{"id":2161,"date":"2019-12-05T23:04:04","date_gmt":"2019-12-05T23:04:04","guid":{"rendered":"https:\/\/www.grantnews.com\/?p=2161"},"modified":"2022-11-23T09:11:42","modified_gmt":"2022-11-23T14:11:42","slug":"non-profits-are-transitioning-into-money-making-businesses","status":"publish","type":"post","link":"https:\/\/www.grantwatch.com\/grantnews\/non-profits-are-transitioning-into-money-making-businesses\/","title":{"rendered":"Nonprofits Making Money"},"content":{"rendered":"\n

Nonprofits are transitioning into money-making businesses. In the past few years, for-profit companies have run limited time promotions; you, the consumer make a purchase and the company, in turn, makes a corresponding charitable donation. They actually build into their permanent sales model a corporate donation to a charity with every consumer purchase. For example, if you buy shoes or accessories at “toms.com<\/a>“, that purchase will trigger a donation to a cause or charity that you can select on their website. Buy a pair of glasses at Warby Parker, and the company will donate an equal pair of glasses to someone in need.<\/p>\n\n\n\n

Now, we are seeing a movement going in the opposite direction. Thane Krueger, Ph.D., executive director of the Miller Center for Social Entrepreneurship said:<\/p>\n\n\n\n

What we\u2019ve seen in the past four or five years is nonprofits saying, \u2018How can I adopt some of those entrepreneurial principles to make our impact more sustainable?\u2019 <\/p><\/blockquote>\n\n\n\n

Nonprofits<\/a> have sometimes evolved from an innovative charity to a thriving business, and at times to creating a truly unique and desirable product. <\/p>\n\n\n\n

What should a nonprofit do when the general public wants their distinctive goods and services?<\/h4>\n\n\n\n

While traveling in Nairobi, Kenya, Kenton Lee had an awakening or as he mockingly says, \u201cthe only idea I\u2019ve ever had<\/em>.\u201d He noticed a little orphan girl trying to wear shoes that were painfully too small, and observed someone solving the problem by cutting off the front of the shoes to allow her toes to stick out. Right there, he thought; \u201cWouldn\u2019t it be nice if there were shoes that could grow?\u201d<\/p>\n\n\n\n

He returned to Boise, Idaho and he created a simple yet functional design of a sandal style shoe that can \u201cgrow\u201d, or expand 5 sizes. <\/p>\n\n\n\n

\"shoes<\/a>
Shoes That Grow<\/figcaption><\/figure><\/div>\n\n\n\n

He founded the nonprofit “Because International” which has distributed more than 250,000 pairs of \u201cshoes that grow<\/em>\u201d, to needy recipients. Then something curious happened. American parents with young children wanted to purchase these expandable shoes for their growing families. <\/p>\n\n\n\n

How could a nonprofit sell shoes for profit?<\/h3>\n\n\n\n

Lee went through \u201ca lot of soul searching\u201d, and questioning this mission drift. He questioned the motives, and the greed factor and finally concluded it was the right thing to do to. In 2018 he started a for-profit corporation, \u201cGroFive” and started selling \u201cExpandals<\/a>\u201d (expandable sandals). With the help of Kickstarter and his own money, this new corporation was created. The company now sells these shoes to the general public with 6.5% of the total revenue going back to the original nonprofit.<\/p>\n\n\n\n

\"Nonprofit\"<\/figure>\n\n\n\n

Another nonprofit Grameen Foundation<\/a> is a huge innovative organization that uses the power of technology to help the poor in the Southern Hemisphere. The organization has developed an app to assist Colombian farmers improve their productivity. The app was designed to work without the need for WiFi. Once again the general public liked the app and wanted it. Grameen set up a new company, TaroWorks. This new for-profit company offers the general public tools to manage offline field operations. TaroWorks\u2019 mobile CRM lets the user collect information, analyze metrics and manage fieldwork in real-time.<\/p>\n\n\n\n

Yet another example of a charity organization that saw a need to transition to a profit format, is \u201cSpeak Your Silence<\/a>\u201d. This is a platform that aims to conquer the stigma of sexual abuse by leveraging the power of positive dialogue with survivors. They try to be inclusive in all local areas, even reaching people in rural communities, utilizing a white van, affectionately named, \u201dVanna White\u201d. Vanna and her team have engaged with thousands of survivors who otherwise would have stayed silent. Speak Your Silence offers free professional counseling and accessible assistance to anyone who needs to speak. Since the #MeToo movement, the need for a for-profit version to give a voice to employees in the workplace was an area that could use this type of service. WeVow was born as a for-profit organization that takes a stance against workplace misconduct.<\/p>\n\n\n\n

\"Vanna
Vanna White ?<\/figcaption><\/figure>\n\n\n\n

GrantWatch\u2019s<\/a> entire mission is to level the playing field for large, mid-size and small nonprofits with real-time access to currently available grants. GrantWatch is an example of a for-profit entity that encourages its users to contribute to fundraising campaigns. This is accomplished by using it\u2019s crowdfunding site.<\/p>\n\n\n\n

The bottom line (to use for profit lingo) is that both the charity and the corporation have contributed in their own separate and unique ways, and together the combination has impacted a greater number of people, and that\u2019s a good thing.<\/p>\n\n\n\n

About the Author<\/strong>: Jake Tewel holds a Masters Degree from YU, a wine seller, caterer and a million miler for the past 15 years. Jake is a best friend, great neighbor, your go-to travel person, father, grandfather, and loving husband. He is now focusing his efforts on heart-healthy nutrition, exercise, and travel.<\/p>\n","protected":false},"excerpt":{"rendered":"

Nonprofits are transitioning into money-making businesses. In the past few years, for-profit companies have run limited time promotions; you, the<\/p>\n","protected":false},"author":16,"featured_media":2477,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"enabled":false},"version":2}},"categories":[104,147,143],"tags":[],"class_list":["post-2161","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archived-posts","category-latest","category-nonprofit"],"yoast_head":"\nNonprofits are transitioning into money-making businesses.<\/title>\n<meta name=\"description\" content=\"Nonprofits are transitioning into money-making businesses. 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They help communities in need. How? Nonprofits raise money with fundraising campaigns and grants. Are you running a nonprofit or planning to start one? Wondering how to effectively and creatively raise money for your cause? 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