Subvention Income

AAA

DEFINITION of 'Subvention Income'

The amount of revenue or source of funding that a not-for-profit organization retains in order to cover the organization's annual operating expenses. The amount of subvention income that is received is often calculated using a predefined formula based on the amount of services that the organization provides.

INVESTOPEDIA EXPLAINS 'Subvention Income'

For example, the amount of subvention income that a student union receives may based on the number of students that have fully attended the educational institution that year.

Depending on the country, this type of income may or may not be taxed. In the United Kingdom, subvention income is not taxed, but any differences between the amount of subvention income set aside and operating costs do need to be documented in the company's balance sheet.

RELATED TERMS
  1. Income

    Money that an individual or business receives in exchange for ...
  2. Nonprofit Organization

    A business entity that is granted tax-exempt status by the Internal ...
  3. Taxes

    An involuntary fee levied on corporations or individuals that ...
  4. Operating Expense

    A category of expenditure that a business incurs as a result ...
  5. Overhead

    An accounting term that refers to all ongoing business expenses ...
  6. Nonadmitted Balance

    An item on an insurer’s balance sheet that represents reinsured ...
RELATED FAQS
  1. What is the purpose of a "repatriated tax break", and why is it so controversial?

    In 2004, Congress passed the American Jobs Creation Act to create new jobs in an effort to boost the economy. One of the ...
Related Articles
  1. Entrepreneurship

    Social Finance Careers: Creating A Better World

    A financial career can be used to do more than just bring in profits. Find out how to get a career with a more social objective.
  2. Retirement

    Navigating Government And Nonprofit Financial Statements

    Learn how to trace where your tax dollars and charitable donations are going.
  3. Stock Analysis

    Does It Still Make Sense To Buy IPG Shares?

    Let's look at IPG's earnings, after their Q4 report, and whether the long-term investing thesis is compelling enough to warrant buying shares today.
  4. Stock Analysis

    Why Should You Invest In Stratasys Today?

    When Stratasys pre-announced its fourth-quarter earnings, management highlighted that its MakerBot acquisition was underperforming expectations.
  5. Investing

    What's a Debit Note?

    A debit note is a document used by a seller to inform a purchaser of a dollar amount owed. As the name indicates, it is a note from the seller that a debit has been made to the purchaser’s account. ...
  6. Investing Basics

    What is Profit?

    Profit is a general term used to denote when earnings exceed the expenses incurred to generate those earnings.
  7. Investing

    What's Capitalization?

    Capitalization has different meanings depending on the context.
  8. Investing

    Deferred Tax Liability

    Deferred tax liability is a tax that has been assessed or is due for the current period, but has not yet been paid. The deferral arises because of timing differences between the accrual of the ...
  9. Charts & Patterns

    Why These Are 2015's Most-Promising Bank Stocks

    Which bank stocks should offer the best bang for your buck in 2015? Possibly these, so read on.
  10. Charts & Patterns

    Are These the 10 Best Oil Stocks of 2015?

    Instead of trying to pick a bottom in oil, pick a good company. Here are 10 to consider.

You May Also Like

Hot Definitions
  1. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  2. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  3. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  4. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
Trading Center