Page 2 - Flip Book Assessment 1

organisation is one that is operated with the primary objective of benefiting the society as a whole. A profit organisation, as its name suggests, works for profit maximisation of the concern. As against this, a non-profit organisation works for providing service, for the well- being of the society. A non profit also relies on volunteers, thus leading to a mixed skill levels among staff.(Allison & Kaye, n.d.)
Another feature of a non profit organisation is its culture, values and norms.(Reed & Howe, n.d.) these features are particularly visible in the work done by sports NPO’s in the communities. A large part of what they don within South Africa is community upliftment through sport.
The biggest source of income, for a profit organisation, is from the sale of goods and services. Whereas, the non-profit organisation, derive most of their income from donation, subscription, membership fee, and fundraising. (Difference between Profit and Non-Profit Organisation, n.d.) A big factor with sport NPO’s is that they are poorly funded generally and are in many cases drawing on the community they serve for support whether ion the form of donation or fundraising.
In my opinion I feel that big profit sporting organisations need to invest more into the sport NPO’s instead of going out to do the work themselves, many times for free publicity. Many sport organisations go bankrupt due to a lack of financial assistance. Based on this it is my opinion that funds be channelled to NPO’s long existing and delivering these services to prevent the market from being diluted.(Perechuda, 2015)
As a sport NPO they will already understand the dynamics and have identified how to best serve the community through sport. This leading to a bigger impact being made.
There is also in some instances competition between the two structures that exist in certain markets where they both operate.(Rossi et al., 2020) I think the competition is short lived as non-profits don’t have the money, physical resources or skills at its disposal to compete with profit sports organisations.
The introduction of paid staff has also been made in instances where government funding to sport has increased and provision can be made for it.(Mihai Constantin Răzvan & Răducu Stefan, n.d.)
Below I have listed a few Non profit organisations in South Africa, they all have one thing in common and that is that they form part of Laureus Sport for good.
I have selected these two examples of sport NPO’s as they embody everything that which I believe a NP sport structure should. Their reach is far and the values they preach extend far
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