0
A talk by Jeff Stern for NC Central University’s <br />Community Economic Development Initiative  <br />April 9, 2011<br /...
What is Social Enterprise?<br />1<br />3<br />2<br />Definition and Examples<br />Getting Started<br />Determining Readine...
1<br />Social Enterprise: an organization or venture that achieves its primary social or environmental mission using busin...
Social Enterprise is a subset of social entrepreneurship. <br />Social Entrepreneurship includes:<br />Social Innovation<b...
What we talk about when we talk about SE<br />“We look for organizations or ventures who have a primary orientation or mis...
Social Enterprise is not:<br />Social Enterprise is:<br />Creating sustainable revenue streams to support mission<br />Eng...
Grant money
Gifts/donations
A “quick fix” in a time of a crisis
For everyone</li></li></ul><li>Yes, it’s legal, and it can take many forms:<br /><ul><li>Nonprofits can launch and operate...
Income Related to Exempt Purposes
Must be substantially related to exempt purposes
No limit on amount of revenue
Income from Unrelated Activities
Not substantially related to exempt purposes
Produces unrelated business taxable income (UBTI)
If less than 10-15% of budget, okay
If more, consider moving activity outside of nonprofit entity
There is no standard legal structure</li></li></ul><li>A few examples of successful social enterprise<br />The Women’s Bea...
More examples, closer to home:<br />TROSA runs several social enterprises (moving, lawn care, furniture and frame shop, gr...
2<br />Determining Readiness<br />Is social enterprise is right for your organization? Are you ready to begin?<br />
Developing an enterprise is a process<br />Phase 4<br /><ul><li>Develop a business  </li></ul>    plan to turn the <br /> ...
Four Areas for Risk/Reward Analysis<br />Mission<br />+ Leverage core strengths in service of both mission and margin<br /...
Characteristics of a successful social enterprise:<br />Source: Community Wealth Ventures - Powering Social Change<br />
Upcoming SlideShare
Loading in...5
×

What is social enterprise nccu cedi presentation

1,210

Published on

This is a presentation on social enterprise for nonprofits, to be given April 9th at "Marketing Strategies: Tools for Nonprofits and Social Enterprises," a free half-day workshop hosted by The NCCU Community Economic Development Initiative. Registration is free and more info is available at http://nccunonprofit.org/about.html

Published in: Education
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,210
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
49
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide
  • This presentation is based on slides from a class given by Social Enterprise Network of the Triangle (SENT – http://www.se-triangle.org) through Duke’s Certificate Program in Nonprofit Management. That 4-hour class has been condensed into a one-hour presentation for this talk. Prior slides were put together by Suzanne Steffens Smith, Ruth Peebles and Agnes Vishnevkin. Much credit for the quality in this presentation goes to them – all errors and omissions I claim as my own.
  • I am *not* an attorney! You *should* consult an attorney about legal structure!
  • In 2007, 20.9 million U.S. women lived below the federal poverty threshold.Economically disadvantaged teens are more likely to be un- or under-employed in the summer job market.Early work experience improves prospects for employability and real wages in the later teens and early 20s.Work experience in high school also increases the likelihood of graduation and lowers teen pregnancy and delinquency.
  • Transcript of "What is social enterprise nccu cedi presentation"

    1. 1. A talk by Jeff Stern for NC Central University’s <br />Community Economic Development Initiative <br />April 9, 2011<br />What isSocial Enterprise?<br />
    2. 2. What is Social Enterprise?<br />1<br />3<br />2<br />Definition and Examples<br />Getting Started<br />Determining Readiness<br />A framework to consider, plan and implement your social enterprise<br />
    3. 3. 1<br />Social Enterprise: an organization or venture that achieves its primary social or environmental mission using business methods.<br />Definition from the Social Enterprise Alliance<br />
    4. 4. Social Enterprise is a subset of social entrepreneurship. <br />Social Entrepreneurship includes:<br />Social Innovation<br />Corporate Social Responsibility (CSR)<br />Socially Responsible Investing <br />Triple Bottom Line <br />Venture Philanthropy <br />Cause-related Marketing <br />Direct service and advocacy groups<br />Blended value organizations in various legal structures<br />
    5. 5. What we talk about when we talk about SE<br />“We look for organizations or ventures who have a primary orientation or mission of achieving a measurable social benefitand a market-based approach toward generating revenue. Most often these organizations have a nonprofit status, a clear theory of change and a commitment to transparency.” <br />- Social Enterprise Network of the Triangle <br /> more info available at http://www.se-triangle.org<br />
    6. 6. Social Enterprise is not:<br />Social Enterprise is:<br />Creating sustainable revenue streams to support mission<br />Engaging market forces in pursuit of social impact<br />Devising new ways to leverage existing assets <br />Decreasing dependence on the external funding community<br />Utilization of business methods, tools and discipline<br /><ul><li>Traditional fundraising
    7. 7. Grant money
    8. 8. Gifts/donations
    9. 9. A “quick fix” in a time of a crisis
    10. 10. For everyone</li></li></ul><li>Yes, it’s legal, and it can take many forms:<br /><ul><li>Nonprofits can launch and operate a social enterprise and maintain 501(c)(3) tax status
    11. 11. Income Related to Exempt Purposes
    12. 12. Must be substantially related to exempt purposes
    13. 13. No limit on amount of revenue
    14. 14. Income from Unrelated Activities
    15. 15. Not substantially related to exempt purposes
    16. 16. Produces unrelated business taxable income (UBTI)
    17. 17. If less than 10-15% of budget, okay
    18. 18. If more, consider moving activity outside of nonprofit entity
    19. 19. There is no standard legal structure</li></li></ul><li>A few examples of successful social enterprise<br />The Women’s Bean Project in Denver employs women from backgrounds of chronic unemployment and poverty to manufacture gourmet foods. The project does not hire women to make and sell bean products. It makes and sells bean products to hire women. <br />Juma Ventures develops and operates concessions at stadiums for the purpose of providing job opportunities to economically disadvantaged teens. <br />
    20. 20. More examples, closer to home:<br />TROSA runs several social enterprises (moving, lawn care, furniture and frame shop, grocery and more) in pursuit of its mission to enable substance abusers to be productive, recovering individuals by providing comprehensive treatment, work-based vocational training, education, and care.<br />The Scrap Exchange runs a creative re-use store and education programs in pursuit of its mission to promote creativity, environmental awareness, and community through reuse. <br />Extraordinary Venturesemploys young men and women with autism and other developmental disabilities. They create jobs through conference center rental and laundry services.<br />
    21. 21. 2<br />Determining Readiness<br />Is social enterprise is right for your organization? Are you ready to begin?<br />
    22. 22. Developing an enterprise is a process<br />Phase 4<br /><ul><li>Develop a business </li></ul> plan to turn the <br /> opportunity into <br /> reality<br />Planning<br />Exploration<br />Design & Development<br />Implementation<br />2 months<br />4 months<br />6 months<br />12 months<br />
    23. 23. Four Areas for Risk/Reward Analysis<br />Mission<br />+ Leverage core strengths in service of both mission and margin<br />+ New programming opportunities<br />- Reputation could be compromised<br />- Risk of mission drift from core social impact activities to enterprise <br />+/- Potential impact on clients<br />Financial<br />+ Diversifies revenue streams <br />+ Leverages existing assets <br />+ Creates unrestricted funds <br />- Potential to lose money <br />- Start-up costs often high<br />- Opportunity cost <br />+/- Current funder reactions?<br />Phase 1 - Exploration<br />Operational<br />+ Business tools utilized beyond SE <br />+ Enhances strategic thinking<br />+ Increases efficiency and agility<br />- Management & staff attention split<br />- Increases organizational complexity<br />- New systems may be required<br />+/- New staff may need to be hired<br />Cultural<br />+ Fosters innovation and new ideas<br />+ Market orientation improves focus on costs, client needs and results.<br />- Board and staff may be alienated by business culture (may leave) <br />- Resistance to change may kill SE<br />+/- Tension of “old” versus “new”<br />
    24. 24. Characteristics of a successful social enterprise:<br />Source: Community Wealth Ventures - Powering Social Change<br />
    25. 25. First, Identify Your Assets…<br />People: Who works for the organization? Who volunteers? Who do they know? Who is your audience? Who are your stakeholders? What special relationships to you have that might be valuable?<br />Skills: What skills/expertise has the organization developed? What reputational assets have you built? Skills of individual people identified above? What programs are in demand? What content have you developed? Events you’ve planned?<br />Tangible Assets/Facilities: What buildings do you own? Program-related equipment? Real estate? Patents or other intellectual property? Other tangible assets that you have access to?<br />Phase 2 – Design and Development<br />Brainstorm first – feasibility comes later!<br />
    26. 26. Remember the old saying:<br />“One man’s trash is another man’s treasure”<br />
    27. 27. Now that you’ve listed assets…which are marketable?<br />Evaluate the asset<br />Is it unique? Is it easily copied? <br />Is it sustainable over time? <br />Evaluate the market<br />Are there people who would pay for this? <br />How many people? Is this number growing?<br />How much would people pay?<br />Is there competition to consider?<br />
    28. 28. Are we ready to launch a social enterprise?<br />3 Readiness Factors<br />
    29. 29. 3<br />Getting Started<br />Getting Started<br />Moving from idea to implementation<br />
    30. 30. From your list of assets, choose the 3 best ideas<br />Phase 3 – Feasibility Assessment<br />
    31. 31. Determine feasibility before creating a business plan<br />
    32. 32. Resources and tools for analysis are plentiful<br /><ul><li>SWOT Analysis and other traditional business tools
    33. 33. Industry Associations and Reports: First Research, BizMiner
    34. 34. Federal government libraries and legislative websites
    35. 35. Philanthropic news and research organizations: Foundation Center, Charity Navigator, Chronicle of Philanthropy
    36. 36. Federal government statistics: Census data, SBA
    37. 37. Chamber of Commerce: Local
    38. 38. Academic library or other public information centers
    39. 39. Competitor/collaborators’ websites
    40. 40. Similar social enterprises/social innovators: Social Enterprise Alliance, Social Edge</li></li></ul><li>The business plan is your roadmap<br /><ul><li>Executive Summary
    41. 41. Business Description
    42. 42. Industry & Market Analysis
    43. 43. Competitive Analysis
    44. 44. Marketing & Sales Plan
    45. 45. Operations Plan
    46. 46. Personnel & Management Plan
    47. 47. Financial Plan
    48. 48. Risk & Contingency Plan</li></ul>Phase 4– Business Plan<br />Be sure to include milestones!<br />
    49. 49. Additional Resources<br /><ul><li>Social Enterprise Database: http://www.communitywealth.com/Directory%20of%20Social%20Enterprises.htm
    50. 50. CASE (Center for the Advancement of Social Entrepreneurship): www.caseatduke.org
    51. 51. SocialEdge: www.socialedge.org
    52. 52. Social Enterprise Alliance: www.se-alliance.org
    53. 53. REDF: www.redf.org/learn-from-redf
    54. 54. Nonprofits Assistance Fund: www.nonprofitsassistancefund.org (business plan outline and template)
    55. 55. Stanford Social Innovation Review: http://www.ssireview.org/</li></li></ul><li>Thanks for your time today. If you want to get in touch:<br />Jeff Sternjeffrey.m.stern@gmail.com @jeffreymstern on twitter http://www.jeffstern.org for personal infohttp://www.se-triangle.orgfor SENT info<br />
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×