Hi! Thanks for the question.
I will try to answer your questions point by point. I will also
provide small snippets from the articles to save you time but I highly
suggest that you read them in their entirety to get a better grasp of
the ideas.
a.) First of all let us define what constitute as a non-profit
organization.
“…a nonprofit is a tax-exempt organization that serves the public
interest. In general, the purpose of this type of organization must be
charitable, educational, scientific, religious or literary.”
“Legally, a nonprofit organization is one that does not declare a
profit and instead utilizes all revenue available after normal
operating expenses in service to the public interest. These
organizations can be unincorporated or incorporated. An unincorporated
nonprofit cannot be given federal tax-exempt status or the designation
of being a 501(c)(3) organization as defined by the Internal Revenue
Service. When a nonprofit organization is incorporated, it shares many
traits with for-profit corporations except that there are no
shareholders.”
“What is a Nonprofit Organization?”
http://nonprofit.about.com/library/weekly/aa120402.htm?once=true&
b.) Benefits of a Non-profit Organization:
- “The primary benefit of being a non-profit (or not-for-profit)
corporation is that you are exempt from paying income taxes.”
- “There are other benefits, too. For example, if you do a lot of
mailings, you can qualify for the lower "non-profit" postal rate.”
- “Plus, there is the positive image a non-profit connotes: it tells
people that you're in business not for the money but for a higher
purpose.”
c.) Disadvantages of a Non-profit Organization:
- “Of course, you don't make money from a non-profit company; once you
put assets in, they become property of that corporation and must be
dedicated to specific non-profit purposes.”
- “…you can't sell the business to get your money back.”
“Basics - Non-Profit Corporation”
http://www.realsmallbusiness.com/powerhomebiz/building/structuring/articles/open_structuring_nonprofit/
d.) Competition in the Non-Profit Sector:
Competition and rivalry for funds in the Non-Profit sector is an
intense reality.
“Nationwide, non-profit leaders have been moving toward corporate
practices for years as a result of fund-raising scandals, a slow
economy and competition for donations.”
“Take Southwest Autism Research Center in Phoenix, for example, which
is updating its personnel practices as it prepares to hire up to 20
employees. Agency officials are reviewing their employee handbook and
learning about things such as how best to ask for references and what
type of offer letters to send.”
“Competition for donations has increased, whether from an individual,
corporation or foundation, and a growing pool of non-profit
organizations, all on the hunt for money, employees and volunteers.”
“Non-profits adopt corporate tactics”
http://www.azcentral.com/arizonarepublic/news/articles/0430executive30.html
Our next article provides explanations plus examples on the different
competitive scenarios for the non-profit sector.
“At its most intense, competition in social and nonprofit marketing
can be an aggressive dogfight. Some publicly-funded business schools,
for example, have been known to preemptively register the Internet
addresses of key competitors in order to hamper their online marketing
efforts (Parent & Fisher 1999).”
i.) Combative Competition:
“Combative competition emerges when the choice to support one
organization effectively precludes support for the others. In the most
extreme cases, rival organizations hold entirely different definitions
of what constitutes “social good,” making it impossible to achieve
multiple missions simultaneously. When based on this kind of clash of
personal values, competition may be particularly intense. A good
example of this is the public confrontation over abortion, which some
groups defend on behalf of women’s rights, and others oppose in
defense of the unborn.”
ii.) Collegial Competition:
“Collegial competition is exemplified by the response to natural
disasters such as floods and earthquakes, where the problem is massive
and the priority is to save lives. In these situations a combination
of organizations usually bands together to identify the needy and
render aid. Though there may be differences of opinion regarding, for
instance, which geographic areas should receive priority and whether
help should occur in a religious or secular context, these are
subordinated to the greater goal of providing food and shelter, and
preventing the spread of disease.”
iii.) Alternative Competition:
“The third form of competition, which we label alternative
competition, occurs in the absence of strong pressures to cooperate or
compete or, more rarely, when these two pressures are in balance. It
is the usual result when organizations agree on what constitutes the
problem, but disagree as to the best solution.”
“A TYPOLOGY OF NONPROFIT COMPETITION: INSIGHTS FOR SOCIAL MARKETERS”
http://www.commerce.ubc.ca/faculty/research/docs/weinberg/ISM_2000.pdf
Search terms used:
"non-profit organizations" rivalries rival competition funds
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
Thanks for visiting us.
Regards,
Easterangel-ga
Google Answers Researcher |
Request for Answer Clarification by
ctkings-ga
on
14 May 2003 12:30 PDT
Greetings,
thanks for your interest in the topic, your research had helped me
alot in a clear and concise manner, thanks for that, much appreciated.
Now would that be possible for you to search abit more on such topic,
as below:
you know how donor everytime they make a donation they go thru charity
org, and not pay straight someone on the street, or just a patient in
the hopsital, they goes to corresponding org - such as cancer
foundation etc,.
well i know the major reason(s) for that is basically be more
efficient and with big org they can enjoy economic of scale. to name a
few. 1) Are there more reasons add to that?
2) such practice always lead to "moral hazard" and "averse selection"
between the agent and princpal, i can understand the concepts between
that, you can just give me a few links to support the arguement, if
thats possible.
sorry for the lengthy question, or you want me to repost it?
I am able to tips on that for certainly :)
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