Are there any downsides to for-profit social enterprises taking foundation money?

Rachel Zheng Business Development Manager at Honyee Media

March 30th, 2015

A lot of for-profit, social enterprises raises capital from both non-profit and more typical investors. See examples here http://www.forbes.com/sites/annefield/2015/03/14/what-gates-foundations-52m-investment-says-about-social-enterprise-funding/ . Wondering if there is any downside to taking money from foundations/non-profits?

LanVy Nguyen Founder & Managing Director at Fashion4Freedom

March 30th, 2015

There is no "free lunch", there is always a down side to taking someone else's money no matter what the legal status is of the entity.

Anonymous

May 23rd, 2016

Every "investment" requires an ROI, it just so happens that foundation require an SROI or Social Return on Investment. Ms. Nguyen is right, there is no "free lunch" however foundation dollars are as close to free lunch as you'll find.

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