Your foundation buys an asset, retains ownership, and lets a hospital operate it. Revenue flows back. Capital recovers. The next grant is funded.
Same charitable purpose. Same community benefit. The only difference is whether capital is consumed or preserved. For the underlying theory, read the Perpetual Social Capital explainer at IRSA Institute.
A hospital needs bladder scanners. A community arts centre needs a kiln. A disability service needs vehicles. The need is real and the community benefit is clear.
Instead of granting cash, the foundation buys the equipment directly and retains ownership. No money is lent. No debt is created. The foundation holds the asset on its own books.
The operating organisation uses the equipment under a deployment agreement. The community benefit begins immediately — exactly as it would with a traditional grant.
Medicare billing, workshop fees, usage charges, or rental income flows back to the foundation. This is operational revenue from the foundation's own asset, not loan repayment.
Over 18-36 months, capital recovers. The foundation deploys the next retained grant. One pool of capital serves multiple communities across multiple cycles.
Steps 1-3 are identical. The difference is what happens afterwards.
| Dimension | Traditional Grant | Retained Deployment |
|---|---|---|
| Capital flow | Cash transferred to recipient | Foundation buys asset directly |
| Asset ownership | Recipient owns | Foundation retains |
| Community benefit | Immediate | Immediate (identical) |
| Debt created? | No | No |
| Revenue pathway | None | Medicare, fees, usage charges |
| Capital recovery | Never | 18-36 months typical |
| Next grant funded by | New fundraising | Recovered capital |
| Worst case | Money gone, community served | Foundation owns asset, community served |
This is the most common question. Here's the precise answer.
The foundation owns its own asset and receives its own operational revenue. No money is lent. No debt is created.
We handle the operational complexity so your foundation can focus on impact.
We identify hospitals and community organisations with equipment needs that generate measurable revenue.
We research the specific equipment, usage patterns, and revenue models before you commit capital.
We draft the operating agreements between your foundation and the deploying organisation.
We structure the revenue pathway so Medicare billing flows correctly back to the foundation.
We provide quarterly reports on usage, revenue, capital recovery, and community impact metrics.
We document each deployment as a shareable case study for your board, donors, and annual reports.
No. The foundation buys its own asset. No money is lent, no debt is created, and the hospital has no repayment obligation. Revenue sharing is operational, not contractual debt.
The foundation. At all times. The hospital operates the equipment under a deployment agreement, but ownership remains with the foundation.
Then you've made a grant. The foundation still owns the asset, the community is still served, and the asset can be redeployed or donated outright. Worst case is a grant.
Yes. The foundation is deploying its own assets for charitable purposes. This is standard charitable activity — the retained ownership structure is the only difference from a traditional grant.
Absolutely. Most foundations start with a single deployment to see how the model works before scaling. We recommend starting small and expanding based on results.
Typically 18-36 months for medical equipment (Medicare billing). Timeline varies by sector: solar panels recover faster (feed-in tariffs), community housing recovers more slowly (rental income).