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income generated by a non-profit's activities must be used to achieve the charitable or educational

purpose defined in the organization's bylaws. The managers of non-profits must always be aware of that
charitable purpose and ensure that the organization's operations conform to those purposes.

One component of nonprofit management that contrasts with the for-profit model is the existence of
volunteer workers. Non-profits' lack of free-flowing capital means they rarely have the resources to staff
the organization sufficiently. In this scenario, managers often reach out to individuals passionate about
the organization's mission to contribute through monetary donations or volunteer hours. Managing
volunteers is different than managing employees, as there is essentially no contract or agreement
governing the relationship. This means managers must motivate by community-building and a sense of
shared accomplishment.

Source: Boundless. Management in Different Types of Business: For-Profit, Non-Profit, and Mutual-
Benefit. Boundless Management. Boundless, 21 Jul. 2015. Retrieved 19 May. 2016
from https://www.boundless.com/management/textbooks/boundless-management-textbook/introduction-
to-management-1/management-levels-and-types-18/management-in-different-types-of-business-for-profit-
non-profit-and-mutual-benefit-122-5157/

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