Answer to Question #169605 in Management for Asare Owusu Isaac

Question

How might planning in a not -for- profit organization such as the American Cancer society differ from planning in a for-profit organization such as Coca-Cola?

Answer 1

Non-profit and non-profit organizations vary greatly in the overall purpose of their existence and some aspects of their operations. The for-profit organization aims at maximizing profits. These profits are then forwarded to shareholders and owners. On the other hand, nonprofit organizations aim at providing society’s needs. Nonprofit organizations have no owners, and they are more concerned with ensuring the revenues are greater than the cost since they do not maximize profit. This ensures that these types of organizations can provide society’s needs. Also, the income of a non-profit organization is never distributed to any owner; rather it is recycled back to the mission and activities of the organization.

Non-profit organizations are exempted from paying income taxes since their goal is to make the world a better place. They invest time, resources, and funds in the community.

In that view, the two types of organization plan differently: nonprofit organization plans how to get donors and how to minimize costs of running their operations. Conversely, in a for-profit organization, the main objective is to strategize on how to maximize the profit.