Page 1 - Flip Book Assessment 1

SPLS 104 Assessment Task 1
Sport Structures and Sporting Bodies Morne Julius
Non-Profit + For Profit Structures
A profit Organisation is a business entity, whose primary aim is to make profit from the regular operations, with the intent of increasing the wealth of owners. The profit earned by these organisations are either retained in business, for future use, in the form of reserves or paid to the owners as a dividend. A non-profit organisation, as the name suggest is a legal organisation whose primary purpose is to promote public good rather than making profit. It in many cases replaces the role of the government by responding to society’s problems. (For Profit versus Non-Profit, n.d.) A profit Organisation can be structures as any of the following, a sole proprietorship, partnership, Hindu Undivided Family, joint venture or company. Unlike profit organisationns the Non Profit Organisations are founded by a bunch of people who are coming together for a common purpose, they are looking at providing a service to members and people. The management committee consists of a group of individuals who were elected by members among themselves and this committee looks after its management. Non Profit Organisations include the sports club, public hospitals, religious institutions, cooperative societies, literacy society, etc.(Difference between Profit and Non-Profit Organisation, n.d.)
Profit Organisations are in the business of minimising expenses and maximising income to increase the profit of the business, to grow and expand. They need to maintain their books of accounts for tax and auditing purposes. Further, the tax is charged on the business profits at a flat rate. Non-profit organisations also make the profit, but the profit earned by it is. They raise funds from subscriptions, donation, government grant, membership fee, entrance fee, legacies, and charity and so on.(Difference between Profit and Non-Profit Organisation, n.d.)
The differences between profit and non-profit organisation can be drawn clearly on the following grounds: A profit organisation is defined as a legal organisation, which is operated with the sole aim of earning profit from the business activities. On the flip side, a non-profit