...Non-profit organizations including hospitals, function under special state and federally mandated provisions that incorporate the idealization of law in each state. They play a big role in community service and act as a “safety net” for those in the community that seek aid when they have nowhere else to go. Non-profit organizations use a specially designed structure of financing which would never work for organizations that seek profit. This is simply due to the objectives sought by each entity. Non-profit organizations provide for the application and funding of diabetes as well as obesity. They generally have a disposition that is intended for reducing the cost of operation unlike profit organizations. Hospitals and research centers that aim for making a profit will only provide their services to those that can afford it. From that perspective, a citizen is only as healthy as they can afford to be. Unlike non-profit hospitals where everyone is cared for no matter what socio-economic class they are from, those looking to make extra money will actually reject some patients that can’t afford potentially save lifesaving...
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...poverty. The world population today stands at about 6.6 billion people and is expected to grow to at least 9.2 billion by the year 2050” (Leisinger, 2007). Giving to non-profit organizations not only helps United States citizens, but people all over the world. Without individuals, large corporations, and small businesses donating to nonprofit organizations the poverty population will only increase. What is a Small Business? “To be considered a small business on average the company has to have no more than 500 employees, and the most any small business can have is 1,500 employees (U. S. Small Business Administration, 2014).” When people think about small businesses, they think of the mom and pop stores within their community. However, small businesses are the majority of whom customers give their business. “According to the United States Small Business Administration’s (SBA) Office of Advocacy, 99.7 percent of all U.S. firms are small businesses (Cooper, 2012).” What is a Nonprofit Organization? A non-profit organization is an organization whose efforts are driven to generate a profit for a chosen cause. Non-profit organizations can be classified into five central categories: trade associations, charitable organizations, social clubs, government groups, and political groups” (Starting a Non-Profit Organization). How much is Donated to Nonprofit Organizations Annually? A study done in the year 2013 reveals that approximately 316.23 billion dollars were donated to...
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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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...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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...form of organization, differ from for-profit ones and not-for-profit ones? The article tries to answer this question. The social enterprises seem blur the boundary between for-profit and not-for-profit in the objects, while they don’t break though the distinction between for-profit organization and not-for-profit organization, and the rules applied respectively. However the social enterprises can enjoy some special treatment, not base on the form of organization, but on the social benefit of their mission. We should deal with social enterprises and pure business enterprises differently, and shouldn’t ask the later to offer what they needn’t. Key words: Social Enterprises; Corporate Social Responsibility; Community Interest Company; the Triple Bottom Line PartⅠ. Introduction While “corporate social responsibility” is broadly concerned by the public, a new term “Social Enterprise” has been introduced and is gaining its popularity. There are quite a few incubators for social enterprises in practice, and some foundations have put ∗∗ Jin Jinping, Lecture in Peking University Law School. Email: jinjinping@yahoo.com.cn. 1 social enterprises at their priority list of their grantee.1 The term “Social Enterprise” is first used in a report of Organization for European Economic Co-operation,(OEEC) in 1994, indicating the organization aiming to provide job opportunities for low-skilled workers and using both market and non-market resources. Nowadays, social ...
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...Challenges of Managing Non-Profit Organizations There are different challenges a non-profit organization face, although I believe that these challenges are also faced by for profit organization at the same similar level. Trust is an issue that both non-profit and for profit organizations encounter at some point in their business, therefore transparency is very important. Transparency warrants organizations to provide clear statements of where their money goes, how it is utilized, and how it is making the organization accomplish their goals. These are not the only factors that are essential to make the stakeholders or anyone interested in the cause to trust the organization. For a non-profit organization trust is a key element to engage volunteers, donors and other business; without trust chances are that the organization might fail to achieve their mission by raising funds. Trust is acquire by performing the goals you have set for your mission and not deviating from it, at least not too far from achieving the organizations goals either for non-profit or for profit organization. It is also important to have a plan (Taylor-Hamm) in case there is a catastrophic event that might jeopardize your organization, it will help you foresee adverse situations and you will be better prepared in case your first plan fails. Performance challenges are faced in the same manner on both types of organizations non-profit and for profit organization. However they might be measured in a different...
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...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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...hearts as well as their money. And one of the most effective marketing strategies to attract customers to the social activity is cause marketing or cause-related marketing. Besides, providing funds for projects or researches for social welfare is an excellent expression of responsible citizen of organization, also is a best chance to enhance company’s image through mass media communications. Cause marketing is simply cooperation between for-profit business and non-profit organization for mutual benefit. Adkins (1999) also believes that “Cause Related Marketing as ‘a commercial activities by which a business with a product, service or image to market builds a relationship with a cause or a number of causes for mutual benefit’”. In other words, the relationship will be form when both parties have contributed and had certain benefits mutually. According to Daw (2006), for over the last twenty years, the development of cause marketing has presented itself in diverse ways including the growth of numbers, range and depth. Today companies and non-profit organization can contain this strategy in product sales, promotions and program-driven collaboration. For example, Lee Jeans and Lee National Demin Day, the world’s largest single-day fundraiser for breast cancer research, have been cooperating for almost 10 years. Since 1996, they have raised more than...
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...relevant income, expense and allowance, income tax payable for the tax year 2006/07, capital gain tax payable, the profit chargeable to corporation tax, corporation tax liability and give them some advices to reduce the personal tax liability. TASK 1 Simon was born in May 14, 1954 and is a manager working for Able plc, a large UK resident company. Accordingly, in the period 2006 – 2007, he was 53 years old. As a result, his personal allowance (PA) for 2006/07 is £5,035. In the period 2006 – 2007, Simon received a gross salary of £45,000 and in February 16, 2007 he received a bonus of £5,000 based on Able plc’s results for the year ended December 31, 2006. His earning is higher than £8,500. Therefore, in this case, special rules for P11d employees will be applied. The main benefits for the special rules exist are: (a) Assets loaned to the employee for private use (b) Ancillary services connected with living accommodation (c) Cars provided for private use (d) Fuel provided for private use (e) Vans provided for private use (f) Beneficial loans Furthermore, Simon received the following benefits in 2006/07: * Simon used a company car. The car was a 2000cc petrol driven Audi with a CO2 emission rate of 188 grams per kilometer. The recommended list price was £48,000, but Able plc paid £40,000 because of a company discount scheme. The assessable benefit is based upon the list price of the car when new (even if the employer bought is for less than list price or bought...
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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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...difficulty many non-profits encounter is lack of monetary resources which hinders its ability to deliver services/goods to the public. The frequent solution is for non-profits to form partnerships with organizations that have the desired resources: “cross-sector partnerships enable organizations to increase the likelihood of success in creating social value” (Shier & Handy, 2016). Countless non-profits are unable to form successful partnerships with cross-sectional organizations (for-profit and government); they reason that these failures are due to the disparity of values and objective between their former partners. However, Martha Reeves analyzes several steps for non-profits to take to ensure their potential partnerships are...
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...Business Proposal for Thomas Money Service Inc. Thomas Money Service Inc. has been in business since 1940 and provides a wide array of financial services for both individual consumers and large businesses. Thomas Money Service Inc. branched out in 1946 to include also a financing subsidiary called Future Growth Inc. (FGI) that specializes in equipment financing. The current global downturn, Thomas Money Service Inc. and FGI must restructure its operations and broaden its financial services for profit-maximization. This paper will identify how Thomas Money Service Inc. and its subsidiary FGI can improve its finance services for consumers and how its elasticity of demand and market structure can be analyzed to increase consumer spending. This paper will include ideas for increasing revenue, determination of the profit-maximizing quantity, how to use its marginal cost and revenue to maximize profit, non-price and pricing strategies, creation of barriers to entry, and product differentiation. How to Increase Revenue Thomas Money Service Inc. and FGI discontinued equipment financing of other brands of equipment when they began manufacture of their own equipment brand, Thomas Money Service can start cross-selling equipment financing to expand to other consumers and to give their current consumers more purchasing and finance options. This strategy will allow FGI to outpace competition by the development of new business opportunities, sales growth, increased revenue...
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...the non-profit organizations, whereas the shareholder return is for-profit organizations. The non-profit organizations do not make profit, because if and when they do, it must be reinvested into the company according to the law. On the other hand, the for-profit organizations profits’ go to the shareholders. One of the main benefits of the for-profit organizations is that the shareholders make money from investing in the company itself. I believe that the best model depends on what you are looking to do. Certain situations would call for a different model as the best choice. When it comes to non-profit organizations, they deal with only certain segments of the economy: such as health, education, social services and the arts. With non-profits, most of the goods that are produced are paid for and used by different people. Now that is not the case with for-profit companies. With for-profits companies, products are assumed to be easily judged in terms of quality. This is because the people that buy the product, use the product. With non-profit organizations, because it is based with healthcare and things of that nature, the people that buy it, are not always the ones taking the advantage of it. It is also hard for someone to judge the quality of something that they do not even use. With a lot of the non-profit organizations out there today, they will provide healthcare for third world countries that can’t afford it. The mission statement plays mainly three roles in a non-profit...
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...Strategy defined What is strategy? The Oxford Dictionary describe strategy as A plan of action designed to achieve a long-term goal or overall aim; or the art of planning and directing overall military operations and movements in a war or battle; It is derived from the Greek word “stratégia” that means generalship (Oxford dictionary. 2015). A company’s strategy consist of the competitive moves and business approaches that managers are employing to grow the business, attract and please customers, compete successfully , conduct operations and achieve the targeted levels of organizational performance (Hough et al. 2008:4). Strategy is all about how the anticipated goals will be achieved. It works like a recipe where different elements are used in a more or lesser manner to achieve an end result. In an organisation the leader ensures all members are heading in the right direction and completing their goals and objectives. Organisations lacking leadership quickly implode as members scatter in all directions attempting to achieve conflicting goals in a silo-orientated environment. However, this can be overcome if leaders communicate and execute business strategies. A business strategy is a leadership plan that achieves a specific set of goals or objectives such as: * Developing new products or services. * Entering new markets. * Increasing customer loyalty. * Attracting new customers. * Increasing sales. * Decreasing costs. (Baltzan, 2013:16) Leaders also...
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...Profit vs. Non Profit Healthcare Organizations Prepared By: Milton Flores Table of Contents I. Introduction……………………………………………………………………………………………………………………………………3 II. Definition of Non Profit Health Care Organization………………………………………………………………………….4 III. Definition of Profit Health Care Organization…………………………………………………………………………………4 IV. Issues facing Non Profit and Profit Health Care Organizations……………………………………………………….5 V. Options to improve operations……………………………………………………………………………………………………….6 I. Introduction The debate on whether all healthcare institution should be non-profit rises many issues and they have been heavily debated. The best way to examine this to analyze if non-profit hospitals are in fact better that for profit hospitals and whether there is enough evidence data to support policies dictating ownership. Hospitals in the United States are the largest health care organization in this country. Private hospitals may either be classified as non-profit or for-profit institutions. The majority of the hospitals within the United States are non-profit. The main difference between non-profit and for-profit hospitals is the regulatory rules. Non-profit hospitals are not required to pay property, sales, or income tax. The reason that non-profit hospitals and other organizations were established was with the intention of servicing the needs of the poor. This is the reason that not-for-profit health care and hospitals are exempt from taxes, it was due to the...
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