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Why do you think a charity isn't a business? They still have revenues and expenses, employees, marketing, growth, a product to deliver. The only fundamental dif
by tghw 11y ago
Why do you think a charity isn't a business? They still have revenues and expenses, employees, marketing, growth, a product to deliver. The only fundamental difference is that their owners don't take dividends or distributions from the business.
- mortehu 11y agoI think you are thinking of nonprofit organizations. Charities don't have to be nonprofit organizations[1], and nonprofit organizations are often not charities. 1. https://en.wikipedia.org/wiki/For-profit_charity https://en.wikipedia.org/wiki/For-profit_charity
- tghw 11y agoWhile technically true, for-profit charities are much less common. Moreover, it's just another step along the spectrum, where for-profit charities, unlike non-profits, are allowed to take distributions, but unlike for-profit corporations, have no obligation to create value for shareholders. (Yes, this is also overlooking privately-held companies, but again, they're just another step on the spectrum.) Regardless, the main point is that charity or not, for-profit or non-profit, they're all still fundamentally businesses and should be run accordingly.
- x5n1 11y agoBusinesses generally have a profit motive.