• Are you a Non Profit?
Recently, this question’s come up a bit, most recently on our Facebook fan page.
Believe us, we asked ourselves this same thing in the beginning. It is certainly something we wrestled with in the early formation of Boom Boom! Revolution and, while we have always known our intention and the why’s of our choice, this post reminded us that we didn’t really ever communicate it to everyone.
Duh. Our bad.
So, we’d like to take this opportunity to share a little bit more with you the reasons we went this route.
We did a lot of research, thought long and hard about it and, ultimately, decided not to declare 501(c)(3) status. Why? Well, the simple answer is this: we wanted to have more flexibility than non profit status allowed. As an S-Corp, we have more influence in the structure of our company, the products we create, the money we give away and how we do it.
So, that’s the simple and easy answer.
Satisfied? Great. We’ll see you around.
Not entirely happy with that and need more? No problem. Read on…
In forming Boom Boom! we thought about two things: 1) why we were forming the company and 2) what we wanted our legacy to be. It didn’t take long to realize that the answers to both questions were the same: to make good and lasting change in the world.
This answer set the course for every decision after that.
We felt the most effective way to achieve that goal was to become part of an emerging sector of our economy consisting of socially responsible and societally beneficial companies; these companies are literally changing the way the world does business (think Tom’s Shoes, for instance). Part of the “good” we wanted to impart was to be on the forefront of an exciting shift in the marketplace that is helping re-define what it means to be a “for-profit” company and changing the perception of what it means to “do business”.
Traditionally there have been 3 sectors of commerce:
- For-Profit corporations whose mission is to make money.
- Government service whose mission is to meet citizen needs.
- Non-profit organizations whose mission is to provide a social need that is not addressed by either of the former.
We wanted to be a part of the newly emerging 4th Sector of commerce: For Good and For Profit. Businesses in the 4th Sector offer product and services for social good at a sustainable price. They not only boost the economy by creating business in the marketplace, they also apportion profits for social good. In this way these businesses are economically self-sustaining, relying solely on the value they provide and the revenue they generate from their consumers. In other words they don’t need to constantly be searching for grants or donations from outside sources because they create their own source of funding.
Essentially, everyone who buys products from a 4th Sector company is a benefactor because their money is going to a company who turns around and gives money away to charities and causes. Essentially, customers of 4th Sector companies are partners and investors in making the world a better place. It’s a new and emerging business model and one we are thrilled to be on the forefront of.
Currently, 10% of profits from Boom Boom! Cards goes to multiple charitable organizations chosen by people when they register their decks. We are in the process of creating other Boom Boom! Revolution products with the same intention. Our goal is to have a variety of products in which the after tax profits goes to our varied non-profit partners.
Ultimately, our mission is to make sure that, at every single level possible, Boom Boom! Revolution serves societal good…from the products we put to market, to the building of a healthy business that breathes life into our economy, to changing the way business is done, to gifting profits to our non-profit partners. We want to be as effective as possible in contributing to and creating good.
So, the next time you buy a product, check it out. Find out where your money goes beyond the day to day operations of running that business. You know how you can buy products with the symbol the indicates that it’s “eco friendly” or “green”? Tamara Gordy, our friend from another 4th sector business, Lovin’ Scoopful, proposes that there be a symbol that indicates whether a company is “socio friendly”, something that lets the consumer know that they are buying from a socially aware and socially generous organization.
We think that’s a great idea…what do you think?