We explain what profitable and non-profit organizations are, their differences and similarities between them. Also, various examples.
What are for-profit and non-profit organizations?
In the legal and administrative world, a distinction is made between lucrative, for-profit or for-profit organizations, that is, 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 companies and organizations that exist in the modern capitalist world. In principle, it allows us to distinguish between those whose interests are private, that is, they have as priority 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 society, which They are not involved or part of the company.
However, this distinction does not necessarily have to be made in moral terms, but rather financial, since For-profit companies have mechanisms designed to generate profit and monetary income.
On the contrary, the non-profit companies They usually depend on the help of the former or on selfless donations, since Their main objective is to carry out certain actions in society.
See also: Social entrepreneurship
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 corresponding State institutions.
- Both have a specific business asset and a list of salaried workers. Although in the case of non-profit organizations it is common for there to also be volunteer staff.
- In both cases can be public or private companies without distinction.
Instead, their differences most substantial have to do with:
- Obviously, the profit motive, i.e. the intention to accumulate capital and enrich those who are part of the company. While for-profit companies sell products or services, nonprofit companies provide services for free or at reduced prices, without concern for enriching their shareholders.
- There are certain legal figures that apply, depending on the jurisprudence, to each type of non-profit companies (foundations, cooperatives, mutual societies, NGOs, etc.), so that Each type of company may be subject to particular legal frameworks and to some extent different.
- The financing mode of non-profit companies, unlike those with capitalization intentions, generally consists of donations, public aid or private contributions of other types.
Examples of for-profit organizations
The following cases are examples of for-profit organizations:
- Microsoft Corporation dedicated to the international sale of software and 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 field of telecommunications and electronics.
- Petrobras (Petroleo Brasileiro CA) a semi-public Brazilian company dedicated to oil exploitation.
- Clear a Mexican-Brazilian telecommunications services company, present in almost all of Latin America.
- DirecTV LLC an American transnational company that provides direct broadcast services via satellite subscription television.
- Planeta Editorial a Spanish publishing company, belonging to Grupo Planeta, one of those with the greatest international presence in the Spanish-language book market.
Examples of non-profit organizations
The following cases are examples of non-profit organizations:
- UNICEF, Also known as the United Nations Children's Fund, it is a UN agency dedicated to the promotion of education and human development throughout the world, especially in developing nations.
- World Wildlife Fund (WWF) is the name of the World Wildlife Fund, a non-governmental organization founded in 1961 and dedicated to environmental conservation and ecological defense.
- Amnesty International a non-profit organization present in more than 150 countries, where it works to promote and defend human rights.
- CREmx a Mexican association committed to the fight to provide quality education to children and young people in vulnerable areas of said nation.
- Foundation Yes a non-profit company in Argentina that promotes and manages soup kitchens, popular education institutes and community development, among other initiatives aimed at alleviating social inequality in that country.
Continue with: Public company
References
- “Non-profit organization” on Wikipedia.
- “Differences and similarities between for-profit entities and non-profit entities” in V/Lex México.
- “For-profit entities” at the National Autonomous University of Mexico (UNAM).
- “Non-profit organizations” at the National Institute of Educational Technologies and Teacher Training (Spain).
