Nature of a non profit organization is to serve the public for a defined purpose, without being profit oriented. The establishment of such an organization is not for businesses or for individuals to shield their assets or avoid payment of income taxes.
Statutory body of taxes in any country will determine what types of organizations can qualify to be non-profit or tax exempt. Non profit organizations are permitted to make profits provided profits are channeled to the specific needs that are approved by the tax regulatory body of the country where the organization is registered.
The types of non-profit organizations that are most common are mostly religious organizations and public benefit organizations. Public benefit organizations function from donations and grants received from the public or corporations. Most often these organizations struggle for funds for existence and continuation of their organization, in order to meet the challenging goals they work towards achieving. Their fund raising campaigns never seem to cease.
Types of non profit organizations that occur based on the nature of their work include:
Prevention of cruelty to children and animals
Healthcare and public health
Fostering national or international amateur sports competitions
and many other organizations to promote social responsibility.
Non profit organizations are usually formed according to the passion of a person or a group of people who share the same enthusiasm. Though the organization will be built on the Mission Statement they have formulated, there may be times when it is possible that the organization will operate according to the personality of one of the members (usually the founder) of the organization. This is called the founders syndrome. It is important to be aware of this syndrome, and from inception to be alert enough not to mould the nature of a non-profit according to this syndrome. Or if it is already in such a situation, then it is important to take remedial measures to get out of this syndrome as fast as possible, before it is too late, as it can affect the progress of the organization greatly.
As discussed, most of the non profit organizations are religious, and a majority are based on the Christian faith. The nature of such Non Profit Organizations will be guided by their Mission and their Objectives, which are based on the Scripture and therefore, their guidelines will be the Bible, which encourages Christians to show, love, compassion and charity to others. Based on these principles, they are seen working in remote areas, sometimes in dangerous situations, often in developing countries, on humanitarian work. Their work is selfless and sacrificial and in most cases, without any rewards or comforts. Their work is based on their love for their Creator, but often in non-Christian countries, they are misunderstood.
Though the nature of various non-profit organizations may differ, what is common is that they all work towards the uplift of humanity and to serve the public so that this world will be a better place for all man kind.