Profit 4 Good Criteria
At its heart, the Profit 4 Good movement hinges on one clear choice: using business to make the world better, not to enrich private shareholders.
Our Definition of a Profit 4 Good Business
To be listed as a verified Profit 4 Good Business in our directory, a business must meet the following criteria:
1. Distinct Business Entity
It must operate as a standalone registered commercial business or company - rather than a charity, trust, or foundation trading directly under its own banner.
Note on Ownership: A Profit 4 Good commercial business may be 100% owned by a parent charitable trust, foundation, or purpose trust, provided the business itself remains a distinct, tax-paying or tax-reporting corporate entity in its home jurisdiction.
2. 100% Net Profit Directed to Charitable Purposes
Every dollar of net profit must be dedicated to charitable purposes.
To ensure commercial viability while protecting mission integrity, we define this as follows:
- What is Allowed: Standard operational expenses, fair market-rate staff and executive compensation, and retaining necessary capital/cash reserves for business growth, expansion, and long-term sustainability.
- What is Prohibited: Paying dividends, equity distributions, or private windfalls to individual shareholders, investors, or founders for personal financial gain.
- The Core Rule: 100% of net profit remaining after necessary business operating costs and strategic reinvestment must be donated or channeled directly toward charitable purposes.
- International Business Pathways: There are multiple legal and tax-effective pathways a business can use depending on its operating region (e.g., NZ, Australia, USA, UK, Canada). Click here to explore the primary Profit 4 Good Business Pathways available worldwide.
Definition of "Charitable Purposes"
Profits must clearly support public benefit initiatives. This may include (but is not limited to): clean water projects, global development, micro-finance, developing-nation infrastructure, environmental and wildlife conservation, animal welfare, human welfare, acute healthcare or housing, and programs providing employment or vocational training for individuals with disabilities or high support needs.