Examining Marketing and Business
Marketing I
Competencies:
#34- Explain the different types of organizations
Types of Organizations
Three Categories of Organizations
• For Profit
In business to make profit from operations
• Non-Profit
In business to fund cause
• Government
In businesses to finance governments services
Understanding For-Profit and
Non-Profit Organizations
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
Non-Profit Organization
• Primary purpose for common cause of communityoften 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
Role of Profit
For
Profit
Income for
Owners
Operate Business
Re-Invest in
Business to
generate MORE
profit for owners
NonProfit
Income for
charitable
cause
Operate
Business
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
Class Assignment
• Students will work in small groups (2-3 people
per group)
• Select a non-profit of choice to research
• Prepare a PPT presentation summarizing
research. Use the outline handout provided
by the marketing teacher.