Education Power Is a Charitable Organization That Promotes Educational Opportunities

Question

Examlex · Accepted Answer

The Answer is Setting Goals and Strategies: Although a charitable organization must
obtain sufficient resources to fund its operations, it would not pursue
profits or wealth increases as goals.A charitable organization would
direct its efforts toward providing services to its constituencies.
Financing: A charitable organization may obtain some or all of its
financing from donations (contributions).A charitable organization does
not issue common stock or other forms of shareholders' equity, nor does it
have retained earnings.
Investing: Similar to business firms, charitable organizations acquire
productive capacity (for example, buildings) to carry out their activities.
Operations: A charitable organization might prepare financial statements
that compare inflows (for example, contributions) with outflows.While
these statements might appear similar to income statements, there would
be no calculation of net income because the purpose of the charitable
organization is to provide services to its constituents, not seek profits.

Education Power Is a Charitable Organization That Promotes Educational Opportunities

Definitions: