There are inherent differences in the expectations of engineers working in for profit, nonprofit and not for profit organizations. These inherent differences can alter the day to day activities, as well as the long term vision of the company and its employees. Understanding the culture of these different types of organizations will help ensure engineers choose a place of employment consistent with their own vision and goals.

1. © 2015 The MITRE Corporation. All rights reserved.
Amy Fritz
For Profit, Nonprofit and Not
For Profit: Which One Is For
Me?
22 October 2015
Approved for Public Release; Distribution Unlimited. Case Number 15-2877

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About Me
 BS in Aerospace Engineering from Boston University, 2008
 MS in Systems Engineering from Johns Hopkins University, 2013
 Been with MITRE since 2008, currently a Lead Systems Engineer
 I enjoy cooking, gardening, traveling and anything to do with
airplanes

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For Profit
 Motivation is to create profit, to take in more money than it spends
– Can be either privately or publically owed
– Investors expect a return on investments
– Owners can keep profit, spend some or all on business, or share with
employees, such as through profit sharing
 Make products, provide services or expertise
 Competitive, capitalist market
https://en.wikipedia.org/wiki/Chevrolet_Corvette
http://www.apple.com/iphone
http://www.boeing.com
http://www.ge.com/
http://disney.com/

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Nonprofit/Not For Profit
 Terms typically used interchangeably
– No legal difference
 Not For Profit terminology can be used to distinguish from more
traditional non-profits
– Not necessarily charitable organizations made up of volunteers
 Can earn a profit (income remainder after expenses), but….
– Must be invested back into the organization to further achieve its purpose or
mission
– Self-preservation, expansion, administrative, etc.
– Limits on how much profit can be ‘carried over’ from year to year
 Profits are not distributed to leadership/owners as bonuses or
dividends
 Typically called ‘foundation,’ ‘group’ or ‘organization’ rather than
‘business’ or ‘firm’
https://www.ted.com/talkshttp://ww5.komen.org/http://www.redcross.org/

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Similarities
 Both critical to society
 Need good management and leadership to thrive
– New directions for growth
– Motivate and inspire staff
 Funding
 Success not guaranteed
 Grow and transform missions over time

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Understanding Federally Funded Research and
Development Center (FFRDCs)
 Not for profit
 Private-sector resources that operate in the public interest
– Work closely with inherently governmental functions
– Assist the government with long-term research and development
– Conduct studies and analyses
 Free of organizational conflicts of interest
 Cannot compete for work, except to operate an FFRDC
 Special access to government data and resources
 Must follow rules from the Federal Acquisition Regulation
– Enables the government to assign FFRDCs work that the government
or commercial contractors can't do as effectively

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Subset of Current Administrators of FFRDCs
(full list at www.nsf.gov/statistics/ ffrdclist/)
 Department of Defense
– The Aerospace Corporation
– RAND Corporation
– The Center for Naval Analyses
Corporation
– Massachusetts Institute of
Technology
– The MITRE Corporation
– Carnegie Mellon University
– Institute for Defense Analyses
 Department of Health and Human
Services
– The MITRE Corporation
– SAIC- Fredrick
 Department of Homeland Security
– Analytic Services
– The MITRE Corporation
– Battelle National Biodefense Institute
 Department of Energy
– Iowa Stat University
– U Chicago Argonne, LLC
– Brookhaven Science Associates, LLC
– Fermi Research Alliance, LLC
– Battelle Energy Alliance, LLC
– Lawrence Livermore National Security
– Los Alamos National Security
– Alliance for Sustainable Energy
– UT-Battelle
– Battelle Memorial Institute
– Princeton University
– Sandia Corporation, a subsidiary of
Lockheed Martin Corporation
– Savannah River Nuclear Solutions
– Jefferson Science Associates

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My Experience
 Joined a FFRDC directly after my undergraduate degree
– Didn’t really understand what an FFRDC was nor the role they played
 Opportunities to provide solutions for some of our governments
toughest problems
– Rewarding to see your solutions helping others
 Created prototypes and technology transfers
– But never ‘actual products’
 Can be challenging to define what I do on a day to day basis
 Compensation comparable to what someone at my level would be
making in the for profit sector

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Things to Consider
 ‘Ownership’ of product or system
 Timelines to field a product or system
 Compensation
– Amount, type (i.e. bonus vs salary vs stock options)
– Relation to company earnings
 Mission/goal
 Working environment

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BACK UP

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Today MITRE Operates Seven FFRDCs
National
Security
Engineering
Center
Center for
Enterprise
Modernization
Judiciary
Engineering and
Modernization
Center
CMS
Alliance to
Modernize
Healthcare
National
Cybersecurity
FFRDC
Center for
Advanced
Aviation System
Development
Our sponsors benefit from our
breadth of experience
Homeland
Security Systems
Engineering and
Development
Institute