For-Profit Mindset

We have deliberately chosen to operate Global Ectropy as a for-profit social business. The for-profit approach is based on the belief that, long-term (i.e. 20yrs or more) a model which depends on grants and donations is not financially sustainable. In addition, when an organization does not own the funds which generate its revenues, it must adjust its priorities to the priorities of those who do own the funds (i.e. he/she who has the gold rules).

Funding streams tend to have a faddish tendency which does not necessarily correspond to changes in consumer needs or consumer preferences. As an example there was a time when funding for operational overhead in non-profits was in vogue and then it became a line item most funders will not cover however, if an organization gets revenues from grant funding instead of fees for service or goods sold, there is no other source to cover operational overhead costs.

Lastly, grant funding comes with onerous reporting requirements (often times with extensive narrative detail) which far exceed the type of reporting that takes place for a for-profit business. The reporting does little to contribute to improved performance or service delivery and is done mostly to satisfy the requirements of each funding institution. Even if information required is similar in nature, separate reports are always required for each funder.

This does not mean we do not see value in non-profit organizations (CSTI is set up as a non-profit); it simply means we prefer to take a for-profit approach to revenue generation. Time will tell whether this has been a wise choice...