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NON-PROFIT COMPANY (FACTORS RELATING TO A NON-PROFIT COMPANY (Name: SHOULD…
NON-PROFIT COMPANY
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DISADVANTAGES:
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- NEED PROFESSIONAL ASSISTANCE
- NEED TO DRAW UP A MEMORANDUM OF ARTICLES - LEGAL PRACTITIONER IS NEEDE
- DOES NOT GENERATE ENOUGH INCOME TO COVER EXPENSES
- RELY ON DONATIONS FROM THE PUBLIC
- NOT ALLOWED TO PAY BONUSES TO THEIR MEMBERS
- ASSETS ARE NOT GIVEN TO THE MEMBERS WHEN NPC IS CLOSING DOWN
- NOT EASY TO ATTRACT THE SKILLS AND CAPITAL NEEDE
- LEGAL REQUIREMENTS AND BUREAUCRACY WHEN APPLYING TO THE DEPARTMENT OF SOCIAL DEVELOPMENT / GRANTS
ADVANTAGES:
- PROFITS USED FOR PRIMARY OBJECTIVE OF THE COMPANY
- PROVIDE SERVICES TO COMMUNITIES
- PEOPLE WHO MAKE DONATIONS RECEIVE TAX DEDUCTIONS
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- CONTINUITY - NPC WILL CONTINUE WHEN MEMBERS RETIRES
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- PROVIDE ESSENTIAL SERVICE TO SOCIETY
CHARACTERISTICS
- UNDER NEW LAW NPC DO NOT REQUIRE A MINIMUM OR MAXIM NUMBER OF MEMBERS
- THEY HAD 7 MEMBERS AND 2 DIRECTORS
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- OBJECTIVE IS NOT TO MAKE A PROFIT
- THEY OBTAIN FUNDS FROM LOANS, DONATIONS AND SUBSIDIES
DEF: NPC is registered to provide a service and do not intend to make a profit . Example Meals on Wheels / SPCA