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*Here are more examples of for-profit and non-profit collaborations:
The second model looks like a classic supplier contractual relationship, but it is really much more. Pioneer Human Services, a Seattle-based non-profit, serves individuals on the margins of society, helping them to become more successful through housing, employment, training, treatment, counseling, and re-entry programs. Pioneer’s manufacturing division, Pioneer Industries, is a precision sheet metal manufacturer. Because the quality of their products is so high, the Boeing Corporation has contracted with Pioneer for over two decades to produce parts for its cargo airliners.
An important characteristic of the contractual relationship between Pioneer and Boeing is that the collaboration is a business one. Boeing buys from Pioneer not because Pioneer is a non-profit, but because Pioneer produces a quality product at a market rate. Both Boeing and Pioneer like to highlight the fact that they have this relationship with each other, but their collaboration is grounded in their complementary business missions. Boeing needs parts for its airplanes, and Pioneer wants jobs for its clientele.
A third type of innovative relationship between a for-profit and a non-profit is a smart lease. Such leases go beyond a typical landlord/tenant relationship; they are structured in a way that helps achieve the missions of both entities.
A good example of this is the relationship that the Minnesota Children’s Museum has had with its tenant St. Croix Marketing (SCM), a for-profit that runs “Kid Spark” on the first floor of the Children’s Museum.
The for-profit sells high quality, developmentally appropriate toys for kids. Both entities partner in respect to toys tied to particular Museum shows. Beyond that, SCM seeks to sell toys that are consistent with the Museum’s mission of educating children through educational play activities. And as an additional way of compensating the Museum, SCM agreed to share a portion of its profits above a specific amount with the Museum. Thus, the relationship between the Museum and the for-profit SCM goes far beyond a mere landlord/tenant situation.
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