Stakeholders of a Typical Non Profit Organization

A stakeholder is an individual or group which has an interest that the non profit fulfills its mission. Anyone who is interested or affected by the nonprofit organization and its services is a stakeholder. Stakeholders in the nonprofit sector include the following:

1. BENEFICIARIES – The people and parties who actually use the services and goods created, distributed, or allocated by the non profit organization are the users.

2. DONORS AND FUNDING SOURCES – Those who help in funding the operations of the non profit organization are the donors and the funding sources.

3. COMMUNITY – The surrounding community as a whole has a stake in how well a non profit organization completes its mission and objectives.

4. EMPLOYEES & VOLUNTEERS – Employees and Volunteers provide vital services to keep the nonprofit running and are important stakeholders for nonprofit organizations. In return it seeks emoluments or recognition of its services. It also seeks protection from personal liabilities.About 11 million people or near about 7 percent of the entire U.S. work force comprise the United States non profit sector.

5. FEDERAL, STATE AND COUNTY ADMINISTRATION – Government at all levels is an important stakeholder for nonprofit organizations. It requires the organization to furnish periodical reports of various kinds and in return it provides the organization with benefits like tax exemptions. tax deduction, government grants and several other benefits

The non profit organizations are exempted from paying taxes and for this the following should be taken care of:

• They should not engage in political campaign activities.
• They can not diversify according to the changing markets or the community needs and must stick to the purpose for which they were established.
• They must be controlled by their own boards and can not have a management team from outside.