NON PROFIT ORGANIZATIONS

Even non-profit organisations need to make a profit. In order to survive any organisation needs to grow. An organization grows by making profit and investing that profit into the organization or into research and development.

If a non-profit organization was to always break even with its activities, it would not have any funds to invest in its own growth and therefore it would not survive. Therefore the illusion of a non-profit organization not making a profit is just that, an illusion. In fact the reason they are called non profit is because the profit does not go to a private owner or profit seeking organisation. The profits are used to further the aims and intentions of the organization itself, not the people in or connected to the organization.

Profit is not a dirty word. Profit is necessary to the survival of any organisation. People do get the wrong impression about profit when they see large organizations raking in so much profit that they could put many small countrys to shame. That is what gives profit a bad name. However this is not necessarily a bad thing either.

To make these large profits these organizations must invest heavily in themselves and their products. To do this they need deep pockets and huge profits. In spite of all the reported profits of these companies, many of them are only a small percentage point from collapse. This has been highlighted by some famous cases in recent years. (I'll not mention them here)