Question

What are the main characteristics of not-for-profit organizations?

Options

• Such organizations are formed for providing service to a specific group or public at large such as education.

• These are organized as charitable trusts/societies and subscribers to such organizations are called members.

• The funds raised by such organizations through various sources are credited to the capital fund or general fund.

• All of the above

Answer 1

All of the above

Explanation:

The main characteristics of such organizations are:

• Such organizations are founded to provide services to a specific group or the general public, such as education, health care, recreation, and sports, without regard for caste, creed, or colour.
• Members are subscribers to charity trusts/societies, which are organized as charitable trusts/societies.
• A managing/executive committee is frequently elected by the members to oversee their business.
• The following are the primary sources of income for such organizations:
  (i) subscriptions from members,
  (ii) donations
  (iii) legacies
  (iv) grant-in-aid
  (v) income from investments, etc.
• Finances raised by such organizations from a variety of sources are credited to capital or general funds.