Respond to at least two of your classmates’ posts in substantive responses no less than 100 words per response with attention to current realities and applications.
Discussion 1 forum 1
Forum 1: For profit organizations can consist of businesses that want to make revenue and profit for themselves. A for profit organization wants to generate a profit and make money. When individuals start a business whether it’s for profit or a non-profit organization, a great idea is involved in order for the business to succeed. If the goal is to make money, it would be called a for profit organization. Most non-profit organizations want to provide some kind of service to the community. Every state has a set of laws that corporations must abide by. The owners of an organization are mainly for profit and non-profit organizations have no owners. “A non-profit organization exists to provide a particular service to the community. The word non-profit refers to a type of business one which is organized under rules that forbid the distribution of profit to the owner” ( McNamara, np). Non-profit organization is affiliated with keeping the company open and running to help the community. There is a big difference between a non-profit and profit organizations. It’s plain and simple one organization is for profit, making money and the non-profit main goal is to provide society needs and keep the company afloat while helping the community. “Another key element that makes a non-profit organization different from a for profit is that the company income is never distributed to any owners, but is recycled back into the non-profit corporation for public benefit, mission and activities.” (McNamara, ng). In direct terms non-profit organizations goals are to better the world while investing into the community and for profit organizations are in place to make the owners and company money.
Forum 2: There are differences between nonprofit organizations and for-profit organizations and that starts with motivation. What is the purpose of the organization, the bottom line, profit, or service? Nonprofits base their actions on the traditions of charity, philanthropy, and volunteerism, (Worth 2021). The for-profit organizations have a bottom line as well, revenue and generating more revenue. Their services are not based on the worth of the community but in the worth of the organization. Paying board members, the CEOs, the CFOs, the employees are the bottom line and after all is said and paid to generate profitable revenues is the goal and mission. The services offered by for-profit organizations often align with the public’s interest but always at a price unless it is a tax write-off or perhaps even publicity feel good. Maintaining community support to maintain and generate profits is the priority for the for-profit organization.
A nonprofit organization has a mission: focus on activities that benefit society, public ownership where no single entity owns shares or interest in the property, and generating an income that is expressly recycled back into the nonprofit corporation’s public benefit mission and activities, (Fritz, 2017). The nonprofit must also cultivate and maintain community support to function, provides services, and sustain its existence. Community support provides volunteers, goods, money, and fundraising support. This is a crucial aspect of any nonprofit’s ability to function. Support from the community ensures that a nonprofit has a purpose.
Fritz, J. (2017, April 03). How Is a Nonprofit Different from a For-Profit Business? Getting Beyond the Myths. the balance. https://www.thebalance.com/how-is-a-nonprofit-different-from-for-profit-business-2502472
Worth, M. J. (2021). Nonprofit management: Principles and practices (6th ed.). Sage Publications, Inc
Discussion 1 forum 2 response
Forum 3: Planning, managing, and financing in the non-profit organization may have similarities to the for-profit organization but there are differences as well, more than not. Realities and goals are ever changing in both fields and structure, process, and policy can change frequently as well. Business is ever changing, and a non-profit is a business just as a for-profit is. It is my opinion that there are enough differences between the two to make a compelling argument. Beginning with the reason or idea behind the two, where non-profit comes to fruition in order to correct, or assist a community or society to better their situation and a for-profit is simply that, “for profit”. According to Worth, M.J. (2021) “Michael O’Neill (2007), founder and former chair of the Institute for Nonprofit Organization Management at the University of San Francisco, notes that “nonprofits have different values, different financial systems, different laws to abide by, different people (like volunteers) to manage, and very different goals [than business organizations]” (p. 171S)” (page 12). So, even with so many similarities, there are many differences in non-profit and for-profit management. As stated by Worth, M, J, “Nonprofit managers often are portrayed as stewards of their organizations or servants of society” (page 13). Managers of for-profit ventures share responsibilities that are similar but the reasoning behind the job are to do a good job and earn a paycheck. This can never be as rewarding as the job of managing a non-profit because it is not as rewarding. With that said, there are huge differences and reasons why the two are very different management styles.
Worth, M. J. (2021). Nonprofit management: Principles and practices (6th ed.). Sage Publications, Inc.
Forum 4: With both nonprofit and for-profit organizations there are similarities as well as distinct differences. However, when looking at the key differences between a nonprofit and a for-profit organization, it may seem as if it may require more to effectively manage a nonprofit organization versus a for-profit organization. For nonprofit organizations, they have a certain level of expectations that they have to live up to in order to allow others to see whether their cause is really worth the contributions to maintain and potentially increase funding. Thus, nonprofit organizations should also seek to build and gain trust from the community. “Many view their philanthropic giving as a type of investment from which they expect to see a measurable return in the form of effective programs and services” (Worth, 2021, p. 4).Therefore, in an effort to maintain donor contributions and stick to the cause, it would take strategic planning and leadership to carryout the mission of the organization. With this in mind, more financial oversight may be needed for nonprofit organizations to execute the best financial results when creating a budget. On the other hand, to generate revenue for nonprofit and for-profit organizations it takes being focused on the mission, organizing ideas whether for marketing or knowing the direction of the organization, and ultimately executing the plan. This is equally important as it can make or break the organization if there is no real structure. For nonprofit organizations it would be focusing on the mission and for-profit focus would be solely on profits. “Perhaps a nonprofit is not sure just what it needs to do in order to rethink its strategic vision; this is where the powerful tool of data analytics comes in by utilizing a dashboard and benchmarking tools” (Rottkamp, 2021, Data Analytics section). References: Rottkamp, D. M. (2021). Reimagining Strategic Vision for Nonprofits. CPA Journal, 10(3), 22–27. Worth, M. J. (2021). Nonprofit management: Principles and practices (6th ed.). Sage Publications, Inc.