Arianne Jones P.

Mijos
1. What do you know about Non-Profit Organizations? (500 words)

Non-profit organizations are entities that is being formed to be beneficial to the public.
NPO’s play an important role in addressing social, environmental, and humanitarian issues in the
country. They are often at the forefront of social change and provide much-needed services to
those who are most vulnerable. The primary purpose of a Non-profit organization is not to
generate financial profits for the owner or shareholders but rather to fulfill a specific mission
which is serving the public or a particular community. Due to its purpose a non-profit
organization receives a tax-exempt status not just in the Philippines but also in other countries.
Non-profit organizations are typically motivated by a strong sense of civic responsibility
and a desire to make a positive social impact, make substantial contributions to the nation's
progress and welfare. Through Non-profit organizations, people can combine their resources and
expertise to accomplish shared objectives. Additionally, they give workers the chance to apply
their skills for the greater good rather than only being driven by financial gain. Many individuals,
inspired by a sense of social responsibility, contribute their time and skills to support various
causes. Volunteers often play a hands-on role in implementing programs, extending the reach of
Non-profit organizations and enhancing their impact.
Growing up I always see a box or bowl labeled “Bantay Bata 163” in front of a cashier’s
table wherein customers drop any amount of money on it. It is the first Non-profit organization I
recognized, this organization helps to protect those disadvantaged and at risked children. It is a
Non-profit organization establish by ABS-CBN, started as a helpline for abused children but
evolved to become a comprehensive child institution. In order for the organization to raise funds
for the operational expenses in helping those children they seek for donations from individuals,
grants from foundations and government agencies, sponsorships, and revenue generated through
fundraising such as Project Happy Feet Slipper Race Cebu-2013.
On my own understanding since Non-profit organizations is not establish primarily
purpose of generating profit for the benefit of its owner, its profits are used in the entities
operating expenses to enhance its services and infrastructures to better serve those who are in
need that aligns the purpose of the organization. Through donations from individuals, grants
from foundations and government agencies, sponsorships, and revenue generated through
fundraising a Non-profit organization will be able to sustain the main purpose of establishing it,
and Non-profits organizations are often required to disclose financial information and other
details to the public, donors, and regulatory bodies to uphold these standards. It helps the
government in improving the lives of each citizen of the community who are in need especially
those who are poor. Non-profit organizations are integral into addressing societal challenges and
fostering positive change. Driven by a commitment to mission, these entities operate with
transparency, accountability, and a focus on social impact. Through diverse funding sources,
volunteer efforts, and collaborative initiatives, non-profits continue to make meaningful
contributions to the well-being of individuals and communities around the world.

2. Why is it important to regulate NPOs? (500 words)

 A nonprofit organization (NPO) is one that is not driven by profit but by dedication to a
given cause that is the target of all income beyond what it takes to run the organization. Non-
profit organizations often act as alternative service providers where state-initiated service
provision is inadequate or even non-existent. Nonprofit organizations are often used for trusts,
cooperatives, advocacy, charity, environmental and religious groups. Many, but not all, NPOs
have paid staff in management positions; almost all use volunteers. Unlike for-profit businesses,
NPOs have no owners and any surplus profits after operating expenses are used to further its
goals instead of being distributed between members or employees of the organization.
It is important to regulate a Non-profit organization because of its nature. The nature of a
Non-profit organization is prone to unethical activities such as money laundering, fraud and
mismanagement. The regulations act as prevention of any crimes that can be committed by the
management for their own beneficial and not for the sake of the public. Through regulating, the
profits earned in a non-profit organization will be properly allocated and safeguarded for
providing services to those who are in need align with the organizations purpose and objectives.
Aside from its nature regulating non-profit organizations is also important for other
several reasons, as it helps ensure transparency, accountability, and the fulfillment of their
intended purpose. Regulating non-profit organizations helps safeguard public trust, prevent abuse
of resources, and promote ethical behavior. It contributes to the overall effectiveness and impact
of these organizations in addressing social, environmental, and community needs.
On my own understanding it is really important to regulate non-profit organization since
it will ensure transparency of all the activities in the organization especially in procuring and
disbursing of the profits, they’ve earned through fund raising. It will help the non-profit
organization to maintain public trust especially to its donors, through ensuring that the funds
raised are used for their stated purpose and objective. Regulations will prevent the management
in doing some unethical activities such as fraud and mismanagement through reporting the
requirements and financial data with transparency, and it will help the non-profit organizations to
adhere to high standard of conducts, promoting ethical behavior such as honesty and integrity in
their operations. Regulations lay the groundwork for accountability by requiring non-profits to
report on their activities, financial state, and accomplishments. This transparency enables
stakeholders, including donors, volunteers, and the general public, to assess the organization's
impact and hold it accountable for its actions. It will also address conflict of interest among the
top management, it will ensure that the individuals associated act on the best interest of the
organization rather than for their personal gain. As the organization adheres with the regulations
it will easy for them to collaborate with other organization on their activities and it will be easy
to raise funds since they have a good image in the public and through adhering it can make them
a trustworthy organization. Through regulating it will help the organization to serve on its
purpose and contribute effectiveness and impact to the community.

 Employers fund and guarantee a specific retirement benefit amount for each
participant of a defined-benefit pension plan.
 Defined-benefit plans provide eligible employees with guaranteed income
for life when they retire. Employers guarantee a specific retirement benefit
 amount for each participant based on factors such as the employee's
salary and years of service.

 Employees have little control over the funds until they are received in
retirement. The company takes responsibility for the investment and
distribution to the retiree. That means the employer bears the risk that the
returns on the investment will not cover the defined-benefit amount due to
a retired employee.

 A defined benefit plan promises a specified monthly benefit at retirement.

The plan may state this promised benefit as an exact dollar amount, such
as $100 per month at retirement.

 Defined-contribution plans are funded primarily by the employee, as the

participant defers a portion of their gross salary; employers can match the
contributions up to a certain amount, if they choose.
 A defined contribution plan is a type of retirement plan in which the employer,
employee or both make contributions on a regular basis. Individual accounts are
set up for participants and benefits are based on the amounts credited to these
accounts plus any investment earnings on the money in the account.
 Defined-benefit plans provide eligible employees with guaranteed income
for life when they retire. Employers guarantee a specific retirement benefit
amount for each participant based on factors such as the employee's
salary and years of service.
 Employees have little control over the funds until they are received in
retirement. The company takes responsibility for the investment and
distribution to the retiree. That means the employer bears the risk that the
returns on the investment will not cover the defined-benefit amount due to
a retired employee.
 As a PERA member, you contribute a percentage of every paycheck to
PERA. In exchange, you'll receive a lifetime defined benefit payment, or a
pension, at retirement. In addition to that monthly benefit, PERA also
provides benefits life survivor and disability benefits.