CORPORATE SOCIAL

RESPONSIBILITY
Chapter 8
CSR IN NOT FOR PROFIT
ORGANIZATIONS

Not For Profit Organization

(NFP)
Is

one whose objective is to

support or engage in activities
of public or private interest
without any commercial or
monetary profit.

Not For Profit Organization

NO

profit motive

Emphasis
Money

provision of SERVICE

DOES NOT come from

recipient of the service

Not For Profit Organization

Example

ASENSO PINOY FOUNDATION, INC.

(Formerly Fransource Foundation, Inc.)
FranSource Foundation Inc is a non stock, nonprofit organization. We help Filipinos uplift their
lives through education and livelihood programs
such as; Christmas gift giving, livelihood
assistance, feeding program (3-5 years old),
medical and dental missions and scholarships
thru provision of tuition fee, school supplies,
uniforms and miscellaneous school expenses
(day care, elementary and high school students)

TYPES of NFP
Organizations
Public

Bodies
- Related to government (local and
health authority)
- Receive funding and powers directly
from the national government

Function:
- provides services to members of
society

TYPES of NFP
Organizations
Quasi

Public Body
- Quasi Autonomous Non-governmental
organizations (QUANGOS)
- get some funding directly from the
government
- housing associations

Function:
- serves a public or civic purpose without
having any direct relationship with the
government.

TYPES of NFP
Organizations
Educational

Institution
- publicly owned organizations or
privately owned
- norm differ between countries
- schools, education colleges and
universities

Function:
- serves as an educational function

TYPES of NFP
Organizations
Charity

- publicly owned organizations or

privately owned
- norm differ between countries
- schools, education colleges and
universities
Function:
- serves as an educational function

STRUCTURE OF A CHARITY
Legal

Environment(charity is
described as intra vires rather than
ultra vires)
Ultra vires
Has the power to do anything
Can extend and change operations according
to market needs and circumstances.

Intra vires
Can undertake activities which is specifically
empowered to undertake.
It is difficult to extend and change its activities

STRUCTURE OF A CHARITY
Tax

and Regulation advantages

with restrictions
Not able to act as a pressure group
Politics are excluded
Trading is prohibited as raising of
funds

Extensive

use of VOLUNTEERs

MOTIVATION of NFPs
Acquisition

of resources in order
to undertake the provision of
services.
Good performance

Budgetary control / cash flow

Performance indicators
Non-financial measures
Qualitative factors

IMPLICATION FOR
MANAGERS
Acquisition

and Utilization of

resources
Setting of Objectives
Measuring of Performance
Influence of Stakeholders
Market Identification

AVAILABLE RESOURCES
Government
Fund

Raising

Trading
Borrowing

AVAILABLE RESOURCES
Government
Fund

Raising

Trading
Borrowing

ACCOUNTING ISSUES
Projects

are long term in nature

but sources of funds are short
term in nature
Direct expenditure rather than
indirect expenditure

CSR ISSUES IN NFPs

STAKEHOLDERS
SUSTAINABILITY
ACCOUNTABILITY
TRANSPARENCY
DISCLOSURE

ACCOUNTING ISSUES
Projects

are long term in nature

but sources of funds are short
term in nature
Direct expenditure rather than
indirect expenditure