Non Profit Organization

 Non profit organisation is an incorporated Organisation .

 It exists for service or a charitable reason.
 Share holders & trustees do not get any income.
 The money earned by NPO must be retained by the
organization and used for
 Expense
 Operations
 Programs.
In economic terms, NPO uses its surplus revenues to further
achieve its purpose or mission, rather than distributing its
surplus income to the organization's shareholders as profit
or dividends.
NPO
 NPO Basics
 NPOs created and operated to contribute to the public's
benefit.
 Goal may vary widely.
 However, all NPOs must return all of their revenues beyond
operating costs back into the organization itself.
 The above is the NPO's core difference with the for-profit
entities, such as business houses.
 A NPO must secure nonprofit status through the IRS….
 to receive tax-exempt status,
 To avoid income taxes
 enable donors to the organization to claim a tax deduction.
Objectives of NPOs
1. Strategic: Focus on service provided to its target area
2. Financial: Collecting money from the trustees to fund
the activities of organisation
3. Operational: Completion of projects and programs
within targeted time
4. Governance: Accountable to their donor and grants
provided.
5. Service : Reduction in inequality & poverty in the
society
 Eligibility & Types of NPOs
 The IRS identifies the different types of NPOs by the tax code by
which they qualify for exempt status.
 One of the most common forms is 501(c)(3).
 NPO is set up to do charitable, educational, scientific, religious
and literary work.

Types of NPOs–
 Public Charities: Organisation providing free and low cost
service
 Foundation: Sponsor numerous programs and events in
community and regional areas.
 Social Advocacy Organisation : Activity by an individual/ group
which aims to influence decisions within political, economic,
and social systems and institutions.
 Professional and Trade organization : Providing service in
their profession
Funds
 As non-profit organizations, they rely on a variety of sources
for funding projects, operations, salaries and other overhead
costs.
 Because the annual budget of an NPO can be in the
hundreds of millions or even billions of dollars, fundraising
efforts are important for it's existence and success.
 Advantages & Disadvantages
 Provides support for public
causes 1. Lack of profit motive
 Exempt from tax 2. Trustees receive no
 Donor exempt from tax financial rewards
 Highly motivated & 3. Getting grants is time
dedicated employees consuming.
 Eternal life 4. Social pressure
 Service motto 5. Volunteer membership
 Good rapport with public
 No restrictions from Govt.
Isha Foundation
 Isha foundation is one of the great NPO of India founded
by Sadguru Jaggi Vasudev at 1992.
 It mainly focuses on yoga , social upliftment, ecological
conservation by the methods of Yoga, Meditation , Tree
planting, Rural upliftment etc.
 It currently have 5 million followers
 Slogan: The silent revolution for self realization
 Social and Environmental initiatives
 PROJECT GREENHANDS
Ecological balance to maintain healthy environment
 ISHA VIDYA
To improved quality of rural education
 ACTION FOR RURAL REJUVENISATION
Plan has started in 2003 and covered 4200 villages
 RALLY FOR RIVERS
Most popular project to tackle the scarcity of water in India
and spread awareness about rivers .
THANK YOU