Financial Management in Nonprofit Organizations. This paper provides us an insight of the application of financial management techniques of a Not for profit organisation and also a comparing with For-profit organisation.

The first 200 words of this essay...

Executive Summary

Financial management plays a very significant role to make an organisation successful whether it is a non-profit organisation or a profit motive organisation. Financial management is considered as a critical path, which all organisations have to follow to attain success. This paper provides us an insight of the application of financial management techniques of a Not for profit organisation and also a comparing with For-profit organisation. Although, the strategic management process for both the organisation is very similar. However, a non profit organisation often function in a monopolistic environment which render services or produce product which offers low measurability (profit) and depends on finances from outside sources. The nonprofit sector is growing and the need to understand its efficiency, governance is very important for its stake holders, investors, donors, tax authorities and regulators.

Introduction

A Not for-profit organisation or Nonprofit organisation or NPO is a tax exempted organisation which is formed with the primary objective or goal in mind. It renders service to the public without making a profit. To be considered as a non profit organisation an organisation needs to be classified as an educational, religious, charitable or scientific organisation. A Non profit organisation does