Explain three features of Not-for-Profit Organization.
Answers
Answer:
three features of Not-for-Profit Organization.
Answer: the features of the Not-for-Profit Organization are.
The purpose- Its objective is to render service to any individual or a group or work for a cause without any expectation of return or profit.
Ownership- The organization is established as a trust or a charitable society. Therefore, it does not have an individual or group of an individual as an owner but belongs to society.
Objectives- This organization does not function with the object of earning a profit, but, its motive is to serve society. However, the profit they make is used to upgrade the organization and its operation process and is not distributed among its members.
Answer:
Features
1. Main Aim is Service:
The basic aim of non-profit organizations is to serve the society. They are working for the benefit of the society as a whole.
2. Profit is not the Criterion:
Non-profit organizations are formed for some idealistic purposes such as religious, charitable or providing education etc. Earning of profits can never be their aim.
3. Surplus not Distributed among its Members:
Though earning profit is not the criterion for non-profit organizations, yet there may be excess of income over expenditure or excess of expenditure over income. The former is known as ‘surplus’ and latter is known as ‘deficit’.
4. Separate Entity:
The separate entity concept is equally applicable to non-profit organizations. Such organizations are treated as a separate entity distinct from its members.