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achieve its goal. The presence of a large non-profit sector is sometimes seen as an indicator of a healthy economy in local and national financial measurements. With a growing number of non-profit organizations focused on social services, the environment, education and other unmet needs throughout society, the non-profit sector is increasingly central to the health and well-being of society. [10]

Task 3

Any type of construction project requires funding no matter how big or how small, and the source of the funding/finance can vary. These are personal savings, retained profit, other loans, overdraft facilities, grants, venture capital, lottery funding and preference shares.

Personal Savings

Personal saving has been defined as disposable income minus personal consumption expenditure. In other words, income that is not consumed by immediately buying goods and services is saved. Other kinds of saving can occur, as with corporate retained earnings (profits minus dividend and tax payments) and a government budget surplus. [11]

However not many people use this method as a source of finance. The main reason being that not many people earn enough money per annum to be able to afford to fully run a construction project. On the other hand it is perhaps the safest way to get hold of a reasonable sum of money with out any major consequences.

Retained Profit

When a business or a construction company makes a profit and it does not spend it, it keeps it, and accountants call profits that are kept and not spent retained profits. The retained profit is then available to use within the business or construction company to help with buying new machinery, vehicles, and computers and so on or developing it in any other way. Retained profits are also kept if the owners think that they may have difficulties in the future.

This is a more common method used to fund a construction project as it is a more realistic vision, and it is possible to base the size of the construction project on the amount of retained profit that is received per month. Quite often retained profit it used in emergency or sometimes put back into the company to expand it, and even some people do not spend that money at all, the reason for this being is having that retained profit to fall back on to or in other words for a peace of mind.

Other Loans

In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. [12]

Typically, the money is paid back in regular instalments, or partial repayments; in an annuity, each instalment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.

Long Term (Mortgage)

This is by far the most common loan used through out the world. A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loa