For Profit Philanthropy?? Can it be True? Real World Example
Several years ago I hear the phrase of for profit Philanthropy I thought what a joke, its an oxymoron. Since that time I have had a shift in thinking and now brand my company as a "For Profit Philanthropical Firm". So let me share our real world example that just happened.
My company purchased some vacant lots several weeks ago, for a very good price, several of these having good long term development opportunities in mind. I owned 2 lots but someone owned the one between them, so I called and asked if she would sell. I was told no, but she would like to buy mine. Well this wasnt what I was thinking. I then learned she planned to do some kind of housing project for disabled veterans. After checking into her story, she runs a non-profit. I told her I wouldn't sell them to her but I would the non-profit. I sold for $20,000, of which $1,000 is in the form of payment and $19,000 is a charitable donation. This is a thoughtful transaction, as this ground is worth $20,000 in development potential, however I just doubled my money I spent, ( yes I made money) helped out a great cause, and get a great tax consideration from the deal.
I encourage all fellow BP members to remember that we can do good while still making a profit, look out for those opportunities when they present themselves.