Not-for-profit organisation

• What is a not-for-profit organization?

  A business pursuing societal benefit objectives
• Can a not-for-profit organization make a profit?

  Yes, but it's not the main aim
• What happens to profits generated by a not-for-profit organization?

  They are reinvested to pursue social objectives
• Give an example of a not-for-profit organization.

  The Big Issue
• How does a social enterprise differ from a not-for-profit organization?

  A social enterprise sells products for revenue
• What are the two types of businesses a not-for-profit organization can be set up as?

  Incorporated and unincorporated businesses
• What is the liability associated with an incorporated not-for-profit organization?

  Limited liability
• What is the liability associated with an unincorporated not-for-profit organization?

  Unlimited liability
• What is an advantage of being a not-for-profit business?

  Reduced taxes leading to higher profits
• How do reduced taxes benefit a not-for-profit organization?

  They allow for higher profits to reinvest
• What are the key characteristics of not-for-profit organizations?

  • Pursue societal benefit objectives
  • Can make profits, but not the main aim
  • Profits are reinvested for social objectives
  • Can be incorporated or unincorporated
  • Associated liabilities vary by incorporation status
  • Enjoy reduced taxes leading to higher reinvestment