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Saturday, November 16, 2013

PPT On Not for Profit Environment


Not for Profit Environment Presentation Transcript:
1.Not-for-Profit Environment

2.Non-for-profit provide services for a political or social cause or other activities for the betterment of the society. 

3. The objectives of the Non-for-profit are often ambiguous and not easily quantifiable.

4.Non-for-profit have relationships with parties providing their resources that are unlike of businesses.

5.Financial reports of Non-for-profit provide information about Inflows (Revenues) and outflows (Expenditures) of cash and other resources.

6.Expenditures and revenues
Excess of expenditures over revenues generally signals financial distress or poor managerial performance.
Excess of revenues over expenditures is not necessarily commendable. It maybe achieved through reducing services, which may be at odds with the entity's’ objective.

7.The goal of Non-for-profit is something other than earning profit.

8.To assess the organization's performance  & to report properly on their accomplishments, non-for-profit must augment its financial statements to include nonfinancial data relating to their objectives, eg:
a school might include statistics on student test scores or graduation rates.
A center for homeless might present data on the number of people fed or adequately housed.

9.Non-for-profit are governed mainly by their budgets, not the market place.
Revenues & Expenditures are controlled through the budgetary process. 

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