What Is a Nonprofit Executive Committee?

Legal entities that are non-profit organizations’ committees can be created in the form of consumer cooperatives, public or religious organizations.

The Meaning of a Nonprofit Executive Committee

The non-profit executive committees may be created in the form of consumer cooperatives, public organizations, religious organizations, charitable or other foundations, institutions, associations, and unions. Most often, non-profit organizations do not carry out entrepreneurial activities related to generating income, but they may have real estate and land plots, which are considered by tax legislation as objects of taxation.

Before submitting documents to the registering authority for state registration with the nonprofit executive committee, the owner of the property, the founders (participants) of the commercial or non-profit organization being created must:

  1. coordinate with the registration authority the name of the commercial, non-commercial organization;
  2. determine the proposed location of a commercial, non-commercial organization;
  3. make a decision on the creation of a commercial, non-profit organization and prepare its charter (constituent agreement – for a commercial organization operating only on the basis of a constituent agreement).

From the point of view of the best practice of nonprofit executive committees generally recognized in the world, based on the experience of developed countries, the Board of Directors is a key element of the company’s corporate governance system, whose activities have a decisive influence on all its efficiency. Therefore, it is not surprising that proposals relating to various aspects of its activities form the basis of the recommendations.

In a non-profit executive committee, the formation of which is not based on the conditions of membership, the board is usually the highest governing body. Its functions and powers are determined by the charter. The group traditionally includes motives aimed at reducing the operating and capital costs of the acquiring company, and the calculation of the synergistic effect is based on cost optimization and the amount of savings that are expected to be achieved after the project is implemented. It is a permanent collegiate body whose functions are as follows:

    • Approval of financial statements.
    • Making decisions on opening branches/representative offices.
    • Making decisions on participation in other funds and organizations.

The Main Department of the Nonprofit Executive Committee

Nonprofit executive committees exist in both the public and private sectors. Most (but not all) public sector organizations do not have a primary goal of making a profit and are created to provide what economists call public goods. These are mainly services that would not be available at a reasonable cost to those who need them (for example, medical care, museums, art galleries, and some modes of transport), or that are not provided commercially at all (such as the protection and regulation of markets and companies).

Examples of the non-profit executive committees in the private sector include various types of charities and mutual aid organizations, such as housing associations that provide housing for low-income and minority groups, sports associations (many football fans’ funds are in the form of cooperative partnerships), scientific foundations. research and environmental groups.

Main Department of the nonprofit executive committee:

    • carries out state registration of commercial organizations with the participation of foreign and international organizations, local public associations, local funds, organizational structures of republican state-public associations;
    • forms and maintains the territorial part of the Unified State Register of Legal Entities and Individual Entrepreneurs;
    • carries out state registration, registration of organizational structures of political parties, trade unions, other public associations.