BUSI 610 Group DB Forum 1

According to Charities & Organizations, non-profit hospitals provide greater proportions of uncompensated care than for-profit hospitals. Uncompensated care is not carried by all nonprofit hospitals. Nonprofit and for profit hospitals are different and offer different types of services .Services like high-level trauma or intensive care burn wards are

For-profit businesses are attentive to the simple fact that their stakeholders desire maximum profit for their investment, but this simple fact may only be correct for a few stakeholders. Corporations are facing more and more pressure to consider the social impacts of the business decisions they make. For instance, stakeholders are beginning to ask corporations about their environmental ethics. Stakeholders want to know if the business is operating in a way that is environmentally sustainable and socially responsible (Marshall & Woodward, 2004). Your analysis and facts were well written, but you did not provide your thoughts about which managers need to pay more attention to stakeholders. Do non-profit managers or for-profit managers need to pay more attention to stakeholders? Adding your thoughts for this section would positively add to your

The Non-profit hospitals were established for charitable purposes and tend to be larger, and are more likely to be teaching hospitals. They also are responsible and accountable to the communities they serve. They are governed by leaders of the communities they serve. Earnings received from the non-profit hospitals are reinvested to improve quality and care provided at the hospitals, and also invested in community programs, such as providing no fee or discounted fees to the uninsured and low income for health care services. Non-Profit healthcare organizations mission is to serve communities by providing healthcare without regard for a

What are the major differences in recording transactions for a for-profit organization versus a not-for-profit, or are there any? For-profit organization would record certain transactions under Owner’s Equity, whereas the Not-for-Profit would use Net Assets. Also, a for-profit would not show restrictions on Owners’ Equity.

Independently if the organization is not-for-profit or for-profit, a vital duty of the management team is to keep the organization finances in a status that allows it to operate, and produce a level of revenue that secure its existence over the years. To reach these objectives, managers must perform key functions that involve planning, decision

A: Employee development helps to maintain a trained, motivated and committed workforce so that they are able to respond to innovation and change. Employees are able to produce goods and services and some goals may initially cause a decrease in profit and because employee development can be costly. Goals for change and innovation may cause conflict depending on how they approach the goal and implement strategies for productivity that can be approached differently by employees. This can also cause conflict, but the best plan can be determined by trial and error. Symptoms of structural deficiency can appear as a result of too many problems and to many decisions related to those problems, if the hierarchy delegates responsibility to the lower levels it still may be insufficient. Different organizational structures need to use innovation to accompany all aspects of decision making, ranging from what the marketing

Whereas a not-for-profit healthcare provider, cannot share their profits with any shareholders since they receive a tax-exempt status as long as their services are towards the members of the surrounding communities and are following a stricter set of rules and regulations. Non-for-profit healthcare providers are also seen as a voluntary healthcare organization and are known for providing charity care, especially to those that are uninsured.

If one were to take a survey in communities regarding for-profit and nonprofit sectors, would the results indicate knowledge and understanding of the differences amongst the sectors or would the results show a trend in people recognizing organizations by the services and products they administer, rather than the sector they belong to. With a multitude of organizations providing services to and for the people, how does an organization continue to flourish while a similar organization dissolves? In the book Good to Great and the Social Sectors, Jim Collins differentiates the social sector from the for-profit sector according to five issues: (1) Defining “Great”; (2) Level 5 Leadership; (3) First Who; (4) The Hedgehog Concept; (5) Turning the

Not for profit organisations consist of organisations that are not run for the profit or personal gain of individual/s. They are often referred to as charities and provide benefit services to society, often encouraging people to band together by sharing resources to achieve a common goal. Profits can be obtained by these organisations but must applied for the organisations purposes. These organisations include Surf life-saving, Churches, and Salvation Army etc. (Sessoms, 2014).

Stakeholders play a critical role in the management and decision-making process of an organization. An example of a stakeholder includes employees, managers, patients, vendors, suppliers, the community, creditors, customers and the government (Daft, 2013). Also, Daft (2013) says, “Stakeholders are groups “within or outside of the organization that has a stake in the organization’s performance” (p. 23). There are a few differences surrounding stakeholder expectations between non-profit and for-profit organizations. The differences in nonprofit organizations and for-profit business organizations are the direction of activities for the end goal (Daft, 2013). Although it is very difficult to measure the impact that a nonprofit has on society, community, or a particular group as opposed to evaluating an income statement from a for-pro-profit organization. The same level of attention should be paid to stakeholder for nonprofit organizations as stakeholders of for-profit organizations.

A non-profit organization cannot be effectively managed if it is not effectively planned. One of the challenges facing non-profit organizations has been long range, strategic planning. Long range, strategic planning in the non-profit sector is essential to the success of an organization. Long range, strategic planning encompasses broad policy and direction setting, internal and external assessments, attention to key stakeholders, the identification of key issues, development of strategies to deal with each issue, decision making, action and the continuous monitoring of results. (Herman, The Jossey-Bass Handbook of Nonprofit Leadership and Management, 154) While it is important to deal with the short term planning and activities of non-profits, managers or directors must consider the future of their organizations. Successful planning should be comprehensive, integrating all areas of responsibility of an organization.

Non-profit organizations do not belong to the commercial sector or the public sector, but occupy an intermediate position. It gives

A not for profit organization is a corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive (Legal, 2013).” There are immense community benefits as a not-for-profit generally accepts everyone regardless of ability to pay. Nonprofit organizations are granted tax-exempt status which helps them to provide services to the public and are expected to be effective managers of their finances as well as being efficient (Financial Management, 2010). In doing so, they can gain exemptions from federal and state incomes taxes and have the ability to solicit tax-deductible contributions (Financial Management, 2010). Organization must follow legal financial

Any company aim is to increase the profit for the share holders, receive dividend (distribution of profits) in order to invest again or issue shares (selling part of the capital, method mainly used by big business to avoid asking bank loans and have liquidity – cash flow), take bank loans, while non for profit organization aim, is not to gain profit or save money but to spend for social purposes, explaining how the money was spent. There are four main types of charities structure; Charitable incorporated organization, Charitable Company,

A Non-profit Organisation (NPO) is an establishment that uses its funding for the pursuit of a specific purpose such as for a charitable cause (Lorette, 2015). It is different from a for-profit organisation as its objective is to provide greater good to the society rather than to maximise the wealth of its stakeholders. The surplus revenues of an NPO are used for either its expansion, self-preservation or plans and no part of the profit is distributed to its members. NPOs are increasingly starting to operate like traditional business organisations as strategic planning and marketing is imperative for their survival.