The document discusses non-profit organizational structures and how to create a non-profit organization. It provides information on the types of non-profit organizations recognized by the IRS and their requirements. It also outlines the typical governance, administration, and program structures of non-profits. The steps to legally establish a non-profit organization in Romania are also summarized.

1. FOUNDATION AND NON-PROFIT
ORGANIZATIONAL STRUCTURE
ANALYZED ON BUSINESS STRUCTURE
Bors Doina

2. WHAT IS NON-PROFIT ORGANIZATION?
Non-profit it’s a corporation or an association that conducts business for
the benefit of the general public without shareholders and without a
profit motive.
Non-profits are also called non-for-profit corporation and are created
according to state law.
Non-profit corporation are exempt from the income taxes that affect other
corporation but only if they conduct business exclusively for the benefit
of the general public. State law on corporation vary from state to state,
but generally states give tax breaks and exemptions to non-profit
corporation that are organized exclusively for either a religious,
charitable, scientific, public safety, literary, or educational purpose, or for
the purpose of fostering international sports or preventing cruelty to
children or animals.
The activities of non-profit corporation are regulated more strictly than the
activities of other corporation .

3. TYPES OF NON-PROFIT ORGANIZATION
A non-profit is a type of business structure where the profits of the
business are not distributed among the owners and shareholders.
The IRS classifies several different kinds of nonprofit business structure,
some of which may be tax-exempt, depending on the nature and
purpose of the organization. Each is listed as a subcategory under
Section 501(c) of the Internal Revenue Code , and each has its own
requirements and regulations, limitation, and tax implications, as well
as the ability to apply for tax exemption.
Some major types of nonprofits :
 501(c)(3) - Charitable Organizations
 501(c)(4) - Civic League, Social Welfare Organization, or Local
Employee Association
 501(c)(6) - Trade or Professional Association
 501(c)(7) - Social or Recreational Club.
 501(c)(8)- Fraternal Societies
 501(c)(9) - Employee Beneficiary Association.
 501(c)(14) - State Chartered Credit Union and Mutual Reserve Fund

4. NON-PROFIT ORGANIZATIONAL STRUCTURE
The exact structure of a nonprofit organization depends partly on where it is
incorporated–some states have their own requirements for the number of
directors or other officers of the nonprofit. However, the basic structure of a
nonprofit is generally the same everywhere. The structure is divided into three
functional areas–governance, programs and administration–and then further
subdivided within each area, depending on the purpose and goals of the
nonprofit.
Governance - Nonprofits are governed by the board of directors. The size of the
board of directors can vary from three to more than 50. Each state has rules
that set the minimum size of the board but the exact size of the board and the
number of times that it meets each year changes from one organization to
another, depending on the needs of the organization. Board members of
nonprofits are generally not paid, but they may receive any compensation that
is allowed by the organization's bylaws.
Administration - The administration is made up of the staff that oversee all
programs. Nonprofit administration usually includes an executive director, or
president, and office personnel. The executive director is responsible for
liaising with the board and for carrying out their instructions, as well as for
overseeing the people who run the programs of the nonprofit.

5. NON-PROFIT ORGANIZATIONAL STRUCTURE
Programs -Each program area may then have its own department head, or
assistant director. Typical program areas may include fund-raising,
operations, development, human resources, volunteer coordinator,
marketing, or publicity and planning. The program heads report to the chief
executive and may have any number of staff members under them.
Unique management areas - Nonprofits typically have several types of
management areas that may not exist in for-profit companies. These may
include fundraising and grant writing, volunteer programs and public policy.
Some of these areas, such as fundraising, may be handled by the executive
director, or an entire department, headed by an assistant director. Some
nonprofit organizations may also have a program director, or assistant
director, in charge of ensuring the organization is meeting ethical
requirements set out in its bylaws and is liaising with the local community.
State rules -Many states have rules governing the structure of nonprofits.
These generally have to do with the number of directors who sit on the
board.

6. FUNCTIONS OF NON-PROFIT ORGANIZATION
NPOs have a wide diversity of structure and purpose . For legal
classification, there are, nevertheless , some elements of
importance :
 Economic activity
 Supervision and management provisions
 Representation
 Accountability and auditing provisions
 Provisions for the dissolution of the entity
 Tax status of corporate and private donors
 Tax status of the foundation
Some of the above must be ,in most jurisdictions,
expressed in the charter of establishment. Others may
be provided by the supervising authority at each
particular jurisdiction.

7. DIFFERENCE BETWEEN PUBLIC AND PRIVATE
NON-PROFIT ORGANIZATION
Public non-profit
organization
Private non-public
organization
Public non-profit organizations
obtain most or all of their financial
support through donations they
receive from the general public.
Some of these organizations, such
as those that provide services or
goods to the needy, may procure
funding by holding fundraisers in
which they collect small donations
from individuals who sympathize
with their purpose. Other public non-
profits, such as museums, may
raise money by offering certain
perks in exchange for paid
memberships.
Private non-profit organizations
receive financial support from only a
few sources, such as a dedicated
donor or investment income. In
some cases ,a private nonprofit
organization may receive a large
portion of its funding from the
individual who founded the
organization. Founders of private
non-profit organizations may secure
addition funding from other wealthy
donors who are interested in
furthering the same cause. Private
nonprofit organization typically don’t
solicit funds from the general public.

8. CHAMBER OF COMMERCE
 A chamber of commerce is a form of business network, e.g., a local
organization of business whose goal is to further the interest of
businesses.
 The first chamber of commerce was founded in 1599 in Marseille,
France
 A chamber of commerce is not a governmental body or institution,
and has no direct role in the writing and passage of laws and
regulations that affect businesses.
 A chamber of commerce is a voluntary association whose
membership is comprised of companies, civic leaders, and individual
business people. Its members seek to promote the interests of
business, typically in a broad-based way.
 Chambers of commerce strive to develop and publicize business
opportunities in their communities, as well as work for the betterment
of local schools and other community institutions.
 Local chambers of commerce offer a range of programs and services
to their members, including information and advice on timely
business matters, opportunities for networking, and a variety of
publications.

9. JUNIOR CHAMBER INTERNATION IN REPUBLIC OF
MOLDOVA
 JCI members lead projects in four areas: Business, Personal Development, Community,
Internationalism. JCI provides young entrepreneurs the opportunity to broaden their
knowledge and contribute to the development of business/career through active
participation through community involvement by creating and providing space for
interaction with potential customers, partners locally and internationally. JCI provides
valuable practical experience in management learning , leadership and entrepreneurship.
 In the period 2005-2008 ANTiM (National Association of Young Managers) was
represented Junior Chamber International in Moldova. This non-profit
organization was created to support and develop managerial spirit of youth in
Moldavia. Here activity was oriented towards stimulating young people to self-
initiative and self-realization. They assist young people in developing their
businesses through advice, competition, workshops, seminars and trainings.
ANTiM aims was to develop of youth entrepreneurship ,organizing various
activities with the direct participation of young managers, informing through
various communication channels (advanced management methods), working
with various organization to develop business, contribute to the creation and
consolidation of a national quality management system, promoting of support
for young entrepreneurs.

10. ARGES BUSINESSMEN’S ASSOCIATION (ROMANIA)
 Argeş Businessmen’s Association is a non-governmental, non-
profit and apolitical organization, established by a group of
major companies in Piteşti, to contribute effectively to the
development of the economic environment Argeş.
 The mission of this association is creating a strong network of
elite companies and to contribute to the development of the
local environment. Argeş Businessmen’s Association wants to
provide its members business opportunities through projects it
organizes contracts with similar organizations in the country and
abroad, attending meetings with foreign delegations and
economic missions.
 They want to protect the economic interest of member firms in
political, economic and administrative. To promoting the image
and products of member companies by organizing fairs,
exhibitions, participation in various meetings, local and nation
events.

11. HOW TO CREATE A NON-PROFIT ORGANIZATION IN
ROMANIA
Steps to create a non-profit organization:
 Preliminaries. Founding members (estimating costs).
 Choose a name
 Association headquarters
 Tax record of fondators.
 Establishment of official association. Preparation and
authentication or certification of incorporation.
 Setting up the initial property.
 Judging application for the acquisition of legal personality
 Finalizing the civil legalization; entry (or register) in the
Register of Associations and Foundations.
 Stamp and printed with special regime
 Opening a bank account