Joint Ventures between Nonprofit and For-Profit Organizations

2000 ◽  
Vol 22 (s-1) ◽  
pp. 76-88 ◽  
Author(s):  
Richard C. Sansing
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
Nonprofit Organization ◽  
Profit Sharing ◽  
Production Costs ◽  
Competition Effect ◽  
Sharing Rule ◽  
For Profit ◽  
Tax Regimes ◽  
Cost Effect

This paper examines the consequences of allowing a nonprofit organization to form a joint venture with a for-profit organization. Three tax regimes are considered: prohibiting all such joint ventures, allowing all such joint ventures, and restricting joint ventures between nonprofit and for-profit entities to those controlled by the nonprofit organization. The paper derives the equilibrium profit-sharing rule, output decision, and organizational form choice under each tax regime. Joint ventures can create both private and social benefits by reducing production costs. They can also create private benefits and social costs by reducing competition. Prohibitions or restrictions on joint ventures can either increase or decrease social welfare depending on whether the production cost effect or the competition effect is more important.

An Examination of Joint Ventures between Nonprofit Hospitals and For-Profit Businesses

2003 ◽  
Vol 1 (1) ◽  
pp. 41-53 ◽  
Author(s):  
Kent Swift
Keyword(s):  
Board Of Directors ◽  
Joint Ventures ◽  
Joint Venture ◽  
Court Cases ◽  
Nonprofit Hospitals ◽  
For Profit ◽  
Tax Exempt

Nonprofit hospitals have increasingly found that it is to their advantage to enter into joint ventures with for-profit entities as a means of raising capital and/or obtaining expertise. A number of IRS letter rulings, revenue rulings, and court cases have addressed the issue of the types of joint ventures between nonprofit hospitals and for-profit entities that are within the hospital's charitable mission and those joint ventures that cross the line and would cause the hospital to lose its status as a tax-exempt entity under I.R.C. §501(c)(3). An examination of this literature suggests that nonprofit hospitals can avoid jeopardizing their charitable status when entering into joint ventures with for-profit entities by (1) requiring the joint venture operating entity to provide care to a broad segment of the community; (2) maintaining control over the joint venture, preferably by controlling a majority of the positions on the operating entity's board of directors; and (3) crafting joint venture agreements such that they place primary importance on the venture's charitable mission.

CONTRIBUTION-BASED PROFIT-SHARING SCHEME FOR JOINT VENTURES / PELNO PASIDALIJIMO TARP ĮMONIŲ SCHEMA, PAGRĮSTA PATIRTOMIS IŠLAIDOMIS

2011 ◽  
Vol 17 (3) ◽  
pp. 445-458 ◽  
Author(s):  
Sung-Lin Hsueh ◽  
Min-Ren Yan
Keyword(s):  
Joint Ventures ◽  
Production Efficiency ◽  
Profit Sharing ◽  
Sharing Rule ◽  
Construction Firms ◽  
Domestic Markets ◽  
Construction Market ◽  
International Construction ◽  
Local Construction ◽  
Cooperative Relationship

Along with globalization of the construction market, international construction firms often choose to cooperate with local construction firms in the form of Joint Ventures (JV) when they enter into the domestic markets of different countries. In this way, they cannot only reduce investment risks, but also enhance production efficiency, reduce costs and generate more profits. The conventional method of profit-sharing between JV firms is based on ratio of investment. However, as the firms make different contributions to the project, the rationality of such a profit-sharing method is often doubtful and thus is difficult to maintain a stable cooperative relationship for a JV team. Based on the concept of the cooperative game theory, this paper proposes a contribution-based profit-sharing model using Shapley Value. A case study is used to describe how firms can use this model to reach decisions of participation, and determine a fair profit-sharing rule after cooperation to enhance mutual trust and create the advantages of cooperation. Santrauka Vykstant statybos rinkos globalizacijai, tarptautinės statybos įmonės, patekusios į vietinę kitos šalies rinką, dažnai linkusios bendradarbiauti su vietos statybos įmonėmis. Jos gali ne tik sumažinti investicijos riziką, bet ir padidinti gamybos efektyvumą, sumažinti išlaidas ir gauti didesnį pelną. Tradicinis pelno pasidalijimo metodas tarp įmonių grindžiamas investicijų santykiu. Tačiau kai įmonių įnašas į projektą skirtingas, toks pelno metodo racionalumas dažnai abejotinas, todėl tokiu atveju yra sunku palaikyti stabilų įmonių bendradarbiavimą. Remiantis lošimų teorijos koncepcija, šiame darbe siūlomas pelno pasidalijimo modelis naudojant Shapley reikšmę. Skaitmeniniu pavyzdžiu rodoma, kaip įmonės gali taikyti šį modelį priimdamos sprendimus dėl dalyvavimo bendroje veikloje ir teisingo pelno pasidalijimo. Taip sustiprinamas tarpusavio pasitikėjimas ir sukuriamos bendradarbiavimo prielaidos.

scholarly journals ANALISIS FINANSIAL USAHA SAPI PERAH DENGAN CARA BAGI HASIL (Paro) DI PETERNAK

2019 ◽  
Vol 2 (1) ◽  
pp. 67-85
Author(s):  
Supardi Rusdiana
Keyword(s):  
Dairy Cattle ◽  
Dairy Cows ◽  
Milk Production ◽  
Secondary Data ◽  
Profit Sharing ◽  
Production Costs ◽  
Primary Data ◽  
Labor Costs ◽  
For Profit ◽  
Financial Economy

The study was conducted in Cikoneng Village, Pasirjambu Subdistrict, West Bandung Regency, Bandung West Java Province in 2018. The study used a survey of 27 dairy farmers in a way to share the results (Paro). Primary data and secondary data were analyzed descriptively, quantitatively and economic analysis. The purpose of this study is to analyze the financial economy of dairy cattle business by means of profit sharing (Paro) in farmers. The results of the study show that milk production of dairy cows produced by farmers every day is an average of 14.12 liters/day. Production costs for dairy cattle business are IDR.300.317.000 /year. The results of the calculation of breeder labor with the amount of labor costs amounting to IDR.5.635.000/year or 276.75/Hok/year.The advantages of farmer IDR 2.187.808/month with B/C of 2.3. Dairy cows belonging to farmers and property owned by investors are still maintained by the dignitaries, as investments, to produce calves and milk production. Economically, the financial value of B/C >1, or the business of dairy cows for profit sharing (Paro), can continue the business.    

The Conversion Conundrum: The State and Federal Response to Hospitals’ Changes in Charitable Status

1997 ◽  
Vol 23 (2-3) ◽  
pp. 221-250
Author(s):  
Lawrence E. Singer
Keyword(s):  
Joint Venture ◽  
Low Cost ◽  
State Level ◽  
The State ◽  
Nonprofit Hospitals ◽  
For Profit ◽  
Tax Exempt ◽  
Federal Response ◽  
Profit Status ◽  
Hospital Conversions

The pressures encountered by hospitals in the current era of reimbursement declines and stiffened competition are well known. As the “ultimate” payors—primarily employers and government—aggressively continue to seek low cost care, the response of the hospital industry has been to move toward consolidation and efficiency-enhancing mechanisms.Increasingly, nonprofit, tax-exempt hospitals have come to believe that they are at a significant disadvantage vis-á-vis their for-profit brethren in their ability to attract the capital needed to compete in the market. A growing trend among nonprofit hospitals, therefore, is to sell to or enter into a joint venture with a proprietary organization, or alternatively to convert to for-profit status. In 1995, fifty-eight nonprofit hospitals became for-profit; hospital conversions to for-profit status in 1996 are projected to outstrip the pace established the prior year.The conversion trend has not gone unnoticed at the state level. Recently, several states have proposed or enacted laws regulating sales and conversions of nonprofit hospitals, and many more states are contemplating such legislation.

scholarly journals Pricing Linkage between Islamic Banking and Conventional Banking: The Case of Bangladesh

2016 ◽  
Vol 3 (4) ◽  
pp. 84
Author(s):  
Sarwar Uddin Ahmed ◽  
Ashikur Rahman ◽  
Samuel Parvez Ahmed ◽  
G M Wali Ullah
Keyword(s):  
Profit Sharing ◽  
Islamic Banking ◽  
Specific Rate ◽  
Islamic Banks ◽  
Loss Mechanism ◽  
Monthly Data ◽  
For Profit ◽  
Significant Difference ◽  
Conventional Banks ◽  
The Relationship

<p><em>Islamic banking is based on profit and loss mechanism where the use of interest is prohibited.  Unlike conventional banks, these banks do not charge a specific rate of interest, rather provides financing in exchange for profit sharing.  However, there are studies claiming that, in practice, Islamic banking is same as conventional banking with regard to the use of interest. It is also claimed that, Islamic deposits are not interest-free, but are closely attached to conventional deposits.  On this background, the objective of this study is to examine the relationship between pricing in Islamic banks vis-à-vis conventional banks by taking the case of Bangladesh. We have used monthly data during the period of 2009-2013. The findings of the study showed that, there is no statistically significant difference between the monthly average lending rates of Islamic banks and conventional banks. However, there is significant difference between deposit rates. The existence of causal relationship was inconclusive, and requires further analysis.</em></p>

scholarly journals Analysis of Umkm Cooperation Ratio in the Context of Musyarakah in Yogya Purwakarta Toserba Food Court

2019 ◽  
Vol 3 (2) ◽  
pp. 154-166
Author(s):  
Rachma Frattiwi
Keyword(s):  
Data Collection ◽  
Venture Capital ◽  
Qualitative Analysis ◽  
Profit Sharing ◽  
The Other ◽  
Cooperation Agreement ◽  
For Profit ◽  
Approach Method ◽  
Collaboration Agreement ◽  
Mutual Agreement

This research was conducted at the Yogya Purwakarta Toserba Food Court. The problem that occurred at the Yogya Purwakarta Toserba Food Court was that the concept of the collaboration agreement that was carried out tended to be wrong. The purpose of this study was first to determine the cooperation agreement undertaken by the UMKM with the "Yogya Rasa", namely the system of cooperation agreements for results. Cooperation agreement for profit sharing here is a cooperation agreement made by one party with another party. Where one party provides facilities or infrastructure in the form of a place in the form of a counter while the other party occupies the counter with a profit sharing system. second to find out the suitability of the Musyarakah contract concept. The cooperation agreement that has been carried out by the UMKM with the manager of Yogya Toserba Food Court is in accordance with the Syirkah Mudharabah concept in which this collaboration is carried out by the first party contributing capital and work at the same time while the second party only contributes only venture capital while profits are shared according to mutual agreement. This research uses descriptive qualitative analysis approach method. Data collection can be done by the method of observation, interviews and documentation

scholarly journals The Fiduciary Duties of Joint Venture Parties – When do They Arise and What Do They Comprise?

2011 ◽  
Vol 42 (1) ◽  
pp. 117 ◽  
Author(s):  
Jane Knowler ◽  
Charles Rickett
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
Case Law ◽  
The Other ◽  
Common Goal ◽  
Fiduciary Duties ◽  
Fiduciary Obligations ◽  
Australian Case

Joint Ventures are often used by parties in commercial enterprises where parties seek to achieve a common goal. One issue which is increasingly contentious is the extent to which, if any, joint venture parties owe each other fiduciary obligations. This paper refutes, as a dangerous heresy, the idea that joint venture relationships are discrete legal relationships that are inherently fiduciary in nature. The majority of self-styled "joint ventures" are, invariably, nothing more in legal terms than contracts. If parties are going to be bound by fiduciary duties, over and above the contractual duties they owe each other, this will only be so by virtue of the particular arrangement they have entered into which, on a thorough examination of the facts, is found to require each party to give unstinting loyalty to the other. Recent Australian case law bears this out.

scholarly journals Sukuk (Obligasi Syariah) dalam Perspektif Keuangan Islam

2019 ◽  
Vol 5 (2) ◽  
pp. 165-179
Author(s):  
Maula Nasrifah
Keyword(s):  
Financial Institutions ◽  
Capital Market ◽  
Revenue Sharing ◽  
Profit Sharing ◽  
Mutual Respect ◽  
For Profit ◽  
Private Placement ◽  
Proof Of Ownership ◽  
Maturity Date ◽  
The Future

Islam strongly encourages investment so that possessions can be productive and bring benefits in the future, of course, using a good and right way, which is in accordance with Islamic sharia, like mutual respect and does not harm others. The type of investment can be varied, we can invest through the capital market, one of which is sukuk. Sukuk are securities that are proof of ownership (claim) on assets, whether in the form of tangible, intangible or project contracts from certain activities that require the issuer to pay revenue-sharing to the Sukuk holders and pay back the Sukuk in maturity date. The principle in Sukuk transactions is in the form of emphasis on fair agreements, recommendations for profit sharing systems. In Sukuk transaction, a number of certain assets are needed which to used as the basis for conducting transactions using a contract based on sharia principles. The types of Sukuk in terms of Sukuk Ijarah, Sukuk Mudharabah, Sukuk Musyarakah, Sukuk Istishna’ with the method of issuing in bookbuilding, auction methods and private placement. In sukuk transactions there is a requirement for Underlying Assets as well as activities or processes which have been based in accordance with sharia. This shows that investing with sukuk is not worrying for investors who want to transact with sharia financial institutions. Keywords: Investing, Transaction, Sukuk

scholarly journals INVESTIGATION OF REVENUE SHARING, TRANSPARENCY AND FIRM PERFORMANCE TO PROFIT DISTRIBUTION MANAGEMENT

2019 ◽  
Vol 2 (2) ◽  
pp. 75-81
Author(s):  
MISMIWATI MISMIWATI ◽  
TONA AURORA LUBIS ◽  
ENGGAR DIAH PUSPA ARUM
Keyword(s):  
Firm Performance ◽  
Revenue Sharing ◽  
Profit Sharing ◽  
Distribution Management ◽  
Profit Distribution ◽  
For Profit ◽  
And Performance ◽  
A Company ◽  
Performance Research

This study was conducted to determine the effect on Profit Distribution Management recorded in Bank Indonesia on financing for profit sharing, transparency and performance. Research conducted using RGEC Method to determine the level of performance in the company and the population of this study is a company listed in the Jakarta Islamic Index of 2012-2016. The results of this study indicate that mudharabah variables have an effect but not significant to PDM, ROA and CAR have significant effect to PDM while musharaka, transparency, FDR, GCG and BOPO have no significant effect to PDM.

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