Question

Organizations fall into two basic types:

• Profit
• Non-Profit

In each of these groups are subgroups.

Profit

Non-profit- Voluntary

Non-profit- Government

Define the difference between a profit and a non-for profit organization, and give an example of each. Described what is type of organization you'd like to work for and why?

Answer 1

Some of the key differences between Profit and Non Profit Organisations are as follows:

Particulars	Profit	Non Profit Orgnanisation
Objective	All profit making companies work to increase shareholders wealth. Ultimately shareholders are the owners of the company hence company has to fulfill shareholders needs.	All NGO's working for a social cause, like orphanage, promote education, safety, feeding people etc. All the beneficiaries are outsiders.
Management	The management of a profit making company is run by the directors, senior management and employees.	The management of NGO's are generally run by the trustees and welfare employees.
Capital	Capital is introduced by shareholders and promoters	Capital i.e corpus funds are usually collected from donations.
Profits	All the profits of the company is distributed to shareholders and balance are set aside for future operations.	Usually all the donation income are being applied for welfare of NGO's and surplus left if any is deposited to corpus fund.
Government Regulation	Strict government regulations are applicable to profit making companies	There are certain tax, land, fund exemptions are given to non profit organisations

Intially in my growth career I would like to start with a profit making company that would help me to earn potential savings, however in the long I would love to be a part of an NGO since I would like to contribute to the society which has helped me to earn profits in the past. So we should always pay nack to our society.