earned revenue
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Earned Revenue . Should We… or Shouldn’t We…. Social Enterprise. - PowerPoint PPT PresentationTRANSCRIPT
Should We… or Shouldn’t We…
Earned Revenue
earned revenue, earned income ventures, nonprofit business activity, social ventures, social entrepreneurship, community wealth creation, social purpose business, social enterprise, common good enterprise, mission-driven business, socially-responsible small business, double-bottom line; triple-bottom line, benefit corporation
Social Enterprise
“We don’t hire people to grow vegetables. We grow vegetables to hire people.”
—Woody Woodruff, Red Wiggler Farm
Types of Social EnterprisesFees for service Manufacturing and product sales Rent and leases Licensing and cause-related marketing activities
Examples
Keep in Mind
It’s ok. Substantially related No personal, private benefit Fair market value After reasonable expenses,
“profit” goes back into the tax exempt
Charity distribution upon dissolution
Is it ok to operate a venture unrelated to the nonprofit charitable purpose?
Is it okay?
Continuum
We should…We shouldn’t…
Why You Should
Diversifies revenue
Autonomous, predictable revenue
Businesslike discipline
Entrepreneurial habit
Why?
Why You Should Be Careful
Organizational and cultural fit
Legal and tax issues
Implementation expertise
Not easy money
Why Not?
Managing Expectations
“For most nonprofits, it is unrealistic to expect that ventures could ever completely replace traditional funding sources. Even the most successful ventures seldom provide more than one-third to one-half of an organization’s annual budget.” Rolfe Larson
There are exceptions.
Profile of Social Enterprises
How does your organization compare?
By budget By mission By number of employees By location
So, what could be our business?
What does this community need?That someone (customers) will pay for.
Opportunity
1. Extending and monetizing current practice.
2. Starting a business.3. Cause-related marketing
Three Types to Consider
Organizational Assets
Organizational Capacity
Funding Reserves Customers Clients Funders and
donors Investors Lenders
Social venture capital
Crowdsourcing platforms
Fellowships Social venture
competitions Web-based
intermediaries
Anticipating Impact
If this venture succeeds, what might be the impact on
Mission Organizational capacity Money Community Reputation
And if the venture fails?
