Class notes 1.1 Business Basics Section 6- The Role of the Nonprofit
6 views 0 purchase
Course
Introduction to Business (BUS101)
Institution
Divine Word College Of San Jose
This lecture note contains the information about BUS101: Introduction to Business. It is under Unit 1: Context to Business, 1.1 Business Basics: What is Business?
Under this is Section 6: The Role of the Nonprofit
BUS101: Introduction to Business
Study guide and Definitions
Unit 1: The Context of Business
1.1 Business Basics
Section 6: The Role of the Nonprofit
Nonprofits play a vital role in society by focusing resources and providing services to
community needs without regard to profit.
Learning Objectives
● Identify the role of nonprofits in society
● Outline the characteristics of a nonprofit
Key Points
● While NPOs are permitted to generate surplus revenues, these revenues must be
retained by the organization for its self-preservation, expansion, or plans.
● Some NPOs may also be charity or service organizations. They may be organized
as corporations, trusts, or cooperatives; or they may exist informally.
● Both NPOs and for-profit corporate entities must have board members, steering
committee members, or trustees who owe the organization a fiduciary duty of loyalty
and trust.
● NPOs have controlling members or boards. Many have paid staff including
management, while others employ unpaid volunteers and even executives who
work with or without compensation (occasionally nominal).
Terms
● Fiduciary
-Related to trusts and trustees.
● Jurisdiction
- The limits or territory within which authority may be exercised.
● Dividend
- A pro rata payment of money by a company to its shareholders, usually made
periodically (e.g., quarterly or annually).
Nonprofits Defined
- A nonprofit organization (NPO) does not distribute profits or dividends. Instead it retains
any earnings or surplus revenues to achieve its goals. An organization is deemed
eligible for nonprofit status under US Internal Revenue Code Section 501(c).
- While nonprofit organizations are permitted to generate surplus revenues, these
revenues must be retained by the organization for its self-preservation, expansion, or
plans. NPOs have controlling members or boards. Many have paid staff, including
management, while others employ unpaid volunteers and even executives who work
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller cattydifuntorum. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
