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Comparative Summary Paper

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Submitted By marquera
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A nonprofit organization is formed for the common good of the public. Nonprofit organizations are usually formed for some specific religious, charitable or educational purpose. A for-profit organization may be formed to conduct any number of lawful business activities. The primary reason to form a for-profit organization is to earn a profit for the owners of the company. Since a not-for-profit organization is formed to accomplish a specific task, the profits raised by the organization must be recirculated back into the organization so it is able to fulfill its mission. This means that all the money raised by the not-for-profit organization will be retained in the organization. However, funds raised by a not-for-profit organization can be used to pay salaries to employees and to address any other administrative needs. In the case of a for-profit organization, the profits of the company may be distributed to the owners of the company. Establishing a for-profit organization allows a business owner to realize gains from the organization if the business becomes successful. The assets of a not-for-profit organization legally belong to the organization, while the assets of a for-profit organization belong to the owners of the business. Government (Public sectors) offer relatively unprofitable services. Government hospitals enjoy income and property tax exemptions. The public sector-federal, state, county, and city government agencies serves the public good. Through taxation (a form of wealth redistribution), public money (taxes) 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. Public money goes toward projects that benefit the public good, but it is impossible for the government to meet all of society’s needs. The public sector relies on nonprofits and businesses to provide the services and programs that it doesn’t have the capacity or capability to do itself.

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