One for one, and then some.

After watching a certain company’s press release in California this morning, I posted the following tweet stating my reaction:

“Struggling with the idea of companies profiting off non-profit ideals and marketing. Should we be making money off of helping others?”

I received a lot of great feedback, and after seeing multiple statuses and posts in the Internet world following up on the issue, I think the idea of disguising capitalism as charity is worth some discussion.

First, we need to define what separates a for-profit business from a non-profit organization.  A for-profit business exists foremost to create a profit, which can then be spent or disbursed as decided by the business owner(s).  A non-profit, however, exists primarily to provide a service to a community, whether locally, regionally, or globally.  Any surplus of profits beyond operating costs and expenses goes back into the designated cause of the organization.

For-profit= intended to make money.  Non-profit= intended to help a community.

So what happens when a for-profit business forms, marketing that their primary intent is to help a community?  As consumers, should we care if they are making money off of a non-profit ideal? And for those of us who work for non-profit organizations, should we feel slighted that another business is comfortably profiting off our business plans, while we continue to sacrifice revenues for the good of others?

Some of you may be thinking, “Who cares how much profit a company is generating, as long as they are doing something to help others?”  My first inclination is to agree that it’s better to provide some help to a community than none at all.  But, let’s consider the outcome.  If a non-profit organization is able to service more people in a community in selling the same amount of goods as a for-profit business, aren’t we ultimately doing the community a disservice by purchasing those goods from the for-profit instead of the non-profit? 

And then there are those of you who may be saying, “People are going to buy certain goods no matter what. It might as well be from a company that gives back.”  Yes, but wouldn’t people then rather buy those goods from a company that gives back more than it takes?

Did I lose you yet?

I have no issue with existing for-profit businesses integrating ways to give back to the community.  I am feeling a little misled, however, when a new for-profit business forms on the platform of giving back, and then walks away with the profits.

I realize this issue crosses multiple deeper ethical conversations, but I think it’s important to understand who we are spending money on if our intent as a consumer is to give back to a community.  I can say with all certainty that those I know who run non-profits give up everything they have for their cause.  Some spend weeks on end in lonely hotel rooms traveling the country to raise awareness for the issues they support.  Some even sell their belongings and sleep on the streets to service the community they’re passionate towards.  And when they say their mission is to provide something for the community from every item they sell to a consumer, they are living out the one-for-one ideal.  Not one-for-one, and then some profit on the side.