ACCA FM · Chapter 1 · Question 10 of 10
A charity is a not-for-profit organisation. Which of the following is MOST likely to be its primary objective?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) To achieve its charitable aims as fully as possible with the funds available
Explanation
A not-for-profit organisation exists to achieve non-financial objectives, such as relieving poverty, so its primary objective is to deliver as much benefit as possible from limited funds (value for money). A surplus may be needed to remain financially viable but is not the main aim, and trustees are not owners entitled to wealth from the charity.
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