Transforming the Social Sector through Enterprise Capital

Disrupting Philanthropy

Capitalize Good aims to disrupt philanthropy by expanding access to “Enterprise Capital,” also known as philanthropic equity, for nonprofits to build financial sustainability while enhancing social impact.

We do this by providing direct services to funders and nonprofits and engaging in advocacy and thought leadership.

What we do

Capitalize Good aims to expand access to Enterprise Capital for nonprofits to build financial sustainability. We provide consulting services to funders, deliver technical assistance to nonprofits, and engage in advocacy and thought leadership to disrupt philanthropy and reimagine the relationship between funders and grantees.

Funders

Nonprofits

Field Building

Our Beliefs

  • Nonprofits are businesses — just with a different tax status. The “capital markets” that serve the nonprofit sector often fail to provide funding in ways that deliver the greatest value.

  • Without the right capital -- financial, human, and social — organizations cannot deliver on their missions over the long term, regardless of tax status and business model.

  • Funders have an imperative to reduce the racial wealth divide by providing equity funding to nonprofits.

  • The principles of trust-based philanthropy should guide grantmaking to benefit both funders and grantees.

What is Enterprise Capital?

Enterprise Capital is long-term, unrestricted funding that enhances the financial position of a social enterprise, thereby creating organizational strength and financial sustainability.

For nonprofits, Enterprise Capital functions in the same way that equity does in a for-profit enterprise — by increasing net assets, which can then be invested, held in reserve to mitigate risk, or leveraged for additional financing.

Flexible Capital

Enterprise Capital, also known as philanthropic equity, is long-term, flexible capital that targets the balance sheet rather than the income statement.

Infrastructure

Enterprise Capital is used to build the enduring infrastructure—people, products, systems, and innovation—that fuels an organization’s vision and mission

Sustainability

Enterprise Capital can fund the launch, stabilization or scaling of an organization or program to achieve both impact and financial sustainability

Equity

Enterprise Capital investments can address the racial wealth gap in the nonprofit sector by increasing equity, or net assets, in organizations led by people of color


Learn how funders and nonprofits are putting Enterprise Capital to work

Featured Resources

Blueprint for
Enterprise Capital

A strategy for aligning capital and capacity to
magnify nonprofit impact.

Community Progress Makers Case Studies

Case studies from a $50M Enterprise Capital
initiative.

Arkansas Enterprise
Capital Fund Case Studies

Arkansas-based nonprofits on the importance of Enterprise Capital in an undercapitalized region.

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