I am often asked, why is Innovations for Learning a nonprofit organization? It sells products and charges for services, why is it not a for-profit company?
Glad you asked, because I can utilize my 25 years of corporate law knowledge (now mostly lying fallow) to answer this.
The form of an enterprise should follow its capital needs. A mature business with enormous capital needs should be a public company. Public company shareholders require quarterly results that put these companies on the tightest of timetables. Companies with goals 3-5 years out can be venture-capital backed, for that is how long the VC will last before requiring a "liquidity event". Companies with multi-generation goals should be family-owned businesses. Nonprofits lie at the very end of this continuum: the "capital" it receives from grants is the most patient capital of all: it NEVER needs to be returned.
Why do education companies need such patient capital? Because the education marketplace is one of the most fragmented industries in America, and the sales cycles are brutally long. Almost all of the customers are themselves nonprofits, with various levels of bureaucracy impeding each sale.
For this reason, even the largest companies serving public education are often nonprofit. The larger for-proft companies have mostly merged or folded.
If we were for-profit, we would have likely folded by now as well. But we are here for the very long term, as are our customers, and as are our philanthropic funders. This alignment of our corporate form with our customers and funders fosters the sustainability we need to make long-term improvements in public education.
Apple Inc. is one of the most admired companies on the planet. Count me as one of its top admirers. What I admire most is the way Apple considers holistically the entire experience of owning and using a computer. Apple has painstakingly thought through the buying experience, the training experience, the support experience, the maintenance experience, and the user experience. By providing the hardware and the software, the services and the support, Apple can provide the consumer with a total experience that far surpasses the competition.
From time to time, a reporter, prospective funder, or administrator will come to one of our classrooms for a site visit. Most often, the first questions will be addressed to the teacher, but, after awhile, the interviewer will turn to the students. Invariably, the first question to the students is "what do you like about TeacherMate?" Expecting the answer to be "it's fun!" the interviewer is always surprised when the response is either "it helps me learn to read" or "it helps me with math."
When I started developing educational programs for Innovations for Learning in 1996, I worked out of my suburban home which allowed me to remain ignorant about the conditions that the company was formed to address. It wasn't until I was pushed out of my comfort zone, into the city and onto the dusty floor behind a classroom computer way overdue for retirement, with a CD, a screw driver and a handful of cables that I came face to face with what had been just an abstraction to me.
The first school that used our reading software was in the Cabrini Green housing project in Chicago, which in the early 90's had deteriorated into one of the nation's worst urban slums. Cabrini Green has since experienced a rebirth with new housing and new facilities, but, back then there was unfathomable decay in every direction.