Question

go online and find and depict new non-profit organizations since 2010. do you think the recent rapid growth of new non-profits entering the industry is a good or bad thing or both? explain your answer.

Answer 1

In 2010, the number of non-profit organization were 1.56 million and in 2017, there are more than 1.57 million organization. Though, the increase in number is in thousands, but it shows the quick rise of the formation of non-profit organization in the USA. It shares more than 5% of the total GDP in the USA and accounts for more than 9% of the salaries and wages that are paid to the people in the USA. These data reflects that nonprofit organizations reflect the sizable part of the economy.

The nonprofit organization runs on charities, donations and financial assistance of the different types by different entities, and offer benefits such as health care, child care, old age homes and community development work for the poor, support in disasters and money other similar work. In this way, these non-profit organizations help the US government and do a good work for the society at large. Besides, it creates competition and forces non-profit organization to reduce the price and focus on quality. It benefits the consumers. In this way, these organizations are good for the economy.

Though, these non-profit organizations are also created to evade the tax or get tax exemptions form the IRA. So, more number of non-profit organizations, also create relatively less amount of tax collection by the authorities. It contributes towards the budgetary deficit and it creates an additional financial burden upon the coming generation. If non-profit organization do the noble work of community development, then it is good for the economy. If the non-profit organizations are created to evade the tax payment, then it not good for the economy. So, Nonprofit organization should be created, but strong vigil should also be kept upon their activities.

References:

1. Quick Facts about Nonprofits. Retrieved from: http://nccs.urban.org/data-statistics/quick-facts-about-nonprofits

2. Number of non-profit organizations in the U.S. from 1998 to 2013 (in millions). Retrieved from: https://www.statista.com/