IP1 Fund: A Guide to Assessing Financial Sustainability for Nonprofits

The non-profit corporation Root Impact has published the 2024 Impact Report for the 'IP1 Fund,' which supports the sustainable growth of the domestic impact ecosystem. This fund is a special program established in 2022 when Kim Gang-seok, co-founder of Bluehole (now Krafton), contributed 3.6 billion won. The core of the IP1 Fund is to help non-profit organizations not rely on short-term project acquisitions, but rather grow into organizations with true 'sustainability' from a long-term perspective. The biggest distinguishing feature is that, unlike typical support programs, it places no restrictions on the use of operating expenses, allowing selected organizations to focus on their vision and strategy amidst financial stability. Additionally, it provides a wide range of customized support, including expert consultation in various fields, to strengthen capabilities across all aspects of organizational operation, from impact performance management to human resources and finance. From 2022 to the present, a total of 8 non-profit organizations and projects, including New Ways, B2B, Ongi, AUD, Peach Market, Bake Action Booster Project (Social Value Lab), Durul, and Gyedanppusyeokeulleop, have benefited from the IP1 Fund. An official from one of the selected organizations stated, "We were able to openly discuss what the organization truly wanted to do within the strong trust built with the fund manager," expressing satisfaction with the flexibility and trust that goes beyond the limitations of existing support methods. This 2024 Impact Report not only details the growth processes and achievements of the supported organizations but also presents practical guidance for non-profit organizations to secure healthy financial sustainability. It proposes specific measures to review and strengthen an organization's financial health through three key aspects: 'healthy resource composition,' 'financial flexibility,' and 'predictability.' Choi Geun-hyung, team leader at Root Impact, emphasized, "Financial sustainability is essential for non-profit organizations to grow healthily without sacrificing their members or the organization itself," adding that the IP1 Fund will actively support organizational capacity building based on this guide. The IP1 Fund's '2024 Impact Report' is available on the Root Impact website, along with web content featuring specific support cases from the IP1 Fund, such as fundraising strategies, impact performance management, and organizational culture improvement.