State the meaning of ‘Not- for- Profit’ Organisations.

Explanation

Not-for-Profit Organisation (NOP) square measure those organisations that square measure originated with the prime objective of financial aid of the society; profit earning isn't the objectives of such organisations includes colleges, hospitals, trade unions, spiritual organisations, etc.

The management of such organisation is within the hands of trustees. As these organisations don't seem to be concerned in creating profit the most supply of financial gain for these organisations square measure donations, subscriptions, life membership fees, grants etc. Like different organisation commerce and Profit and loss account isn't ready just in case of NPO rather receipts and payment account, financial gain and Expenditure Account and record is ready.