What's the Diffrence Between For-Profit and Non-Profit?

Every organization on planet earth asks for your money. Some are for-profit companies and some are non-profit companies. Both start with basically the same goal:

How do I solve a problem?

Through the exercise of solving a problem a product is born, or a services is created, or a program is developed. But ultimately, success is determined by how effectively an organization can solve the problem.

Take McDonald's for example. Their challenge is to fix the problem of hunger. They create arguably good-tasting, low-cost, quickly prepared food. Through the course of solving the problem of hunger McDonald's sells the products they create to people like you and me. Now, McDonald's isn't the only one in the hunger business. So, to convince you that they are better at solving your problem of hunger than someone else, McDonald's consistently sends us messages to remind us that they are the best place to turn when you are hungry. McDonald's asks for your money.

Now consider another organization that is in the hunger business, Feed the Children. Feed the Children provides meals to children around the world that are malnourished or suffering from starvation. Just like McDonald's, Feed the Children exists to solve the problem of hunger. Just like McDonald's, Feed the Children asks for your money. But there is an obvious difference between these two organizations. When you give your money to McDonald's you are trying to solve your own problem, but when you give your money to Feed the Children, you are solving someone else's problem.

So, why do people get so bent out of shape when non-profits ask for money? Is it because we are all completely self-centered and we'd much rather spend what we have on ourself? Consider this. We live in the richest country in the world and are the most generous nation in terms of what we give to charity, yet still on average Americans only give about 2% of their annual income to solving others' problems. How might the world change if that 2% was more like 20%?

That's why I'm in fundraising.

1 comment:

  1. Tim,
    That is why you are good at what you do. You can explain it clearly.

    Great post!!

    Blessings are abundant!