# Commercial vs Not-for-Profit Organisations

  

##General Overview


### **Commercial Organisations**

* **Purpose**: To make a **profit** for owners, shareholders, or investors.
* **Examples**: Apple, Nike, Tesco, EA Games.
* **Revenue Use**: Profits are often **reinvested** into the business or **paid out** to shareholders.
* **Structure**: Usually have a clear hierarchy and departments like marketing, sales, finance, etc.
* **Ownership**: Can be privately owned, publicly traded, or sole proprietorships.

### **Not-for-Profit Organisations (NFPs)**

* **Purpose**: To achieve a **social, educational, cultural, or charitable mission** — not to make profit.
* **Examples**: The Red Cross, Oxfam, British Esports Federation.
* **Revenue Use**: Any money made is **reinvested** into the organisation’s mission.
* **Structure**: Can have paid staff and volunteers, often governed by trustees or boards.
* **Ownership**: No individual or shareholder owns the organisation.

### Key Differences:

| Feature | Commercial | Not-for-Profit |
| ---------- | --------------------- | ----------------------------- |
| Main Goal | Make profit | Serve a cause/mission |
| Profit Use | Shared or reinvested | Reinvested only |
| Examples | McDonald's, Microsoft | British Esports, Mind Charity |
| Funding | Sales, investment | Donations, grants, sponsors |

## Relevance in **Esports**

Both types of organisations play an important role in the **esports industry**:

### **Commercial Organisations in Esports**

* **Examples**:

* **Riot Games** (developer of *League of Legends*),
* **G2 Esports**, **FaZe Clan** (esports teams),
* **Twitch** (streaming platform).
* **Revenue Streams**: Sponsorships, ticket sales, merchandise, advertising, streaming rights.
* **Goal**: Grow their brand, audience, and ultimately their **profits**.
* **Fun Fact**: FaZe Clan was listed on the NASDAQ stock exchange, making it one of the first publicly traded esports brands.

### **Not-for-Profit Organisations in Esports**

* **Examples**:

* **British Esports Federation (BEF)** – supports grassroots esports in the UK.
* **Esports Integrity Commission (ESIC)** – works to prevent cheating and match-fixing.

* **Purpose**: Promote **fair play**, **education**, and **accessibility** in esports.

* **How They Help**:

* Organising school & college tournaments.
* Educating about esports careers.
* Supporting diversity and inclusion.

* **Fun Fact**: The British Esports Federation runs the **Student Champs**, a national league where schools and colleges compete in games like *Rocket League* and *Valorant* — no entry fee needed!

## Quick Tips to Remember

* Commercial = *Cash-focused*.
* Not-for-Profit = *Cause-focused*.
* Commercial esports teams want trophies AND ticket sales.
* Not-for-profits help get students and communities **into** esports — not just **watch** it.