For-Profit Philanthropy
News.com has an article about Google's unusual approach to philanthropy.
http://news.com.com/Googles+unusual+approach+to+philanthropy/2100-1014_3-6115533.html?tag=nefd.top
Google.org will be a for-profit corporation. Although that's really a not-for-profit corporation without all the artificial government-imposed restrictions, given I wouldn't expect it would ever return profits to its "owners" (Google.com) [although the article does mention the possibility].
What is more interesting, however, is that it may engage in traditionally commercial activities (which achieve philanthropic goals), and actually generate revenue & profits.
I've often thought that the best model for philanthropic organizations, after being seed funded by grant(s), is to reduce and/or completely eliminate dependency upon future grants and be self-funded. One way to do this is to only spend the interest earned on the initial grant(s); but best way is to develop revenue sources synergistic with the philanthropic mission.
One such model I've thought about is a solution for education. Imagine a school, initially funded by grants, that accepts students based on a contractual obligation that its students pay a small percentage of their annual income to the school every year after they graduate. Now that school has incentive to find the best students with the highest potential, has incentive to push those students to reach that high potential, in order to maximize the school's future revenue. That's synergy.
http://news.com.com/Googles+unusual+approach+to+philanthropy/2100-1014_3-6115533.html?tag=nefd.top
Google.org will be a for-profit corporation. Although that's really a not-for-profit corporation without all the artificial government-imposed restrictions, given I wouldn't expect it would ever return profits to its "owners" (Google.com) [although the article does mention the possibility].
What is more interesting, however, is that it may engage in traditionally commercial activities (which achieve philanthropic goals), and actually generate revenue & profits.
I've often thought that the best model for philanthropic organizations, after being seed funded by grant(s), is to reduce and/or completely eliminate dependency upon future grants and be self-funded. One way to do this is to only spend the interest earned on the initial grant(s); but best way is to develop revenue sources synergistic with the philanthropic mission.
One such model I've thought about is a solution for education. Imagine a school, initially funded by grants, that accepts students based on a contractual obligation that its students pay a small percentage of their annual income to the school every year after they graduate. Now that school has incentive to find the best students with the highest potential, has incentive to push those students to reach that high potential, in order to maximize the school's future revenue. That's synergy.