Y11 GBME Not for profit organisations

What is a not for profit organisation?

• A company formed without the ability to raise money from the public.

• a business arrangement where the business model is licenced in return for ongoing fees or royalties

• A business run and owned by an individual

• A business not operating for the profit or gain of its individual members

True or false - An incorporated not for profit organisation provides financial protection by limiting personal liability

• True

• False

What are the taxation requirements for a not for profit organization?

• Owner pays personal income tax

• Corporate tax is paid on the profits

• Tax exempt when approved through the ATO

In an ​ (a)   not for profit, the organisation is a separate legal entity whereas an ​ (b)   not for profit is not a separate legal entity.

• incorporated
• unincorporated

Which company below is a not for profit organisation?

• McDonalds

• Foodbank

• Coles

• Yo Chi

Sort the below into advantages and disadvantages of not for profit organisations.

Groups:

(a) Advantages

,

(b) Disadvantages

• Inexpensive to incorporate

• May be eligible for tax benefits

• Positive social impact

• Not closely monitored so no operational guidelines

• Reliant on donations, grants and funding

Match the business to its liability

• limited liability

• Franchise

• unlimited liability

• Not for profit (incorporated)

• limited liability

• private company

• Shared limited liability

• Partnership

• unlimited liability

• Sole trader

True or false - a business where all profits go towards rescuing, rehabilitating and releasing black cockatoos back to the wild is an example of a not for profit organisation

• True

• False