Accountancy, asked by Anurag988, 1 year ago

what is meaning and characteristics of not-for-profit organization?

Answers

Answered by mangharam
3
The sole purpose of any business organization is to earn profit. In other words, they work for self-interest. However, there are some organizations whose basic aim is to serve the society i.e. they work for the benefit of the society as a whole. These are called not-for-profit organizations or non­profit organizations.

1. To evaluate the performance of organizations in terms of achieving their goals for which they were created.

2. To judge whether those organizations are appropriating the funds with three E’s viz. economically, effectively and efficiently.

3. To examine the compliance of rules, regulations, bye-laws in the organizations.

ADVERTISEMENTS:

4. For obtaining grants from government departments.

5. To submit annual accounts to the Registrar with whom they are registered.

Answered by kriti9agr
2
Non-for profit organisation are those organisation which are established in society for providing services not for earning money.

The characteristic of non for profit are :
Main aim is service
Form
Separate Entity
Managed by elected members
Major sources of income
Surplus not distribution among its members
Accounts
Form of Accounts

Thank you.
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