- What are for-profit and non-profit organizations?
- Differences and similarities between for-profit and non-profit organizations
- Examples of for-profit organizations
- Examples of nonprofits
We explain what are for-profit and non-profit organizations, their differences and similarities to each other. Also, various examples.
What are for-profit and non-profit organizations?
In the legal and administrative world, a distinction is made between profit-making, profit-making or profit-making organizations, that is, with those whose purpose is to make money, from non-profit, non-profit or non-profit organizations. profit, whose purpose is a different one, generally of a social nature.
This distinction involves the different Business Y organizations that exist in the capitalist world modern. In principle, it allows us to distinguish between those whose interests are private, that is, their priority is the benefit of those who are part of it, and those others that, on the contrary, pursue the benefit of third parties or broader sectors of the company. society, who are not involved or part of the company.
However, this distinction does not necessarily have to be in moral terms, but rather financially, since for-profit companies have mechanisms designed to generate gain and monetary income.
On the contrary, non-profit companies often depend on the help of the former or on disinterested donations, since they have as objective main to carry out certain actions in the company.
Differences and similarities between for-profit and non-profit organizations
The similarities between for-profit and non-profit organizations can be summarized as:
- Its formal organization, which responds to the hierarchies and typical formats of a company or organization.
- Both are subject to the law and they must respond legally and administratively to the requirements of the institutions corresponding to the Condition.
- Both have a specific business patrimony and a list of salaried workers. Although in the case of non-profit companies it is common for there to also be volunteer staff.
- In both cases they can be public or private companies, without distinction.
Instead, their most substantial differences have to do with:
- Obviously, the profit motive, that is, the intention to accumulate capital and enrich those who are part of the company. While for-profit companies sell products or services, non-profit companies provide services for free or at reduced prices, without worrying about enriching their shareholders.
- There are certain legal figures that apply, depending on the jurisprudence, to each type of non-profit companies (foundations, cooperatives, mutuals, NGOs, etc.), so that each type of company may be subject to particular legal frameworks and to some extent different.
- The mode of financing Of nonprofit companies, unlike those with capitalization, generally consists of donations, public aid or private contributions of other types.
Examples of for-profit organizations
Examples of for-profit organizations are the following:
- Microsoft Corporation, dedicated to the international sale of software Y technology.
- McDonald’s, the largest American fast food restaurant franchise in the world.
- Huawei Technologies Company, a multinational corporation of Chinese origin dedicated to the branch of telecommunications and the electronics.
- Petrobras (Petroleo Brasileiro C. A.), a semi-public Brazilian company dedicated to oil exploitation.
- Claro, a Mexican-Brazilian telecommunications services company, present in almost all Latin America.
- DirecTV LLC, an American transnational company that provides direct broadcast satellite television services by subscription.
- Editorial Planeta, a Spanish publishing company, belonging to Grupo Planeta, one of those with the greatest international presence in the Spanish book market.
Examples of nonprofits
Non-profit organizations like the WWF can be funded by donations.
The following cases are examples of non-profit organizations:
- Unicef, also known as the United Nations Children's Fund, is an agency of the UN dedicated to the educational promotion and human development all over the world, especially in the nations on process of development.
- World Wildlife Fund (WWF), is the name of the World Wildlife Fund, a non-governmental organization founded in 1961 and dedicated to the conservation of the environment and ecological defense.
- Amnesty International, a non-profit organization present in more than 150 countries, in which it works to promote and defend the human rights.
- CREmx, a Mexican association committed to the fight to provide a education quality to children and youth in vulnerable areas of that nation.
- Fundación Sí, a non-profit company in Argentina that promotes and manages soup kitchens, institutes of popular education and community development, among other initiatives aimed at alleviating the Social inequality in that country.
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