Making money…to make a difference.
Whether an organization has it’s roots in making money or in making a meaningful difference in the world, I love seeing new ways in which these aspects of doing business come together.
I’m sure you know of organizations that find great ways to give back through support of volunteer efforts and charitable donations. And if you are reading this blog, I have no doubt that you are familiar with non-profit organizations that are fully committed to making a meaningful difference.
What you may not be so familiar with is for-profit organizations designed from the ground up to make a difference.
Like most non-profits, these are organizations with a clear focus on helping those in need. What’s different is that they found a way to support their efforts without relying on donations and grants. I am always happy to learn about new self-sustaining approaches to social good.
I am also happy to report that Philanthropegie will soon be joining the ranks of these self-sustaining organizations that make money…to make a difference.
Our board of directors met this weekend to approve Philanthropegie’s move from non-profit to certified (for-profit) B corporation status. What may surprise you is that we did not make the move because we want to generate a profit.
Limits on income generation are an important part of 501c3 nonprofit qualification. In simple terms, income must come primarily from donations and grants. Too much money from the founder and you are considered a foundation. Income generated through other means is often taxable – and too much taxable income also puts your 501c3 status at risk.
While we don’t need a lot of money to keep Philanthropegie running, we do need money to support accelerated growth of our resources, our audience and the services we offer to the philanthropic community.
By changing our status to for-profit we remove limitations on funding and eliminate the possibility of competing with non-profits for donations and grants.
To take it a step further, Philanthropegie will donate the majority of profits we generate to deserving non-profit organizations. As I’ve stated before, “Philanthropegie is not here to make money, we are here to make a difference.”
Want to learn more B Corp certification? Click this link.
Want to learn more about organizations that make money…to make a difference? Here are a few great examples:
- Catchafire – “A community of organizations and professionals revolutionizing the social good sector.”
- Land of a Thousand Hills Coffee Company – “Drink Coffee. Do Good.”
- Better World Books – “You Buy, We Donate.”
- Academic Earth – “A world-class education at your fingertips.”
Have other examples of self-sustaining approaches to social good? We would love to hear about them.