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Objectives

Not-for-profit entities

5.1 Introduction to not-for-profit entities

Not-for-profit entities are not run to make profits but to benefit
prescribed groups of people.

Services provided are limited primarily by the funds available, so secondary
objectives are to raise the maximum possible funds each year and to use the funds
efficiently to maximise the benefit generated.

This can be measured as the ‘value for money’ (VFM) generated.

Not-for-profit entities will still have a mix of financial and non-financial objectives and
will still have to try to satisfy many different stakeholder groups.

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