While not exactly a non profit, we are a 'social enterprise' based in India - i.e. our main focus is solving a particular issue rather than profits. We are registered as a for profit. However, it looks like we have literally the worst of both worlds. Investors tell us that we look like a non profit to them, while funding bodies tell us we are ineligible for grants.
Is the answer also registering a non profit organization as well? Is this ethical?
First of all you need to understand the incentives of those you are talking to. In India there may be different cultural issues you have to deal with too, which are different from US/EU.
A normal for investor will not invest in a social enterprise. You need to find social enterprise investors, they do exist. Other type of funding bodies are often not equipped to invest in companies. Setting up a both a non-profit and a for-profit is perfectly ok, as long as everyone understands what you are doing. However, I suspect that it will not easily solve your problem, as most investors or funds are fairly new to the social investments and they aren't setup to deal with it.
Give me a ping and lets talk. I have some more detailed suggestions.
