Question

Earned Income Strategies discusses efforts by nonprofit organizations to increase and diversify their sources of revenue by entering into corporate partnerships. Eample: Macy's and their "Go Red for Women Campaign" (Macys.com/GoRed). Research and discuss a Case that uses this practice. List the nonprofit organization and their partner. Questions to answer: 1. What does the nonprofit stand to gain (or is currently gaining) from this partnership? 2. What does the corporate partner stand to gain (or is currently gaining) from this partnership?

Answer 1

Non-profit Corporation

• This corporation is incorporated to fulfil a social cause
• Is exempted from taxation
• Not liable to pay dividends
• If dissolute happens, the assets of the company get distributed among different NGOs

A non-profit organization is one that conducts business with the objective of doing social good rather than making profits. The capital in this form of business comes in the form of charity and donations. This capital is used to help needy or to satisfy the social objective of the company like conserving some resource, providing health care to old people, providing education for orphans and under-privileged children, etc.

The rate of output for a non–profit organization can be considered as the rate of social change that the business has been able to accomplish or the number of people covered or helped by the social activities.

Various non-profit and for-profit organization come together for a special cause. For example: P&G and Save the children NGO come together for the flagship program of P&G- Shiksha. This initiative aims at providing basic education to all children of the society. Both P&G and Save the children have associated to fulfil their objectives. P&G wants to contribute in CSR and develop a positive brand image for the company. Save the children is trying to fulfil its organization objective of saving the children by making them independent.