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NON-PROFIT ORGANIZATIONS
Non-Profits
Non-profit organization: Operates like a business, but promotes the collective interests of members rather than seeking financial gain for owners.
Examples
Schools Churches Adoption Agencies Hospitals Welfare Groups
Government
Another nonprofit economic organization
Government can play both direct and indirect roles in the economy
Direct Role of Government
Many government agencies produce and distribute goods and services to consumers
Examples: Tennessee Valley Authority which supplies
electric for almost all of Tennessee and other states
U.S. Postal Service
Indirect Role of Government
Acts as an umpire to make sure the market economy operates smoothly and efficiently
Examples: Regulation of public utilities Grants to people in the form of Social Security,
financial aid, unemployment, etc
Community and Civic Organizations
These orgs. Often provide goods and services to their members while they pursue other rewards Improving educational standards Seeing the sick become well Helping those in need
Revenue and Non-Profits
Activities often produce revenues in excess of expenses, but they use the surplus to further the work of their institutions.
Cooperatives
A voluntary association of people formed to carry on some kind of economic activity that will benefit its members
There are 3 major classes of cooperatives
Consumer Cooperatives
Services Cooperatives
Producer Cooperatives
Consumer Cooperatives
Voluntary association that buys bulk amounts of goods such as food and clothing on behalf of its members.
Service Cooperatives
Provides services to its members rather than goods.
Examples Baby-sitting Credit unions
Producer Cooperatives
Helps members promote and sell their products
In U.S., these are made up of farmers Co-ops help farmers sell their crops directly to
central markets or to companies that use the members’ products
Labor Unions
Organization of workers formed to represent its members’ interests in various employment matters
Union participates in collective bargaining Negotiations with management over issues
such as pay, working hours, health care coverage, vacations, etc.
Professional Associations
A group of people in a specialized occupation that works to improve the working conditions, skill levels, and public perceptions of the profession
Examples American Medical Association American Bar Association
Business Associations
Businesses organize to promote their collective interests
Chamber of commerce: Promotes the welfare of its members and of the community