Pretty spectacular failures are described in today's NTY: "But like Dr. Dolittle’s pushmi-pullyu, the animal that had trouble moving because its two heads could not agree on a single direction, the hybrid model for nonprofits is proving problematic. On occasion, the need to generate returns for investors overwhelms the social mission. In other cases, the business falters altogether and cannot support the nonprofit."
The reporter focuses on World of Good’s commercial unit, which was purchased by eBay. The company's nonprofit is failing. Pura Vida Coffee is in deep trouble, and GlobalGiving has not turned a profit
The article is interesting in light of the Times recent coverage of our own Unitus, and critical of the profits that may be made by some of the investors.
Investors have increasingly voiced concerns about hybrid groups. “This conjoined structure really has problems,” said Kevin Doyle Jones, a partner at Good Capital, one such investment firm. “Embedded in it is an inherent risk that individuals are profiting from donations that were made for public benefit.”
read it here.
