Consider the information below. One of these companies is a 501c3. The other is a publicly-traded education company. Can you spot the difference? Company A's website declares that "“We are committed to powering human progress by unlocking more opportunities for everyone, everywhere.” In 2023, the company made $1.1B in revenue and the CEO's cash compensation was $1.3M. According to their annual report, in 2023 they provided $240K in student scholarships. Company B's website st

Philanthropic funding is similar (in many ways) to venture capital or private equity. It can be used to launch  new organizations, scale  promising innovations, or enter  new geographies and markets.  But there is one important difference. Investing can be a zero sum game. Philanthropy is not.  Investors make money when the valuation of a business at the time they sell is greater than the valuation at the time they bought. As a result, private equity firms are actively in sea

Why would a 501c3 consider investment from a for-profit vehicle? If the organization wanted to be a for-profit, why not launch as a for profit? Uber began as a luxury limo brand. The original MVP for Yelp did not include a feature for collecting customer reviews. And when was the last time you received a Netflix DVD in the mail? Pivot. Turnaround. Transformation. Successful organizations often look significantly different than they did on Day 1. These transitions frequently r