Philanthropic Business Models

Philanthropy in relation to corporate structure is not to be confused with philanthropy in relation to investment structure. When a philanthropic investment is made from a top level executive of a corporation, the initial investment capital can be used anywhere within the corporate structure of the organization at anytime for anything, as long as the executive gives permission to use the investment capital and no higher authority is requiring the executive place the investment capital elsewhere. When a philanthropic capital investment is made from a philanthropic investor in relation to investment structure of the organization, than the philanthropic capital investment must be made to specifically meet the business demands of the capital philanthropic investor. Philanthropic entrepreneur jason hopes goes into deatil here (


The difference between investment structure and corporate structure is the stock holders of an organization will have power to make decisions in terms of the structure of their investments, while the top level executive will have the power to make decisions in terms of the corporation as a whole. An ideal organizational scenario within a business is when a top level corporate executive is able to recognize the strategies investors demonstrate and make philanthropic investments toward the development of these investor strategies to strengthen the company client base, as well make the community a better place. What happens when high level philanthropic corporate investors interact consistently, on a positive level with lower level philanthropic investors, the entire organization begins to see an increase in customer satisfaction and an increase in long term corporate profit.

What a philanthropic investment does for a corporation is provide a business model, which will start at the bottom of the corporation and eventually grow to the top of the corporation over time. In order for a philanthropic investment to expand and remain stable, the mid level corporate executives must be in tune with the top level corporate executives, who also must be in tune with the low level corporate executives. Often times, philanthropic investments within a corporation do not need to be run through the government in order to ensure their legitimacy. The main deterrent of preventing corporate philanthropic investment fraud in America is the United States Tax System, which serves a huge penalty if anyone is caught dealing this sort of philanthropic investment fraud. A majority of philanthropic investors will have knowledge in regard to the seriousness and the level of each investment being made.

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