not for profit organisations

Question 1

what are 4 not-for-profit organisations?

Answer 1

charities
co-operatives
societies
social enterprises

Question 2

describe charities

Answer 2

aim of collecting money from individuals and spending it on a cause
help those disadvantaged in society
can earn surpluses
employ many people

Question 3

describe co-operatives

Answer 3

organisation owned by its members (employees/customers)
members benefit through the payment of a dividend in the form of money-off vouchers
business hierarchy is much flatter
pay differentials between seniors and juniors just 2 or 3 times more/less
each member has an equal vote if decision to be made
main type of cooperative is worker cooperative
likely to be well motivated because all working towards a common goal

Question 4

describe societies

Answer 4

help members/customers with different issues such as sickness benefits/life insurance/pensions
mutual organisations
members collectively own the business and are also it’s customers
such as mutual insurance companies and building societies
members have right to vote for directors regardless of how much money they have

Question 5

describe social enterprises

Answer 5

booming organisation structure
clear social objectives
trade to help solve social problems, improve communities and environments they operate in
aim to make profits from selling goods and services in the open markets
instead of paying dividends they reinvest these profits towards achieving their social objectives