Explain in detail has a downturn in the economy affects not

Explain in detail has a downturn in the economy affects not for-profit organizations as opposed for profit ones.

Solution

Not for-profit organizations: Such organizations are not impacted as severely from the recession if they have large diversified pool of organizations making donations. Few of the smaller organization may cut on the donations but largely the larger organizations do not cut on the amount of donations in recession also.

Profit-Organizations: Such organizations get hit during the recession as demand slows down and capacities are not utilized and as a result profitability decreases. In such cases the organization tend to cut on employee strength and introduce cost cutting measures to save on the profitability.