“Social Venture” Impact Makers Celebrates First-Year Anniversary by Proving Its Unique Model
The nation’s first consulting firm designed to give all its profits away to support charitable community programs celebrated its first anniversary by becoming the largest corporate donor to its first nonprofit charitable partner, Safe Harbor. The competitive social venture grossed more than $500,000 providing consulting services in information technology, healthcare, and project management to clients across the US.
After paying all business expenses, taxes, and competitive wages for staff at the end of 2007, Impact Makers is required by its corporate charter to give all profits to charitable partners chosen by its volunteer Board of Directors – charities that are secular, apolitical, and “help people to help themselves.” Impact Makers’ first charitable partner is Safe Harbor, a Richmond-based non-profit with shelters and services for victims of domestic violence.
“We’ve already given or pledged to Safe Harbor $40,000 in our first year out of a total profit of $71,000,” said Michael Pirron, CEO who received his MBA from Kellogg School of Management in Evanston Illinois prior to founding Impact Makers. “After paying taxes at year’s end, we’ll be sending them a big check, making us their largest donor and one of the largest corporate donors to any single nonprofit in the Richmond metropolitan area.”
Pirron added that aside from financial contributions, Impact Makers has donated more than 200 hours of strategic consulting services to help Safe Harbor be more effective at service delivery. “The idea behind Impact Makers is to transform economic value into community value,” Pirron added. “We do that by providing a steady stream of donations to local charitable partners and donating our services when we can. This allows the charities to focus more on serving the community and less on fundraising.”
While the “give-away-your-profits” concept at Impact Makers may seem to some like a recipe for disaster, skeptics have been proven wrong.
Impact Makers’ President, Ross Decker who received his MBA from Yale School of Management in New Haven Connecticut prior to co-founding the firm, said that Impact Makers’ business model is a win-win-win situation for its clients, employees, and community. “We compete with every other consulting firm for contracts, and we compensate our consultants and employees at market rates,” Decker said. “Our clients get first-class service, and our staff earns competitive salaries while their efforts support the community. Our charitable partners get a stream of income they can count on so they can focus more effort on their social mission – to improve the community.”
Impact Makers’ business model addresses the fact that most charities are supported by donations and grants. “Up to half of their annual budget and management attention could be devoted to fund-raising or grant writing,” Decker said. “These activities take time and effort; with our model, organizations would have that much greater an impact since more of their energies could be focused on their mission.
As Impact Makers expands, it hopes other companies will use the same business model to create a positive impact on the community. “As we grow,” Pirron said, “our Board of Directors will select other non-profit partners to support in delivering charitable services in Greater Richmond, and nationally as we grow to other regions.”
Launched in October 2006, Impact Makers is a non-stock, not-for-profit venture with headquarters in Richmond, Va., The company gives all its profits to non-profit charitable partners and focuses on providing Information Technology, Healthcare, and Management consulting services to local, national, and international businesses. Impact Makers is located at 2318 Stuart Avenue, Richmond, VA 23060; (804) 332-6383; fax (703) 832-5551; and www.impactmakers.org.
Contact: Michael Pirron, CEO
(804) 332-6383, firstname.lastname@example.org
Ross Decker - (804) 332-6282