Assignment 04

Business Analysis

Submitted To: Maam Ayesha Munir

Submitted By: Hasnain Ahmad Farooqi

Roll No: LiF19BSAF0091

Date: 28 01 2022
DEFINATION AND MEANING:

A nonprofit organization (NPO), also known as a non-business entity, not-for-profit

organization or nonprofit institution, is a legal entity organized and operated for a collective,
public or social benefit, in contrast with an entity that operates as a business aiming to generate a
profit for its owners.

A nonprofit is subject to the non-distribution constraint any revenues that exceed expenses must
be committed to the organization's purpose, not taken by private parties. An array of
organizations are nonprofit, including some political organizations, schools, business
associations, social clubs, and consumer cooperatives.

EXPLAINATON :

The key aspects of nonprofits are accountability, trustworthiness, honesty, and openness to every
person who has invested time, money, and faith into the organization. Nonprofit organizations
are accountable to the donors, founders, volunteers, program recipients, and the public
community. For a nonprofit that seeks to finance its operations through donations, public
confidence is a factor in the amount of money that a nonprofit organization is able to raise. The
more nonprofits focus on their mission, the more public confidence they will have. This will
result in more money for the organization. The activities a nonprofit is partaking in can help
build the public's confidence in nonprofits, as well as how ethical the standards and practices are.

Non-profits are created for many different purposes such as: cultural, economic, politic,
religious, educational, among others. These organizations are granted tax-exempt status and all
contributions made to them are tax deductible, as long as they are properly registered.

Normally, not for profits have both paid staff and people that volunteer for the cause of the
organization. Even though they are not designed to profit from their activities they are financially
active and can grow to be big institutions, as in the case of universities, hospitals, churches or
even political parties. The funds to start a not-for-profit organization come from their own
founding members or from a special contribution from a third party.
Examples of Non Profit Organization

Edhi Foundation:

Edhi Foundation is in the second position in our List of Top 15 NonProfit Organizations in
Pakistan. Edhi Foundation is the biggest name in Pakistan’s charity organization in Pakistan. It is
one of the best social welfare service providers across the world running on the non-commercial,
non-political, and non-communal basis. It is serving round-the-clock without any discrimination
of color, class, and creed and is enjoying exclusive credentials in the shape of awards and shields
conferred upon Mr. Abdul Sattar Edhi (late) and Mrs. Bilquis Edhi by governmental and non-
governmental organizations on a national and international level for rendering their exemplary
services to humanity in multidimensional fields. Edhi has the largest ambulance fleet in the
world.

 Shaukat Khanum Cancer Hospital:

Shaukat Khanum Cancer Hospital is in the third position in our List of Top 15 NonProfit
Organizations in Pakistan. Shaukat Khanum Cancer Hospital is one of the largest charity
organizations in Pakistan established by Imran Khan. Imran Khan, after touching the heights of
popularity through his great career in cricket and now also in politics as the chairman of Pakistan
Tehreek-e-Insaf (PTI) Pakistan’s second-largest political party till date, holds great concern for
people suffering from this deadly disease With its successful operation in Lahore and Peshawar,
Shaukat Khanam Cancer Hospital employs modern technology and advanced machinery for the
detection and treatment of various types of cancer. The formation grips the services of qualified
doctors serving the people who are unable to afford the cure of cancer. The hospital does not
charge a single penny and turns the infected individuals towards better life from the death edge
OBJECTIVES

Financial Objectives:
Financial objectives include raising enough money to fund the activities included in their
strategic plan, as well as fixed costs such as premises rental, staff compensation and utility
bills. Nonprofits can generate income through fundraising activities or revenue that results
from services they provide.

The primary objectives are to break even and maximize cash flow, while avoiding excessive
financial risk.

OPERATIONAL OBJECTIVE:

The operational objectives include short-term dates for the completion of individual projects
and programs, the resources used for each and the degree of success that the organization
wants to achieve.

GOVERNANCE OBJECTIVE:

Governance objectives include the establishment of sound policies for issues such as
compensation, purchasing and procurement, human resource and volunteer management and
asset and risk management.

PATNERSHIP OBJECTIVE:

Partnership objectives identify the type of external parties with which the organization could
partner, and ensure that potential partners’ principles and philosophy are in accordance with
the organization’s work.
Funding Strategy:

Events: Fundraising through events is extremely common in the nonprofit world. Open a
weekly newspaper and you will find any number of local events being put on by nonprofits.
Events are great. They engage your constituents and allow people to become involved with
supporting your organization at almost any level.

Annual Appeal: A nonprofit’s annual fund is made up of donations given without any
restrictions as to what the donations are used for. The annual fund is raised through a direct
appeal to the widest possible audience--from known regular donors to occasional donors to
haven’t-yet-donated prospects. This appeal usually goes out in direct-mail format in the late fall,
hitting people at the holidays when they're feeling the most generous and looking ahead to the
end of the calendar year and the benefit of a tax deduction.

Membership: If your organization is such that membership makes sense, by all means, offer
membership. Rolling membership refers to when the membership renewal is one year from the
date of joining. This means that membership income is coming in at almost every month of the
year. It also means that someone has to be sending out renewal notices all year long. This sounds
ominous, but even the simplest database can help keep track of this.

Keep your vision in mind: This helps you decide the principles and values that will govern
your fundraising efforts. For example, you could choose to keep your programme or campaign
independent of powerful political voices, or refrain from partnering with companies/industries
that are known to indulge in labour violations. This gives you an indication of the sources of
money that would be acceptable and those that would not.

Consider your fundraising mix: Try and work towards a mix that includes diverse project
funding (with programs divided between donors) as well as a small pool of unrestricted funds.
Additionally, it’s good practice to explore approaching funders that would be ready to invest in
the process of fundraising itself.