Case | HBS Case Collection | April 2002

Pallotta TeamWorks

by Allen S. Grossman and Elizabeth Kind

Abstract

Pallotta Team Works is a for-profit, privately owned company that produces multiday fundraising events for nonprofit organizations. Dan Pallotta, the 40-year-old CEO, founded the enterprise in 1992. The company has grown rapidly, having raised over $200 million for charities. As the boundaries between the for-profit and nonprofit sectors blur, this case provides an example of how a for-profit entrepreneurial approach and the market test where the lines between the two sectors are drawn. Pallotta and the company's aggressive style, plus the basic business model, generate a significant amount of controversy among nonprofit organizations and the press. Pallotta is outspoken about the merits of his business model, the appropriateness of his salary, and his company's marketing approach. He wants to increase total philanthropy in the United States. "How many ads for charity did you see on the Super Bowl this year," exclaims Pallotta.

Keywords: For-Profit Firms; Business Model; Nonprofit Organizations; Giving and Philanthropy; Social Marketing; Marketing Strategy; Service Industry; Consulting Industry; United States;

Citation:

Grossman, Allen S., and Elizabeth Kind. "Pallotta TeamWorks." Harvard Business School Case 302-089, April 2002.