Non - Profit organization

Introduction
Meaning
Features

Main aim is services
Profit is not the critirion
Separate entity
management by elected person
NPO's working in India

1. NON – PROFIT ORGANIzaTION PRSENTED BY, S. TAHZEEB FATHIMA 1 – M. COM Under the Guidance of Sundar B.N. Asst. prof .course co- ordinator of Post graduation studies in commerce G.F.G.C.W. Holenarasipura

2. Contents Introduction Meaning Features NPO’s in India

3. INTRODUCTION 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 . They are formed for some idealistic purpose and provide service to its members and the public in general . Their aim may be educational, religious, charitable or social welfare of the people at large. 

4. M eaning of non-profit organization ? A   non-profit organisation  ( NPO ), refers to those organisations which are formed to render social service and not for making profits such as promotion of education, health , arts & culture, religion etc. Examples: Hospitals, Schools and Colleges, Clubs, Libraries, Charitable institutions. These organisations are granted tax-exempt status and all contributions made to them are tax deductible , as long as they are properly registered.

5. What causes do non-profit organizations serve ?

6. Features 1 .Main aim is service : T he 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.

7. Features 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.

8. Features 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. For example, JMD Educational Society, Shri Sai Keertan Mandli, Shri Sunder Dev Sports Club and Shri Sanatan Dharam Ramlila Committee etc.

9. Features 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.

10. Sl. NO Categories Examples 1 Education e-Vidyaloka, Aarti for Girls 2 Charitable Trusts Smile Foundation, Care India 3 Arts and Cultural INTACH( Indian National Trust for Art and Cultural Heritage ) 4 Human Services APJ Abdul Kalam Centre, Agaram foundation 5 Health Help Age India, Rural Health Care Foundation 6 Religious Arya Samaj, Bharathi Foundation NPO’s working in India

11. Reference TOPIC : Non-profit organisations Retreived from: https://www.accountingnotes.net/organizations/not-for-profit-organizations-meaning-objectives-and-features/4332

12. Time for quiz Non - profit organizations work for the benefit of ____ a.Companies b.Government c.Financial institutions d.Society Ans: society Non - profit organizations are ______ a. Taxable b. Non taxable c. Tax exempted d. None of the above Ans: Tax exempted

13. Which of the following is one of the example of non - profit organization? a. Corporations b. Audit firms c.Insurance companies d.Public hospitals Ans: public hospitals 4.The main sources of their income are ______ a. Subscriptions b. Donations c. Government grants d.All of the above Ans: All of the above

14. 5. Surplus or profits of Non- profit organizations are _____ a. Distributed among members b. Maybe or may not be distributed among members c. It is debited to the general fun d. Not distributed among the members Ans: Not distributed among the members