Question

4/ Find the financial statements of a selected company and comments on the types and revenues of this selected company.

Answer 1

Here the selected company is a "Not for profit organisation".

All nonprofits rely on a mix of sources for their income, and funding can come from individuals, foundations, corporations or local and federal government. Some nonprofits charge a fee for certain kinds of services, and some sell goods or services to generate revenue. It’s important to diversify your revenue stream and have a healthy mix of funding sources for your organization. Here are the most common types of revenue streams for nonprofits:

Individual Donors:- Of all donations made to nonprofits, 71 percent come from individuals. Individual contributors will include a mix of high-level donors (major donors), and mid- to low-level donors (regular donors).Individual donors can make one-time or recurring donations. They give the organization through events (including event tickets as well as additional fundraising activities at the events, such as raffles and auctions), annual appeals or planned giving (leaving money to a nonprofit organization in a will). Some individuals or families also have family foundations that can help them make gifts to charities.

Identifying and Cultivating Major Donors:- For the company, 88 percent of total dollars raised comes from just 12 percent of donors, so focusing efforts on major donors is important. While major donors won’t give as frequently as smaller-level donors, the gifts they give will be significantly larger.The level at which a donation is considered “major” varies from one organization to another. Large organizations might consider major gifts to be six-figure gifts and above, while small organizations might consider a gift of a few thousand dollars to be a major gift. Major gift prospects need to be connected to your organization’s mission, and they need to have both the inclination and the capacity to give large gifts. Starting with your largest donors, most frequent donors and board members is a great way to start cultivating major gift donors.

Foundations and Other Organizations:- Private (non-government) foundations vary in size, scope, capacity and the processes through which they make grants. These foundations give grant to the organization on an annual or one-time basis, and require detailed applications and reports. While some foundations will give general operating support or unrestricted funding, most prefer to fund specific programs or initiatives. Foundation funding typically comprises a small portion of a nonprofit’s income (around 2 to 4 percent), but can play an important role in funding new programs or strengthening existing ones.

Corporate Giving:- Corporations also give money to the organisation in a variety of ways. Some corporations have their own corporate foundations, which have similar grant-making processes as private foundations. Some corporations will sponsor events or provide in-kind donations for event raffles and auctions. Cause-related marketing is another form of corporate giving, where companies will offer a portion of proceeds from the sale of an item to a nonprofit. This can also have the benefit of raising awareness about an organization as well as raising funds. Many companies will also make matching gifts when their employees donate to an organization, or will donate funds when their employees volunteer at an organization. Corporate giving can include large national companies as well as smaller local ones.

Other Revenue Sources: Fees for Services and Sales of Goods:- This nonprofit also charge fees for some of their services. Hospitals bill patients, museums ask for admissions fees, theaters sell tickets, civic organizations charge dues, colleges require tuition and so on.