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Not-for-Profit Organizations
These are the organizations that are founded not to earn profits but to provide services to their members and to the public in general.such organizations are : schools, hospitals, charitable institutions , welfare societies, clubs, public libraries, resident welfare association, sports club etc.2- The main source of income of these organizations is not the profit earned from purchase and sale of goods and services but is admissions fees, subscriptions, donations, grant-in-aid, etc.The Not-for-Profit Organizations are:-
1-Legally separate organizations
2-Usually exempt from federal, state, and local taxation
3-Religious, community service, private educational and health care, museums, and fraternal and social organizations, among many other kinds of organizations.These are called Not-for-Profit Organizations (NPOs).
Not-for-Profit Organizations
These are the organizations that are founded not to earn profits but to provide services to their members and to the public in general. The objective of Not for Profit Organizations are not to make profits but to serve.
such organizations are : schools, hospitals, charitable institutions , welfare societies, clubs, public libraries, resident welfare association, sports club etc. These are called Not-for-Profit Organizations (NPOs). These organizations provide services to their members and to the public in general.
The Not-for-Profit Organizations are:-
1-Legally separate organizations
2-Usually exempt from federal, state, and local taxation
3-Religious, community service, private educational and health care, museums, and fraternal and social organizations, among many other kinds of organizations.
Characteristics of Not-for-profit organizations (NPOs)
Following are the main characteristics or the salient features of Not for Profit organizations (NPOs):-
1- The objective of such organizations is not to make profit but to provide service to its members and to the society in general.
2- The main source of income of these organizations is not the profit earned from purchase and sale of goods and services but is admissions fees, subscriptions, donations, grant-in-aid, etc.
3- These organizations are managed by a group of persons elected by the members from among themselves. This group is called managing committee.
4- They also prepare their accounts following the basic accounting principles and systems that are followed by business for profit organizations that are run with an objective to earn profits.
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