Strategy
1. Explain how organizations in the not-for-profit sector differ from organizations in the public sector or for-profit business sector. Provide an example of an entity in each sector.
The discussion bellow tries to explain how organizations in the not-for-profit organizations differ from organizations in the public sector or for-profit business sector. The easiest way to understand the difference between the public, for-profit, and nonprofit sectors is to understand the constituents that each serves.
a) Public Sector
The public sector is part of the national economy providing basic goods or services that is not in the private sector or cannot be provided by the private sector. It includes the federal, state, county, city government agencies and chartered bodies. They are meant to serve for the public good. Public money goes toward projects that benefit the public good, through taxation; public money goes toward making sure that everyone in society has a minimum set of rights and services. These funds help to ensure that programs and laws are put into place for all citizens to enjoy their rights without impinging on or impairing the rights of others. Public programs include public transportation; roads, sewers, and water systems; public universities and community colleges; and a myriad of public services that most of us simply take for granted. Example of a public sector entity is the United States Postal service (USPS), the Public service Electric And Gas Company (PSE&G).
b) For-profit sector
Their primary goal is making profit as opposed to not-for-profit making organizations. The for-profit businesses or organizations include giant corporations, local businesses, and mom-and-pop stores. They distribute profits to shareholders, they pay taxes on profits made, when the organization goes out of business its assets can be liquidated and the proceeds distributed to their owners, shareholders, and consumers. As the name implies, for-profits operate to
The discussion bellow tries to explain how organizations in the not-for-profit organizations differ from organizations in the public sector or for-profit business sector. The easiest way to understand the difference between the public, for-profit, and nonprofit sectors is to understand the constituents that each serves.
a) Public Sector
The public sector is part of the national economy providing basic goods or services that is not in the private sector or cannot be provided by the private sector. It includes the federal, state, county, city government agencies and chartered bodies. They are meant to serve for the public good. Public money goes toward projects that benefit the public good, through taxation; public money goes toward making sure that everyone in society has a minimum set of rights and services. These funds help to ensure that programs and laws are put into place for all citizens to enjoy their rights without impinging on or impairing the rights of others. Public programs include public transportation; roads, sewers, and water systems; public universities and community colleges; and a myriad of public services that most of us simply take for granted. Example of a public sector entity is the United States Postal service (USPS), the Public service Electric And Gas Company (PSE&G).
b) For-profit sector
Their primary goal is making profit as opposed to not-for-profit making organizations. The for-profit businesses or organizations include giant corporations, local businesses, and mom-and-pop stores. They distribute profits to shareholders, they pay taxes on profits made, when the organization goes out of business its assets can be liquidated and the proceeds distributed to their owners, shareholders, and consumers. As the name implies, for-profits operate to