How do non-profit organisations differ in structure and ownership?

Non-profit organisations differ in structure and ownership as they are owned by the public and have a board of directors.

Non-profit organisations, also known as not-for-profit organisations, are entities that are established to serve a public or mutual benefit other than the pursuit or accumulation of profits for owners or investors. The ownership of these organisations is fundamentally different from profit-driven businesses. They are not owned by private individuals but are considered to be owned by the public. They are established under laws that ensure they are used for the public good and their assets are dedicated to the purposes for which they were established.

The structure of non-profit organisations is also unique. They are typically governed by a board of directors or trustees. This board is responsible for making major decisions, setting the strategic direction, and overseeing the management of the organisation. The board members are not owners in the traditional sense, but they hold the organisation in trust for the public benefit.

In contrast, a for-profit business is owned by shareholders or private owners who invest capital with the expectation of receiving a return on their investment. The structure of a for-profit business is designed to maximise profits which can be distributed to the owners or reinvested in the business. The management of a for-profit business is accountable to the owners and their primary responsibility is to increase the value of the business for the owners.

In summary, non-profit organisations are distinct from for-profit businesses in both their ownership and structure. They are owned by the public and governed by a board of directors with the primary aim of serving a public or mutual benefit.