...Running Head: Non-Profit to Profit Making Plan Non-Profit to Profit Making Plan Assignment Two Strayer University HSA 505 Health Services Strategic Marketing Non-profit and for-profit hospitals come with their own set of rules, regulations, and expectations. They both work financially differently and it is known that for-profit hospitals generate millions of dollars in revenue every fiscal year. This is not the same for non-profit hospitals. Non-profit hospitals work with what the state and federal government allots them and they do not make money hand over fist. The obvious motive for turning a non-profit hospital into a for-profit hospital is for money. This paper will address the external and internal factors that influence decisions, the theory and practical framework of data, market segmentation, and analyzing of data for the switch from non-profit to for-profit hospitals. Describe the external and internal factors that influence the executive team’s decision making and specify which might be most instrumental in making the decision to become a for-profit entity. Why do you think so? It is imperative to understand the differences of internal and external factors, especially in terms of decision-making due to the fact that a problem has to be recognized in order to establish a next crucial step. In this instance the next crucial step is the decision to move from a non-profit to a for-profit entity. Within this move both internal and external factors...
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...Issues and Problems Faced by Non Profit Organizations: Funding for Non Profit Organizations “Funding for Non-Profit Organizations” Introduction In general, non-profit organizations conduct business activities and actually raise revenues but their surplus funds are not distributed to owners or shareholders. They operate with the help of some staff who are, although paid salaries, do not earn as much as those who are employed in business corporations that operate for profit. There are also volunteers who provide manpower, skills and talents but are usually paid minimally or get no payment at all. As such, non-profit organizations are exempted from income and property taxation. While businesses and corporations are a source of funding, volunteerism renders the necessary fuel to keep non-profit organizations moving. By and large, non-profit organizations operate relying heavily on volunteer workers and generating funds through the assistance of business benefactors and foundations as well as through fund-raising activities. The number of people or staff that they maintain varies according to the size of the organization, but one thing that can be said about most of them is that they are generally understaffed primarily because of limited funds. DISCUSSION There are many existing international, national and local non-profit organizations. One common thread about them is that they exist for a cause, which...
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...accounting systems must also report performance fairly and factually to ensure that the organization is performing and operating properly. An inaccurate financial report, for example, can cause an organization to make an economic decision that the organization may not be able to afford to do. In a health care organization, financial reports must also be accurate to avoid errors in medical billing that can lead the organization to lawsuits and major financial losses. Financial reports that are not created fairly and factually mean that the reports are considered false, which can lead to the downfall of an organization. Week 1 DQ 2 What are the differences in financial reports for a non-profit entity versus a for-profit entity? Explain. The differences between non-profit organizations and for-profit organizations are significant, and therefore there will be many differences in their financial reports as well....
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...the company’s profit. It also has the second biggest retailer in the world measured by the company’s revenues. Tesco is mainly known for selling food and drinks. However, couple years ago they expanded their business as the company has now began to sell different types of goods such as electronics, cloths, toys and etc. This means Tesco has now got more people to come into the supermarket for a reason to buy goods. The other business I will be looking at is Oxfam. Oxfam is an international charity. Its aim is to find ways to stop poverty from happening in places like Africa and Asia. They do this by getting people to donate money clothes and money which will then get off loaded to countries in Africa, Asia and even to the poor people in Europe. The organisation ‘Oxfam’ was established in the UK on 1942 at 17 Bond Street in Oxford. The business has been going for 73 years and since then the organisation has helped over a million people all over the world who are suffering. In business there are two types of companies. One is a profit making business (like Tesco) and the other one is a non-profit making business (like charities such as Oxfam). The term profit making business means the business objective is to make money whereas the term non-profit making business means the business doesn’t really care about making profit. Charities such as Oxfam employees are mostly people who volunteered to take the job. The organisation aim is to also offer services instead of making...
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...Non-Profit versus For-Profit Healthcare and Organizations In analyzing the characteristics in relation to nonprofit versus for-profit healthcare and organizations I found an interesting article from the Congressional Budget Office [CBO] (2006), which breaks down the ownership types of hospitals nationally. Based on 4,518 community hospitals, 58 percent are non-profit, 18 percent are for profit, and the remaining 24 percent are government owned hospitals. Non-profit hospitals were established for charitable purposes and tend to be larger, and are more likely to be teaching hospitals. They also are responsible and accountable to the communities they serve. They are governed by leaders of the communities they serve. Earnings received from the non-profit hospitals are reinvested to improve quality and care provided at the hospitals, and also invested in community programs, such as providing no fee or discounted fees to the uninsured and low income for health care services. Non-Profit healthcare organizations mission is to serve communities by providing healthcare without regard for a patient’s ability to pay. For-profit hospitals are legally responsible to their owners and stockholders and performance is based on profitability and the return on equity to its shareholders. Profits from earnings can be distributed to owners and stockholders. There are also tax treatment differences for the for-profit and non-profit hospitals. (CBO, 2006) The non-profit...
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...Financial Management in Non-profit Organizations and How It Compares to For-Profits Organizations are usually classified as either non-profit or for-profit. Business corporations are organized for-profit. While non-profits usually include associations, charities, and other voluntary organizations formed to further cultural, educational, religious, or public service objectives. Non-profits and for-profits do have some things in common. Both types of organizations attract individuals focused on maximizing income, minimizing expenses, and reaching their goals. While there are many similarities, non-profits and for-profits have many differences. The most fundamental difference between nonprofit and for-profit organizations is the reason they exist. A non-profit organization exists to provide a particular service to a community, while a for-profit organization exists primarily to generate a profit for the company’s owners and shareholders. A non-profit organization channels all of their income into services and programs aimed at their mission compared to for-profit organizations that distribute profits between owners, employees, shareholders and the business itself (Bottiglieri, Conway, & Kroleski, 2011). Financial management for non-profit organizations is similar to for-profit organizations in many ways however key differences shift the focus of a nonprofit manager. These differences include organizational structure, ownership, distribution of profits, generating revenue and...
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...or examine by arguments. Examining the key points and possible interpretations, sift and debate, giving reasons for and against and then draw conclusion.(The Learning Centre 2012). ORGANISATION This is an institution, an association consisting of a group of people having common aim and objective, working in a common platform. Profit making organization: The organizations which are working for their benefit as well as for the benefit of the common people are called as the Profit Making Organization, for example cooperatives. A profit organization exists primarily to generate a profit, that is, to take in more money than it spends. The owners can decide to keep all the profit themselves, or they can spend some or all of it on the business itself. Or, they may decide to share some of it with employees through the use of various types of compensation plans, e.g., employee profit sharing. Non profit making organisation: 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 profits to owners. "Profit" in this context is a relatively technical accounting term, related to but not identical with the notion of a surplus of revenues over expenditures. The main aim of these organisations is helping the community and is concerned with money only as much as necessary to keep the organisation operating. TREASURY MANAGEMENT. Treasury management...
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...NON-PROFIT AND FOR-PROFIT HEALTH CARE ORGANIZATION Name Class Institution Date For Profit v. Not-for- Profit A non-profit corporation is setup to help members of the community with no intention of benefiting from it; it is charitable organization for common good of all people, while for-profit organization is started for business purposes with intention of making profit. The non-profit corporation use the profits gained to finance their services so that they can achieve their missions. The profit is channelled back to the organization and can only be used to pay employees and costs incurred for administrative purposes while for profit organization use profits gained to pay employees and the shareholders do share the remaining balance. (Kongstvedt, 2007). http://content.healthaffairs.org/content/24/3/790.full Not-for-profit health organization such as hospitals and free small clinics operate to offer services to less fortunate and low income earners within the communities while for profit making mostly target patients with high income and their facilities are equipped with best technology to attract more customers. They offer services at low cost and sometimes free services as well unlike for-profit offer expensive services and their main is to accrue huge profit. The not for profit health care organization face many challenges such as funds to operate the facilities, they rely on donation food resources and also volunteers of good will as workers. Not-for-profit health care...
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...I. What is a Non-Profit Organization? A. The basic definition of a non-profit organization is not established for the purpose of making a profit; not entered into for money: a non-profit organization (dictionary.com). In a society where everything costs, how can it be that an organization can exist that is not established for the purpose of making a profit? What is their purpose? By answering these questions, one will gain an understanding of what a non-profit organization is as well as the history of how non-profit organizations came into existence. B. Digging a little deeper, the premise of a non-profit organization is that a non-profit organization is an organization which exists for educational and charitable reasons, and from which its shareholders or trustees do not benefit financially from. Any money earned must be retained by the organization, and used for its own expenses, operations, and programs. Many non-profit organizations also seek tax exempt status, and may also be exempt from local taxes including sales taxes or property taxes. (investorwords.com). Bottom line, their purpose of existence is for the greater good of the community by the services they offer. A few well-known non-profit organizations are Kaiser Permanente, Easter Seals, Habitat for Humanity, the Red Cross, and United Way. Although many of the aforementioned organizations have a different look and feel, they all share the same unique key characteristics of a non-profit organization. C. Some of...
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...might use CVP in decision making. In your discussion, make sure you provide examples relating to Walker Books. Figure 1 Formulas Picture Photo B+W Non-Fiction Fiction Unit Contribution Margin ([Total revenue-Total variable cost]/Number of units) 2.26 2.21 1.76 2.41 2.37 Profit ([Unit Contribution Margin*No of units] – total fixed cost) -$26,642 -$23,586 -$24,441 -$13,619 -$3,738 Net Profit Margin (Net Profit/Sales) -7% -11% -18% -7% -6% These figures calculated are taken from the year 2012 to help aid our decision making for the year 2013. Unit Contribution Margin (UCM) refers to the profit earned per unit without taking fixed costs into consideration. The figures shown in Figure 1 show that Picture, Non-Fiction and Fiction segments are doing better as their UCM are at a higher range as compared to Photo and B+W segments. Profit refers to the final income of the Company after taking fixed costs into account. By determiningprofit or loss, it will allow us to decide whether to drop or continue the book line. The figures shown above show that Picture, Photo and B+W segments are making higher losses as compared to Non-Fiction and Fiction segments. The UCM for the respective segments are relatively low (e.g. earning $1.67 per unit excluding fixed costs). Hence, the Company ended up making losses after taking fixed costs...
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...BTEC National Subsidiary/Diploma/Extended in Business UNIT 1: The business environment Assignment Tutor: KAG Hand out Date: 21/9/15 Due in Date: 5/10/2015 Peer Assessment Final Submission 16/10/15 Work Checked By …………………….. Student Name: Ayotunde Ogunwale Grading Criteria Covered P1,P2,M1,D1 I have been asked to write a feature article in the next edition of the new paper titled business review. In my article I am going to be exploring two different types of business a profit making and a non-profit making; I will be focusing on the business Tesco and havering sixth form college. Here is a description for different types of business: * Local: a local business is a business that provides good or services to a local population. for example a corner shop which is a small business the support the area through their everyday need, there are so many benefits in having a local business; for example having a good customer service, you get to have a better interaction with the customer and attend to their needs. Small business experience less bureaucratic inertia. This enables them to respond faster to the changes in the market more quickly than the big companies. * National: a national business has a trade all over one country usually having store in all the big towns and cities .an example of a national business could be a post office which provides services all over the country by delivering mail; benefit of a national business * International:...
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... Jerr Boschee and Jim McClurg In this short article the authors outline the four key distinctions that differentiate non-profit social entrepreneurial organisations from other types of charitable non-profit organisations who claim to be making use of social entrepreneurial approaches. Towards a Better Understanding of Social Entrepreneurship Some Important Distinctions Jerr Boschee and Jim McClurg Contents: • Introduction • Four Key Distinctions 1. The differences between “entrepreneurship” and “social entrepreneurship” 2. The differences between “sustainability” and “self-sufficiency” 3. The differences between “earned income strategies” and “social purpose business ventures” 4. The differences between “innovators”, “entrepreneurs” and “professional managers” • Some Final Thoughts • Social Enterprise Definition • Further Information Introduction “Social entrepreneurship” is one of the most misunderstood phrases in the non-profit sector today. Everybody, it seems, has a different definition of what it means. This is our attempt to bring some clarity to the discussion. Our perspective has been shaped by 50 years of experience in the field, one as head of a national consulting firm and the other as the chief executive officer of a US$ 15 million social enterprise. Twenty years ago the idea of non-profits acting in an entrepreneurial manner was anathema to most people in the sector: The idea of merging mission and money filled...
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...and the profit of the seller (Funk & Wagnalls, 1993). Entrepreneurs who start and manage businesses do so for successful profits. In any capitalist economy, businesses play an important role. Businesses are the major providers of employment, goods and services, and as a result of supply and demand, the major drivers of economic growth in an economy. When significant usage of the factors of production such as natural resources, capital, human resources, and entrepreneurship is achieved to their maximum objectives, more profits are made (McGowan, 2012). Therefore, an increase in capital is made from each business for the economy. This process enriches and stimulates the economy with a better standard of living for its people in the nation. Businesses provide people with more opportunities, choices, and freedoms to enjoy their lives without having to produce all goods and services on their own like growing on own food or making our own clothes. The role that business plays in the economy consists of a multitude of things. There must be a market in which allows buyers and sellers to discover information about one another to complete voluntary exchanges of goods and services. Second, the business needs to trade or offer something of economic value such as a good, service, information or money exchanged between two entities. Business is the management and coordination of individuals and resources to accomplish certain production goals, usually for the purpose of making a profit...
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...laying the foundations 2 Task Environment 3 General Environment 4 Non-Profit vs. For-Profit: perspectives on competition 5 Environment Characteristics 6 Opportunity or Threat? 8 Conclusion 8 References 10 Introduction “No organization can exist in a vacuum” (“Key forces in the external environment, Chapter 3”, n.d.). To a certain extent all types of organisations; whether private or public services, governmental bodies or charitable groups, are subject to and influenced by specific environmental factors. In this day and age with many existing classes of organisations utilising different approaches to management, there is a feasible assumption that a common change in the organisational environment may likely affect two separate organisations diversely. This response will identify how the environment directly impacts organisations, in relation to leadership roles and organisational performance. For the purpose of comparison, the point of focus will revolve around two major classes of organisations namely; ‘profitable’ verses ‘not-for-profit’ groups. The primary aim of this paper is to construct a foundational view of the external environment from a manager’s perspective. Theoretical key principles discussed will attempt to identify with the following statement - “In comparison to profitable groups; not-for-profit groups possess a different degree of vulnerability to the external environment”. The External...
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...limitless, as evidenced by the vast expanse of information available in bookstores, libraries, blogs, and corporate leadership schools. For the purposes of this paper, the focus is on the highest-profile trends embraced by thought leaders in the leadership arena. Specifically, this work centers on the similarities – and differences – in the way the different major sectors view and define the important competencies of their leaders. Questions prompting this research include the following: 1. What are the most valued concepts delivered in training sessions to leaders of non-profits versus leaders in the military? 2. How do governmental nuances determine the areas in which leaders must excel? 3. Do leaders in different types of business view the concepts of leadership differently, or do the trends relate to the same basic tenets? 4. Is the area of ethics limited to Fortune 500 CEOs or non-profit directors? The following outlines the key principles that appear to be the most valued leadership concepts and the most significant concepts imparted to each sector’s leaders. Four Sectors Explored For the purpose of this research, the focus is on 4 major working sectors: 1. Corporate business GE, Enron, AIG, Coca-Cola, Nike, and Wal-Mart all have one thing in common: They are all recognizable corporate business names. Some in the list no longer exist, and others prosper today. Leadership cultures in these businesses have helped to shape their...
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