Balancing Profitability with Social Impact in Nonprofit Models

In a nonprofit model, the profits and equity would accrue to a board and be distributed among shareholders. Unlike for-profit entities, nonprofits don't aim to maximize profit, but rather to break even and turn a profit to cover expenses like maintenance and management. This allows for flexibility in rent pricing, such as keeping below market rates and avoiding annual rent hikes. Nonprofit models can sustain market-oriented units with higher rates, balanced by other units maintaining lower rates, to achieve financial sustainability while serving a social purpose.