Not for loss

A not-for-loss company or organization is an entity that engages in commercial activity, but does so in an area where turning a profit seems unlikely. It is similar to a non-profit organization in that many times it is intended to support an issue or matter of public concern. However, unlike non-profits, a not-for-loss company is a commercial entity whose primary objective is to eventually turn a small profit, or at least come out even. In other words, while non-profits usually depend on donations to fund their operations, not-for-loss companies depend on generating enough revenue to cover costs.

Not-for-loss companies are legally considered commercial enterprises, but they differ because they engage in activity that, by the logic of traditional investing, would be considered completely irrational. For example, an indie music label might choose to publish and distribute an album simply because they believe that work of art deserves greater publicity. They might choose to do this despite the fact that true monetary profit from such a project seems unlikely, if not impossible.

Other examples of not-for-loss companies might be book publishers, music festivals, manufacturers of niche products, website publishers, etc.

The term has been used on and off in many places in recent years. The HannaHanna Festival in Guta, Slovakia is such a music festival and some organizations are beginning to refer to themselves as not-for-loss. The phrase was also mentioned in a KCRW public radio broadcast during an interview with niche book publishers.

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