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Funding Models for Social Ventures

Chris Redlitz, The Last Mile

With a social venture, how do you decide whether to incorporate as a nonprofit or a for-profit? In the case of the prison education program The Last Mile, says co-founder Chris Redlitz, either might have worked. One drawback of the nonprofit model is that the funding commitments tend to be more short-term compared to venture capital. But he finds that the drawbacks of a nonprofit model are likely outweighed by the powerful corporate partnerships they’re able to sustain as a nonprofit entity.