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October 7, 2013

Essay on NPO Ethics and Laws

Non-profit organizations are run by people that have the same range of ethical standards similar to their society. In the recent years, non-profit organizations such as Huntington Village Theatre Co. along with several other Long Islands Non Profit Organizations have ever changing financial regulations. Such organizations are also facing many financial problems; hence they are trying to be more like the for-profit companies. (Solnik, 2002)

Non-Profit Organization Ethical Issues
In the Article written by Solnik, he mentions that the main issue with the non-profit organizations is that they have financial issues, and hence they cannot pay their employees, and rely mostly on voluntary work by people. Another issue is that of the people getting involved in and working in non-profit organizations as they will have to work in such organizations with low wages and hard work. (Solnik, 2002)
Finally, there is an issue, of such organizations acting like they are for-profit organizations, which is clearly not socially accepted.   Since many of these nonprofit organizations are facing such problems they have started to develop code of ethics. (Schaefer)

Non-Profit Organization Ethical regulations
Non-profit organizations train their employees to follow the ethical principles of the organization. This training allows them to strengthen their values, describe the language of code, and to determine theoretical and real situations that other organizations have faced.   There are various different ethical regulations made by the Non-Profit Organizations however, relating to the case study, there are some regulations that should be followed to avoid the problems faced by the non-profit organizations in Long Islands. (Solnik, 2002)
The first one is that not only one employee should profit from the organization, this has been a big issue in media, as they feel that only one person gains profit in non-profit organizations, since everyone is working towards a good cause they must all be treated equally, if not paid well.  There are some fundraising issues as well which must have their own regulations set, these include the percentage of the money that is raised usually goes to  the fundraiser, however, the nonprofit companies should make such policies that the money raised goes directly to the organization as the donor would want their money to go to the right place. Finally the employees, customers and volunteers must be treated well, as they are working with no or low wages and hence, must be treated without any discrimination or harassment. (Schaefer)

Different regulations for profit-oriented and non-profit organizations
I greatly feel that there is a need of different regulations for profit oriented and non-profit organizations. As if they did not then one would not be able to differentiate between the two organizations. I believe that if the non-profit organizations follow a certain set of ethical principles, then they would never have to be or act like the profit- oriented organizations.

Schaefer, Arthur Gross, Strategic Modeling: The Ethics Audit for Non-Profit Organizations,
Retrieved October 23, 2010 from

Solnik, Claude. (2002). Not-for-profits by the numbers. Professional Services. Huntington
               Village Theater Co. LI Business News. Retrieved October 23, 2010 from access my                library:        


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