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Understanding For-Profit and Non-Profit Organizations Marketing 1

Understanding For-Profit and Non-Profit Organizations Marketing 1

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Page 2: Understanding For-Profit and Non-Profit Organizations Marketing 1

For Profit Organization• Primary goal is to generate a profit• Profit is returned to owner(s)• May be formed to conduct any number of lawful business

activities• Pays state and federal taxes on profit in accordance to

state, and federal regulations• Additional taxes paid on property owned• Assets and property belong to owner(s)• If business dissolves, company may keep or sell property• Raise capital through investors- share of profit given in

exchange for the investment

Page 3: Understanding For-Profit and Non-Profit Organizations Marketing 1

Non-Profit Organization• Primary purpose for common cause of community- often

religious, charitable, or educational purposes• Profits raised MUST be re-circulated back into the

organization to fulfill mission- MAY pay salaries and administrative costs

• Does not pay state and federal tax exemption if qualifies for 501c (3) exemption

• Assets belong to organization• If organization dissolves, assets and property must be

donated to another non-profit organization• Capital raised through donations- donors may receive tax

credit

Page 4: Understanding For-Profit and Non-Profit Organizations Marketing 1

Role of Profit

Income for Owners

Operate Business

Re-Invest in Business to generate MORE profit for owners

For Profit

Income for charitable cause

Operate Business

Non-Profit

Page 5: Understanding For-Profit and Non-Profit Organizations Marketing 1

Effects of Competition on For Profit and Non-Profit Organizations

• BOTH types of organizations compete for limited resources

• BOTH types of organizations promote and market for customers

• BOTH types of organizations must manage business for efficiency, profit, and positive public image to gain customers and remain competitive

Page 6: Understanding For-Profit and Non-Profit Organizations Marketing 1

Class Assignment

• Students will work in small groups (2-3 people per group)

• Select a non-profit of choice to research• Prepare a PPT presentation summarizing

research. Use the outline handout provided by the marketing teacher.