As outlined in the reading , the nonprofit sector is the collective name used to describe institutions and organizations in American society that are neither government nor business. Primarily, non profit do not exist to make profit, nonetheless, it doesn’t meant that they shouldn’t try to generate extra revenue in case they don’t get money from funders in the next year. They simply do not exist to make money for owners or investors. All non profits whether it is a 501(c3) or 501(c4) and so forth are exempt from federal corporate income taxes. As mentioned by Professor in class, some exist to relive government’s burden ;through tax-exemption, government supports the work of nonprofits and receives a direct benefit in return.
Non-profit organizations exist for the greater good and to benefit society, even when nonprofits do things that government wouldn’t be required to do in their absence, they still provide valuable services to society. In fact, the non profit sector is built on a deep and rich history of community engagement.Yet, many questions its existence to just serve as controversies around different strategies for funding have arisen, ” Engagement with service users can become tokenistic, or shallow.”