Question

Develop a list of expense streams for a non-profit health club

Answer 1

Let us understand, What are these nonprofit organizations?

Nonprofit organizations are those which are not existing for profit purpose but for helping people who need free services. So nonprofit organizations are also called as not for profit organizations these are privitely held business or entities the don't provide financial benefits for their members and stakeholders, they are privately incorported groups with a charitable purpose of not profiting from the activities they carry.

Expenses stream for a non-profit health club.

Every business expenses are grouped in functional activities it may be program or supporting service expenses, these are again categorised into management or general expenses and fundraising.

• Program service expense: These expenses are generated while establishing program for creating awareness about health and nonprofit organization of health club.
• Management and general expenses: These cost are related to administrating the day to day activities of the nonprofit health club. These expenses directly not related to purpose of exists of health club but includes activities like bookkeeping, management and goverance. Organization has to concentrate more on minimizing these expenses as much as possible.
• Fundraising: These expenses occures during fund raising that is financial support from members for contribution on health club. Examples like fundraising envent, solicitation of contribution, salary of individual who involved in the fundraising process.