[Mel]
Not for profit operations often operate less efficiently
and squander any chance of surplus and returns less
if anything to community.

[Krimel]
This is not only wrong it is down right offensive. Non-profits tend to be
mission driven. Unlike for profits they have a purpose for existing beyond
the mundane profit motive. They have Values. Some non-profits like the
Salvation Army, the Red Cross or even the Catholic Church have assets and
annual budgets in the billions of dollars. Others like small business are
run by well meaning people with high ideals and little administrative
ability. Like entrepreneurs these too can fail. 

I have personally worked with a number of non-profits over the years. Their
staff members tend to be dedicated and underpaid relative to the private
sector. But many people find it satisfying when their work means something,
when it helps others and advances Values other than profit.

You talk about squandered surplus. Where does that come from? One of the
problems I have seen in non-profits is that they have been slow to adopt
technologies, that could improve efficiency, because they don't have surplus
cash to invest in the technology or the support staff to maintain it.

Many services provided by non-profits are the kinds of services that the
private sector either can't or won't touch or when they do they botch the
job. Homeless services for example are often provided by faith based
non-profits in part because there is so little money available for this
purpose that only the call of God can motivate people to tackle such tasks.

You say, they return less, if anything to the community? My God man, please
go to your local United Way office and ask about the services provided by
their member organizations. Ask about the budget allocation process. Ask
about the number served and the unmet need in your community.

In fact or at least in theory the only difference between a private and
non-profit organization is what happens to the "profits". In the private
sector profits are dumped into the pockets of owners and investors. In
non-profits surplus funds are reinvested into the mission of the
organization.

One might be so crass as to say the difference between the two is that
non-profits are driven by and support a host of different human values. For
profits value cash, often at the expense of every other human value.




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