barloworldsocialenterprise

Cross Subsidisation

Social enterprises who are selling products (goods and services) usually unrelated to their social mission follow a model of cross subsidisation. They use the profits to subsidise social programmes run by them, or give the profits to another charity/NGO. One for One models are also examples of cross subsidisation (where a customer buys a product and another is donated to a person who can’t afford to pay).

 

Example

MsMissMrs sells “Empowerment Pants”, their very own brand of superheroine underwear, trademarked and designed in Glasgow, Scotland. They are a gift item that are mainly bought online at their gift shop. 

The profits from the sales of the pants is then used to fund an educational development programme known as the S.E.T. (Self-Esteem Tools) to women and girls who are building or rebuilding self-esteem and self-awareness, after experiencing extreme difficulties.

SOURCE: © SOCIAL ENTERPRISE ACADEMY 2017. USED WITH PERMISSION.

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