Non-Profit

Social
Enterprises
By Arnav Bhandary and
Harshavardhana Rontala
Non-Profit Social Enterprises
● Non-Profit social Enterprises are organizations traditionally dedicated to furthering a
particular social cause or advocating a shared point of view. In economic terms, it is an
organization using the surplus of its revenues to further its objective, rather than
distributing its income to the organization's shareholders, leaders, or members.
● Nonprofits are not driven by generating profit, but they must bring in enough income to
pursue their social goals. Nonprofits are able to raise money in different ways. This includes
income from donations from individual donors or foundations; sponsorship from
corporations; government funding; programs, services or merchandise sales; and
investments. Each NPO is unique in which source of income works best for them.
● Some Examples include : Public Libraries // State Schools // Museums // Government
Hospitals // etc.
 Features
● Its main element is to serve society.
● No surplus gets distributed among its members.
● Major funding is done by donation and contribution in the non-profit
organization.
● The non-profit organization also considered a separate legal entity.
● The elected members of the organization handle the administration.
● Numerous non-profit organizations are dependent on the active assistance
of the volunteers.
Pro’s & Con’s of a NPO
Examples
● The Metropolitan Museum of Art
● The American Red Cross
● Greenpeace
Case Study
How does TED make money?
TED makes money through conference attendance fees, sponsorships, foundation support, licensing fees and book
sales, and they spend the money as soon as they get it — on video editing, web development and hosting for TED
Talks and TED-Ed videos, support for community-driven initiatives like TEDx and the TED Fellows, and of course,
paying fair salaries to staffers and interns.

TED Talks on the web are also supported by partnerships with carefully selected organizations; their ads on the
videos and website support making TED Talks available to the world for free in many languages and on many
platforms. TED is very selective in the organizations we partner with. Other projects and initiatives are supported by
foundation funding and individual donors.

They’re also supported in kind by tens of thousands of volunteers — like all the amazing translators with the Open
Translation Project, TEDx organizers, TED.com conversation moderators, and everyone who ever shares a TED Talk
with someone else.
Non-Government Organizations
● Organizations which are independent of government involvement are known
as non-governmental organizations or NGOs or non-government
organizations.NGOs are a subgroup of organizations founded by citizens,
which include clubs and associations which provide services to its members
and others. They are usually nonprofit organizations. Many NGOs are active in
humanitarianism or the social sciences.
● As such, NGOs rely on a variety of funding sources from private donations and
membership dues to government contributions.
Difference b/w NGO and NPO
● A Non-Governmental Organization (NGO) and Non-Profit Organization (NPO) both
work not for the purpose of making profit but for social good. Many of their goals and
initiatives are similar to each other as well.
● NGO’s are wider than NPO’s. NGOs operate on an international level whereas NPOs
focus on benefiting areas locally .
● An NGO can be registered by the following methods, i.e. as a Trust under Public Trust
Act, or as a Society as a Societies Registration Act, 1860 or as a non-profit company
under the Companies Act, 1956. On the other hand, an NPO is incorporated as a
company under section 8 of the Companies Act, 1956.
 Features
● Voluntary associations
● Autonomous
● Service Motive
● Own funds
Pro’s & Con’s of NGO's
Advantages:
● Tax exemption
● Eligibility to apply for grants
● Structure
● Fewer liabilities

Disadvantages
● Expense
● Documentation
● Control
● Subject to public scrutiny
Examples
Charities
● Charities are non profit social enterprises that provides voluntary support for
good causes (from society’s point of view) such as protection of children,
animals and the natural environment.
● Its key function is raising funds from individuals and organizations to support a
cause that is beneficial to society.
Features of a Charity
● Customizable campaigns which reflect your nonprofit's brand
● Financially and operationally fit
● Effective leadership
● Collaboration and information sharing
● Simple and easy methods for people to use to donate
How do Charities make money?
As charities don’t sell anything, how do they make money? Charities usually
use five methods to make money and function as a enterprise:

● Volunteerism
● Gala events
● Product Sales
● Events and performances
● Publicity
Examples of Charities
● Oxfam
● The World Wide Fund for Nature
● Feeding America
Advantages of a Charity
● Social Benefits
● Tax Exemptions for NPO’s
● Tax Incentives for Donors
● Limited Liability
● Public Recognition and Trust
Disadvantages of a Charity
● Bureaucracy
● Disincentive effects
● Unpaid Board
● Inefficiencies
● Limited Sources of Finance
References (For Charities)
https://www.investopedia.com/financial-edge/0712/the-many-ways-charities-make-money.aspx#:~:text=Charitable%20organizations%
20survive%20primarily%20on%20donations.&text=There%20are%20five%20main%20ways,to%20bring%20in%20more%20donations
.

https://knowhow.ncvo.org.uk/setting-up/charitable-status/pros_and_cons_of_becoming_a_charity

https://www.claromentis.com/blog/key-features-of-charity-non-profit-intranets/
References (NGO’s & NPO’s)
https://theinvestorsbook.com/non-profit-organization.html

https://en.wikipedia.org/wiki/Non-governmental_organization

https://asianngo.org/magazine/post-magazine/article/article-detail/161/what-are-the-advantages-disadvantages-of-becoming-a-nonprof
it-organization#:~:text=For%20NGOs%20and%20nonprofits%2C%20they,case%20necessary%20expenses%20were%20made.

https://www.ted.com/about/our-organization/how-ted-works