Financial Stability In Not-For-Profit Organizations: A Case Study

Abstract

A nonprofit organization (NPO), is defined as a business “not conducted or maintained for the purpose of making a profit” (merriamwebster.com). However, to pursue the goal of benefiting society, a nonprofit must have enough funds in order to further their mission. Nonprofits rely heavily on government funding, outside donations, and fundraising to get what they need, but the amount received by an organization fluctuates year to year which makes budgeting and accounting difficult. This thesis will work to evaluate the financial and business processes of the not-for-profit organization called Partners in Development located in Ipswich Massachusetts. Partners in Development is a recognized 501(c)(3) organization that sends teams of volunteers to Haiti, Guatemala, Peru, and the Mississippi Delta to build homes, and provide medical care and clean water to those in need. Based off of extensive research in the not-for-profit sector as well as an interview with the organization’s President; this thesis will identify and explain the business and financial practices of this organization that result in its success, and serve as an example for those wishing to pursue their lifelong dream of helping others.