A For-Profit Non-Profit?

            Nonprofit organizations have a certain stigma about them that automatically categorizes them as philanthropic.  We think of them as trustworthy because they are in it for the “good of their cause” rather than to become wealthy.  As I am sure most of you have found in working with your organization on your communication campaign plan, many small nonprofits are constantly caught in a vicious fund-raising cycle.  They must solicit donors for funds to carry out their plans and to pay their employees.  Once these funds run out, the cycle begins again.  The New York Times recently posted a case study on a nonprofit organization grappling with this issue. http://www.nytimes.com/2013/07/11/business/smallbusiness/a-social-entrepreneurs-dilemma-nonprofit-or-for-profit.html?pagewanted=1

            Saul Garlick founded ThinkImpact while in college, and has continued to work full time for the organization ever since.  His social enterprise works to encourage entrepreneurship in third world countries.  He has sent students to analyze day-to-day life in impoverished communities and to work with the residents to build social businesses.  For more about his organization: http://www.thinkimpact.com/

ThinkImpact is currently dealing with many of the monetary issues that face small nonprofit organizations.  Its fundraising consists of numerous small stakeholders, making it difficult to please them all.  The organization is expanding its research, but is not working on a sustainable business model.  After missing a few payrolls, Garlick decided to reevaluate.  He is debating closing the nonprofit and then buying out its assets with a new for-profit organization.  He would then ask universities to pay for student trips to Africa, and provide “hands-on training in social enterprise”.  This is where the majority of his funding would come from. 

How would this re-branding of his organization impact its image?

Is it possible for a for-profit company to have a non-profit mindset? 

            This issue seems incredibly relevant for many small nonprofit organizations.  Although the “nonprofit” title provides them credibility and exempts them from taxes, it is difficult to create a sustainable business model.  An example of a for-profit nonprofit that has been successful thus far is the Google Foundation.  This article describes their business model: https://www.experience.com/alumnus/article?channel_id=nonprofit&source_page=home&article_id=article_1159827498740

Would your nonprofit benefit from this type of organizational change?

How do you think the public will perceive for-profit nonprofits?