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For non-profit organizations working in the United States and other countries, a mission statement is a crucial tool. They fulfill several functions for nonprofit organizations. They start by defining corporate goals in an easy-to-understand way. In addition to being effective communication tools, mission statements aid nonprofit organizations in obtaining money from donors and other stakeholders. Mission statements that are simple to understand also aid nonprofit organizations in recruiting volunteers. They boost the general public’s interest in an organization (Corporation for National and Community Service).
One sentence or a few sentences might make up a mission statement. It outlines an organization’s mission and goals. It states the plans the organization has a short-term and long-term basis. It clearly defines the organizational purpose, eliminating confusion and uniting all stakeholders towards a common cause.
Section 501(c) (3) of the Internal Revenue Code exempts non-profit organizations from tax obligations. However, any organization seeking to enjoy this status must submit a formal application to the Internal Revenue Service (IRS) (Joanne). Submission of the mission statement is part of the application process for tax-exempt status. For the application to be considered, the mission statement must meet the criteria for tax-exempt status. The mission statement helps the Internal Revenue Service understand the intent of a non-profit organization (Joanne).
Coming up with a good mission statement is one of the most challenging tasks for non-profit agencies. However, it is a critical tool for defining what the agency will do over the course of its existence. It is a foundation for developing organizational programs. Non-profit organizations are essentially driven by their mission statements. It is a basis upon which organizational performance is measured. Non-profit organizations normally have numerous stakeholders who have conflicting expectations from the organizations. Mission statements help to galvanize stakeholders and drive them towards a common purpose. A mission statement should be more specific and have some form of clarity. Organizations should avoid using jargons or complex sentence structures in their mission statements (Joanne). Some non-profit agencies have mission statements that are so broad, general and vague. They extend their programs far beyond their capacities and competencies.
Mission statements are normally used to motivate employees and volunteers and guide managers in strategic planning and decision-making process. For outsiders, mission statements, help to attract support. External support includes funding and volunteers. Mission statements communicate aspiration to prospective donors and partners (Julie).
Mission statements for non-profit organizations have four main components. The first component defines organizational goals and purpose. The second components define the mechanisms for achieving the goals. The third component defines the values that drive the organization. The fourth and the final component of the non-profits mission statements states the beneficiaries of the organization’s programs and projects. In simple terms, mission statements define what non-profit agencies do, how they do, why they do, and who they serve.
The activities of an organization are typically influenced by the mission statement. An organization should only run programs that are defined in its mission statement. A very broad mission statement can stretch an organization beyond limit. Financial and human resources are always limited. Making trade-offs and prioritizing activities are thus critical aspects of nonprofit organizations. A mission statement gives the organizations management and employees the scope of programs and defines the population that should be served. All activities should always focus on the target population (Julie).
Non-profits organizations as the name suggest do not exist to make money or generate revenue. They only operate to serve people’s needs in communities. They rely so much on funds contributed by well-wishers and labor provided by volunteers. Without funds from donors and services from volunteers, the activities of non-profits agencies will grind to a halt. Attracting funds from donors and labor from volunteers is thus critical to the existence of all non-profits agencies. The most important tool in mobilization of both financial and human resources for non-profits agencies is the mission statement. There are thousands of non-profit agencies across the United States. Many of them struggle to attract the necessary funding and labor from volunteers. People cannot donate their money or volunteer their labor if they are not sure of the goals, values and aspiration of a non-profit agency (Julie). There is no way an organization can mobilize funds if it cannot articulate with clarity what it is raising finances for. Mission statements assist donors and volunteers to understand the goals, values and aspirations of any organization. They also explain the mechanisms for achieving the goals and the intended beneficiaries. A clear understanding of the mentioned components can inspire and motivate donors to provide their support.
Mission statements are one of the critical tools that drive the operations and programs of all non-profit agencies. They communicate what the organization is all about. Most importantly, they help non-profit agencies mobilize and human resource necessary for all it is activities. A good mission statement should be clear, concise and easy understand.
Works Cited
Corporation for National and Community Service. “AmeriCorps.” (n.d). Retrieved Dec. 10, 2017, from https://www.nationalservice.gov/programs/americorps
Joanne, Fritz. “How the IRS Classifies Nonprofit Organizations.” The Balance. 2017. Retrieved Dec. 10, 2017, from https://www.thebalance.com/how-the-irs-classifies-nonprofit- organizations-2501798
Joanne, Fritz. How to Write an Amazing Nonprofit Mission Statement. The Balance. Retrieved Dec. 10, 2017, from https://www.thebalance.com/how-to-write-the-ultimate-nonprofit- mission-statement-2502262
Julie, Simpson Improving Your Organization’s Mission Statement. New York Society of Association Executives. Retrieved Dec. 10, 2017, from https://www.nysaenet.org/resources1/inviewnewsletter/new- item/september2014/inview512article3-9-2014
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