posted by admin on Aug 17

Business has its scope in almost all the aspects of life. What were earlier for the welfare of the society or for the well being of the common people has now become one of the major businesses in the world.
Take education, hospitals, public services and so on as examples. Though their main motive is to provide public service no organization is willing to run under a loss. Of course they would need a nominal margin to keep themselves on the run.
These are the institutions that are termed as non-profit organizations where their sole purpose is to provide public service and not profit oriented. They need not be just schools and hospitals but also old age homes, orphanages, home for the disabled and so on. Even in the field of sports there are many non-profit organizations that are operating with the sole purpose of training the youngsters and the up coming players in their own particular sports.
These are usually small organizations where usually started under the guidance of the church or by the government. These institutions are funded by the government and also by the general public who are interested to fund these kind of institutions. They provide funds in the form of donations or in the form of gifts.
These institutions or businesses come under the different kind of tax section and are taxed on a nominal rate. Sometimes they are exempted completely from tax under certain circumstances.
Though these businesses are for the sole purpose of doing public service a lot of these businesses receive huge sums of money as donations by the public. Sometimes they receive much more than what is required. In this kind of situations they would spread the money or the funds for the development of other non-profit organizations, which need help and are under financial crunch.

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