Features of Non-Trading Concerns
Written by True Tamplin, BSc, CEPF®
Updated on June 22, 2021
Non-Trading Concerns or Non-Profit Organizations have the following features.
1. Non-Profit Motivation:
Non-Trading Concerns are not operated with the objectives of earning the profit. Their main objectives are to serve their members or the whole society.
The entity concept is also applied to non-trading concerns, as these organizations do not have owners.
3. Forms of Organizations:
These concerns are found in the form of clubs, societies and charitable bodies. These organizations are also found in the form of government schools, colleges, hospitals, dispensaries and libraries.
4. Sources of Income:
Non-trading concerns have limited sources of income. Many a time these organizations are to depend on the donations given by the members and outsiders. Because subscriptions received from members may not cover all their operating expenses.
Large-scaled organizations also prepare their annual budget.
6. Usage of Funds:
These organizations spend their funds in such a way that provides maximum benefit to the members.