Comparitive Summary

In: Business and Management

Submitted By fbodyvixen
Words 1561
Pages 7
Comparative Summary
Kristina O'Bryant
May 23, 2016
Ronald Sugar

Comparative Summary
There are several financial environments that various entities exist in. These include for-profit, not-for-profit, and government organizations. These environments have many similarities, as well as differences. Examples of these may include the Methodist Hospital in San Antonio, which is a for-profit organization; the American Heart Association, which is a not-for-profit organization; and the U.S. Department of Health and Human Services, which is a government organization. Each of these organizations has their own practices and policies unique to them.
According to Investopedia (2016), a not-for-profit organization does not earn profits with the intent to line the pockets of an owner, but rather it is earned or donated and then used to achieve the goals or objectives of the organization. Many, but not all NFPs are charities or some other public service organization. NFPs are able to apply for a tax exempt status, as long as they meet certain criteria set by the state and federal government, thereby freeing them from most forms of taxation. Any donations that are made to the organization may be tax deductible for the person making the donation. According to Carter (2016), “Not-for-profit organizations raise capital by soliciting donations from businesses and individuals. Government and private grants may be used to fund the operation of a nonprofit organization. A not-for-profit organization may have an easier time getting the public to donate capital in comparison to a for-profit organization due to the perception that the organization is formed to help humanity, according to the SCORE website” (para. 5).
Some smaller not-for profits may only use volunteers as their workforce, while other larger NFPs may require a staff of paid full time employees,…...

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