Different Views of the Comparison Between Non-profit and For Profit Organizations

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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.

Marketing

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 id...

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...community are offering water, food, shelter, education, medical procedures, preventing deforestation, or protecting an endangered species. There is an abundant amount of ways a non-profit organization can offer their time and money to help the community (Ingram, n.d.).

All in all nonprofit and for profit companies have the same main purpose, which is to bring in money. However they differ in what the two types of companies plan to do with their money. Taxes, liabilities, income, expenses, and marketing are specific areas where the two organizations share similarities and differences. For profit companies can be helpful for the community by supplying jobs. Non-profit, are similar to for profit in that they also help the community by supplying jobs but in addition the also offer people food, water, shelter and many more benefits for the needy in the community.

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