Business types: A third option?

[tedtwilliger]

While working today i was letting my mind wonder as per usual. So i got thinking about the way non profit organizations are run. We have a basic two model business system: business which exist for the purpose of maximizing profits for share holders and non-profit organizations which exist for a purpose or aim, sending aid or money to a certain group of people for example. So why not introduce a third legalized option, a hybrid of the both?

A business which acts like a normal business in terms of producing profits for share holders while still having to legally spend "xx" % of profits towards the kind of aims a charity might operate under. It would give charities the ability to raise their own capital to distribute to their cause as opposed to relying upon donations from the public. I also believe many investors would invest in companies like this knowing that they will still get a decent return while helping the less fortunate ( we all know this kind of idea works, just take eco friendly business for example ). Also governments could introduce incentives to give back to companies who run this model such as tax incentives or business recognition.

Anyone have any ideas of thoughts and ideas? Any faults im over looking?

[Priam]

It would work, yes. But imo, it makes charity's so much less credible.

[DeathBeforeDishonor]

People are greedy or generous.. Not a bad idea but I'm not
sure if anyone will do it.. Would be nice..

[tedtwilliger]

But people would do it. We have countless examples of people that buy "free range" eggs or a local example of mine, this really expensive clothing shops which pays their chinese workers proper wages instead of the minimum wage. They spend that kind of extra money simply to help others out. So why not do it with their investments too? I personally believe it will make mroe people invest in them, clearing peoples guilt while gaining money.. a win-win for the investor.

[DeathBeforeDishonor]

Yeah I suppose though they wouldn't get the respect of a charity
organization I guess. It's kinda like I'm half vegetarian for
example But still It would be possible I guess. Hopefully one
day it might even be a common thing but somehow I doubt a large
% of people will start donating to charity in any way..

Actually now I think of it look at mount Franklin water.. For a bit
they have been selling their water with part of profit going to
breast cancer research.. I'm pretty sure it's still going.. Though
it's only like $150,000 AUD so that's a fairly tiny % I guess over
the time it happened.

[user]

sounds like using a 5-6 gap to lvl in sro instead of farming w/ 9 gap or 0 gap all the way: half ass job

anyway, to a certain extend, businesses now do give a certain % profit back to the community. non-profit organizations are creditable because they are not allowed to withdraw profit, all profit made must be put back into the operation of organization