Total No. of Questions : 5] SEAT No.

P6887 [Total No. of Pages : 3

[5860] - 308
S.Y. M.B.A.
(311) : GE - UL - 18 : MANAGEMENT OF NON-PROFIT ORGANIZATIONS
(2019 Pattern) (Semester - III)
Time : 2 Hours] [Max. Marks : 50
Instructions to the candidates :
1) All questions are compulsory.
2) Each question carries 10 marks.

Q1) Multiple Choice Questions (Any 5 Out of 8) (2 Marks Each) :

a) Under which Section of the Indian Companies Act, the Central

Government may issue a license to a limited or private limited company
for NPO

i) Section 6 ii) Section 7

iii) Section 8 iv) Section 9

b) Under the GST, the threshold exemption limit has been increased to

i) INR 5 Million ii) INR 3 Million

iii) INR 2 Million iv) INR 1 Million

c) In NPO Membership paid every year is known as

i) Entrance Fees ii) Legacy

iii) Donation iv) Subscription

d) Legal status of Non-profit organization is not seen in

i) Society ii) Corporation

iii) Private Company iv) Trust

P.T.O.
 e) governs charitable trusts in India.

i) No National Law ii) No State Law

iii) No Local Law iv) All of above

f) A non-profit can collect a significant amount of personal information

about its donors, including credit card and bank account numbers.
Protecting this information is vital to the ethical maintenance of donor
databases is called as

i) Donor Privacy ii) Donor Publicity

iii) Company Publicity iv) Company Privacy

g) All non-profit organizations are required to have a board consisting of at

least director.

i) 2 ii) 3

iii) 4 iv) 5

h) Akshay Patra is a NPO that operates

i) Child Education ii) Child Health

iii) School Lunch iv) School Education

a) Section 8 of the Indian Companies Act, 2013 allows the Central

Government to issue a license to a limited or private limited company
for NPO. So the answer is (iii).

b) Under the GST, the threshold exemption limit has been increased to
INR 40 lakhs. So the answer is (i).

c) In NPO, membership paid every year is known as Subscription. So the

answer is (iv).

d) Legal status of Non-profit organization is not seen in Private Company.

So the answer is (iii).

e) There is no National Law that governs charitable trusts in India.

However, there are State Laws and Local Laws that govern charitable
trusts in India. So the answer is (iv).
 f) Protecting the personal information of donors, including credit card
and bank account numbers, is called Donor Privacy. So the answer is
(i).

g) All non-profit organizations are required to have a board consisting of

at least 3 directors. So the answer is (ii).

h) Akshay Patra is a NPO that operates School Lunch. So the answer is (iii).

Q2) Answer the following (Any 2 Out of 3) (5 Marks Each) :

a) Explain Non-Profit Organization and describe its six dimensions.

A non-profit organization (NPO) is an organization that is not primarily focused

on making a profit. NPOs are typically formed to serve a public purpose, such as
providing social services, promoting education, or protecting the environment.

There are six dimensions of NPOs:

1. Mission: The mission of an NPO is its purpose for existing. It should be

clear, concise, and inspiring.

2. Vision: The vision of an NPO is its long-term goals. It should be

aspirational and provide a sense of direction for the organization.

3. Values: The values of an NPO are its guiding principles. They should be
reflected in the organization's mission, vision, and activities.

4. Programs: The programs of an NPO are its activities that achieve its
mission. They should be aligned with the organization's values and be
effective in addressing the needs of its target population.

5. Funding: The funding of an NPO is the money it needs to operate. It can

come from a variety of sources, such as donations, grants, and earned
income.

6. Governance: The governance of an NPO is the way it is managed and

controlled. It should be transparent and accountable to the organization's
stakeholders.

These six dimensions are interrelated and work together to help NPOs achieve
their goals. A well-functioning NPO will have a clear mission and vision, be
guided by strong values, offer effective programs, have a sustainable funding
model, and be well-governed.

Here are some examples of NPOs:

 • Red Cross: The Red Cross is a humanitarian organization that provides
relief to victims of natural disasters and other emergencies.

• UNICEF: UNICEF is a United Nations agency that promotes the rights of

children and provides humanitarian assistance to children in need.

• WWF: WWF is an international conservation organization that works to

protect endangered species and their habitats.

• Greenpeace: Greenpeace is an environmental organization that campaigns

against environmental destruction.

• Doctors Without Borders: Doctors Without Borders is an international

medical organization that provides medical care to people in need,
regardless of their race, religion, or political affiliation.

NPOs play an important role in society by providing essential services, promoting

social change, and protecting the environment. They are a vital part of the fabric of
our communities.

b) Explain the three legal duties of board members in Non-Profit Organization

The three legal duties of board members in a non-profit organization are:
1. Duty of Care: Board members must act in the best interests of the
organization and its beneficiaries. This means that they must use their best
judgment and act in a reasonable and prudent manner when making
decisions about the organization.
2. Duty of Loyalty: Board members must act in good faith and avoid conflicts
of interest. This means that they must put the interests of the organization
ahead of their own personal interests.
3. Duty of Obedience: Board members must obey the organization's governing
documents and applicable laws. This means that they must make decisions
that are consistent with the organization's mission and purpose, and that they
must comply with all applicable laws and regulations.
Board members who breach these duties may be held personally liable for any
damages that the organization suffers.
Here are some examples of how board members can fulfill their legal duties:
• Duty of Care: Board members can fulfill their duty of care by:
o Attending all board meetings and being prepared to participate in
discussions and decision-making.
o Seeking out information and advice from experts when making
decisions.
o Questioning staff and management about decisions and actions.
• Duty of Loyalty: Board members can fulfill their duty of loyalty by:
o Avoiding conflicts of interest, such as voting on matters where they
have a personal financial interest.
o Disclosing any potential conflicts of interest to the board.
o Refraining from using their position on the board for personal gain.
 • Duty of Obedience: Board members can fulfill their duty of obedience by:
o Adhering to the organization's governing documents, such as its articles
of incorporation and bylaws.
o Complying with all applicable laws and regulations.
o Ensuring that the organization's finances are managed in a responsible
and ethical manner.
Board members play an important role in ensuring the success of non-profit
organizations. By fulfilling their legal duties, they can help to protect the
organization's assets, promote its mission, and ensure its long-term sustainability.

c) Explain the leadership skills of Non-profit organization.

Here are some of the most important leadership skills for non-profit
organizations:
• Vision: The ability to see the big picture and articulate a clear and
compelling vision for the organization.
• Communication: The ability to communicate effectively with a variety
of stakeholders, including staff, volunteers, donors, and the public.
• Collaboration: The ability to build and maintain relationships and work
effectively with others.
• Problem-solving: The ability to identify and solve problems
effectively.
• Decision-making: The ability to make sound decisions in a timely
manner.
• Motivation: The ability to motivate and inspire others to achieve
common goals.
• Resilience: The ability to bounce back from setbacks and challenges.
• Integrity: The ability to be honest and trustworthy.
• Accountability: The ability to take responsibility for one's actions.
In addition to these core skills, non-profit leaders also need to be:
• Passionate about the organization's mission.
• Dedicated to making a difference in the world.
• Able to work long hours and deal with stress.
• Able to manage multiple projects and deadlines.
• Able to build and maintain a strong team.
The specific leadership skills that are most important for a non-profit
organization will vary depending on the size and type of organization, as well
as the specific challenges it faces. However, the skills listed above are
essential for any non-profit leader who wants to be successful.
Here are some examples of how these leadership skills can be used in a non-
profit organization:
• A leader with strong vision can articulate a clear and compelling goal
for the organization, such as ending homelessness or providing
education for all children.
• A leader with strong communication skills can build relationships with
 donors, volunteers, and other stakeholders, and can effectively
communicate the organization's mission and goals.
• A leader with strong collaboration skills can build a team of dedicated
and motivated individuals who are working towards the same goals.
• A leader with strong problem-solving skills can identify and solve
problems that arise in the course of running the organization.
• A leader with strong decision-making skills can make sound decisions
that are in the best interests of the organization.
• A leader with strong motivation skills can inspire others to achieve
common goals, even in the face of challenges.
• A leader with strong resilience skills can bounce back from setbacks
and challenges, and keep the organization moving forward.
• A leader with strong integrity is honest and trustworthy, and can be
relied upon to do what is right for the organization.
• A leader with strong accountability is willing to take responsibility for
their own actions, and the actions of the organization.
By developing and honing these leadership skills, non-profit leaders can help
their organizations achieve their goals and make a difference in the world.

Q3) a) Explain Characteristics of Not-for-Profit Organizations.

Here are some of the characteristics of not-for-profit organizations (NPOs):
They are not primarily focused on making a profit. NPOs are typically formed to
serve a public purpose, such as providing social services, promoting education, or
protecting the environment.
They are exempt from paying taxes. NPOs are not subject to corporate income tax,
property tax, or sales tax. However, they may be subject to other taxes, such as
excise taxes and unemployment taxes.
They are governed by a board of directors. The board of directors is responsible
for overseeing the organization's activities and ensuring that it is managed in a
responsible and ethical manner.
They rely on donations and grants for their funding. NPOs do not generate revenue
through the sale of goods or services. Instead, they rely on donations from
individuals, businesses, and foundations, as well as grants from government
agencies.
They are accountable to their stakeholders. NPOs are accountable to their donors,
volunteers, and other stakeholders. They are required to disclose their financial
information and to report on their activities.
Here are some additional characteristics of NPOs:
They are typically organized as charities, trusts, or societies.
They may be local, national, or international in scope.
They may be large or small, with a few employees or thousands of staff.
They may be well-known or relatively obscure.
No matter their size, scope, or level of visibility, all NPOs share the common goal
of making a difference in the world. By providing essential services, promoting
social change, and protecting the environment, NPOs play an important role in our
communities.

b) Explain Qualities of Social Entrepreneurs.

Here are some of the qualities of social entrepreneurs:

• Passion: Social entrepreneurs are passionate about the cause they are working
on. They are driven by a desire to make a difference in the world and to solve
a social problem.
• Vision: Social entrepreneurs have a clear vision for how they can make a
difference. They are able to see the big picture and to develop strategies to
achieve their goals.
• Innovation: Social entrepreneurs are innovative and creative. They are not
afraid to think outside the box and to come up with new solutions to
problems.
• Resilience: Social entrepreneurs are resilient. They are able to bounce back
from setbacks and challenges. They are not afraid to fail and they learn from
their mistakes.
• Leadership: Social entrepreneurs are leaders. They are able to motivate and
inspire others to join their cause. They are able to build and maintain teams
and to create a positive work environment.
• Collaboration: Social entrepreneurs are collaborative. They are able to work
with others, such as government agencies, businesses, and other non-profit
organizations, to achieve their goals.
• Accountability: Social entrepreneurs are accountable. They are transparent
about their finances and their activities. They are willing to be held
accountable for their actions.
These are just some of the qualities that social entrepreneurs share. Not all
social entrepreneurs will have all of these qualities, but they will typically
have many of them. By developing these qualities, social entrepreneurs can
increase their chances of success in making a difference in the world.
Here are some examples of social entrepreneurs:
• Malala Yousafzai: Malala Yousafzai is a Pakistani activist for female
education and the youngest Nobel Prize laureate. She was shot by the Taliban
in 2012 for speaking out about the importance of education for girls.
• Muhammad Yunus: Muhammad Yunus is a Bangladeshi economist and
social entrepreneur who founded the Grameen Bank, a microfinance
institution that provides small loans to poor people. He was awarded the
Nobel Peace Prize in 2006.
• Kailash Satyarthi: Kailash Satyarthi is an Indian social activist who founded
Bachpan Bachao Andolan, an organization that works to end child labor. He
was awarded the Nobel Peace Prize in 2014.
• Anita Roddick: Anita Roddick was the founder of The Body Shop, a
cosmetics company that is committed to social and environmental
responsibility. She was a pioneer in the field of corporate social
responsibility.
• Jeff Skoll: Jeff Skoll is a Canadian-American entrepreneur and philanthropist.
He is the founder of Participant Media, a film production company that
 produces socially conscious films.
These are just a few examples of the many social entrepreneurs who are
working to make a difference in the world. By their passion, vision, and
innovation, they are changing the world for the better.

Q4) a) What are the legal procedures and documentations required for formation
and registration of Non-Profit Organization?

The legal procedures and documentations required for the formation and
registration of a non-profit organization (NPO) in India vary depending on the
state in which the NPO is being formed. However, there are some common
requirements that apply to all NPOs.

Here are the general legal procedures and documentations required for the
formation and registration of an NPO in India:

1. Choose the legal structure for your NPO. There are three main legal
structures for NPOs in India: trust, society, and section 8 company. Each
structure has its own advantages and disadvantages, so it is important to
choose the one that is right for your organization.
2. Draft the NPO's governing documents. The governing documents of an
NPO are the documents that set out the organization's mission, purpose, and
structure. They also define the rights and responsibilities of the NPO's
members, directors, and officers.
3. File the NPO's registration application with the appropriate government
authority. The government authority responsible for registering NPOs varies
from state to state. In most states, the NPO's registration application must be
filed with the Registrar of Societies.
4. Obtain the NPO's registration certificate. Once the NPO's registration
application is approved, the government authority will issue the NPO with a
registration certificate. This certificate is proof that the NPO is legally
registered.

In addition to these general requirements, there may be additional requirements

that apply to specific types of NPOs. For example, NPOs that provide educational
or medical services may be required to obtain additional licenses or permits.

Here are some of the specific documentations required for the formation and
registration of an NPO in India:

• Trust Deed: A trust deed is a legal document that establishes a trust. It sets
out the purpose of the trust, the assets that are being transferred to the trust,
and the powers of the trustees.
 • Memorandum of Association and Articles of Association: The
memorandum of association and articles of association are the governing
documents of a company. They set out the company's name, purpose, and
structure. They also define the rights and responsibilities of the company's
members, directors, and officers.
• Application for Registration: The application for registration is the form that
the NPO must file with the government authority to register the NPO. The
application must include information about the NPO's name, purpose, and
location.
• List of Members: The list of members is a document that lists the names and
addresses of the NPO's members.
• Proof of Identity and Address: The NPO must provide proof of identity and
address for its members and directors. This proof can be in the form of
passports, driver's licenses, or utility bills.
• No Objection Certificate: The NPO may be required to obtain a no objection
certificate from the local government before it can be registered. This
certificate is proof that the local government does not object to the NPO's
registration.

The specific documentations required for the formation and registration of an NPO
may vary from state to state. It is important to check with the appropriate
government authority to determine the specific requirements that apply to your
NPO.

b) Explain the roles of Non-Profit Organization.

Non-profit organizations (NPOs) play a vital role in society by providing essential
services, promoting social change, and protecting the environment. Here are some
of the specific roles that NPOs play:
• Provide essential services: NPOs provide essential services that would not
be available if they did not exist. For example, NPOs provide food, shelter,
and clothing to the homeless; they provide medical care to the poor; and
they provide education to children in need.
• Promote social change: NPOs work to promote social change by advocating
for policies and programs that benefit the public good. For example, NPOs
work to end poverty, improve education, and protect the environment.
• Protect the environment: NPOs work to protect the environment by reducing
pollution, conserving natural resources, and promoting sustainable
development.
• Provide disaster relief: NPOs provide disaster relief to people who have
been affected by natural disasters, such as earthquakes, floods, and
hurricanes.
 • Promote peace and conflict resolution: NPOs work to promote peace and
conflict resolution by working to resolve disputes between groups and
individuals.
• Empower marginalized groups: NPOs work to empower marginalized
groups, such as women, children, and the elderly, by providing them with
the resources and support they need to improve their lives.
• Advance arts and culture: NPOs advance arts and culture by providing
funding for cultural programs and events, and by preserving cultural
heritage.
• Promote human rights: NPOs promote human rights by working to protect
the rights of all people, regardless of their race, religion, gender, or sexual
orientation.
These are just some of the many roles that NPOs play in society. By working to
address the needs of the community, NPOs make a positive difference in the lives
of millions of people.

Q5) a) Why is marketing important to Non-Profit-Organizations? Explain how

do you create a marketing plan for a Non-Profit Organization?

Marketing is important to non-profit organizations because it helps them to

achieve their goals. Here are some of the reasons why marketing is important to
NPOs:
• To raise awareness: Marketing can help to raise awareness of an NPO's
mission and work. This can help to attract new donors, volunteers, and
supporters.
• To attract donations: Marketing can help to attract donations from
individuals, businesses, and foundations. This is essential for NPOs to
continue their work.
• To recruit volunteers: Marketing can help to recruit volunteers to help with
the NPO's work. This is essential for NPOs to achieve their goals.
• To build relationships: Marketing can help to build relationships with
stakeholders, such as donors, volunteers, and the community. This can help
to create a supportive environment for the NPO to work in.
• To promote the NPO's work: Marketing can help to promote the NPO's
work to the public. This can help to educate the public about the NPO's
mission and work, and to encourage people to get involved.
Here are the steps on how to create a marketing plan for a non-profit organization:
1. Define your target audience: Who are you trying to reach with your
marketing efforts? Once you know your target audience, you can tailor your
marketing messages to appeal to them.
2. Set your goals: What do you want to achieve with your marketing efforts?
Do you want to raise awareness, attract donations, or recruit volunteers?
Once you know your goals, you can develop strategies to achieve them.
3. Choose your marketing channels: There are many different marketing
channels available, such as print, online, social media, and direct mail.
Choose the channels that are most likely to reach your target audience.
 4. Create your marketing messages: Your marketing messages should be clear,
concise, and persuasive. They should also be consistent with your NPO's
mission and values.
5. Measure your results: It is important to track the results of your marketing
efforts so that you can see what is working and what is not. This will help
you to improve your marketing strategies over time.
Here are some additional tips for creating a marketing plan for a non-profit
organization:
• Be creative and innovative. There are many different ways to market a non-
profit organization. Don't be afraid to think outside the box.
• Be authentic and genuine. People can spot a fake from a mile away. Be
honest and transparent in your marketing messages.
• Be patient and persistent. It takes time to build a successful marketing
campaign. Don't give up if you don't see results immediately.

b) Explain Ethical issues is Non-Profit Organization.

Non-profit organizations (NPOs) are held to a high ethical standard because they
are entrusted with the public's trust. Here are some of the ethical issues that NPOs
face:
• Misuse of funds: NPOs should use their funds for their intended purpose,
which is to further their mission. However, there have been cases of NPOs
misusing funds for personal gain or for other purposes that are not aligned
with their mission.
• Conflicts of interest: NPOs should avoid conflicts of interest, which can
arise when a board member or staff member has a personal or financial
interest in a decision that is being made by the NPO.
• Employment practices: NPOs should have fair and equitable employment
practices. They should not discriminate against employees on the basis of
race, religion, gender, or sexual orientation.
• Fundraising practices: NPOs should use ethical fundraising practices. They
should not make false or misleading claims in their fundraising appeals.
• Financial reporting: NPOs should be transparent about their finances. They
should provide accurate and timely financial reports to their donors and
stakeholders.
• Board governance: NPOs should have a strong board of directors that is
responsible for overseeing the organization's activities. The board should be
made up of individuals who are committed to the NPO's mission and who
have the skills and experience necessary to provide effective oversight.
These are just some of the ethical issues that NPOs face. By being aware of these
issues and taking steps to address them, NPOs can maintain the public's trust and
continue to do good work in the world.
Here are some additional tips for avoiding ethical issues in non-profit
organizations:
• Have clear policies and procedures in place: NPOs should have clear
policies and procedures in place to address potential ethical issues. These
policies should be communicated to all staff and volunteers.
 • Create a culture of transparency: NPOs should create a culture of
transparency where staff and volunteers feel comfortable raising concerns
about potential ethical issues.
• Have an independent ethics committee: NPOs should have an independent
ethics committee that is responsible for reviewing and investigating
potential ethical issues.
• Take disciplinary action: NPOs should take disciplinary action against staff
and volunteers who violate ethical standards.
By following these tips, NPOs can help to ensure that they are operating in an
ethical manner.