Page 1 - spls 104 assesment task 1

SPLS 104 ASSESMENT TASK 1 SEAN ROGERS

Non-profit and for profit organizations seem vastly different from the outside and for the most part
they are, while profit organizations operate with the main goal of generating wealth and profit ,non-
profit organizations are driven by service and a passion for their cause. The similarities in the two are
highlighted in a sporting context, taking a look at any professional club or sporting team they are for the
most part driven by profit however they also assist in promoting and developing their specific sport, this
overlaps with the main goals of non-profit organizations in sport whose main objectives are
development and promotion. These two types of organizations are vastly different in nature however
similarities can be seen in their internal reporting structures and their organizational structure as a
whole, while both forms of organization have their place in sport both come with positives and
negatives.

Taking a closer look at the characteristics of a non-profit sporting structures we can that they are
primarily defined by the following characteristics

• Not driven by profit
• All income generated goes towards running the organization is funneled back into their targeted
cause
• Funding comes from external sources such as donations
• Can qualify for tax exemptions
• Some have paid executive members but most are heavily reliant on volunteers
(contributer, 2018)

Non-profit organizations are dependent on the dedication of its employees or volunteers and the main
object is to create opportunities for development and growth of their particular cause. In a sporting
context non-profit organizations will create recreational events to garner mass participation; they also
setup programs for youth development and talent identification.

An organization that embodies the majority of these characteristics would be the National Football
League (NFL) in America. The NFL is listed as a non-profit organization and as such is exempt from paying
taxes; they receive funding from the 32 member clubs who fall under their banner to cover running
costs such as office rent and salaries. While their executive members are paid lucratively the rest of the
profits generated are redistributed amongst the clubs and pumped into the actual league itself. (becker,
2014)