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Non-Profit organizations (NPOs) are those that are focussed on furthering a particular social cause. NPOs are businesses that are granted tax-exempt status by the government as they are responsible for furthering a social cause along with providing public benefits.
NPOs being public extensions of a nation’s revenue department are charitable institutes. They do not have to pay income tax on the money that they receive. They are allowed to operate in the areas of religion, science, research, or education.
The key feature of any NPO is its accountability, trustworthiness, honesty, and openness. They are accountable to their donors, volunteers, and the public community.
NPOs use all the revenue and resources at their disposal to further advance the organization. The key roles of an NPO include charity or social welfare, religious functions, research & education. They play a role in the growth of the social and economic well-being of society.
Non-profit organizations are founded solely with the purpose of pursuing a goal. They are not formed for profit generation and neither any of their proceeds to go to its members or leaders. NPOs rely on funds received through contributions or membership fees, or from events conducted, etc.
Though NPOs raise money, they spend it only to further their mission. They are allowed to pay employees from the funds raised. For example, the purpose of an NPO could be to feed the homeless, and so on.
An exhaustive database of charities and non-profit organizations is usually segmented based on the various categories like Arts, Culture & Humanities; Education and Research; Environment and Animals; Health; Religion, etc.
You can search this database to find a charity to support, or benchmark your own NPO’s performance. Further, you can use this database to research the sector.
NPOs use a donor database which is a central hub to store the information about their contacts. It helps them to track their donations and other details stored. It includes their contact information and includes history with the organization. Donor databases are useful for NPOs as it keeps all the information in one place. Spreadsheets, CRM software, or donor management software are used as donor databases.
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