organisations are the firms who are not engaged with the business activities, as there motive is to serve and not to make profits, for example:- organisations such as schools, charitable institutes, clubs, hospitals, public libraries, sports club , welfare societies etc. . All these organisations are known as NPOs (Not- For Profit Organisations). As these organisations serves to the general public and to their members. As these organisations are Non Profit Organisation so their main source of income is donation, membership fee, subscription etc. The Non Profit Organisations also maintain their accounts as the money is also involved for maintaining the activities. For a particular period of time say, one year these organisation practise convinced statement to dicover the result in financial term of their activities.

Moving ahead further we will discuss harms while operating in different areas of Non Profit Organisations. We will be undertaking and analyse one of the Non Profit Organisation known as skillshare international. While analysing the NPO skillshare the main aim and objectives will be highlighted on its financial statement along with the financial performance measurement. In these analysis we will discuss on their investment in various field and on donations. The proposal concerning where Skillshare can arrange its resources will be argued and concluded.

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While operating business organisation face various diufficulties wheter it may be a profit organisation or non profit organisation both faces difficulties. The obstacle in the business are divided into two terms called financial and non financial problems. Taxation is the main financial problem which is been faced by NPOs. From long time amongst the various countries widely been argued the suitable income tax system for the taxation of Non Profit Organisation. Still the tax policy issue has not being settled. There is no clear idea of applying the tax on NPOs, what would be the suitable standards for granting immunity and what should be the contribution of the taxation should be undergo for the Non Profit Organisations. As NPOs are entering into many countries and are also enetring the new fields of activity and also to remove the direct government interference which is very important and still unsettled in many countries.

Another financial problem faced by NPOs is Funding. As number of non profit organisations are at the same time looking a quickly deepening funding environment and an gradually hiking demand for avails of the communities they assist. Abbreviated or tightly centralized authorities financing is aiming distinguished imperativeness along the sector, which has besides intimate with a proliferation of unexampled nonprofits during the past decade, hence exploding the competition because a humbler pool of stocks. Innumerable nonprofit organizations are experiencing the encroachment of national decreases to their effective financing streams simultaneously fundament endowments are depressed and a lot of nation and domestic authoritieses are feeling shortages that are contemplated in decreases in expending upon cultural and ethical plans.

Budget planning issues:-

For a non profit organisations budget needs to be very properly planned. What decides the complexity of the budget is the scope and size of the business and programs being run by Non profit organisations. A budget is nothing but a summary of the plans and activities carried out by gthe management in order to achieve its goal over a specific period of time. Budgets vary according to the goal of the organisations for example to show a good availability of working capital the budget needs to show imbalance of revenues over expenditures. Excess of working capital without being used properly might show that the purpose is not being properly achieved. Sionce business is dynamic best budget for an non profit organisation is the one which is updated for new situations such as a change in the course of an action when required.

Cash flow planning;-

Cash is an important resource for any organisation ans so it is for a non profit organisation in order to maintain its financial stability an organisation must ensure that it has an adequate amount to pay off its expenses. The dynamic nature of business and fluctuations have an impact on the cash budget. Thus it is very important for the organisation to plan its cash flow in a proper way so that it can meet those periods when cash inflow is less than cash outflow. Once the capital budget has been planned the very next step should be to convert it into cash flow budgets in order to find out availablity of resources and phases of less than expected outflow. An idle cash flow planning reflects a decision to maintain minimum cash level. The organisation must plan its operation from the very first day to build such a working capital reserve that it can at any time meet atleast few months of operating expenses. Surplus cash reserves should be treated immediately for example the money can be used in cash investments. Short-term investments are the better choice because it provides emergency access to the money has been invested. In all the ways cash flow is the very important process.

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Lack of proper management :- non profit organisations donot have skilled top management executive and thus the quality of service falls.

Lack of resources;- non profit organisations fails to attract important resources of a business like money, human resources etc.

Super imposed charges:- non profit organisations do not have enough funds to keep their services going and so they have to work with hiogh overhead charges to carry out the services in an non interrupted way.

Newly impiosed legal laws;- a few new laws on the fund raising and distribution activities carried out by the non profit organisations hinder the process of development.

Leadership Challenges â€" The strength of non-profit firms lies in executive leadership quality. Agency leadership, which includes board members must be capable to question the issues related to strategy, mission and accountability, as well as the importance of the firm in the society. For most of the non profit firms, being flexible to changes in the environment means a intensified need to establish the most efficient way to serve client, which is subjected to change and growth, Developing processes and strategies to access and supervise upcoming funding streams, Decide how and where to make monetary cut, Establish new partnerships, try to find out collaborations, also consider acquisitions and mergers. Capture latest technology to confine information for billing and reporting, Manage fund flow challenges.

Efficient board leadership becomes very crucial in a challenging and complex non-profit environment. The issues haunting the non-profit sector underline the need for reactive, efficient and skilled leadership in order to improve organisational performance. It will be proper if board members take up the leadership role in providing support to agency management on sensitive matter like defining of mission, strategic planning, legal issues, interest conflicts, resource development, financial management, inter organisational unity, capacity building workshops and cultivating relationship with the society.

Management Challenges â€" Managers of non-profit are given the challenge to carry out multiple actions and tasks as they conduct the organisation through complex work environment. They should not only have the knowledge of technical aspects of the firm but also their management functions such as information technology, human resource, resource development, program evaluation, finance and should demonstrate the combined capabilities of its experiences of its people. Regrettably, non-profit firms often face the challenge of managing staff talent in an active manner. Recruiting and retaining staff is another challenge for these firms because of high accountability and competition create a halo to develop special skills required by these firms. Subsequently, like their counterparts in the business arena, these managers need to seek continuously out, and exploit latest techniques for organizational leadership and management. Strategic plan basically focuses entire organisation.

Aims and objectives:-

Now we will do the analyses of Non Profit Organisation skillshare international. Skillshare international is a controlled and devloping organisation functioning to condence poverty, injustice, to the poor and unfairness amongst the community. The vision of the Skillshare international is where people of the community come together for their mutual benefits peacefull co-existence living and togetherly taking away poverty, injustice and inequality from their society where people are despite the consequences of culture, society and political divides. The values of Skillshare international on which the organisation works are self determination where they guide people and community to resolve and develop their future, empowerment in which they are authorised with commited collective and individuals, partnership in which the organisation believes working as together, for economic, social and organisational development they believe working in an effective manner as a partnership. Skillshare international are also commited to adapt and respond to the development challenges for disadvantaged community rights, promote and protect them. Abide our cooperators to absorb in our policy evolution and argues succeding with our mutual apparition and ethics. And carry more and more immpressive programs and continually better working together in act of fields.

Looking at the financial statement of Skillshare International now we will analyze the financial performance of this NGO. The financial statement

Now we will discuss the ethical policy of Skillshare International at present the Skillshare International is exploiting upon several activities such as educational activity for miserable, wellness Prevention of HIV (human immunodeficiency virus), AIDS (acquired immune deficiency syndrome), surroundings acting upon for environmental sustainability, authorisation of immature domicile of the society and arousing an social interchange. The policy of the society is very effective appropriate to devote a sustainable approaching to the developing domicile in the society. Merely as an honorable manger the society asks an ethical policy which will evolve an societal conduct for the society and will take in charge the mission to be accomplished with the assistance of finances it will acquire. The indicated ethical policy for the company is to acquire entirely its contributions from ethical references and had better be invested with in order to build up a sound, authorized and sustainable company to the indigent and inadequate. This ethical policy means that the company had better not acquire allows or finances from those foundations which are gratify in inauspicious patterns such as alcoholic beverage, tobacco and a different line of work impacting the wellness of the inhabitant . For example: The delegation of the administration is to bring in the surroundings fair and common but it is contributions are by the administration which embodies pampered in abbreviating of the trees. The investment by the company had better too be arranged in the ethical activities considering the evolution of the inadequate, necessitous and developing. This ethical policy likewise indicates that gratifying in ethical patterns will bring about an beneficial identity to the company Skillshare and it will contribute also bring about an amend enduring to the company amidst its challengers.

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To conclude we could articulate that the Non profit organizations are acting upon one and the same expeditiously for the benefit of the companionship. The analysis from the company Skillshare International for a non profit organization demonstrates that the company is acting all right to accomplish its delegacy. The financial execution appraises for the non-profit-making organization Skillshare international demonstrates that the companionship is acting upon expeditiously along its platform activities. The company had better earnestly conceive the ethical policy indicated and had better act upon for the improve and sustainable companionship to live in.