Sources of Income for 'Non for profit' Organization

 1. Subscription:- Fees which is paid by the members Monthly, quarterly, half yearly or yearly called as         Subscription. It is a major sources of income and it is recurring in nature and it is recorded on the             Income side.

2. Entrance Fees or Admission Fees:- Entrance fees are received from members on their admission in         such organisation as member. It is non recurring for such organisation but if new member keeps on          joining, then it can be recurring income for such organisation.

3. Life MemberShip Fees:- Fees which is paid in Lumpsum to become a member. It is non recurring in         nature. It is added to the capital fund.

4. Legacies:- It is a gift to the organization as per the will of deceased person, (on death of a member)             such gift are called as Legacies. It is non recurring in nature and recorded on Liabilities side. 

5. Donations:- Donations are collected from the public for organising social activity. There are two                 ways of collecting Donation.

    A. Special Donation:- Special Donations are related to specific objectives and it is non recurring in                 nature. It is recorded on the closing Balance Sheet Liabilities Side. For eg:- Tournament fund,                 Marriage fund, Building fund, etc.

    B. General Donation:- It is not related the specific objectives. So, it is recurring in nature, it is                     recorded on the income side.



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