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All investors obsess about returns. But for impact investors, ROI is an especially tricky matter, because in addition to financial success, they are seeking social and environmental results

In the hybrid model, a nonprofit and a for-profit are linked. In some cases, one is a subsidiary of the other; in others, the two entities are bound by long-term contracts in which one entity fulfills a basic need for the other and vice versa.

Nonprofits are fueled by tax-deductible donations—cash from individuals, public grant funding, or money from foundations. As of 2010, nearly 1.3 million 501(c)(3) organizations were registered with the IRS; they raise more than $300 billion in charitable donations a year

To become B Corps, businesses must prove that they care as much about society and the environment as they do about profits. The Classic Example Method, which makes eco-friendly home and personal care products and sells them in recyclable plastic packaging, became one of the first B Corporations, in 2007