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Managing Non-Profits and Social Enterprises (MGMT 352) Week 2 - Mind Map -…
Managing Non-Profits and Social Enterprises (MGMT 352) Week 2 - Mind Map
Legal Requirements for Non-Profits
Must create articles of cooperation.
Must hold regular meetings with members.
Must not be able to operate for profit.
Must file a statement of cooperative purpose with SOS and pay a one-time fee.
Are exempt from income taxes if they hold to the promise to conduct business for the good of the general public.
May be able to charge money for services, but are required to make donations tax deductible.
Regulatory Requirements for Non-Profits
Non-profit organizations are not allowed to participate in electioneering.
Limited ability to advocate for policies that affect their cause.
Are not allowed to move undue benefits to any person or organization.
The board of directors is required to write the charter, bylaws and documents.
Must follow and mandate the rules in the states and other states they currently operate in.
The board of directors currently has a final say in what decisions are made.
Legal Requirements for Social Enterprises
Registered Charity (Company Limited by Guarantee)
In order to become a registered charity, the organization must register with the Charity Commission.
Company Limited by Shares
This is the most frequently adopted legal structure through the corporate area, and the governing body would be the Board of Directors.
Company Limited by Guarantee
The Company Limited by Guarantee is the popular form of the incorporation of the social sector organization. The Board of Directors would govern this.
Industrial & Provident Society
These are essentially the co-operatives that are run and member-owned but may operate for the benefit of a community as well as their members.
Registered Charity (Unincorporated Association)
In order to become a registered charity with this association, the organization must be registered with the Charity Commission.
Community Interest Company
This form of organization can be a private company which is limited by guarantee or by the shares or through a public company.
Unincorporated Association (Voluntary / Community Organizations)
Most of the voluntary and community based organizations are not incorporated by association.
Regulatory Requirements for Social Enterprises
Since 2008, more than thirty states have signed legislation to authorize a new corporate form that would enable social enterprises.
Although most social enterprises do have charitable properties in place, others seek environmental change as a sort of product for the business enterprises.
In support of saying that social enterprises are not adequately regulated for charities, he cites the model act that concerns solicitation of charitable purposes.
Based on the analysis that was done by Esposito, they have concluded that social enterprise enabling corporate forms would ride against the state legislature.
Any scholars claim that the social and environmental purposes that social enterprises have pursued are similar to the charitable purposes and could have jurisdiction.
Relationships/Similarities Between Non-Profits and Social Enterprises
Non Profits
Uses the extra money that was raised through fundraising or donations to achieve the mission.
This is used as the main goal instead of giving away the extra income towards the board of directors as profit.
A nonprofit is a sort of used term to describe an organization known for putting all of the money towards a certain social issue.
Social Enterprises
They sort of apply the strategies to commercial use to have maximum involvement in human and environmental well-being.
They can be structured as a for-profit or a non-profit and they may be able to take the form of a mutual organization or a charity.
A social enterprise is a term used to describe an organization that can use the money it has raised towards further studying or using it for a further cause.
Unique Differences of Non-Profits and Social Enterprises
How They Attain Money
Social Enterprises
Usually operates like a for-profit business as they sell a product or service to a public view and get funds through the sales.
Non Profits
Usually acquires their money through efforts like fundraising with public viewers or private donations.
Return on Investment
Social Enterprises
They have always used a format such as a blended ROI with a mix of social and financial rate of investment.
Non Profits
They usually have a format such as an absolute socially formatted investment rate with all of the revenue towards the mission statement.
Methods of Operation
Non Profits
They usually are operated in a unique manner with seeking large amounts of support through the government and private donors.
Social Enterprises
They use the methods same as for profits and the disciplines are the same and they try to get big margins and high revenue.