Accounting Not For Profit Organisation

Libraries run by charitable trusts are typically classified as Not-for-profit organisations. Here’s why:

• Purpose: Not-for-profit organisations aim to serve the public or the specific purposes set out in their charter, without intending to make a profit. Libraries operated by charitable trusts provide community services rather than generating income for owners or shareholders.
• Ownership: Unlike partnerships, companies, or cooperatives, which may have individual stakeholders or profit-sharing concerns, not-for-profit organisations are primarily driven by their mission to fulfill societal needs.
• Structure: They are usually funded by donations, grants, or contributions and reinvest any surplus into the mission rather than distributing profits.

For many not-for-profit organizations, the primary source of revenue is typically subscriptions from members. This is particularly true for membership-based organizations that provide services or benefits to their members.

Other Revenue Sources

In addition to member subscriptions, not-for-profit organizations may also receive revenue from:

• Donations and grants
• Fundraising events
• Program fees
• Investment income

Therefore, for not for profit organizations, the primary source of revenue typically comes from subscription from members.
Hence, the correct answer is Option 3.