Summary
Summary Accounting - Non-profit organizations
- Course
- Accounting
- Institution
- 11
3 page detailed summary of non-profit organizartions
[Show more]
Seller
Follow
Content preview
NON-PROFIT ORGANISATIONS:INTRODUCTION:
We are looking at non-profit organisations, for example clubs.
These can include sports clubs like the golf club, tennis club and soccer club.
These are not like professional sports clubs as they wish to make a profit like any
other business.
Businesses:
- Owner contributes capital
- Uses capital to buy stock and assets
- Adds a mark-up and sells stock
- Draws up income statement to determine profit or loss
- Owner gets profits, rewards for investments.
Sports clubs:
- Members pay subscriptions to belong to the club.
- Use the subscriptions to run the clubs and benefit the members and improve
facilities.
- The income always equal the expenses (should not make a profit)
- If there are more expenses = deficit
- If there are more incomes = surplus
CLUBS:
The main purpose of a non-profit club is to provide facilities to its members.
Even though their main goal is not to make a profit, their income should still cover
its expenses.
On the other hand the main goal of a business is to make a profit.
Formation of a club:
- A group of people with similar interests come together to discuss a plan.
- Some members will do work without getting paid.
- Members will set out rules by which members need to abide, the constitution of
the club.
- Need to have a meeting every year to elect a chairperson, vice chairperson,
secretary and treasurer.
- This annual meeting is known as the annual general meeting (AGM)
- Can give a gift to the hardest working member called an honorarium.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller athenastuviastudyguides. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R51,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
49768 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now