Non-profit and for-profit work-are they like oil in water? Are
they polar opposites? It is assumed that if you are either a non-profit
or for-profit advocate, you stand for two completely different "teams".
Non-profits adhere to actively pursuing social good more than making
profit, and the opposite is true for for-profit businesses. These two
different business structures sometimes embody characteristics of the
other, such as when corporations donate a portion of their funds to a
charitable cause. As a dancing artist, it is more common to encounter
non-profit fine arts type of businesses more than anything. What if more
performing arts institutions tampered with the idea of exploring the
partnership possibilities in the for-profit world? How would this affect
this particular industry and other industries? What if a stronger
business relationship would come out of a strengthened, mutual
relationship between non-profit and for-profit ventures?
The exploration of the relationship between such business structures has been studied and contemplated for quite some time, and has especially expanded after the 1997 American Assembly study of "The Arts and the Public Purpose". Although both realms hold to producing quality material and attracting audiences to a high regard, many arts advocates believe in keeping both entities in mind when joining the two, and in not forgetting each structure's ultimate goal and purpose. For instance, for-profit marketing would greatly help non-profits, all the while it would cause for-profit businesses to take notice and determine a new target market niche that otherwise would not have been discovered (Arthurs & Hodsoll, 1999). Artists, there is no longer a need to solely rely on government funding-the potential for funding is everywhere, it is just a matter of boldly stepping out of the "non-profit world", and in seeking a relationship with corporate friends. In addition to this, what if there was an option to officially merge both worlds into a business structure? The solution to this is already a reality, and is named a Low-profit Limited Liability Company, or L3C.
More and more businesses are finding that they do not fit in just the non-profit or a for-profit structure, and that they are about social mission but in also being fully supported by money from other businesses. These businesses are seeking to rely less on donated funds, and are attracted to the fact that a L3C gives them "access to the capital markets, allows them to pay higher compensation levels and provides potential exit strategies, all unavailable to non-profits" (Strom, 2011). An example of a business that may flourish in this structure would be a LLC fine arts school, merged with a non-profit professional performing arts company. To read more in depth about L3C companies, read this journal publication below:
http://onlinelibrary.wiley.com/doi/10.1002/pa.1437/full
The exploration of the relationship between such business structures has been studied and contemplated for quite some time, and has especially expanded after the 1997 American Assembly study of "The Arts and the Public Purpose". Although both realms hold to producing quality material and attracting audiences to a high regard, many arts advocates believe in keeping both entities in mind when joining the two, and in not forgetting each structure's ultimate goal and purpose. For instance, for-profit marketing would greatly help non-profits, all the while it would cause for-profit businesses to take notice and determine a new target market niche that otherwise would not have been discovered (Arthurs & Hodsoll, 1999). Artists, there is no longer a need to solely rely on government funding-the potential for funding is everywhere, it is just a matter of boldly stepping out of the "non-profit world", and in seeking a relationship with corporate friends. In addition to this, what if there was an option to officially merge both worlds into a business structure? The solution to this is already a reality, and is named a Low-profit Limited Liability Company, or L3C.
More and more businesses are finding that they do not fit in just the non-profit or a for-profit structure, and that they are about social mission but in also being fully supported by money from other businesses. These businesses are seeking to rely less on donated funds, and are attracted to the fact that a L3C gives them "access to the capital markets, allows them to pay higher compensation levels and provides potential exit strategies, all unavailable to non-profits" (Strom, 2011). An example of a business that may flourish in this structure would be a LLC fine arts school, merged with a non-profit professional performing arts company. To read more in depth about L3C companies, read this journal publication below:
http://onlinelibrary.wiley.com/doi/10.1002/pa.1437/full
Arthurs, A., & Hodsoll, F. (1999). For-Profit and
Not-for-Profit Arts Connections: Existing and Potential. Journal Of Arts
Management, Law & Society, 29(2), 80.
Artz, N., Gramlich, J., & Porter, T. (2012). Low-profit Limited Liability Companies (L3Cs). Journal Of Public Affairs (14723891), 12(3), 230-238. doi:10.1002/pa.1437
Strom, S. (2011, October 12). A quest for hybrid companies that profit, but can tap charity. Retrieved from http://www.nytimes.com/2011/10/13/business/a-quest-for-hybrid-companies-part-money-maker-part-nonprofit.html?_r=0.
Artz, N., Gramlich, J., & Porter, T. (2012). Low-profit Limited Liability Companies (L3Cs). Journal Of Public Affairs (14723891), 12(3), 230-238. doi:10.1002/pa.1437
Strom, S. (2011, October 12). A quest for hybrid companies that profit, but can tap charity. Retrieved from http://www.nytimes.com/2011/10/13/business/a-quest-for-hybrid-companies-part-money-maker-part-nonprofit.html?_r=0.
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