Non-profit organization can be a non-governmental organization but non-governmental organizations have a broader meaning, can be a global organization but operate independently and are not related to the government of any country.
In many countries, want to be recognized as a Non-profit organization should follow a clear procedure under local law and in accordance with international practice, to get recognized.
While the organization for profit exists to identify and distribute business profits after taxes to the shareholders, the non-profit organizations exist only to provide programs and services to benefit the community. Usually these programs and services are not provided by the local entity or country. We can make a profit, more accurately referred to as surplus, but the surplus so it must be held to accumulate retained for programs and services in the future. The income and can not benefit individuals or investors. The non-profit organizations may use the funds to hire a small personal management and leadership.
In the past, many nonprofit organizations do not accept this and see that business is up and running after money, but since the late 1980s have developed a consensus that nonprofit organizations can achieve their mission more effectively by using a similar method was developed in the Enterprise for profit. These methods include the internal management efficiency, ensuring may account for the results, monitor the effectiveness of the department or project to achieve the best use of funds and manpower . This requires the management and therefore good governance is essential to the mission of the nonprofit organization can achieve.
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