NON-PROFIT ORGANIZATIONS

Non-Profits

Non-profit organization: Operates like a business, but promotes the collective interests of members rather than seeking financial gain for owners.

Examples

Schools Churches Adoption Agencies Hospitals Welfare Groups

Government

Another nonprofit economic organization

Government can play both direct and indirect roles in the economy

Direct Role of Government

Many government agencies produce and distribute goods and services to consumers

Examples: Tennessee Valley Authority which supplies

electric for almost all of Tennessee and other states

U.S. Postal Service

Indirect Role of Government

Acts as an umpire to make sure the market economy operates smoothly and efficiently

Examples: Regulation of public utilities Grants to people in the form of Social Security,

financial aid, unemployment, etc

Community and Civic Organizations

These orgs. Often provide goods and services to their members while they pursue other rewards Improving educational standards Seeing the sick become well Helping those in need

Revenue and Non-Profits

Activities often produce revenues in excess of expenses, but they use the surplus to further the work of their institutions.

Cooperatives

A voluntary association of people formed to carry on some kind of economic activity that will benefit its members

There are 3 major classes of cooperatives

Consumer Cooperatives

Services Cooperatives

Producer Cooperatives

Consumer Cooperatives

Voluntary association that buys bulk amounts of goods such as food and clothing on behalf of its members.

Service Cooperatives

Provides services to its members rather than goods.

Examples Baby-sitting Credit unions

Producer Cooperatives

Helps members promote and sell their products

In U.S., these are made up of farmers Co-ops help farmers sell their crops directly to

central markets or to companies that use the members’ products

Labor Unions

Organization of workers formed to represent its members’ interests in various employment matters

Union participates in collective bargaining Negotiations with management over issues

such as pay, working hours, health care coverage, vacations, etc.

Professional Associations

A group of people in a specialized occupation that works to improve the working conditions, skill levels, and public perceptions of the profession

Examples American Medical Association American Bar Association

Business Associations

Businesses organize to promote their collective interests

Chamber of commerce: Promotes the welfare of its members and of the community