The Equity Capital Gap

For-profit businesses can efficiently and quickly raise large amounts of money to fund growth and innovation by tapping equity capitalmoney that people invest in a company in return for ownership and a share of profits. The nonprofit world has no corollary, making it difficult, costly, and time-consuming to raise money. There are, however, ways that nonprofits and funders can create their own version of equity capital, and, just as important, develop an equity approach to doing business.

Author: Clara Miller, Founder, Nonprofit Finance Fund