At First I Was Intrigued, Now I am Captivated!

A few weeks ago I had lunch with a CEO of a for profit company and I was attempting to explain to him that I want to help nonprofits become more innovative and discover other ways for earned income. His response to me was a cynical, "I don't think that will ever happen". Feeling rather shut down at that moment, I never explained to him why I want to develop that side of my business.

I must admit, I too have a certain amount of unhealthy cynicism I need to rid myself of. After working in the corporate environment for many years, by and large the cultures,in my opinion, have always had a tinge of greed in them. Don't get me wrong, I know we all need money to live. I just don't want that to be my sole reason for getting up in the morning. I am motivated by helping others.

Years ago, I left  the corporate world to start a traditional private school with our local church. I don't have the time or space to recount the dramatic events that followed. Since that time, I have been searching for the almost perfect hybrid organization. And I think I have found it in TOMS Shoes.

The business model is simple. For every pair of shoes they sell, they give a pair away to people in need. Now, I understand a little bit about cause marketing whereby, for every product sold, a company may give cents on the dollar to a charity. But one for one? Incredible. This is a marriage made in heaven. It is my contention that in this unusual scenario, the profit and the nonprofit are interdependent. One is a catalyst for the other.

There are other charities who give shoes to those in need and there are tons of shoe companies. However, the appeal for these shoes is driven by their hip quality and the fact that consumers know that they are indirectly giving shoes to someone who doesn't own any. This is a win-win-win combination. The consumers benefit, the company benefits, and most of all the people receiving shoes benefit.

Now, I am trying to figure out if this one for one model can work in other organizations and if it is sustainable. Instead of separating the for profit/nonprofit cultures, they could merge into one organization that "does well by doing good". Do you know of any others that exist? Please leave a comment and tell me who they are. At first I was intrigued, now I am captivated by this business model.