Operational activities include all forms of sales, contracts, rentals, or gaming revenue that the organization generates on its own. This also includes sponsorship agreements with companies, under which the companies receive benefits in return, such as the right to use the organization’s logo, etc.

Revenue earned from operating activities is divided into two categories:

– Activities that fulfill the organization’s purpose:
An example here is an association that operates a café for its members. This can both generate income and fulfill the organization’s purpose.

– Activities that generate income (but do not fulfill the organization’s purpose):
An example here is an association that operates a catering business due to excess capacity. This can generate income but does not fulfill the organization’s purpose.

Take me to “Financial and Investment Income”

Back to the chart of accounts
Glossary – Activity-Based Accounting