Conscious Capital Fund - Four Definitions of Philanthropy NON-PROFIT

  • Non-Profit with No Revenue providing direct action or service. These are the traditional non-profits, designed to meet a social need, and rely exclusively on private or public funding. While these groups are essential, they do not tend to introduce innovation in addressing emerging needs, or developing breakthrough solutions. (i.e.: Red Cross, Greenpeace.) The risk of meeting expectation is low, as these groups are organized and managed by professionals.
  • Non-Profit with Some Revenue generation far less than expenses. This category represents non-profits that generate some income for the purpose of sustainability. The income generation may or may not be linked to the purpose of the non-profit. (i.e.: museums and performing arts.) The risk of meeting expectation is low, as these groups are organized and managed by professionals.
  • Social Entrepreneur with significant income generation covering more than 50% of expenses. This kind of organization is often led by an innovative social entrepreneur, an individual with an idea that can lead to systemic change in a social field. The idea behind the organization is often replicable and has measurable social returns. (i.e.: Teach for America.) Risk of meeting expectations is "medium" since these organizations are dependent to a large degree on customers paying them and marketing successfully against competition. Also, management is not as experienced.
  • Social Enterprise with income generation covering all expenses. This category represents non-profits that run income-generating enterprises for the purpose of sustainability, job creation, job training, and sometimes all three. Such organizations are a hybrid that can often compete with for-profits. (i.e.: Npower, Rubicon Programs.) Risk of meeting expectations is "high" since these organizations are totally dependent on customers paying them and must continuously market successfully against competitors. Also, management is not as experienced.
  • Back to Definitions