Chapter 18. Making Not-for-Profit Business Decisions

As shown in Part II of this book, business decisions in for-profit organizations are based on profit. The higher the profit, the more desirable any given proposal is. A government, on the other hand, isn't driven by profit. Instead, governments are driven primarily by “the promotion of general welfare.” Similarly, as their name implies, nonprofit organizations also have a different purpose than for-profit organizations. In fact, nonprofit organizations have a role very similar to governments; namely, promoting the general welfare of some relevant population. Because the goals of government agencies and nonprofit organizations are different from for-profit organizations, it should make sense ...

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