The paper “ Marketing Differences between Non-For-Profit and Profit Making Organizations in Australia" is a meaningful example of an assignment on marketing. The Non-for-Profit Sector in Australia is also known as the Australian Community sector, the third sector or even the social sector and it entails a wide range of social organizations that are neither commercial oriented nor government-affiliated whose main purpose is different from generating profits for the institution. Even though the NFP may make profits, this still is not their core purpose and even the profit made is brought back into the institution to support its normal programs rather than going into the pockets of the individuals.
Even though the government is not associated with these organizations some of the government bodies like universities and hospitals as well as museums are linked to these bodies. The NPF institutions in the country include hospitals, sports clubs, religious groups, daycare centers, recreation sites, family counseling agencies, environmental conservation groups, community services and many more (Lyons 2009). Over the years, the sector has continued to grow as many new NFP institutions have continued to join.
The recent survey by the Productivity Commission and Contribution of the Non-for-profit sector revealed that in the country, there are about 700,000 organizations operating in the community sector. Among these, 440, 000 are small unincorporated organizations. This is a very significant increase from the 2007 report by the Australian Tax Office which reported that there were 177, 109 organizations in the country that can be classified as not-for-profit institutions. Among these organizations, the religious institutions accounted for 21% which translates into 8786 organizations, while the recreation and culture organizations accounted for 20% each (McGregor-Lowndes, 2011).
Also among the NFP institutions are the charities which the Australian Taxation Office recognizes as altruistic entities and are officially endorsed to operate as charitable bodies. The charitable organizations are associated with such activities caring for the sick, providing relief to disaster victims, promoting religion and also providing education scholarships as well as developing the society. The NFP institutions have continued to contribute immensely to the country’ s economy. According to a report by the Productivity Commission’ s Contribution of the Non-for-Profit Sector reveal that during the financial year 2006/07, they generated $41 billion into the economy valued on the services rendered by them.
This value is equivalent to income generated by the Wholesale sector to the economy and more than what the government spends on administration and defense which is $40 billion. In terms of GNP, the sector contributes more impressively with about 9.6%. Further, the NFP sector is one large employer in the country with the current estimates showing that the sector may be employing roughly over 1 million people (McGregor-Lowndes, 2011). The strength of the NFP in Australia greatly depends on the people’ s culture in donating freely to fund them and willingness by people to volunteer to work for them.
The donations to these institutions are either from individuals and business bodies. Part of the contributions generated from donations goes to religious organizations like churches and mosques as well as temples to help in directing support to the needy persons in society. However, despite the large number of NFP in the countries, still some of the numbers operate below the expectations at the local level as opposed to the local community groups and this is because of the little knowledge and experience about the society (ACPNS, 2010).