Page 3 - NON-PROFIT VS PROFIT ORGANIZATIONS IN SPORTING STRUCTURES

• Volunteer board members: Typically, nonprofits do not pay their board members, which
can save a lot of money. Another pro about board members is that they bring a variety of
valuable skills, expertise, and greatly expand your network.

Disadvantages:

• Time and money: If you want to start a nonprofit, it will most likely take months of
planning and dedication.
• No profits: Profits from your nonprofit cannot be distributed to individuals or
stockholders. It may be more difficult to attract the attention of potential investors as a
result of this. This does not mean you will not be paid a salary; it simply means that any
excess funds must be returned to the nonprofit at the end of the year.
• Volunteers and volunteer board members: Volunteers have both advantages and
disadvantages. From the standpoint of a convention, it might be difficult to recruit
interested volunteers to assist you in achieving your goals, and even when you do, they
can be tough to manage. Furthermore, a volunteer can leave at any time without notice,
so you must always have a strategy in place to replace them.

When it comes to creating an organizational structure, there is no perfect approach. Because change is
constant, organization management must analyze and adjust the organization's structure as needed.

• Mission of organization: An organization that exists primarily to sell items will be structured
differently than one that exists to give service. A non-profit organization will be structured
differently than a for-profit company.