Different Views Of The Comparison Between Non Profit And For Profit Organizations

1416 words - 6 pages

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...

Find Another Essay On Different Views of the Comparison Between Non-profit and For Profit Organizations

Non-profit Organizations Essay

1081 words - 5 pages . A few coworkers have expressed their reasons for not volunteering by claiming they “don’t have time” or “don’t think they can make a difference” or “cannot due to physical disabilities.” Some of these reasons are simply excuses, so that the individual feels like they are doing non-profit organizations a favor by not becoming more of a hinderance than a help. Everyone knows that we make time, come up with enough money, and find some possible way

Non-profit humanitarian organizations Essay

553 words - 2 pages Non-profit humanitarian organizations who give out a helping hand to Mexican immigrants should be recognized by their services. Although, The United States has its own laws against illegal immigrants crossing international borders, they should still recognize that those are human beings who need assistance no matter the issue, but of course the govt. should take action as needed, in an ethical manner. The humanitarian organizations are only

Analysis of Websites for Profit and Non-Profit Companies

1408 words - 6 pages The websites for profit and non-profit companies run its companies for different motives and differentiate its websites respectively, yet they use similar strategies to persuade visitors to explore its websites. Walmart, a for profit company, boasts low prices, quality goods, convenient hours, and global shopping for millions of customers searching to fulfill several of their unlimited wants and needs. Walmart’s website creates excitement in its

Scottish Charities and Non-Profit Organizations

1474 words - 6 pages of different countries look at the World Wide Web and apply their own laws; these laws differ from country to country. Shah (2010) argues; “the laws of some countries are being enforced in other countries and these laws are being tested through the courts for passive, active and interactive websites”. Charity and Non-Profit organisations could find laws being applied from another country. Rawls (2005) philosophies’ “nature does not produce a

Challenges of Managing a Non-Profit Organizations

2091 words - 8 pages There are different challenges a non-profit organization face, although I believe that those same challenges are faced on for profit organization either at the same level or very similar. Trust is an issue that both non-profit and for profit organizations will encounter at some point in their business and therefore they would need to be as transparent as possible. Transparency entitles you to provide clear statements of where your money

The Effective Role of Leadership in Non Profit Organizations

1410 words - 6 pages board members. Each of them has different responsibilities, yet both have to show cooperation and accountability for actions, policies, decisions, and consequences. . (Leadership in nonprofit organizations: A reference handbook2011. Sage Publications Inc, www.summon.com (accessed February 28, 2014). For a primary legal necessity, nonprofit organization should have a board of director. The board of directors is to settle an effective management

Non-profit and for-profit schools in society

1287 words - 5 pages -high and high- school students, garnered significant criticism from teachers and parents alike because its business model was based on advertising revenues. Parents and educators feared that the for-profit schools would lose sight of academic goals and instead focus on support for their advertising partners. Whittle sold Channel One in the early 90's. WhittleDwyer 2then returned in 1992, with the intent on proving for-profit critics wrong with his

Marketing as a Tool for Non-Profit Organizations

6073 words - 24 pages self-sufficiency, non-profit organizations cannot decide their direction or concentrate on their mission. Instead, they remain subject to the demands of finding their funding sources. As a result, today, financial self-sufficiency is nothing less than a critical requirement for non-profit organizations and, together with strategic planning and marketing, is their highest priority. To safeguard continuing resources free from constraints imposed from

Use of Social Media Marketing Tools by Non-Profit Organizations

3830 words - 15 pages between online and on land activities Continuing to grow in the social media world requires leaders in the organization to make an effort to learn the strategy and promote the organization, as well as the rest of the staff (Simpson). There needs to be a complete shift in organizational culture that is now influenced by the power of social media. Simpson states, “The shift to a social culture is not easy for organizations to make. It requires

Non-Profit Charitable Organizations: The Oakville-Milton Humane Society

1969 words - 8 pages The Oakville-Milton Humane Society is a non-profit charitable organization dedicated to providing shelter for stray, abandon, and injured animals. Located in the region of Halton, the Oakville-Milton Humane Society has become the most recognized and affective humane society within the region. It was founded in 1936 and has since grown and developed a reliable relationship with members of the community. The shelter is funded through donations

Profit and Shareholder Wealth Comparison

956 words - 4 pages market capitalization is 374.74B and the current stock price is $37.53 as of April 4, 2008. For Tyco International, Ltd, the market capitalization currently is 21.87B. The current share price as of April 4, 2008 is $45.04.Net Profit MarginsAlso known as net margin, the net profit margin indicates how effective a company is at controlling costs. “The higher the net profit margin is, the more effective the company is at converting revenue into

Similar Essays

Non Profit Organizations And The Media Essay

1082 words - 4 pages For a long time the ways that non-profit organizations raise money was the same. They used solicitation letters as a way to reach out and engage new audiences to financially support their organizations. Then with the rise of the internet, they were able to use mass emails. Now there is an even newer form of technology that allows organizations to fundraise and gain new audiences. This new medium is social media. Stone brings up some good points

The Importance Of Non Profit Organizations Essay

1341 words - 5 pages together by an awesome God and His mission for us as a people. Devoting our time and love, we also aided many in need with medical necessities: taking their blood pressure, addressing any problems they may have, and relinquishing all medicines that may be needed. Through my experiences, I’ve found that many non-profit organizations work to assist a multitude of hurting individuals through various methods of relief and invoke the initiation of

Marketing Of Non Profit Organizations Essay

1112 words - 5 pages marketing of non-profit organizations Non-profit organizations, or charities, confront with a lot of problem on their way to achieve success. That is why marketing of such kind companies becomes difficult and uncertain thing. Potential gap and social scandal plague some non-profit organizations whose missions are considered extreme, whether they are based on fundamentalist beliefs or progressive views. For example, religious -oriented non-profit

Non Profit Organizations Essay

838 words - 3 pages narrow (for example, elite country clubs, trade unions, etc). Others say that the main difference of the NPO is the fact that its purpose is not to make profit. But many non-profit organizations are active in business (this is another feature that distinguishes them from governmental institutions), raising concerns of commercial entities, as they are forced to compete with NPOs in the battle for customers. The fundamental difference between