Question
I would like to comment on your opinion towards the tools used by not for profitorganisations.I came across a Journal of Administrative Services, which states
I would like to comment on your opinion towards the tools used by not for profitorganisations.I came across a Journal of Administrative Services, which states that the Non-Profit organization seem tomodify their reported expenses in order to demonstrate higher efficiency ratios to reduce taxable income and to report small or zero profits. In the US, non-profit organizations efficiency is expressed in terms of ratios. Expenses are classified as either fund raising, administrative, or program expenses. This in turn reveals as to why it could be happening with the Non-profit organizations and why they deviate from the use of the investment methods. (Sandra etal. 2012).
Would you agree with these sentiments?
Class,
What does your experience say in this regard? Do you agree that the not for profit are as vigilant as their for profit counterparts in assessing the investment? It would be great to hear stories from different parts of the world with reasoning. (provide
References :
SandraVerbruggenandJohanChristiaens, (2012),"Do Non-profit Organizations Manage Earnings toward Zero Profit and Does Governmental Financing Play a Role? Canadian Journal of Administrative Sciences, September 2012, v. 29,iss. 3, pp. 205-17, Available at:http://ejournals.ebsco.com.ezproxy.liv.ac.uk/Direct.asp?AccessToken=95JJ5IM8X5MXDUKJ4UKX9KIMJDZ48119QM&Show=Object
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