Bridging Knowledge with Tradition

The Hybrid Model for Community Building. How Each Dollar is Maximized

Written by Khalid Saleh | Apr 1, 2024 8:00:31 PM

 

One frequently searched term on Google: "Is Zaytech Academy a Non-Profit?"

In this article I will explain why the hybrid model was chosen to enhance every dollar.

When it comes to donors they are often fixed on the term Non-Profit, often because it conveys a sense of purely charitable work with all resources dedicated to the cause.

However, most people don't realize that even purely charitable model has expenses that it must cover to keep the lights on. Even if there was no cause to support on a particular day, non-profits still have expenses to cover.

Zaytech Academy operates with two parallel models: For Profit and Non-Profit.

Its "Not For-Profit" Entity, "Virtue Community Center" (VCC), is able to receive tax-deductible donations from individuals and corporations. This provides the community the ability to contribute and feel involved in its growth, while reaping the rewards from Allah (SWT) "May Allah Accept" and also benefits of tax deductions for their donations. There is also company matching through Benevity. 

On the other hand, Zaytech Academy operates as a for-profit entity. This allows the academy to generate revenue through its various programs and services. Some of these profits are then reinvested into the academy to further enhance its offerings and expand its impact in the community.

 

Benefits of the Hybrid Model

The hybrid model combines elements of both non-profit and for-profit organization, allowing Zaytech Academy to maximize every dollar and create a sustainable community building model.

Non-profit organizations typically rely heavily on donations and grants, which can be unstable and unpredictable. The for-profit aspect of the hybrid model allows Zaytech Academy to generate additional revenue through products or services, providing a backup financial foundation for the organization.

Another benefit of the hybrid model is that it offers greater flexibility in decision making. Non-profits may be limited in its ability to make certain decisions as they may have to adhere to strict guidelines and regulations set by donors. However, with the for-profit aspect of the hybrid model, Zaytech Academy has more autonomy in decision making, allowing them to also use its own for-profit funds to make decisions that doesn't use donor funds to better adapt with the times. This can be research and development, technology upgrades, A/B testing with curriculum and more. 

Many Islamic Organizations struggle to meet the needs of their growing community due to relying solely on donations. This hinders their ability to prioritize growth and seize new opportunities. Furthermore, they often depend on outdated technology, provide minimal compensation to staff, and lag in adapting to new trends.

This is not the fault of the Islamic Organization itself, but rather the limitation of relying solely on donations and grants. The hybrid model allows Zaytech Academy to invest in better facilities and technology to provide a high-quality educational experience for its students, while also being able to provide competitive salaries for its staff.

Zaytech Academy follows this model. This allows Zaytech Academy to create better paying jobs and contribute to the local economy, a key aspect of community building.

More and more Islamic Organizations are Recognizing the need for sustainable growth and the importance of establishing additional revenue streams beyond donations. This may include operating a bookstore, partnering with a restaurant, operating a daycare, or other income-generating ventures.

 

Moreover, with a hybrid model, donors can feel confident that their contributions are maximized and often times matched multiple folds by it's for Profit Model.

And at the end of the day, isn't that what truly matters? Not just being labeled as only a "non-profit", but actually making a difference and positively impacting communities.

The hybrid model allows Zaytech Academy to do just that.

Take for example the speed at how Zaytech Academy ramped up its services with very limited donations and grants, while relying on the for-profit aspect of the hybrid model. This allowed us to quickly start the school. This allowed the academy to start with a very little or no donations and still provide high quality education and community services.

If it started as strictly as a Non-Profit Model, it would have faced significant delays in launching its initiatives, especially a full time Islamic School, limiting the impact it could have had on the community in its early stages. Starting with a hybrid model enabled Zaytech Academy to swiftly respond to the educational needs of the community, establishing a strong foundation for growth and development.

This agility is particularly important in today’s fast-paced world, where the needs of communities evolve rapidly. By having a foot in both the non-profit and for-profit worlds, Zaytech Academy can adjust its strategies and offerings more quickly than a traditional non-profit organization, ensuring that it remains relevant and capable of meeting the diverse needs of its community. This dynamic approach not only maximizes the use of every dollar contributed but also significantly amplifies the academy's capacity to make a tangible, positive difference in people's lives.

Example Case Studies:

1.) Akshaya Patra Foundation in India has adopted a unique model where it operates as a not-for-profit organization to provide mid-day meals to school children and also has a for-profit model that involves catering services. This strategy has enabled the foundation to achieve financial sustainability and expand its operations, furthering its mission to end classroom hunger.

2.) The Grameen Bank in Bangladesh, renowned for its microfinance model, has successfully operated as a non-profit and for-profit entity. The bank's non-profit arm focuses on providing financial services to the poor, while its for-profit division engages in sustainable business practices, showcasing how the dual approach can be used to create a significant social impact.

3. TOMS Shoes is a well-known example of a hybrid business model. Through its "One for One" model, where for every pair of shoes purchased, a new pair is given to a child in need, TOMS has effectively blended its non-profit and for-profit operations to create a successful social enterprise that benefits both its customers and the less fortunate.


How are donations utilized in a Hybrid Model?

Donations in a hybrid model like Zaytech Academy's serve multiple roles, significantly amplifying the impact these contributions have. Firstly, donations to the non-profit entity, Virtue Community Center, can be used to fund various educational programs, scholarships, and community service projects, and more. These direct contributions not only support the operational costs associated with running these programs but also enable the expansion of services offered, allowing more individuals to benefit from high-quality education and community support. 

Take one example, a student who meets all the qualification requirements but the parents are unable to afford the tuition fees. In such cases, the academy's non-profit arm can utilize donations to provide scholarships and financial aid to these students, ensuring that no one is left behind due to financial constraints.

 


Efficiency and Impact: The Dual Priorities

One might wonder how does the hybrid model specifically leverage its structure to enhance efficiency and magnify its impact. At its core, this approach allows Zaytech Academy to dynamically allocate resources where they are most needed without the stringent restrictions that a purely non-profit model might face. For instance, during times of surplus, funds can be channeled into expanding educational programs, higher salary, upgrading technology, directly benefiting the community and the students.

The hybrid model combines the best of both worlds - the social impact and mission-driven focus of a non-profit, and the growth potential of a for-profit. By working as a Hybrid Model, Zaytech Academy is able to maximize the impact of every dollar donated.

 

 

Conclusion

Questions may arise regarding how we can place trust in the team or leadership of a Hybrid Model when it comes to our donations.

The best way to gauge any organization whether it is for-profit or non-profit is by its track record.

Zaytech Academy has already made an impact on the community through its hybrid approach. This should offer credibility and trustworthiness of both the organization and its leadership.

Starting a school and providing services to the community could be seen as the worst business decision if the intention of the leadership was to deceive for profit alone. 

This is the reason why there are so few Islamic schools. Opening a private school solely for profit is extremely risky. Unless driven by a higher purpose, it is not a viable endeavor.

In conclusion, this blog was written not to assert superiority or knowledge, but to present an alternative perspective. I understand that it deviates from the usual path, but I believe this path can also achieve success. 

I wanted to create something that would truly make a positive impact and serve the community in the most efficient and effective way possible.

And I believe through this hybrid model, Zaytech Academy will be able to do just that, creating a strong foundation for continued growth and success, inshallah.

If you support our mission and approach, please consider donating to help us maximize the impact of every contribution or Become a Monthly Donor

 

Your brother in Islam,

 

Khalid Saleh

 

 

 

 

 

 

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