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Just like for-profit organizations, the non-profit ones very often have the same approach to
generating revenues and increasing profits with the aim of creating more programs or improving the
existing one(s). However, the difference between a for-profit and non-profit organization is that the
latter is required to reinvest any profit in pursuit of its purpose. (Broward, 2019)

When it comes to a For-profit sports organization and a Non-profit sports organization, there are
always going to be advantages and disadvantages of each. Here is a list of the advantages and
disadvantages regarding the two organizations.

Non-profit Organization
Advantages Disadvantages
Employee Commitment Limited Funding
Intrinsic Rewards Social Pressure
Financial Benefits Public Scrutiny
Protection from Personal Liability Time consuming

For-profit Organization
Advantages Disadvantages
Decisions/solutions are made quickly No protection from Personal Liability
Financial Rewards Financial Risk
Lifestyle Independence Stress and Health Issues
Personal Satisfaction and Growth Time Commitment
Unlimited amount of resources Taxation

When wanting to start a sports organization, one needs to ask themselves what is the main purpose
of this business? To make a profit or to help the community individuals develop and grow. When
that question is answered you will identify if your business is for-profit or not-for-profit. As you can
see there are many similarities between the two organizational types, as the owner/founder you
needed to decide the best option for your organization by taking into account the advantages and
disadvantages to hopefully create an impactful organization.

References
Academy, W. C. (2021, 11 August). Coaches. Retrieved from WCCA West Coast Cricket Academy:
https://westcoastcricket.co.za/meet-the-team

Broward, H. f. (2019, October 20). 6 Differences Between For-Profit and Nonprofit Organizations.
Retrieved from Habitat for Humanity: https://www.habitatbroward.org/differences-
between-for-profit-and-nonprofit-organizations/

Chad, P. (2013, January 1). Key Differences Between For-Profit and Nonprofit Organizations.
Retrieved from ResearchGate: https://www.researchgate.net/figure/Key-Differences-
Between-For-Profit-and-Nonprofit-Organizations_tbl1_284426989

Foundation, G. K. (2021, August 11). Meet the Team. Retrieved from Gary Kirsten Foundation:
https://www.garykirstenfoundation.org.za/the-team

News, M. B. (2021, August 11). What is a for-profit organization? Definition and examples. Retrieved
from MBN (Market Business News): https://marketbusinessnews.com/financial-glossary/for-
profit-organization/

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