Influence of Policies on Non-Profit Organizations
There are different policies that have an impact on the effectiveness of non-profit organizations like Ronald McDonald House. Gonsalves & McGannon (2018) mentioned that accounting policy is compiled with the observance of the principles of formation and qualitative characteristics of information defined by the aforementioned Regulations of Ronald McDonald House. Accounting policies are specific accounting methods selected and consistently applied by an organization that, in the opinion of the NPO management, correspond to the conditions of its activities and are best suited to fully present its results and financial position. Since the accounting policy conducted may significantly affect the reported results and financial position, the policy on significant items of income and expenses should be explained (Razmerita & Tan, 2017). Naturally, if there were a range of acceptable methods, and without detailed disclosure of financial statements, internal logic and comparability with the financial statements of the following accounting periods and with other reporting parties would not be enough. Notes disclosing accounting policies should be as clear, precise and concise as possible. Adequate disclosure of accounting policies is a necessary factor for accurate financial statement presentation (Doherty & Lyon, 2014). Ronald McDonald House finds it difficult to manage the processes in the organization which is related to the accounting policy because it helps in the determination of the profits that helps in running the businesses in an effective manner. In addition to this, it becomes difficult for the organization to manage the profits and then invest them for the provision of further support to the children who are targeted by Ronald McDonald House (Maier, Meyer & Steinbereithner, 2016).
Social Capital and Non-profit Organizations
The social capital of non-profit organizations is defined by us as the conscious formation and use of social networks by the organization, expanding its capabilities, increasing the level of trust in its ideas and beliefs of the population, as well as representatives of other sectors of society. The useful acquaintances, joint social practices of NGOs, cooperation with business, cooperation with channels of mass communication act as networks of informal communications (Elfving & Howard, 2018). The process of the formation of non-profit organizations as an institution of civil society is faced with difficulties caused by the distrust of citizens, their inclination to state paternalism, and the lack of developed channels of social communication. An indicator of the state of civil society in the US, based on initiatives from below, is not only the composition of non-profit organizations (NPOs) but also the volume of their social capital (Doherty & Lyon, 2014). In analyzing the situation related to t
