Non-profit organizations are formed by promoters to provide social services and activities that enhance public welfare, not to earn profits. They have separate legal identities from their members and trustees manage them. Non-profits prepare annual financial statements including a receipts and payments account showing cash flows, an income and expenditure account in place of a profit and loss statement, and a balance sheet showing assets, liabilities, and capital at a given date. Their main sources of funding are donations and government grants.