Not-For-Profit Organizations (ANSWERED)

QUESTION

Required Resources

Read/review the following resources for this activity:

Textbook: Chapter 1
Lesson
Minimum of 1 scholarly source

Initial Post Instructions

As Rice (2018) notes, “the boundaries that formerly separated not-for-profit and for-profit organizations have blurred, leading to a greater exchange of ideas between the sectors” (p. 14). Choose a not-for-profit organization that operates in your community or in your career field. Next, choose a for-profit business that provides a similar service. Compare and contrast the mission of both organizations. How does each organization use resources to achieve its goal? Do the organizations benefit from any exchange of ideas?

Reference:

Rice University (2018) Introduction to Business. Retrieved from https://openstax.org/details/books/Introduction-to-Business

ANSWER

Not-For-Profit Vs. For-Profit Organizations: Contrasting their Missions

DreamSpring is a non-profit organization that serves the communities by increasing access to business credit and loans and offering training and support to entrepreneurs to help them achieve their business dreams. Therefore, they base their mission at the heart of lending to such groups to contribute to positive social and economic change.

On the other hand, JPMorgan Chase & Co’s mission is to provide exceptional client service. The financial institution aims “to enable more people to contribute to and share in the rewards of a growing economy.” JPMorgan Chase values small businesses and entrepreneurs and offers grants adding up to $2 Million and credits of up to $5 Million. Thus, the difference between DreamSpring and JPMorgan Chase is the primary purpose, i.e., the latter focuses on its growth through profits while the former advocates for a culture of lending and development.

Although DreamSpring is a non-profit, it shares some aspects of concern for small businesses and entrepreneurs by allowing access to credit and loans. However, JPMorgan provides other financial services, which broadens its mission in ensuring the economic continuity of businesses and individuals. Both JPMorgan and DreamSpring provide business advice, although DreamSpring only connects business owners to advisors, while JPMorgan Chase Bank offers credit services in-house.

DreamSpring depends on the rates they receive to provide credit services to the populations they serve (not individuals), while JPMorgan Chase relies on profits or interest made from depositors’ money to loan out to businesses and continues with the cycle of obtaining interest from the loans upon return. At the same time, the bank dishes out funds from extra services, fees, and commissions to lend to businesses (DeYoung and Rice, 2004).

DreamSpring can benefit from exchanging ideas through financial guidance and leadership skills. The exchange of ideas between not-for-profit and for-profit financial organizations helps strengthen financial management capabilities to enable each to ensure financial health to pursue their mission and approach additional growth opportunities regardless of their main objectives.

References

DeYoung, R., & Rice, T. (2004). How do banks make money? The fallacies of fee income. Economic Perspectives-Federal Reserve Bank of Chicago, 28(4), 34. https://www.moneysmartweek.org/-/media/publications/economic-perspectives/2004/ep-4qtr2004-part3-deyoung-rice-pdf.pdf

n.a. (n.d.). Funding Business Dreams, Vitalizing Communities. DreamSpring. https://www.dreamspring.org/

n.a. (n.d.). OUR APPROACH, Our Model for Impact: Small Business Expansion. JPMorgan Chase & Co. https://www.jpmorganchase.com/impact/our-approach/small-business-expansion