Compare and Contrast between a non-profit organization and a Fortune 500 company

Compare and Contrast between a non-profit organization and a Fortune 500 company


Organizations are formed by having particular objectives to achieve within a specific period. Their aims can either be similar or distinct depending on whether it is for or non-profit. There has been a debate for non-profit organizations to convert to for-profits but upon realization of the fact they will disadvantage some people and favor others especially the rich (Grant, 2016). Example of such organizations is medical health centers famously regarded as the hospitals. Therefore, the conversion has remained to be a hot topic thereby unsolved (Galaskiewicz, 2016). In this connection, this paper focuses on comparing and contrasting the non-profit organization together with a fortune 500 company which is a for-profit organization.

The two types of organization have fiduciary duties to perform. These responsibilities entail obligations of care together with those of loyalty (Galaskiewicz, 2016). If the above is done contrary to the stipulated laws, the member can be dismissed, or legal responsibility is taken by the board of members (Galaskiewicz, 2016). The first responsibility that is care is practiced reasonably and prudently by all the members of both organizations, non-profit and a fortune 500 company, for-profit (Grant, 2016). The latter is a requirement by all the participants to put the organization’s interests in the forefront than theirs to realize the company’s goals; both long and short (Galaskiewicz, 2016).  Besides, the two duties do not involve disclosure of confidential and resources of actualities in which the organization is tending to do (Grant, 2016). Despite these, the non-profit organization has an extra obligation of being obedient and supportive towards the achievement of the set goals.

For non-profit organizations, there is the absence of shareholders, and CEO nor directors neither lead it. The reason behind it is because they are not owned. Besides, it has trustees, directors without leaving out governors (Galaskiewicz, 2016). On the other hand, a fortune 500 company has representatives that is board of directors representing the shareholder’s interest of entities. Also, if it is not led by CEO, the director is named to take charge in the management of the company’s property, (Grant, 2016), and taking care of the welfare of the employees.

On the basis of the financial report, for-profit companies, for instance, the fortune 500 company must return its report to the shareholders. Here, overall earnings, prices of stocks, and dividend rates are put into consideration (Galaskiewicz, 2016). Also, their sources of capital can be gotten from borrowing from financial institutions such as banks and Sacco’s and selling of shares to mention a few. On the other side, non-profit organizations rely on fund-raising and support from well-wishers (Grant, 2016). This makes them have limited access to services resulting in reduced production or deliverance of quality services.


In summary, despite the deliverance of required services to the public, the two operate either in the same or different levels. From the above analysis of the for and non-profit organizations, the latter should not be converted to for-profit for the sake of the lower class working people. This will favor their stay and have good living standards. In this regard, for profit organization that is Fortune 500 Company, is more useful compared to the non-profit ones because they produce quality services to their customers as the funds are available.



Galaskiewicz, J. (2016). The social organization of an urban grants economy: A study of business philanthropy and nonprofit organizations. Elsevier.

Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.