We invest exclusively in 501c3’s because we believe that the Non-Profit Investment space has its own idiosyncrasies, emotions, complications, and benefits. Collectively, our team’s professional experience is split almost 50/50 across nonprofit and for-profit organizations, and we consider ourselves experts in this nascent field.

A nonprofit asset purchase deal is complex and requires a unique set of steps, including the creation of a new entity, evaluation of fair market value, and an asset purchase agreement. Many nonprofits choose to transition to a public benefit corporation (B Corp) and other mission-driven structures. Our extended team includes lawyers, accountants, and evaluators with explicit experience in the field.

We’ll help you think through specific terms to ensure the new organization is mission-aligned. For example, one of our nonprofit clients maintained majority control of the new public benefit corporation. Another mandated that the new organization donate a selection of products to low-income families. Our client is a nonprofit organization; we want to make sure that a change in organizational structure doesn’t impact your mission.

The traditional investment model is structured around a relatively quick exit, which creates specific incentives for investors and company leadership. We typically employ a revenue or dividend capital model (offering investors a percentage of revenue or profit each year). Our investors are looking for growing, profitable companies; exits are secondary.