| Profit
vs. Non-profit
There are distinct differences between the functions and goals of
profit and non-profit organizations.
Profit Recreational Facilities
Generates a profit for the owners
The primary beneficiaries are the owners
They usually are very private in giving out information about their
profits and disclose minimal public information (usually only what the law
requires)
Non-Profit Recreational Facilities
Changes lives or organizations for the betterment of
individuals or the community
The primary beneficiaries might be such people as
students, members of the association or community children
They are usually proud to provide reports to the
community and make activities known
Current Conditions
"Even in the sluggish economy of the early 2000s, the country’s
largest health clubs increased revenues by 15%." (www.referenceforbusiness.com)
The current number of facility users was 22.5 million in 1998 which
leaves great potential for an increase in membership. Only 8.5% of the
population belonged to a facility in 1998.
Fitness & Recreational Sports Centers in U.S.
Latest data reveals a total of 21,283 facilities across the nation:
16,604 are for profit
4,679 are non-profit
Top Economic Challenges to Profit Recreational Facilities
Local economy – If the economy is poor, people don’t buy memberships
Prices of the market – prices vary depending on competition of other
profit organizations
Taxes – depending on the amount of profit and location of the
facility
Competition from non-profit organizations
Sources:
www.referenceforbusiness.com/industries/service Physical Fitness
Facilities
http://www.cccu.org/resourcecenter. Council for Christian Colleges
and Universities
http://www.bankersonline.com/cgi-bni/ Not-for-Profit vs. Non-Profit
http://www.census.gov/epcd/ec97/industry/E713940.HTM Industry
Statistics Sampler: NAICS 713940
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