Page 3 - SPLS 104 ASSESSMENT TASK 1

on uplifting the community as a whole and targets only the youth where the Western
Province academy only uplifts individuals who are looking to better their future in rugby and
focus only on the individuals that sign up to their programme through paying an annual fee.
It has come to my attention that this is the main difference between the two organisations.
VUSA academy is not profit driven where as W.P academy is profit driven. The second most
eye-catching difference is that VUSA looks to uplift and or provides the needs that societies
need, whereas W.P academy looks at uplifting a certain minority of individuals who feel they
have a future in rugby and need help in bringing about change in their game play. Research
states that the vast difference between a non- profit organisation and a profit organisation
is that profit based organisations main aim/objective is to make a profit and forward these
profits to owners and respective stakeholders whereas non-profit organisations sole
purpose is to provide the needs of society and do not focus on making a profit but rather
uplifting individuals and inherit a sense of income by seeing individuals’ lives being
transformed. Although non-profit organisations do make a profit, all of the profits are
redirected back into the organisation in order to help the organisation grow.(Unknown,
2021b)

It is also very important to note that a profit-based organisation is run by its stakeholders
and owner/owners where a non-profit organisation is run by several members who
contribute via capital, time and even materials. The organisation is not owned by anyone
but is managed by several people. Another comparison between the two organisations is
that profit-based are required to pay tax where no-profit based are not required or are
exempted from paying tax. It is clear and evident that both organisations are similar but
when looked at in detail and compared to research are in actual fact vastly different.

Let’s take a look at some of the advantages and challenges that each organisation can
experience when in operation. Firstly, we will look at the advantages for each organisation
and then we will look at some of the challenges that they both can come across.

Advantages for VUSA academy:

• Do not need to pay tax
• Limited liability
• They receive social grants
• The founders of the organisation to not receive any profits
• It allows you to help other people in need
• It creates a pathway for motivation and leadership.

Advantages for Western Province academy:

• Can claim back from tax and can create tax record
• Creates more job opportunities
• Generates income for shareholders and respective staff members
• Helps others achieve their goals/career paths
• Only organisation in the market that do what they do in South Africa