Theory question 101
Not-for-Profit OrganisationsSection A
1. (a) Explain the following terms: (i) members' subscriptions; (ii) accumulated fund (iii) bar stock; (iv) bar profit. (b) List five sources of income for a not-for-profit making organization.
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(a)(i) Members' subscriptions: the regular (usually annual) fees members pay to belong to the club.
(ii) Accumulated fund: the capital of a non-profit organisation, i.e. its assets less liabilities.
(iii) Bar stock: drinks and other goods for sale in the club's bar that are unsold at a date.
(iv) Bar profit: the surplus from running the bar (bar takings less cost of bar sales and bar expenses), transferred to the income and expenditure account.
(b) Any five: subscriptions; entrance fees; donations and gifts; government grants or subventions; bar profit; proceeds from dances, concerts and other events; interest on investments; rent of club facilities; life membership fees.
Give short clear meanings, then list five income sources.