Members of a not-for-profit making organization

Assessment: WAEC SSCE - Financial Accounting - 2021 (Objective) Subject: Financial Accounting

Question 1 Report

Members of a not-for-profit making organization

Answer Details
A not-for-profit making organization is a type of organization whose main goal is to serve a certain cause or community, rather than to make a profit for its owners or shareholders. Members of this type of organization: - Do not earn dividends on their contributions, as the organization does not aim to make a profit. - Do not receive surplus at the end of the year, as any surplus is usually reinvested in the organization's mission. - May not be paid interest on their contributions, as the focus is on serving the cause, not generating profits. - May share profits according to their contributions, but this is not the primary goal of the organization and profits are not distributed as personal gain.
Read lesson note on Accounts Of Not-for-profit Making Organizations (WAEC)
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