NPO

Basicallyy, when we hear the word NPOs, some obvious examples that we hear are:
Lalalalla.
The first four are public sector entities. Charities are private not for profit entities; including private colleges and universities, voluntary health and welfare organizations.
NPOs differ in goals and purposes as to profit making businesses but both are responsible for different stakeholders. They deal with large sums of money that it is important that they are properly managed and that their accounts present fairly the result of their operations.
Points:
NPs are not reporting to shareholders but it is very much important that they account for funds received and show how they have been spent.
a. Government – it does not have stockholders but taxpayers are entitled to see how the government spend their money
Users and user groups (people who have the same interests in a part something): the primary user group of NPOs are its providers
a. Govt – taxpayers
b. Private bodies: charities: current and future financial supporters
The second user group that should be recognized are the ‘recipients of goods/services’.
Budgeting: Budget –a financial plan of action prepared for a specific period of time. Budgets are financial control that sets spending limits and attempts to keep costs in line with revenues. For an NPO that mostly depend on contributions, budgets and variance analysis are vey much imprtant
CHARACTERISTICS:
A. Private Sector: NPEs in the private sector have the following characteristics:
a. Objective is to provide goods and services to various receipients and not to make a profit
b. Generally characterized by the absence of defined ownership interest sold – shares
c. Have a wide group of stakeholders to consider – public at large
d. Revenues generally arise from contributions (donations or membership dues) rather than sales
e. Capital assets are typically acquired and held to deliver services without the intention of earning a return on them
B. Public Sector: NPes