The term revenue means the income that a company receives from its normal business activities, usually from the sale of goods and services to the customers. Income which a company earns through dividends, interest or royalties amount paid by other companies is also called as revenue. Revenue may refer to the income earned through a business in general, or it may refer to an amount received during a period of time. Profit or net income is generally calculated by subtracting total expenses from total revenue with in a given period. Revenue is also known as “REVs“.

In the case of a non-profit organization, annual revenue is termed as gross receipts. The sources of revenue for these non-profit organizations are as follows:

• Aid from government organizations
• Donations from individuals and corporations
• Income from activities related to the organization’s mission
• Income from fund generating activities
• Financial investments such as stocks and shares of the companies
• Membership dues

(more…)