Difference Between Association and Organization

Association and Organization are two distinct terms according to their functioning, governing, characteristics, and planning. Both these terms refer to a community of people with a common interest, goals, scope, and objectives. In this article, we will dive deep into the understanding of these two terms in detail and also we will understand their difference through various parameters like Funding, Focus, Size, Structure, and many more. We have added Frequently Asked Questions at the last of the article to get the concept more polished.

What is an Association?

An association is defined as a group of individuals that collaborates together to achieve a decided goal or objective. These individuals in Association have a common interest, profession, or industry that upskills and supports them. Associations are basically non-profit entities, which means that they are not primarily driven by economical gain but rather by shared values. The advantage of being in an association is that it includes access to various resources and data, and provides various networking opportunities. The governance of the Association is done by the Board of Directors or a Core Committee, which has the authority to dictate the operations of the Association.

What is an Organization?

Like Association, Organization is also a group of people that comes together to accomplish a defined scope or goal. Organizations are more formal and are operated in a structured manner. Organizations are basically profit and non-profit entities that focus on achieving financial gain or profitability. There are various types of organizations like corporations. Government Departments or Agencies and many more. The structure and size of the Organization are totally dependent on its size, goal, and industry. There is a hierarchy of authorities that is responsible for governance and operations. Certain formal policies, laws, and protocols are used to govern the Organization internally. 

Similarities Between Association and Organization

Along with the differences, Association and Organization are similar in terms of below aspects:

1. Grouping of People: Association and Organization are similar in terms of grouping people with a common goal or interest.
2. Membership: Association and Organization are similar in terms of Membership, which is whether voluntary or mandatory, that participate in their activities and benefits from their services. 
3. Legal Status: Association and Organization have legal status, which permits them to function as per the legal order and execute the activities in proper form and legalized manner. 
4. Management: Association and Organization have a management team, which is a similar thing in both terms. This management team is responsible for making crucial decisions and carrying out their operations.
5. Formal Structure: Associations and Organizations have a formal structure in aspects of governance, procedures, and regulations. 

Difference Between Association and Organization

Parameter	Association	Organization
Funding	Membership fees and donations.	Profits from various Products and services offered.
Legal Status	The association is typically a Non-Profit.	Organizations can be Profit or Non-Profit.
Focus	Focuses on Advocacy and Networking	Focuses on Service Delivery and Operations.
Size	Associations are typically smaller in size.	An organization’s size can be small or sometimes large.
Structure	The structure of the Association is Less Formal and Flexible	The structure of the Organization is More Formal and Structured.
Membership	Voluntary or by Invitation.	Voluntary or by Employment.
Examples	Societies, Clubs, and Professional Associations.	Government Departments, Businesses, etc.

Conclusion:

In conclusion, Association and Organization are 2 different terms that have their own structure, aim, and governance. Associations are aimed to be formed to promote common interests and support the members associated with them. Organizations are aimed to be formed to achieve the specific decided goal through collaboration and teamwork. Understanding the difference between these 2 terms is important for any individual who is planning to form a team or planning to join such entities.

FAQs

Q1. What is the aim of an Organization?

The aim of an organization is to achieve decided goals through collective efforts.

Q2. How is an Association Governed?

The association is governed by a board of Directors or a Council.

Q3. How is an Association Structured?

The association is structured to be less formal and more flexible as compared to Organization.

Q4. How does an Organization Generate Revenue?

Organizations generated revenue through sales of products or services.