Money vs. Profit

1
Money vs. Profit

• People often confuse organizations that are
  non-profit with those that have profit-making as
  their goal.
• Are colleges and churches non-profit? Most folks
  would laugh and say, Are you kidding? Those
  organizations have LOTS of money and are too
  greedy!

2
Whats the difference?

• Profit. These orgs are privately owned and/ or
  publicly owned (shareholders). Some monies may
  be returned to owners as income/dividends. They
  pay taxes.

• Not-for-profit (also called non-profits) These
  orgs are NOT owned by private individuals/groups
  and MUST re-invest monies back into the
  organization. They are tax-exempt.

3
Types of Profits/Non-profits

• Profits Yahoo, American Express, Microsoft,
  Prudential, Katz Deli, the New York Yankees,
  CNN, Wendys, ATT, Citibank, Alices Restaurant,
  The Gap, Rasheeds Auto Shop

• Not-for-profit the Roman Catholic Church, Yale,
  Nutley Public Library, the AMA, Newark Boys
  Choir, the Supreme Court, the Red Cross, the
  AFL-CIO, MADD, Denver Opera House

4
All organizations want MONEY

• Yes, the fact of life is that to exist, grow and
  gain power all of them want and need money.
  There is NO exception to this rule. However,
  where the money goes matters!

• Now, think about Where does the money go? What
  is the bottom line for profits and non-profits?
  Who makes these decisions? Who is accountable for
  the consequences of these choices?