Session 10 - Practice: Purpose of Non trading Organisations and Discussion on real life examples 

Session Plan : Practice: Purpose of Non trading Organisations and Discussion on real life examples 

1️⃣ 0–5 min: Introduce the meaning and purpose of Non-Trading Organisations (NTOs).
2️⃣ 5–15 min: Discuss real-life examples (schools, clubs, NGOs, hospitals) and their service-based objectives.
3️⃣ 15–25 min: Explain how their accounting differs from trading firms (focus on service, not profit).
4️⃣ 25–40 min: Practice activity: Analyse 2 real organisations + how poor accounting affects fire insurance claim calculations.
5️⃣ 40–45 min: Recap and answer 5 important exam-oriented questions.

Lecture Material : (PDF, PPT)

Learning Material (IV Quadrant Approach)

(Q1) : Text and Image based Content (PDF/Image Formats)

Purpose of Non-Trading Organisations

🔹 Meaning

Non-Trading Organisations (NTOs) are institutions that do not aim to earn profit. Instead, their main objective is to serve society or promote a particular cause, such as education, health, sports, religion, culture, or welfare.

They are also known as Not-for-Profit Organisations (NPOs).

Examples include clubs, charities, educational institutions, and hospitals.

Main Purposes

1. Service to Society

The primary goal is to provide services to the public or a specific group — not to make profits.

Example: A charitable hospital provides free or low-cost medical treatment to poor patients.

2. Promotion of Education

They promote education and literacy without commercial motives.

Example: Khan Academy provides free online education globally.

3. Promotion of Sports and Culture

They encourage sports, arts, and cultural activities for community development.

Example: YMCA (Young Men’s Christian Association) promotes physical, cultural, and moral development through community programs.

4. Charitable and Religious Purposes

Many NTOs work to help the needy, support religious activities, or maintain places of worship.

Example: ISKCON promotes spiritual education and serves free food (prasadam) worldwide.

5. Health and Welfare

They focus on healthcare, hygiene, and general welfare of people.

Example: Red Cross Society provides medical relief during disasters and promotes health care.

6. Community Development

They help improve local communities by supporting employment, women empowerment, or environmental protection.

Example: SEWA (Self Employed Women’s Association) empowers poor women through training and microfinance.

7. Environmental Protection

Some NTOs aim to protect natural resources and spread awareness about environmental issues.

Example: Greenpeace campaigns for climate action and environmental sustainability.

Real-Life Examples (India & Worldwide)

Organisation Name Country Main Purpose

CRY (Child Rights and You) India Child welfare and education

Teach for India India Improving education quality

Indian Red Cross Society India Medical relief and disaster aid

WWF (World Wildlife Fund) Global Wildlife and environment protection

Rotary Club Global Community service and social welfare

Smile Foundation India Child education and healthcare

Summary

Key Aspect Description

Objective Service, not profit

Examples NGOs, Clubs, Charitable Trusts

Funding Donations, grants, membership fees

Beneficiaries Society or specific groups

Outcome Social welfare, education, health, etc.

(Q2) : Video Based Content (Youtube)

(Q3) : Formative Assessment (Google Form/Any Other Online Quiz Platform)