The effects of competition in
non-profit organizations
Jolie Richards
Belmira Machado
Xander Jacques
What is a non-profit organization?
• A non-profit organization is an organization that
does not distribute its surplus funds to owners or
shareholders, but instead uses them to help pursue
societal goals that can’t be accomplished by the
government or by for-profit organizations.
• Ex: feeding the poor, helping the sick and
mentoring children
Concerns about competition
• Nonprofit groups compete with each other
just like any other business.
• Many times in a for-profit company, better
technology is what puts you ahead of others.
• For-profit organizations happen to be more
well known than some non-profit
organizations.
Competition between non-profit and
for-profit organizations
• A nonprofit entity has a mission that benefits
the "greater good" of the community, society,
or the world.
• For-profit organizations want to maximize
profits and forward these profits to the
company's owners and shareholders, which
means maximizing revenues while
minimizing costs, ensure the revenue is
greater than costs.
Public sector and private sectors
• Public sector: part of the economy, directed
by the government
Ex: education, healthcare, police
• Private sector: part of the national economy
that is not under direct government contract.
They are privately owned
Ex: corporations, partnerships, charities