Identify ways in which states regulate not-for-profit organizations
Identify ways in which states regulate not-for-profit organizations
Homework Answers
Solution. Not-for-profit organizations are organizations which work and operate in order to provide service to society and thereby, contributing to growth and development. Such organizations raise capital by asking donors to come up and donate through their platform, to finance their set objectives/goals. Any form of profit or revenue generation from their activities are re-invested for advancement of their existing process.
Regulations by states on not-for-profit organizations are enlisted down:
a)Organizations working under this head, need to go through and work under their respective state's rules of operation, starting from generation of donation through donors to distribution of any revenue generated on working of organization and not among themselves.
b)They set criteria and regulate activities of organizations under this head which it needs to meet to qualify for tax exemptions. They require such organizations to align with their policies in order to get certified under not-for-profit head.
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