Not-for-profit organisations have some distinguishing features from that of profit
organisations. State any one of them. (3 MARKS
Answers
Explanation:
Not-for-Profit organizations have some distinguishing features from that of profit organisations state any one of them. ... The main motive of not for profit organization is to provide services for welfare, while the main purposes of profitable organization is to earn profit.
Features:
Main Aim is Service: The basic aim of non-profit organizations is to serve the society. ...
Profit is not the Criterion: ADVERTISEMENTS: ...
Surplus not Distributed among its Members: ...
Separate Entity: ...
Unique Names Connoting their Working: ...
Management by Elected Persons: ...
Major Funds from Contributions and Donations etc..:
The main motive of a non-profit organization is to provide services for welfare, while the main purpose of a for-profit organization is to make a profit.
Nonprofit organizations have some distinctive features from those that for-profit organizations display. ... The main motive of a non-profit organization is to provide services for welfare, while the main purpose of a for-profit organization is to make a profit.
Non-profit organizations are established for the purpose of social welfare or charity. They usually promote science, art, charity, business, or religion for social development and not for personal gain. Such facilities can be registered under Section 8 of the Indian Companies Act, 2003.
It is a type of organization that does not make profits for its owners, instead, any amount of money they earn as a donation is used to further their goals and keep them running. These non-profit organizations usually fall into the not-for-profit sector and are tax-exempt charities or other types of public service organizations.
The sole purpose of these companies is to extend necessary assistance to a specific group of people or the general public. They usually do not conduct credit transactions that are usually conducted in a for-profit organization. So they don't have to keep a list of credit records, loss or profit accounts as such.
However, they keep a record book, which is then used to monitor the consumption of their funds and to assess the company's financial situation during the fiscal year. This record is kept to maintain transparency between the expenditure and income of a particular society and is then submitted to the statutory body also known as the Registrar of Society.
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