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Should Industry Trade Groups be Non-Profit or For-Profit?
Traditionally, such groups are non-profit. But, if a group is for-profit, is that a plus or minus for members? Would a for-profit group be more motivated to do a better job? Or would that make the group worse in some way?
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2 Replies
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I have sat on a number of non-profit boards, including treasurer, Non profit or for profit is a tax designation only and as a company is run for POSITIVE cash flow,
So, a Non profit entity is not zero profit
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“Not for profit” in my opinion and experience creates two problems.
Since there exists no entity that is completely selfless – always underpinned by a desire to gain some advantage; money, authority, respect, or any combination therein. While there’s nothing inherently wrong with this, it is in fact human nature, it establishes a breeding ground for corruption and affords the government more regulatory and elective control through so-called tax incentives and operational mandates.
I much prefer the “for profit” model as there is no question of its motivation and opens interactions up to free-market processes.
While either model’s greatest potential for errant practices is the fact that imperfect humans are at the core, the former has far more layers in which to avail impropriety.
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