features of non profit organisation
Answers
Hi,
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’. Unlike other business, surplus or deficit of non-profit organizations is not distributed among its members. They are adjusted in the capital fund of such organizations.
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.
5. Unique Names Connoting their Working:
The names of non-profit organizations denote the nature and style of their functioning.
6. Management by Elected Persons:
These organizations are run and managed by elected members.
7. Major Funds from Contributions and Donations etc..:
Usually, non-profit organizations are not self sufficient to run their activities with the revenue generated from their own sources, so they depend upon the subscriptions, donations and grants received from various government departments.
Hope it helps..