Not-For-ProfitResearch Paper OutlineCourse 693Background:Not-for-profits (“NFPs”)have been designed to fulfill a mission in local, state, and federal communities. “Profits” are not...

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Contents
Part I    3
NFP Entities and their functions    3
Benefits provided by NFPs    3
Type of entities operating as NFPs    3
Fraud risks of NFPs    5
Organizational structure of the entity    6
Purpose of NFP accounting and impact of accounting on decision making process    6
Effect of budgeting process for NFP    6
Part II    7
Introduction of NFP selected    7
History of NFP, its founding, vision and mission    7
Major successes and highlights achieved by NFP    7
Detailed analysis on fraud or any negative events or aspects of NFP    7
Part III    7
Are NFPs successful in obtaining donor’s funds    7
How the donor funds are utilized by NFPs    8
Horizontal analysis for donations grants vs actual expenditures for 3 years    8
Analysis of percentage of expenditures to donations    9
Relevancy of other information for business operations    9
References    11
Part I
Feeding America is a US based organization and it is having more than 200 food banks across USA. It is one of the largest charity by revenue in USA and it has been ranked by Forbes. The organization is feeding more than 46 million across USA and it was founded by John Van Hengel. We support for Non-profit organizations because they are not driven by profit but driven by their vision and mission.
NFP Entities and their functions
Not-for-profit entities can be defined as the one which are formed for the welfare of the communities and are set up as charitable entities which are operating without any motive of earning profit. These are generally established for providing services to the particular group or public such as education, sports, health care without nay discrimination. The main objective of such entities is to provide service at reasonable or no cost without aiming for profits. The entity is basically functioning for rendering services to the society in terms of education, health care and others. These are formed for serving their motive of providing services to general public. The main source of income for these entities are subscriptions, donation, grants, income from investments and others. They are not concerned about the profitability and goodwill of these entities are dependent on the work done for the welfare of the society.
Benefits provided by NFPs
There are various benefits of the NFPs which are discussed below:
· It is likely that these entities will act more responsibly such as they will not be engaged in any such activities which is not beneficial for the entity for earning a profit. Thus, they will render services for the benefits of the society.
· The employees of such entities are purpose oriented not profit -oriented. They provide more environmentally sustainable practices and better working condition to the employees and engaged in providing more employment opportunities.
· It provides more job satisfaction to the employees of small, local business as their jobs are less abstract and more relevant and purposeful (Coleman-Jensen, Alicia, 2014).
· These entities focus on the purpose rather than the profit and thus they have different management style which provides better management structure. This enables the entity in better staff engagement and morale and more possibility of productivity and innovation.
· There will be fewer cutting corners for earnings the profit and thus there will be increase in the quality of the goods and services in terms of the durability and usability.
Type of entities operating as NFPs
There are various types of entities operating as NFPs which are as follows:
· Social advocacy organization: These entities are formed for promoting the social cause or political effort. They perform fundraising for informing the public about the cause and encourage the society for supporting their cause. They are engaged in raising the funds through membership dues and donations from the general public and corporate entities.
· Trade organization: These entities are stablished with the aim of bringing improvement in the business condition of the members. They obtain their funding through membership fees and fees from the members enrolling in their education program. This includes health workers entities, chamber of commerce and others.
· Foundations: These are classified into two categories such as private and public foundations. The private entity is formed by individual or families and public foundation are the one which are operating as charity organizations which receives funds from different sources. They are engaged in providing direct services such as homeless shelters and others.

Fraud risks of NFPs
NFPs are vulnerable to fraud as they focus on funding and tend to overlook crucial areas such as accounting, internal control and financial oversight. The common frauds which occur in NFPs includes the following:
· Skimming: The funds are stolen before recording them in the accounting records.
· Credit card abuse
· Fictitious vendor schemes
· Conflict of interest among members or executives.
· Frauds such as making payment to the terminated employees, overstatement of working hours or making false reimbursement of the expenditure.
· Deceptive fundraising practices
· Misrepresenting the extent of charitable contribution deduction entitlement, misrepresenting the fair value of the donated assets and others.
· Fraudulent financial reporting.
For effectively combating the fraud...