Not-for-profit Organisations Flashcards

All 6 cards in this deck

What is a not-for-profit organisation?

A business that aims to provide a public service or help people rather than make profit for owners, reinvesting any surplus.

What is a charity?

A not-for-profit organisation that raises money for good causes or helps people, animals and the environment.

What is a social enterprise?

A not-for-profit organisation that sells products or services like a traditional business but uses its profits to benefit society.

How are charities mainly funded?

Through donations, plus grants and tax relief they are eligible for.

What is a grant as a source of funding for a not-for-profit organisation?

Money given, usually by the government or lottery fund, that does not have to be repaid.

True or false? A not-for-profit organisation does not need to cover its costs.

False. It must generate enough income to cover its costs; it simply reinvests any surplus rather than paying owners.