Sunday, April 02, 2006

Nonprofit IPO

Fast Company has a cool article in their most recent issue on nonprofit IPOs. It's framed as something new and exciting for nonprofits. Obviously, the goal for investors is not cold-hard cash, but return on philanthropic investment. The poster child is an organization called College Summit, which helps low-income students get into universities, who secured funding for a four-year growth plan using the method. The article also spotlights an organization called NFF Capital Partners, who are an investment bank for nonprofits.

I think this is a tremendous idea, which taps into a Carnegie-esque style of philanthropy. And, perhaps more importantly, it actually funds infrastructure, which is not typically done, although who the heck knows why?