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similarities between a non-profit organization and normal organizations

similarities between a non-profit organization and normal organizations

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With the main difference being that a NPO works towards the benefit of the society and goodwill of the people while a for-profit business works towards attaining better “profit margins.” With that aside, many NPO has a similar structure to general businesses, and this is due to the following:

STAKEHOLDERS
Similar to a for-profit organization a NPO needs to be able to engage the needs of their stakeholders if they want to be able to create the necessary factor for their continued operations.

NEED TO RAISE CAPITAL FOR OPERATIONS
A NPO also needs to raise the capital they require to fund their processes and operations, making their input and structure similar to that of the other organizations.

OPERATIONS AND HUMAN RESOURCE MANAGEMENT
The need to recruit people exists in a NPO as well. While the need to create functional operations and value chain allows the business to stay sustainable, making it similar to other business structures.

NEED TO MANAGEMENT
Just like other businesses, NPO needs to be able to make better use of their processes to create a sustainable understanding of their strategic plan; their operations plan as well as making use of their resources better.

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