Local Government and Nonprofit Making Organization

Local Government and Nonprofit Making Organization
Name
Institution
Nonprofit making organizations and local government have internal and external sources of fund or revenue. Local governments get special grants to fund their developments. Similarly, nonprofit making organizations receive grant funding (Schnurbein, 2017). Grants are classically provided by the charitable foundations and trusts or public sector. The money doesn’t have to be refunded and is typically exempt from levy.
Local government receives statutory allocations from the state and the federal government. Local governments raise fund through various forms of taxation (Bartle, Kriz, & Morozov, 2011). On the other hand, nonprofit making organizations raise money through loan financing, equity capital, and trading. The organizations also receive donations and gifts. Donations mostly come from companies, individuals, or charitable foundations and trusts. Donations and gifts are a specifically important source of income for non-profit making organization.
Both local government and non-profit making organizations incur administration and operational expenses. Local government like Washington spends its finances on matters to do with health, as well as education. Likewise, nonprofit making organizations participate in health and education and hence their expenditure. Local government spends money on running and maintaining public welfare. On the other hand, nonprofit organization like Bill and Melinda Gates Foundation spend funds in helping people who are unfortunate in society.

ReferencesBartle, J. R., Kriz, K. A., & Morozov, B. (2011). Local Government Revenue Structure. Retrieved July 30, 2018, from https://digitalcommons.unomaha.edu/cgi/viewcontent.cgi?article=1002&context=pubadfacpub
Schnurbein, G. (2017, October). Nonprofit Financial Growth and Path Dependency. Retrieved July 30, 2018, from https://ceps.unibas.ch/fileadmin/user_upload/ceps/2_Forschung/Publikationen/Working_Papers/12_von_Schnurbein_Nonprofit_Financial_Growth_and_Path_Dependency.pdf