Bluring the Line Between Profit and Nonprofit Organizations

APPLICATION PROYECT 1

Blurring the Line Between Profits and Nonprofits:

Question 1.

Should nonprofits groups operate like business? What are some of the potential benefits of doing so? The potential dangers?

Yes, nonprofits should be allowed to operate like other business. However, socially viewed as an organization helping the less fortunate, nonprofit generally do not share with its employees the level of compensation gives to its management and executives. Having the nonprofits operate like a business is entirely possible and recommended in my opinion.

The immediate benefit to operating a nonprofit like a business is to take advantage of tax breaks by offering a service for a fair market price while attracting quality employees.

Higher salaries for executives and management serves to attract quality people, whom in my opinion will be the greatest factor in determining growth as well as failure.

A potential positive effect which comes to mind with nonprofit groups is distribution of wealth.

Growing a nonprofit while operating like a business give much potential for growing workforce which rival that of any successful business for profit. Maintaining an experienced and subject matter focused core of workers will without a doubt translate to profit. Although, salaries are sometimes viewed as excessive, it is a reflection of those organizations doing transactions with a proven business model.

While operating a nonprofit like a business can and has proven to have its benefits there are also associated negatives. Social opinions have fluctuated constantly concerning why some nonprofits re-distribution of money and goods to the needy is not reflective of true wealth.

What often happens upon learning how profitable any social re-distribution group has become, others like me take a very critical position on what it means morally to associate a nonprofit group with that of a capitalist group. Much like capitalism, nonprofits exist to grow financially but isolated from tax liabilities. However, socially they too have often lost sight of its purpose

Question 2.

Should business operate more like nonprofits? What are some of the potential benefits of doing so? The potential dangers?

Yes, I can see for profit operated like a nonprofit organization.

To operate a business like a nonprofit could have its benefits. What comes to my mind immediately is the redistribution of wealth. Income saved by those businesses though taxes. Having a workplace of taxpaying employees is desirable; eliminating the taxes on the nonprofit groups could prove to have enormous potential. To have an injection of potentially unlimited dollars returned to government control through re-distribution of this type could potentially grow the workforce and perhaps train, and educate that workforce with dollars collected through eliminating or reducing income penalties.

However, the downside would be creating a system which would not crush the small business that may already see little profit. Nevertheless, with government allocated funds qualifying small businesses will continue to benefit.

Question 3.

Should charities that compete against business be forced to pay taxes?

Charitable organizations should not be made to pay taxes like other groups competing for income. It is my thought that charities are the result of society's awareness that there are less fortunate members among us. To strip the social groups of its ability to operate on an uneven playing field would be unfair. Never should the social conscious of any society be hampered in it's effort to give without worries of being subject to government entitlement Given should be without restriction as well