Page 1 - SPLS 104 Sporting Structures

SPLS 104 Sporting structures

This essay will explain and contain the difference between profit and non-profit sporting

organisations. Many non-profit sporting organizations are built up of people who have a
passion for sports and want to have an outreach on the community and want to develop
sport. Non-profit organisations normally use sports to create a difference/make a change
for a good cause. Non-profit organisations usually receive their income from donations and
investors and sponsors. Non-profit organisations have volunteers to do their work and these
employees are generally not paid while profit sporting organisations focus primarily on
business, infrastructure and selling sporting products. Profit sporting organisations generally
deal with sporting matters and events on a larger scale where as non-profit organisations
deal with local/smaller sporting matters.

Non-profit organisations:

A Non-profit organization operates to help other individuals, groups or causes rather than

making profits for themselves. Most non-profit sporting organisations usually aim to
improve and develop sports in less developed or unfortunate areas. Non-profit
organisations are self-governed or controlled so they know what services they provide and
what areas they want to target. Sometimes an issue in the sporting industry or community
arises and then a NGO is set up or used to resolve that specific issue. Non-profit
organisations also do not pay TAX. Non-profit sporting organisations receive grants from the
government to run or look after certain aspects in the industry. Some sporting NGOs receive
capital or income from owners and stakeholders.

Pros of a non-profit organisation:

 Pay no TAX

 Limited liability
 Government grants
 Always doing good deeds to help the community

Cons of a non-profit organisation:

 Can have a lack of funds
 Low or no pay for employees

 Loss of TAX status