<ul><li>Funding outside the Box: </li></ul><ul><li>Earning Revenue through Social Enterprise  </li></ul><ul><li>Presented ...
Welcome and Introductions Partnership
About The Center for Nonprofit Management  (CNM)  <ul><li>Founded in 1980 </li></ul><ul><li>Leading Management Support Org...
About Community Wealth Ventures (CWV) <ul><li>Wholly owned, for-profit subsidiary of Share Our Strength, the nation's lead...
Looking for Something Different?
Objectives <ul><li>Learn why and how organizations pursue community wealth (aka social enterprise) </li></ul><ul><li>Incre...
Social Enterprise Process 1.  Asset  Identification 2.  Assets  into  Opportunities 3. Opportunity Screening 4.  Feasibili...
What is Community Wealth? <ul><li>Revenues generated by profitable or self-sustaining enterprises to promote social change...
What is Different About Community Wealth? Community Wealth is  Not … Community Wealth is… <ul><li>Traditional fundraising ...
Community Wealth Examples
What Factors are Necessary to Launch a Successful Community Wealth Enterprise?
Examples of Community Wealth Enterprises Based in North Texas <ul><ul><li>Christian Community Action  </li></ul></ul><ul><...
Clarity of Social Enterprise Focus Mission Profit A B C Mission Focus  –  A venture that will need ongoing philanthropic s...
What Are The Potential Risks? <ul><li>______________________________________________________ </li></ul><ul><li>___________...
Stakeholder Engagement & Managing Risks <ul><li>The Chorus of Nay-Sayers </li></ul>“ It’s selling out.” “ Nonprofits are c...
Is Community Wealth Legal? <ul><li>Nonprofits  can  launch community wealth enterprises and maintain 501c3 tax status </li...
Step 1 – Identifying Assets  1. Asset  Identification 2. Assets  into  Opportunities 3. Opportunity Screening 4. Feasibili...
Assets Can Be Things You Have, Do or Know ASSETS <ul><li>Things You HAVE: </li></ul><ul><li>Physical assets </li></ul><ul>...
A Wide Range of Assets Can Be Leveraged  In Community Wealth Ventures  Chapel and Gardens Attendant Care Child Abuse Preve...
Asset Identification Can Be a Matter of Perspective <ul><li>Consider this example. . . </li></ul>
Exercise #1:  Asset Identification <ul><li>  How:  Individually and In Pairs </li></ul><ul><li>Time:  10 minutes </li></ul...
Asset Identification worksheet People What people are  particularly  valuable to the organization? (name recognition, skil...
Step 2 – Turning Assets into Opportunities  1. Asset  Identification 2. Assets  into  Opportunities 3. Opportunity  Screen...
Evaluating Your Assets <ul><li>Is the asset unique? </li></ul><ul><li>Who would value the asset? </li></ul><ul><li>How val...
Exercise #2: Leveraging Assets Into Opportunities  <ul><li>  How:  Individually and in Pairs </li></ul><ul><li>Time:  10  ...
Potential Opportunities Worksheet 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9
<ul><li>Ease of Implementation </li></ul><ul><li>Expected complexity of the project </li></ul><ul><li>Availability and ski...
Case Study – CCDoFW Example: Opportunity Screening Ease of Implementation Financial/Market Potential Easy High Low Hard
Step 2 – Turning Assets into Opportunities  1. Asset  Identification 2. Assets  into  Opportunities 3. Opportunity Screeni...
What is a Feasibility Assessment? <ul><li>A high-level assessment of the  market opportunity ,  profitability , and  fit  ...
Feasibility:  External & Internal Factors Internal Factors External  Factors
External and Internal Factors <ul><li>Market Size –  How big is the current market? Is it growing or contracting? </li></u...
External and Internal Factors <ul><li>Internal Support –  Will your organization enthusiastically support this opportunity...
Each opportunity is ranked by the following criteria…  Criteria Opportunity A B C Market Size:  How large is the potential...
Step 2 – Turning Assets into Opportunities  1. Asset  Identification 2. Assets  into  Opportunities 3. Opportunity Screeni...
Business Plan Goal: To Prove That Your  Venture Will Be Successful  <ul><li>Risk Analysis </li></ul><ul><li>Marketing Plan...
Implementation: Keys to Success <ul><li>A Strategic Direction   </li></ul><ul><li>Sufficient planning behind it </li></ul>...
Social Enterprise Alliance North Texas Chapter What is the Social Enterprise Alliance? The Social Enterprise Alliance is t...
Opportunities to Learn More Resources For more information on Social Enterprise download :   Powering Social Change:  Less...
Questions? Charlotte Keany 214-580-1744 [email_address] www.cnmdallas.org
Upcoming SlideShare
Loading in …5
×

Funding outside the box keany

303 views
263 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
303
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Funding outside the box keany

  1. 1. <ul><li>Funding outside the Box: </li></ul><ul><li>Earning Revenue through Social Enterprise </li></ul><ul><li>Presented by: </li></ul><ul><li>Charlotte Keany, Director of Consulting </li></ul><ul><li>Center for Nonprofit Management </li></ul><ul><li>Dallas, Texas </li></ul><ul><li>January 23, 2012 </li></ul>
  2. 2. Welcome and Introductions Partnership
  3. 3. About The Center for Nonprofit Management (CNM) <ul><li>Founded in 1980 </li></ul><ul><li>Leading Management Support Organization </li></ul><ul><li>Every year we serve: </li></ul><ul><ul><li>700 members </li></ul></ul><ul><ul><li>1,300 agencies per year </li></ul></ul><ul><ul><li>150 consultations </li></ul></ul><ul><ul><li>3,525 participants at our Education Seminars </li></ul></ul><ul><ul><li>828 Job placement ads ( 1.5 million visit website) </li></ul></ul>
  4. 4. About Community Wealth Ventures (CWV) <ul><li>Wholly owned, for-profit subsidiary of Share Our Strength, the nation's leading anti-hunger and anti-poverty organizations </li></ul><ul><li>12+ years experience in nonprofit sustainability, with core expertise in social enterprise and social franchising </li></ul><ul><li>Consulting services to 200+ nonprofit organizations and 50+ foundations </li></ul>
  5. 5. Looking for Something Different?
  6. 6. Objectives <ul><li>Learn why and how organizations pursue community wealth (aka social enterprise) </li></ul><ul><li>Increase knowledge of the benefits and risks of social ventures </li></ul><ul><li>Provide examples of what other organizations are doing </li></ul>
  7. 7. Social Enterprise Process 1. Asset Identification 2. Assets into Opportunities 3. Opportunity Screening 4. Feasibility Assessment 5. Select One Opportunity 6. Business Planning Implementation
  8. 8. What is Community Wealth? <ul><li>Revenues generated by profitable or self-sustaining enterprises to promote social change </li></ul>
  9. 9. What is Different About Community Wealth? Community Wealth is Not … Community Wealth is… <ul><li>Traditional fundraising </li></ul><ul><li>Grant money </li></ul><ul><li>Gifts/donations </li></ul><ul><li>A “quick fix” out of a crisis </li></ul><ul><li>For everyone </li></ul><ul><li>Generating sustainable new resources to support mission </li></ul><ul><li>Engaging market forces to work </li></ul><ul><li>for the nonprofit sector </li></ul><ul><li>Devising new ways to leverage existing assets </li></ul><ul><li>Allowing for greater flexibility by bringing in unrestricted revenue </li></ul><ul><li>Decreasing dependence on the external funding community </li></ul>
  10. 10. Community Wealth Examples
  11. 11. What Factors are Necessary to Launch a Successful Community Wealth Enterprise?
  12. 12. Examples of Community Wealth Enterprises Based in North Texas <ul><ul><li>Christian Community Action </li></ul></ul><ul><ul><ul><li>Venture: Expansion of ReSale Thrift Shop </li></ul></ul></ul><ul><ul><li>Translation & Interpretation Network (A business of Catholic charities Diocese of Fort Worth, Inc.) </li></ul></ul><ul><ul><ul><li>Venture: Interpretation services, translation services, qualify and train professionals in interpretation services </li></ul></ul></ul><ul><ul><li>Autism Treatment Center </li></ul></ul><ul><ul><ul><li>Venture: Autism Diagnostic & Therapy Rehabilitation Agency </li></ul></ul></ul>
  13. 13. Clarity of Social Enterprise Focus Mission Profit A B C Mission Focus – A venture that will need ongoing philanthropic support but meets key mission objectives. Self-Sustainable Focus – A venture that generates enough income to make it self-sustaining. Profit Focus – A venture that generates profits which can be re-invested in the venture or provide unrestricted funding to the parent organization.
  14. 14. What Are The Potential Risks? <ul><li>______________________________________________________ </li></ul><ul><li>______________________________________________________ </li></ul><ul><li>______________________________________________________ </li></ul><ul><li>______________________________________________________ </li></ul><ul><li>______________________________________________________ </li></ul><ul><li>______________________________________________________ </li></ul><ul><li>______________________________________________________ </li></ul>
  15. 15. Stakeholder Engagement & Managing Risks <ul><li>The Chorus of Nay-Sayers </li></ul>“ It’s selling out.” “ Nonprofits are charities and should only focus on charitable work.” “ We’ll loose foundation/donor support.” “ It will put the organization’s tax-exempt status at risk.” “ You don’t know anything about how to run a business.” “ It’s wrong for nonprofits to compete against businesses.”
  16. 16. Is Community Wealth Legal? <ul><li>Nonprofits can launch community wealth enterprises and maintain 501c3 tax status </li></ul><ul><li>Income Related to Exempt Purposes </li></ul><ul><ul><li>No limit on amount of revenue </li></ul></ul><ul><li>Income from Unrelated Activities </li></ul><ul><ul><li>Taxable as “unrelated business taxable income” (UBTI) </li></ul></ul><ul><li>There is no standard legal structure </li></ul><ul><li>Consult an attorney to understand the most appropriate legal structure and definition of UBTI for your organization </li></ul>
  17. 17. Step 1 – Identifying Assets 1. Asset Identification 2. Assets into Opportunities 3. Opportunity Screening 4. Feasibility Assessment 5. Select One Opportunity 6. Business Planning Implementation
  18. 18. Assets Can Be Things You Have, Do or Know ASSETS <ul><li>Things You HAVE: </li></ul><ul><li>Physical assets </li></ul><ul><li>Location/space </li></ul><ul><li>Distribution/sales network </li></ul><ul><li>Brand/reputation </li></ul><ul><li>Patent </li></ul><ul><li>Access to desired resource </li></ul><ul><li>Relationships (membership, suppliers, etc.) </li></ul><ul><li>Things You DO: </li></ul><ul><li>Continuously innovate </li></ul><ul><li>Manage information </li></ul><ul><li>Produce low cost goods </li></ul><ul><li>Sustain privileged assets </li></ul><ul><li>Things You KNOW: </li></ul><ul><li>Understanding of specific issue </li></ul><ul><li>Process expertise </li></ul><ul><li>Market expertise </li></ul><ul><li>People/key decision makers </li></ul>
  19. 19. A Wide Range of Assets Can Be Leveraged In Community Wealth Ventures Chapel and Gardens Attendant Care Child Abuse Prevention HAVE DO KNOW
  20. 20. Asset Identification Can Be a Matter of Perspective <ul><li>Consider this example. . . </li></ul>
  21. 21. Exercise #1: Asset Identification <ul><li> How: Individually and In Pairs </li></ul><ul><li>Time: 10 minutes </li></ul><ul><li>Identify your organization’s key assets that could be leveraged into potential opportunities </li></ul><ul><li>Assets can be things you have, do, or know, and are often a matter of perspective…so get creative </li></ul>Greyston Bakery A venture of Greyston Foundation
  22. 22. Asset Identification worksheet People What people are particularly valuable to the organization? (name recognition, skill sets, etc) Audience/Special Relationships What are the key strengths of the organization’s audience (e.g.., size, demographics, psychographics, loyalty, etc). What other key relationships does it have? Programs/Proprietary Content/Events What are the key programs or content that the organization has at its disposal? Skills/Expertise What kinds of skills and expertise does the organization’s staff have? What about the Advisory Board? Volunteers? Tangible Assets/Facilities What does the organization own or have the right to use? Real estate? Program related equipment? Collections, stock, materials? Reputation What does the organization’s name mean in the community? To whom? 1. 2. 3. 4. 1. 2. 3. 4. 1. 2. 3. 4. 1. 2. 3. 4. 1. 2. 3. 4. 1. 2. 3. 4.
  23. 23. Step 2 – Turning Assets into Opportunities 1. Asset Identification 2. Assets into Opportunities 3. Opportunity Screening 4. Feasibility Assessment 5. Select One Opportunity 6. Business Planning Implementation
  24. 24. Evaluating Your Assets <ul><li>Is the asset unique? </li></ul><ul><li>Who would value the asset? </li></ul><ul><li>How valuable is the asset? </li></ul><ul><li>What is the customer’s willingness to pay? </li></ul><ul><li>Is the asset sustainable over time? </li></ul>
  25. 25. Exercise #2: Leveraging Assets Into Opportunities <ul><li> How: Individually and in Pairs </li></ul><ul><li>Time: 10 minutes </li></ul><ul><li>Review lists of assets and brainstorm potential opportunities. List each opportunity and its corresponding asset (10 minutes) </li></ul><ul><ul><ul><ul><li>- Is the asset unique? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- Who would value the asset? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- How valuable is the asset? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- What is the customer’s willingness to pay? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- Is the asset sustainable over time? </li></ul></ul></ul></ul>
  26. 26. Potential Opportunities Worksheet 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9
  27. 27. <ul><li>Ease of Implementation </li></ul><ul><li>Expected complexity of the project </li></ul><ul><li>Availability and skills of current staff to manage the new opportunity </li></ul><ul><li>Ability to recruit other staff quickly </li></ul><ul><li>Access to necessary capital </li></ul><ul><li>Financial / Market Potential </li></ul><ul><li>Market demand and estimated size of the market </li></ul><ul><li>Start-up costs </li></ul><ul><li>Level of competition </li></ul><ul><li>Expected profit margin </li></ul><ul><li>Expected growth rate </li></ul>Opportunity Screening Goal: To Choose The Top Three Ideas For Further Analysis
  28. 28. Case Study – CCDoFW Example: Opportunity Screening Ease of Implementation Financial/Market Potential Easy High Low Hard
  29. 29. Step 2 – Turning Assets into Opportunities 1. Asset Identification 2. Assets into Opportunities 3. Opportunity Screening 4. Feasibility Assessment 5. Select One Opportunity 6. Business Planning Implementation
  30. 30. What is a Feasibility Assessment? <ul><li>A high-level assessment of the market opportunity , profitability , and fit with the organization for a potential business venture </li></ul><ul><li>Informs a “Go or No Go” decision on a business opportunity using impartial market research and internal assessments </li></ul>
  31. 31. Feasibility: External & Internal Factors Internal Factors External Factors
  32. 32. External and Internal Factors <ul><li>Market Size – How big is the current market? Is it growing or contracting? </li></ul><ul><li>Customers – Who are the key customers? What are they willing to pay? </li></ul><ul><li>Competitors – Who are the key competitors? How do they differentiate themselves? </li></ul><ul><li>Margins – What are current vendor’s margins in the market? What is their profit? </li></ul><ul><li>Barriers to Entry – How difficult will it be to enter this market? What are the barriers? </li></ul>External Factors
  33. 33. External and Internal Factors <ul><li>Internal Support – Will your organization enthusiastically support this opportunity? </li></ul><ul><li>Buy-In – Can you secure board and staff buy-in? </li></ul><ul><li>Fit – How well does the opportunity fit with your organization’s skills and expertise? Will you need to obtain outside expertise? </li></ul><ul><li>Competitive Advantage – Do you have a potential competitive advantage in the market? </li></ul><ul><li>Initial Investment – What investment is needed to launch and grow the opportunity? </li></ul><ul><li>Risks – What are the risk factors? What are ways to mitigate these risks? </li></ul><ul><li>Timing – How long will it take to make the opportunity a reality? Will you have sufficient financial resources to support the opportunity until then? </li></ul>Internal Factors
  34. 34. Each opportunity is ranked by the following criteria… Criteria Opportunity A B C Market Size: How large is the potential customer base? Market Outlook: How favorable are the trends that are affecting the marketplace? Favorable Competitive Factors: How competitive is the market? Ease of Entry: How easy will it be to launch a venture? Likely Competitive Advantage: How easy will it be to differentiate your services? Market Profitability: What are the costs and potential revenues? Fit with Mission: How closely does the venture align with your mission? Fit with Skills/Expertise: How closely does the venture align with staff capabilities? Fit with Material Resources: How closely does the venture align with facilities and financial resources? Ability to Manage Risk: How easy will it be to protect against unnecessary risk? OVERALL ATTRACTIVENESS Internal Factors Internal/ External External Factors
  35. 35. Step 2 – Turning Assets into Opportunities 1. Asset Identification 2. Assets into Opportunities 3. Opportunity Screening 4. Feasibility Assessment 5. Select One Opportunity 6. Business Planning Implementation
  36. 36. Business Plan Goal: To Prove That Your Venture Will Be Successful <ul><li>Risk Analysis </li></ul><ul><li>Marketing Plan </li></ul><ul><li>Operational Plan </li></ul><ul><li>Management & Personnel Plan </li></ul><ul><li>Financial Plan </li></ul>Business Plan <ul><li>Industry Analysis </li></ul><ul><li>Competitive Analysis </li></ul><ul><li>Executive Summary </li></ul>Intro & Summary Market Contingency Strategy
  37. 37. Implementation: Keys to Success <ul><li>A Strategic Direction </li></ul><ul><li>Sufficient planning behind it </li></ul><ul><li>Clearly defined goals </li></ul><ul><li>Mission alignment with the parent organization </li></ul>For more information download : Powering Social Change: Lessons on Community Wealth Generation for Nonprofit Sustainability at www.communitywealth.com/resources_tools.htm <ul><li>Human & Financial Capital </li></ul><ul><li>A champion or leader that passes the “shower test” </li></ul><ul><li>Support from the entire staff and board </li></ul><ul><li>Appropriate staffing </li></ul><ul><li>Autonomy for quick decision making </li></ul><ul><li>Adequate capitalization </li></ul>The venture should have:
  38. 38. Social Enterprise Alliance North Texas Chapter What is the Social Enterprise Alliance? The Social Enterprise Alliance is the only member organization in North America to bring together the diverse field of social enterprise. It serves as advocate for the field, hub of information and education, and builder of a vibrant and growing community of social enterprises.
  39. 39. Opportunities to Learn More Resources For more information on Social Enterprise download : Powering Social Change: Lessons on Community Wealth Generation for Nonprofit Sustainability at www.communitywealth.com/resources_tools.htm To Learn More about Social Innovation Programs offered by the Center for Nonprofit Management and Community Wealth Ventures visit: http://www.communitywealth.com/CWC_North_Texas.html
  40. 40. Questions? Charlotte Keany 214-580-1744 [email_address] www.cnmdallas.org

×