An Historical Account Of Non Profits A non-profit action or a not-for-profit entity in the simplest of terms is a group of certain individuals working towards a common objective other than revenue generation for personal gains. The widely popularized non profit actions are generally ones that target social issue or voice the opinion of a certain section of the society on a particular issue. The surplus funds generated by such organization are utilized in furthering the designated causes and actions. The very first charitable organization in the world is believed to have been situated in London. The year 1741 is thought to be the time when the concept of non-profits first emerged in the world. The Foundling Hospital in London is supposedly the first non-profit entity to ever exist in the era of mankind. Later on, YMCA was founded in the year 1884, and The Red Cross was established in the year 1881. After the Tax Reform Act in 1969, the number of non-profits in the US increased rapidly over the years. As stated by the Business Master File (4/2016), 1,571,056 tax-exempt organizations were monitored to be up and running. Prior to the emergence of modern laws, non-profits indulged in giving away large salaries to the employees working at the upper level of the organization’s hierarchy. As new laws came into effect that stated the terms for a business to be formed non-profit, a cap on the salaries of the employees of not-for-profit organizations came into being. However, it is a common misconception that a non-profit entirely consists of volunteers and zero salaried employees. Salaried employees do exist in the non profit sector, but the salaries aren’t extravagant. Non-profits are growing at a much faster rate when compared to commercial organizations. One thing can be interpreted from the above fact; humanity is taking baby steps towards attaining its best. Theodore Roosevelt has said it best; “No one cares how much you know until they know how much you care.”
When was the first volunteer organization created in the U.S.? 1736! Were donations to charities always tax-deductible? No! There are many questions and facts about non profits that may surprise people that work in the industry. It is important to understand the history of non profit organizations in order to see where the future may go. Nonprofit organizations actually pre-date the constitution and formation of America. Famously, Alexis de Tocqueville wrote in 1831: “I must say that I have seen Americans make a great deal of real sacrifices to the public welfare; and have noticed a hundred instances in which they hardly ever failed to lend a faithful support to one another”. “No one cares how much you know until they know how much you care.” -Theodore Roosevelt
https://www.npaction.org/history-and-growth-of-non-profit-action/
https://www.wholewhale.com/tips/15-historical- nonprofit-moments-you-should-know/
3
Made with FlippingBook - Online Brochure Maker