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Commercial Applications

Explain in brief the features of non-profit organisations.

Commercial Orgs Intro

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Non-profit organisations are those organisations which do not aim at earning profits. Their purpose is social service and public welfare. The main features of non-profit organisations are as follows:

  1. Registration — These organisations may be registered under some law (e.g., the Trusts Act, The Society's Act) or may even be unregistered.

  2. Variety of Fields — These organisations work in different fields and their working depends upon the nature of the organisation. Schools, colleges, hospitals, orphanages, public libraries, clubs and cooperative societies are some examples.

  3. Democratic Management — These organisations are managed by Trusts, Executive Committees, etc. The office-bearers are elected by the members and, therefore, the organisations work in a democratic manner. The executive committee meets at regular intervals to review the working and formulate plans for the future.

  4. Service Motive — The motive is to provide service and not to earn profits. Their purpose is social welfare, promoting art, culture, religion, charity or other social objectives.

  5. Source of Funds — Funds are raised from members, donations from the public and grants by the Government.

  6. Nominal Charges — The organisation may charge nominal or reasonable prices for its services in order to raise funds, even though earning profit is not the motive.

  7. Services to Society — Services are provided to members and even to society at large. The services may include education, healthcare, religious activities, charity, disaster relief, etc.

  8. Promotion of Social Welfare — These organisations are formed for promoting art, culture, religion, charity, or any other social purpose.

  9. Tax Exemption — They are generally not liable to pay tax on their income, as their purpose is social service.

  10. Examples — Akshaya Patra Foundation, Teach For India, SEWA (Self-Employed Women's Association), Ramakrishna Mission, Bharat Sevashram Sangha, Missionaries of Charity, CRY (Child Rights and You), and HelpAge India.

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