QUESTION FOUR
4.1 Discuss five (5) distinguishing features of non-profit organisations
1. Mission-driven: Non-profit organizations are typically established with a specific mission and purpose that is aimed at benefiting society or a specific group of individuals. Their primary focus is not to generate profits but to fulfill their mission and make a positive impact.
2. Voluntary support: Non-profit organizations rely heavily on the support of volunteers who dedicate their time, skills, and resources to further the organization's mission. These volunteers may serve on the board of directors, provide professional services, or assist with fundraising and community outreach.
3. Tax-exempt status: Non-profit organizations are granted tax-exempt status by the government, meaning they are exempt from paying certain taxes. This allows them to allocate a larger portion of their resources towards fulfilling their mission rather than paying taxes.
4. Limited personal gain: Non-profit organizations are prohibited from distributing profits or dividends to individuals who are associated with the organization. Instead, any surplus funds must be reinvested back into the organization to further its mission and support its activities.
5. Transparency and accountability: Non-profit organizations are held to high standards of transparency and accountability. They are required to publicly disclose information related to their finances, activities, and governance. This ensures that donors, stakeholders, and the general public can have confidence in the organization's operations and use of resources.