ABSTRACT
This chapter discusses non-profit organizations (NPO) resource acquisition and management and analyzes the different revenue sources for NPOs and their advantages and disadvantages. It describes the fundraising process and government regulations of it and identifies the uniqueness of NPO financial reporting and accounting. The chapter aims to understand the major financial statements of NPOs and describes the appreciation of the importance of financial leadership and effective internal controls. It explains the perils of NPO dependency on government funding as an issue and concludes with a case study on NPOs' dilemma with "tainted" donation. In addition to resource acquisition, NPOs have to have in place appropriate and strong financial controls to ensure effective utilization of their resources. NPOs' resource acquisition process is significantly different than for-profits and governments. Registration—State and local regulations of fundraising require NPOs to register before they can initiate gift soliciting.
