Investing in For-profit Businesses Can Be Good for Society (Here’s Why)
- Jun 1
- 3 min read
At Refuge Homes, we have found that most people don't realize that investing in a for-profit business can also address societal problems.
And while donating to nonprofits is and will continue to be worthwhile, most people don’t consider that investing in a for-profit, impact-driven company can also help address issues within our communities.
We believe lasting change happens when nonprofits and impact-driven businesses work together instead of separately.
As such, alleviating societal problems can happen by giving money to nonprofits AND by investing in for-profit companies that partner with nonprofits.
This is a winning strategy. In this post, we’ll explain why and we’ll back it up with some real-world examples.
Same Problem, Different Angles (and Why It Matters)
In many cases, nonprofits and businesses are working toward the same outcome. They simply approach the problem from different angles.
A nonprofit may provide mentorship, recovery programs, or support services. Meanwhile, a for-profit business may provide housing, infrastructure, operational systems, or long-term sustainability that helps those nonprofit efforts scale over time. Neither can do everything alone–but together, they can do things neither could accomplish separately.
When these two worlds work together, communities benefit.
Sustainable Solutions
Community change matters most when it’s long-lasting. And since lasting community change takes time, achieving it requires sustainable solutions. But because many nonprofits rely heavily on fundraising and donations to continue operating, sustainability can be a challenge.
This is where impact investing creates a unique opportunity.
While charitable giving matters, impact investing allows people to invest in businesses that are intentionally working to solve societal problems while also generating a return that can be reinvested into future impact.
That matters because sustainable businesses create sustainable systems.
A healthy for-profit business can continue generating revenue, building infrastructure, expanding services, and supporting nonprofit partners for years to come. In many cases, that means dollars invested continue working instead of being spent once and disappearing.
This is a major reason why impact investing and charitable donations go hand-in-hand in addressing societal problems.
The Role of Impact-Driven Businesses
The Impact Foundation is one organization that has built its entire model around this idea. As a donor advised fund and spin-off of the National Christian Foundation, the Impact Foundation allows people to invest charitable capital in for-profit, impact-driven businesses alongside their traditional giving.
They know that communities benefit when for-profits and nonprofits work together. And they have data to back it up. Each of the following examples shows what's possible when a for-profit company and a nonprofit come together around a shared mission:
For-profit developer Elmington partnered with nonprofits and government agencies to build the USA’s first housing community apartment community that provides support services for young adults aging out of foster care.
For-profit mental health company Forte partnered with nonprofit Hope International, resulting in 97% of staff reporting improved well-being and 100% feeling more present at work.
For-profit tech academy Melsoft partnered with local employers and community organizations in South Africa to place 92% of graduates into jobs, with ~80% becoming the first in their families to earn a professional salary.
What’s encouraging is that more people are beginning to rethink what impact can look like.
They’re realizing that solving large societal problems often requires more than charity alone. It requires long-term collaboration between nonprofits, ministries, investors, and businesses that are aligned around a shared mission. Because when for-profit businesses work alongside nonprofits, everyone wins.
At Refuge Homes, we've seen this model work firsthand.
Join Us in Creating Long-Term Impact
As a for-profit, impact-driven business, we at Refuge Homes help create housing solutions throughout North Carolina by partnering with nonprofits and ministries already serving vulnerable populations.
And by incorporating a modest financial return for our impact investors, we can continue to do our work in a sustainable way.
If this resonates with you, we invite you to explore becoming an impact investor with us.
