Unit 1 - Business Basics
Learning Target 5 : I can discuss the role of nonprofit organizations in the economy
In the first section of this lesson, we learned about the number one goal of every business is profit. Does this goal pertain to nonprofit organizations like credit unions or the American Red Cross? Nonprofit organizations do produce a valuable good or service like other businesses and they do employ people to work for them but have a different perspective on what to do with the profit earned. The primary objective of these organizations is to serve society. Because of their primary objective, these organizations do not have to pay corporate taxes but do have to pay other taxes such as payroll. There are not-for-profit organizations at the local, state, and international level.
Watch this short video providing an overview of a local nonprofit organization
Make The Connection : Go to Firefly Credit Unions website and find out the following
1. What makes them different from a for-profit bank.
2. Who benefits from organizations being nonprofit
3. Explain the concept of members serving members.
4. Does profit play any role in this nonprofit organization? Explain
Make The Connection : Click here to research your favorite nonprofit and see how they are doing. https://www.charitynavigator.org/