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A short class with Sarah and her students. The other ways are under More.
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Let's start with what defines a non-trading organisation. Can anyone tell me what you think is the main focus of these organisations?
Is it about making profit like businesses?
Good point, but non-trading organisations are different. Their primary goal is to serve the community and not to generate profits. Remember the acronym 'NO PROFIT' to help you remember this. N stands for Not-for-profit.
So, any money they make goes back into their work?
Exactly! Any surplus is reinvested to further their missions. Can anyone mention a type of non-trading organisation?
How about charities?
Yes, charities are a great example! To summarize: non-trading organisations focus on serving the public interest and reinvesting any profits.
Another feature of non-trading organisations is that many rely on memberships. Can someone explain how this works?
Do they collect fees from members?
Exactly! Members might pay subscriptions or donations, which help fund the activities. This system strengthens community involvement. Think of the acronym 'MEMBERS', M for Membership, E for Engagement.
So, these organisations rely on people wanting to participate?
Yes! Engagement is key. Let’s recap: membership often funds non-trading organisations, fostering connection within communities.
Now, let's talk about how these organisations use their income. Who can tell me what happens to the money they earn?
They don't share it like businesses do, right?
Correct! The income is used solely for running operations and supporting their missions. Memorize 'SERVICE'—S for Surpluses go to mission, E for Expenses for community support.
So, they can't just pocket the money?
Exactly! They focus on social goals over personal profit. Let's summarize: the money is reinvested, ensuring the organisation can fulfill its purpose.
An entity focused on serving community or social needs without profit motive.
Refers to the purpose of these organisations where surplus funds are not distributed as profit.
These organisations operate through member contributions to support activities.
Funds earned must be reinvested to fulfill the organisation's social mission.
Non-profits share, not for personal gain, they help the community, that’s their aim!
Imagine a community garden, funded by memberships, where the fruits are shared among all members—everyone benefits!
Remember 'S-NUM' for non-trading: S for Surpluses, N for Not-for-profit, U for Use of Income, M for Membership.
KEY: K for Kindness (serving the community), E for Engagement (through membership), Y for Yield (reinvesting surplus).
Term
What characterizes a non-trading organisation?
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Term
How is surplus income used in non-trading organisations?
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An organisation that operates not primarily for profit but to serve community or social needs.
A term that describes organisations whose primary goal is not to make a profit.
Organisations that rely on members for financial support, usually through subscriptions or donations.
The excess amount of income over expenditure within a financial period.
This section outlines the key features that differentiate non-trading organisations from profit-oriented entities.
Non-trading organisations focus on serving social and community purposes rather than generating profit, characterized by their not-for-profit mission, membership bases, restricted use of income, and various examples such as charities and educational institutions.
This section discusses the essential characteristics that define non-trading organisations, also known as not-for-profit organisations. These entities do not primarily aim to generate profits; instead, their foremost goal is to serve the community or fulfill specific social purposes. Here are the key features: