1.2e - Non-Profit Organisations Flashcards
What is done with profit in non-profit organisations?
- It is reinvested back into the organisation
OR
- It goes towards achieving its objectives
Charity definition
An organisation that uses profit to raise money for a particular cause
Requirements to become a charity:
- Have exclusively charitable aims
- Be approved by the charities commission
Are trustees allowed to receive financial benefits from a charity?
No
What taxes do charities not have to pay?
- Income / corporation tax
- Capital gains tax
- Stamp duty
- Inheritance tax
Social enterprise definition
A business whose profits are reinvested in the business or with stakeholders other than shareholders
Features of a social enterprise:
- Under-privileged employees
- Environmentally friendly materials
- Uses profit to help stakeholders
- Provides a service to the local community
Pressure group definition
An organisation formed by a group of like-minded people who wish to exert their feelings on the public
What are the aims of pressure groups?
To raise awareness of, disrupt or end activities they think are inappropriate
What are mutual societies also known as?
- Industrial societies
- Provident societies
Who are mutual societies owned and controlled by?
Their members
How does the voting system work in mutual societies?
One member gets one vote and all votes are equal
