You probably heard about non-profits before. but do you know what it means? Nothing to worry about, in this blog we will explain everything for you to understand what we are doing!
A non-profit organization’s primary goal is to operate for a collective, public or social benefit. Non-profits provide help or resources to a group of people with a specific need. For example, the Against Malaria Foundation exists to provide bed nets that protect people from being bitten by mosquitoes infected with Malaria, causing less people to die from Malaria.
And what about for-profits? For-profit organizations are companies that sell services or products for money. Their primary goal is to generate as much profit as possible.. These profits end up going to shareholders, such as the founders and investors of companies. Sometimes they share their profit with employees and some for-profits also donate to non-profits. For example, Amazon tries to generate as much profit as possible for its shareholders and it does so by enabling sellers to sell on Amazon and by selling services like web hosting.
When you combine the two, you have BOAS’ business model! A “profit for non-profit” company like BOAS operates like a for-profit: it generates a profit by selling services or products. But instead of paying these profits to shareholders, it donates all of those profits to charities. The primary goal of a profit for non-profit is to maximize impact. For example, BOAS operates a sustainable marketplace and we give away all of our profits to charities that save lives and the planet, because we think that’s the best way to maximize our impact.
The profit for non-profit opportunity
You may have seen before that the only difference between a for-profit and a profit for non-profit is what it maximizes. For-profits maximize profit and profit for non-profits maximize impact. It’s a small difference on paper with big consequences in real life.
Consider the example of Facebook. With every decision they make, Facebook’s management asks the question: what maximizes profits? But what if we substitute that question with: what maximizes impact? We think Facebook would have made very different decisions. “The new algorithm depresses teenage girls? Better not roll that out globally!”. And if you make billions and ask yourself the impact question, companies would donate more to charities or invest in other products and services that would maximize impact. Facebook might invest in products that help people play outdoors, or make sure disinformation isn’t rampant on their platform. They might also donate to charities that combat child obesity to mitigate the negative impact that Facebook has on lifestyle.
We think it is a simple solution to a big problem. The problem where companies choose profit over people and the planet. For every important decision, a profit for non-profit simply asks: how can we do the most good?
I asked myself this question when I decided I wanted to be an entrepreneur. How can I do the most good? I know nothing about medicine, so I couldn’t become a doctor. I could earn a lot of money at a big company and donate some of that money to effective charities, and I’d make a lot of impact that way. I could also work for an effective non-profit and make a lot of impact that way. But I wasn’t convinced that was how I could truly maximize my impact. I had a network in e-commerce and marketing, and I really enjoy building teams and growing companies, so I wanted to build a big company, but I also wanted to have the impact of an effective non-profit.
And then it clicked! Why not both? So I decided to build the world’s first profit for non-profit.
BOAS - The Amazon for Good
Do you work to live, or do you live to work?
We think that just like you, companies should work to improve our lives. Imagine a day where CEO’s performance is measured by how many lives their companies saved, how they lifted people out of poverty and how this new middle class helped them reach even greater heights. A NASDAQ where companies that do the most good get the best people and the biggest investments. Where companies either grow their impact, or die.
It’s a Utopia, but we don’t think it's impossible. Our purpose is to prove that business can be good at scale. And we believe profit for non-profit is one of the most effective ways to do just that.
BOAS is the world’s first online marketplace where everything is sustainable - what you buy and how we operate.
We're putting our money where our mouths are: we give away all our profits to charities that save lives and the planet.
Our mission is to grow the world’s largest marketplace, with the minimum possible footprint and the maximum possible impact.
We’re the Amazon for Good.
And you can do the same! Remember, a profit for non-profit is really just a for-profit business that gives away all of its profits to charities. And we think that profit should be earned in a good way and given away effectively. So whether you run a flower shop, a consultancy business or you sell mirrors for space telescopes, they could all be profit for non-profits!