Want to just say no to taxes and not pay them? Then create a not for profit organization and be exempted from all income taxes within that organization. Some examples of non-profit organizations are: hospitals, universities, political parties, religious organizations, and research for scientific studies. While on the other hand, for profit companies are any business that is owned by a person or a group of people. Some examples of for profit organizations are the following: private health organizations, product organizations, transport organizations, and many more (Haddad, n.d.). Both companies collect money but the difference is in how the money is managed. The main differences and similarities between the two types of organizations are marketing, taxes, liabilities, income, and expenses.
The marketing styles for both non-profit and for profit organizations are similar, but their reasons for marketing differ. For profit organizations need to attract customers, while non-profit companies need to bring attention to the cause or causes they support. The for profit companies market to customers who are willing to pay for a product or service. On the other hand non-profit organizations need to market to customers willing to pay for a product or service so they make money to support their cause. Due to the fact that not for profit organizations have a cause, people donate money, the government gives them grants, and they are not required to pay income tax (Sandilands, n.d.).
For profit companies focus on finding the next big product or next market in which they can succeed. In contrast, non-profit companies stick with their cause. Not for profit companies may try to reach different donors but the cause is portrayed as an identity for the company and the organization will stick to the chosen identity. To make people realize their cause, the organization needs to build awareness of the situation or service needed for that cause. The more people that are aware of the organizations reason for raising money the more donations they will receive. This marketing concept is similar to the for profit company which is the more people aware of the product or service the more consumers there will be (Sandilands, n.d.).
The two types of organizations are similar when it comes to marketing methods. One of those marketing methods used by both types of organizations to promote their product, service, or cause is putting information out where people can see it. Both companies decide where their marketing will be most effective. Target marketing is when the non-profit or for profit company does research to find where the most donors or customers are located and then set up advertisements in those areas. Another type of marketing the two organizations use is trade marking. Trade marking is a sign or symbol designed by the business or organization that represents them and no other competitor can use the same design. One major concern for the marketing of a...