What Is A Non-Profit Organization

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What is a nonprofit organization? A nonprofit is a tax-exempt organization that serves the public interest. The purpose of a nonprofit organization is to be charitable, educational, scientific, religious or literary. Nonprofit organizations do not declare a profit. They utilize all their revenue available, after paying normal operating expenses, to serve the public’s interest. A nonprofit organization can be unincorporated or incorporated. An unincorporated nonprofit cannot be given federal tax-exempt status. When a nonprofit organization is incorporated, it has many similar characteristics with corporations that are for profit. The main difference is that nonprofit organizations do not have shareholders. When a nonprofit organization is given a tax-exempt status, it is exempt from paying federal income taxes. Most state and local taxes, property tax and tax on assets are also exempt. This is not always the case. Some states have different rules. Nonprofit organizations have paid and volunteer staff. They can have clients, can offer products and services, they have a need for revenue, they can advertise their business, and they also must be concerned with overall customer satisfaction. Customers can be those they assist or those who contribute donations to support their operation, programs and services. Nonprofit is still a business that must serve the public’s interest. There is a perception that working for a nonprofit organization is limiting yourself as far as salary. This is true in most cases, but universities, hospitals, and large national charities are examples of organizations that can be “nonprofit” but have pay scales similar to any for-profit corporation. CEOs of major hospitals can earn as much as $500,000 to over $1,000,000 in salaries and bonuses. University presidents can make similar salaries. However, local training centers and food banks will be places where a lower salary will be supplemented by payment from personal satisfaction that you helped a person learn to read or a family to have enough food for each person to eat a decent meal.

Children Now is the type of organization that was just described. They are a research and action organization dedicated to assuring that children grow up in economically secure families, where parents can go to work and be confident that their children are supported by quality healthcare coverage, a positive media environment, a good education early on, and safe, enriching after school activities that they can participate in. Their programs reach parents, lawmakers, concerned citizens, business, media and community leaders. These various partnerships have brought about positive changes for children. Children Now was founded in 188. It has been a leader in developing new strategies and ways to move children up as a higher priority on the nation’s agenda. Children Now is recognized for its policy expertise and its up-to-date information on the status of children, as well as its outstanding work with the media to improve the ways that new coverage of children is presented. Their accomplishments include a reform to the California’s child support system and new children’s health care benefits. They have had award-winning media campaigns that were designed to motivate and help individuals to make a difference for children; and higher quality coverage of children’s issues in the media. This is being done by ongoing work and convening of media leaders. Recognized for its expertise in media as tool for change, Children Now designs its strategies to improve children’s lives while at the same time helping America build a sustained commitment to putting children first. They are able to be an effective and independent voice for children because of the generous support from their many donors. Children Now is a private, 501 (c) nonprofit charity. They are financed through foundation grants, individual donations, and support from the corporate community.








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