Nonprofits are inefficient in some respects: they don’t maximize value for anyone the way for-profits do for their customers. Moreover, they lack market valuations, so successful nonprofits scale too slowly while unsuccessful ones linger too long. One way to address this is to start an organisation that only accepts funding that incentivizes impact. Its revenue would come from: (1) Selling Impact Cerificates, (2) Prizes, and/or (3) Grants (but only if they value the work at a similar level to the impact certificates). Such an organization could operate on an entirely for-profit basis. Funding would be raised from for-profit investors. Staff would be paid in salary plus equity. The main premise here is that increased salaries are a small price to pay for the efficiencies that can be gained from for-profit markets. Of course, this can only succeed if the funding mechanisms (1-3) become sufficiently popular, but given the increased funding in longtermist circles, this now looks increasingly likely.
An Organisation that Sells its Impact for Profit
Empowering Exceptional People, Epistemic Institutions
Nonprofits are inefficient in some respects: they don’t maximize value for anyone the way for-profits do for their customers. Moreover, they lack market valuations, so successful nonprofits scale too slowly while unsuccessful ones linger too long. One way to address this is to start an organisation that only accepts funding that incentivizes impact. Its revenue would come from: (1) Selling Impact Cerificates, (2) Prizes, and/or (3) Grants (but only if they value the work at a similar level to the impact certificates). Such an organization could operate on an entirely for-profit basis. Funding would be raised from for-profit investors. Staff would be paid in salary plus equity. The main premise here is that increased salaries are a small price to pay for the efficiencies that can be gained from for-profit markets. Of course, this can only succeed if the funding mechanisms (1-3) become sufficiently popular, but given the increased funding in longtermist circles, this now looks increasingly likely.
See also Retrospective grant evaluations, Retroactive public goods funding, Impact Markets, Megastar salaries for AI Alignment Work, Limited Scope Impact Purchase.