[MUSIC] The Miracle Foundation is a group that raises money from charitable donations to support orphanages around the world that help the most disadvantage children. This is a traditional, charitable model. It's a traditional non-profit that says, we have a huge problem, we need to mobilize resources from donors to solve this problem. And sustain the organization through goodwill of givers and volunteers. But you go a little bit further over in the spectrum you might not know this but the Girl Scouts, incredibly successful nonprofit organization, generate over $700 million annually from the sale of cookies. Little girls standing on the street corners are selling cookies to raise money for this organization and it's not some little hobby, it is a key engine of this enterprise that makes it work. This is an organization that depends on these inputs, these commercial inputs, to make the charitable side of the organization, the services they render to children. Particularly children with modest means, services and programs and after-school activities that they offer. That's all driven by both the traditional forms of support. Including donations and contributions but also from the raising of fees and charges from the sale of products and services. Most notable, which of course, are the cookies. But that just gives you a sense, there are not profits that are growing sustaining themselves, not just by asking for money but by making a product, delivering a service for which there is a market demand. On the other side of the spectrum, we know some very clear for profits, there's a lot of those. But let's talk a little bit in a bit from that and talk about business firms that have a social conscience. One of which, one very famous one is Newman's Own, founded by the actor Paul Newman. This company is now a very diverse food producing company that delivers everything from salad dressing to popcorn to pasta mixes. But their differentiator is that all the profits generated by this very large company go to charity, to sustain a non-profit organizations. This is a business that has from the start, as its design, a social mission. That's very different than a company that only is interested in generating shareholder wealth. You can also think about another example in this part of the spectrum which is the two degrees bar, which is one of these nutrition bars, but with a different spin compared to the other ones. This nutrition bar, when you buy one, they give away a package of nutrients to poor and hungry people in Africa. So the company is a for profit but it has as its goal a social impact. It wants to generate social benefits for the hungry around the world. In the middle of all this are these complex hybrid organizations, that they both have some of the features of for-profits and non-profits. The most common where they operate is through subsidiaries. Either a for profit subsidiary of a non profit or non profit subsidiary of a for profit. But the two entities often are interacting with each other and working together. Now they do require separate boards and management staff. They have to be kept apart but there's often an interesting kind of synergy that happens as these two forms are interacting in this hybrid umbrella. One of the most obvious examples of the most successful hybrid if of course Firefox, which is a product of Mozilla Foundation. This is a company that has revenue from users but also operates a non-profit that focuses on web security, web openness, as part of its core mission. So there's an organization that has both for profit and non-profit operating together in this grand technology space that they've come to dominate. [MUSIC]