Not for profit organization:
A non profit organization (NPO) is an organization that uses surplus revenues to achieve its goals rather than distributing them as profit or dividends. While not-for-profit organizations are permitted to generate surplus revenues, they must be retained by the organization for its self-preservation, expansion, or plans. NPOs have controlling members or a board of directors. Many have paid staffs including management, while others employ unpaid volunteers and even executives who work with or without compensation (occasionally nominal). Where there is a token fee, in general, it is used to meet legal requirements for establishing a contract between the executive and the organization. Designation as a non profit does not mean that the organization does not intend to make a profit, but rather that the organization has no owners and that the funds realized in the operation of the organization will not be used to benefit any owners. The extent to which an NPO can generate surplus revenues may be constrained or use of surplus revenues may be restricted. Not for Profit Organization with context to India
India's complexity as a country lies in its religious, political, ethnic, social, and cultural Diversity, as well as in its long history of civilization.2 Therefore, defining the non profit sector in India is a difficult task because no single underlying theme or pattern can characterize development of the non profit sector. Hence, this chapter uses a historical perspective as an analytical tool to describe definitions -- both conceptual and legal -- that are then related to the structural/operational definition of the non profit sector suggested by Salamon and Anheier (1992). The sector and the various terms used to describe it are analyzed in the context of the broader political economy at various periods of history to uncover underlying themes that are useful to understand its present and past role. It is useful to divide the development of modern voluntarism3 and the Indian non profit sector into four periods: the mid to late colonial period (1810s to 1947); the early post-independence period (1947 to the late 1950s); the period between 1960 and 1980; and the more recent past since then. Each period is characterized by a number of distinct themes or patterns that are important to understand the development of the non profit sector in India: • The dominant themes of the late colonial period included patronage received by the Church-based non profit organizations (NPO) to intervene in the social and religious life of the indigenous population; demands made on the colonial state by the Hindu elite for social and religious reform; socio-religious movements and organizations formed by other religions; introduction of a political content in voluntary work by the turn of the century; and emergence of new forms of communal, religious, and separatist movements and organizations. • The salient pattern in the early post-independence period was the emergence of a large number of Gandhian NPOs. This is attributable to the initiative taken by the newly independent Indian state to promote NPOs in development work. It can also be viewed as an alternative reward given to the followers of the Gandhian movement who did not or could not join the government. The period is also characterized by the existence of religion-based NPOs (both Christian and non-Christian) primarily involved in relief work. • Many new trends appeared in the 1960s and 1970s of which the most distinct were the emergence of "welfare-oriented" NPOs in the 1960s and "empowerment-oriented" NPOs in the 1970s.4 The emergence of both groups is related to the socio-economic and political context of India at that time and is discussed in detail in the next section of the chapter. • The patterns of the 1980s and 1990s are the formation of non-governmental organizations (NGO) and resurgence of separatist and fundamentalist movements and...
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