1. Types of Organizations
Marketing 1
Competency #34

2. 3 Categories of Organizations
For Profit
In business to make profit from operations
Non-Profit
In business to fund cause
Government
In business to finance governments services

3. Understanding For-Profit and Non-Profit Organizations

4. For Profit Organization
Primary goal is to generate a profit
Profit is returned to owner(s)
May be formed to conduct any number of lawful business activities
Pays state and federal taxes on profit in accordance to state, and federal regulations
Additional taxes paid on property owned
Assets and property belong to owner(s)
If business dissolves, company may keep or sell property
Raise capital through investors- share of profit given in exchange for the investment

5. Non-Profit Organization
Primary purpose for common cause of community- often religious, charitable, or educational purposes
Profits raised MUST be re-circulated back into the organization to fulfill mission- MAY pay salaries and administrative costs
Does not pay state and federal tax exemption if qualifies for 501c (3) exemption
Assets belong to organization
If organization dissolves, assets and property must be donated to another non-profit organization
Capital raised through donations- donors may receive tax credit

6. For Profit Non-Profit Role of Profit Income for charitable cause
Income for Owners
Operate Business
Re-Invest in Business to generate MORE profit for owners
For Profit
Income for charitable cause
Non-Profit

7. Effects of Competition on For Profit and Non-Profit Organizations
BOTH types of organizations compete for limited resources
BOTH types of organizations promote and market for customers
BOTH types of organizations must manage business for efficiency, profit, and positive public image to gain customers and remain competitive

8. Class Assignment Students will work on assignment
Select a non-profit of choice to research
Prepare a PPT presentation summarizing research. Use the outline handout provided by the marketing teacher.