Page 4 - NON-PROFIT VS PROFIT ORGANIZATIONS IN SPORTING STRUCTURES

• Priorities of organization: There is always too much work to be done and too few people to
accomplish it. Management must identify the most critical jobs and assign workers to them. The
structure of the organization will be determined by management's priorities decisions. The
ability for managers to make these judgments in the future is a fantastic concept.
• Goals and objectives to be achieved: "Goals and Objectives" represent the organization's goals
and objectives. They change from time to time as the environment in which the organization
operates changes. The structure of the organization will change as goals and objectives change.
The goal is for the company to achieve its "goals and objectives" by.
• Financial resources available: The number of paid people in an organization is limited by the
availability of funding. Organizations cannot solve problems by simply employing more people, if
only this was the case. Even when organizations rely on volunteers, the need for money does
not subside.
There are advantages and disadvantages of for-profit organizations.

Money- Profitable for-profit businesses can make money, but the owner can do whatever he
wants with it. The larger the financial gain for the owner, the more successful the company is. If
a firm is founded using debt or money from investors, the founder may not be able to reinvest in
the business.

Ownership and liability- A sole proprietorship allows one person to make decisions for the
company unilaterally, yet his personal finances and those of his business are one and the same.
Owners of a corporation are exempt from liability above the value of their shares if they are not
involved in tax fraud. Shareholders must vote on significant matters to administer the
corporation, and votes per person are based on who owns the most shares.

Regulation- Nonprofits are funded by donations, whereas for-profit organizations are governed
by their commitments to investors and creditors. As long as a nonprofit tries hard, it can fall
short of expectations and not be held accountable to donors. The expectation of mutual
advantage in financial transactions lies at the heart of business.

Liquidity of assets- The final advantage of a for-profit firm is that its assets are very liquid if
things go bad. To be called liquid, a company does not even have to be operating poorly. A sole
proprietorship owner may receive an appealing offer from a potential buyer and decide to sell the
entire business. It's possible that sellers won't make a profit on their company's share or that they
won't make a profit at all.

Conclusion

Profit organizations differ from non-profit organizations in a number of ways, including their fee
structure, tax benefits granted to non-profit organizations but not to their counterparts for
promoting public service, and the fact that profit organizations are publicly traded. The
stockholders own a profit organization, but non-profit organizations do not. possessed by
anyone, not even by the founders.