Asked by refan waleed on May 04, 2024
Verified
What is the income a nonprofit organization receives from fees for service called?
A) earned
B) taxable
C) contributed
D) expendable
Fees for Service
Charges imposed for specific services provided by professionals or organizations, often based on the service's complexity or the time required to perform it.
Earned Income
Income generated from the sale of goods and services, distinguishing it from donations or grants in nonprofit organizations.
- Apprehend the principle and significance of generated income in charitable organizations.
Verified Answer
AT
Aryaan ThadaniMay 10, 2024
Final Answer :
A
Explanation :
The income a nonprofit organization receives from fees for service is called "earned" because it is revenue earned through the provision of services or goods, rather than contributions or donations. This earned income may be subject to tax, depending on the nature of the service provided and the organization's tax status. Contributed income refers to donations and grants received, while expendable income refers to funds that can be used for current expenses rather than being designated for long-term use.
Learning Objectives
- Apprehend the principle and significance of generated income in charitable organizations.
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