Andrew Taylor on the Business of Arts & Culture
www.artsjournal.com/artfulmanager/
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The line-item nonprofit
Posted: October 18, 2006
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What's needed in this country is a new hybrid model for organizations that want to do traditionally "charitable" work--a new type of socially responsible corporation that takes the best that the for-profit world and the nonprofit world can offer. A new structure that allows its owners equity in what they've built while maintaining the charitable rating that allows it to fund charitable-purpose programs.
He suggests a line-item nonprofit model, where a for-profit company can request a charitable tax status for specific activities that serve the public good (a nightclub could run a performance art program; Amazon.com could run a literacy and free book initiative). The primary drive of these organizations would remain profit and ownership and self-interest...but the social and public interests of the owners would have a new way to sustain themselves.
Richter does a great job outlining the internal and external pressures now facing the nonprofit world. But he's among many that seem to be over-playing the corporate structure as the culprit in our current woes. Fact is, any current nonprofit or for-profit entity can already rethink its structure, and create a hybrid in a dozen different ways. We don't need a new exemption for commercial enterprise, we need a more nuanced and sophisticated interpretation of the tools already available. (To be fair, Richter is aware of these experiments, and describes them in his longer essay. But he believes them to be insufficient for long-term change.)
Such nuance and sophistication comes only from focused and open discussion. Thanks to Mr. Richter for framing such a productive argument to push against.
Thanks to Alexis for the link!