In the debate over how to build better models to help the world's neediest citizens, supporters of for-profit social-impact organizations argue that their model is more sustainable than non-profit schemes. Non-profit and foundation executives agree that new paradigms are necessary, but caution that for-profit models could ultimately put profit ahead of serving the poor.
The issues around for-profit vs. non-profit models were further explored at the recent Wharton Social Impact Management (SIM) Conference whose theme -- "Solutions to Social Problems Incident to our Civilization" -- borrowed a phrase used 125 years ago by school founder Joseph Wharton in his directive for business education.
Pursuing Partnerships
The search for new models to help the world's poorest people is perhaps most evident in the healthcare sector where the HIV/AIDS crisis has drawn attention to the suffering of millions of individuals who live without basic medical treatment, according to speakers on a panel titled, Public-Private Partnerships: Emerging Solutions for Solving Global Healthcare Challenges.
Hannah Kettler, program officer in global health strategies with The Bill & Melinda Gates Foundation, said the organization has spent $6 billion in the last five years to improve healthcare in the poorest countries, but is constantly searching for new ways to spend its money more effectively. The foundation is a classic non-profit, providing donated funds to the needy through grants to other organizations that run programs, said Kettler, who noted that "our success depends on our grantees." Increasingly, the foundation's grantees are pursuing partnerships with other organizations, including government, the private sector and other non-profits.
"We see that many times there is not only one solution. Solutions depend on a combination of skill sets, but also different cultures and organizational strengths," Kettler added.
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