TransFair USA, a not-for-profit organization based in Oakland, California, awards the Fair Trade CertifiedTM designation for products sold in the US. By 2006, TransFair was working with 500 licensees, including sellers of cocoa, sugar, and tea. Paul Rice, TransFair's CEO, believes the organization has a moral obligation to grow as quickly as possible. Raising grant money has been difficult, and the organization, which already has $2 million in outstanding loans, might not be able to handle additional debt payments. In this case, students learn about the strategies and instruments used by nonprofits to fund growth while remaining financially responsible.
Case ID: 082004