The not-for-profit business that I have chosen to research about is the NHS (National Health Service). The name NHS is used for each of the four public health services in the United Kingdom. They were established together in 1948 as one of the major social reforms. The NHS is a charitable company and their charitable aims are the ‘relief of sickness and the preservation and protection of public health’. Since the NHS is a not-for-profit business it does not make any profit. The way that it receives money is from funds. The data shows that the NHS receives 98.8% funds from tax and National Insurance and it receives 1.2% funds from patient charges (see Appendix 1) The disadvantage of getting funds from tax and National Insurance is that if tax and National Insurance decreases then the NHS would receive less funds then before which can impact them in a negative way. An example of an issue due to this is that the NHS might not have enough funds to help charities and upgrade the building for a better and easy access for the patients.
Ownership and liability
Their membership representatives include the Local Government Association. Having the Government as a membership representative would benefit the NHS because the Government is focused to provide patients and the public the highest quality health and care service in the world. The Government also focuses on providing free healthcare to all in need of medical support. This is an advantage for the NHS because if they provide free care with good quality then more patients and the public would use it. When more people use the NHS it would mean that it would have an advantage over its competitors like other charitable organisations. Having an advantage over its competitors would mean that it would be able to gain more donations and support from the general public and the Government. A disadvantage with having the Government for support is that if the Government has high spending with the tax that they gain then it would mean that the government would not receive enough money in order to fund and support the NHS. Since the government owns the NHS it would mean that they would have an unlimited liability because they would not have any shareholders. An advantage of the NHS having an unlimited liability is that the debts that the NHS cannot afford to pay the government would pay off instead. This would mean that the NHS would not have to be afraid of becoming an unsuccessful business. However the government cannot always be there ready to pay off the NHS’s debt because if the government spends a lot on other issues then it would mean that it cannot support the NHS straight away.