Foundation ownership: Charities win as consulting firm shakes up the model

By Jared Lynch

Foundation ownership is an innovative corporate structure that blends commercial success with long-term social purpose. Under this model, a company is majority-owned by a foundation—typically a not-for-profit entity—whose mission aligns with the values and goals of the business. This structure is particularly popular in parts of Europe and is used by globally recognised firms such as Bosch, Rolex, and IKEA.

The core idea behind the model is to ensure that a company’s profits are reinvested in ways that benefit society, rather than being distributed solely to private shareholders. The foundation receives dividends from the business and uses them to fund charitable initiatives, support community projects, or invest in sectors aligned with its mission, such as education, health, or sustainability.

Benefits of the model

This model also promotes long-term thinking. Because the foundation is not driven by short-term shareholder returns, it can support strategic decisions that prioritise stability, innovation, and ethical practices. It often leads to stronger employee engagement, enhanced trust with stakeholders, and a more resilient business.

In Australia, foundation ownership is still emerging, but firms like Right Lane Consulting have pioneered its adoption, demonstrating how purpose and profit can be integrated. As interest grows in ethical business models, foundation ownership offers a compelling blueprint for sustainable and socially responsible enterprise.

This article in The Australian explains how Right Lane Consulting are going about making this move.

Charities win as consulting firm shakes up the model

Foundation ownership aligns profit with purpose, ensuring long-term stability, ethical governance, and reinvestment into social good. It builds trust and drives impact. Right Lane Consulting believe it is the best way forward in their drive to put purpose before profit and bring ethical business to the fore.

If you would like to know more about how your organisation can adopt a similar model, get in touch today.