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“The Big Idea: Scaling”




3/15/12	
           UWB	
  Social	
  NTERPRISE	
  CERTIFICATE	
  	
  
                      SOCIAL	
  E Sector	
  Cer4ficate	
  Program	
  
3/15/12	
                                                               1	
  
                                        DRAFT	
  
About Me

•  Co-­‐Founder	
  and	
  Execu4ve	
  Director,	
  Global	
  Brigades	
  
   Associa4on	
  and	
  Empowered.org	
  
•  Program	
  Manager,	
  Social	
  Enterprise	
  Leadership	
  Cer4ficate	
  at	
  
   University	
  of	
  Washington	
  Bothell	
  




                                SOCIAL	
  ENTERPRISE	
  Cer4ficate	
  	
  
3/15/12	
                                                                             2	
  
                                             DRAFT	
  
What is a Social Enterprise?

    CSR ≠ SOCIAL ENTERPRISE




               SOCIAL	
  ENTERPRISE	
  Cer4ficate	
  	
  
3/15/12	
                                                  3	
  
                            DRAFT	
  
What is a Social Enterprise?

An	
  organiza4on	
  that	
  u4lizes	
  market-­‐based	
  
business	
  principles	
  to	
  achieve	
  pro-­‐social	
  goals.	
  

Examples:	
  	
  




3/15/12	
                 SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     4	
  
Today’s Agenda
1.        Does	
  nonprofit	
  mean	
  you	
  don’t	
  get	
  paid?	
  
2.        Dis4nguishing	
  for-­‐profits,	
  social	
  enterprises,	
  and	
  non-­‐profits	
  
3.        The	
  shareholder	
  vs.	
  stakeholder	
  dilemma	
  
4.        What	
  is	
  the	
  best	
  en4ty	
  structure	
  for	
  your	
  organiza4on?	
  	
  	
  
5.        Decentralized	
  vs.	
  centralize	
  d	
  organiza4ons	
  
6.        Scaling	
  for	
  social	
  impact	
  
7.        Q/A	
  




3/15/12	
                               SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
                  5	
  
Does Nonprofit Mean No Money?




3/15/12	
     SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     6	
  
For-profit vs. Non-profit vs. SE

FOR-PROFIT ADVANTAGES
•  Can sell equity to shareholders
        –  Can do an IPO
        –  Raise capital by conventional methods
•    Less government regulation / audits
•    More flexible business models (c-corp, LLCs, LLPs, etc…)
•    Easier to get loans
•    Profit-based culture
•    Higher compensation structures



3/15/12	
                         SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     7	
  
For-profit vs. Non-profit vs. SE

NON-PROFIT ADVANTAGES
•  Tax deductable receipts
•  Access to donors and grants
•  Access to volunteers
•  No taxes
•  Mission-based culture
•  No share-holders




3/15/12	
            SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     8	
  
For-profit vs. Non-profit vs. SE

SOCIAL ENTERPRISES
•  Can either be for-profit or non-profit
•  Double or even triple bottom line
•  Element of charitable programming/mission driven
•  Can leverage mission-based culture to:
    o Market your company
    o Retain and attract talent
•  Have a market-based revenue model that is more
   sustainable than grants/donations alone
•  Ideally all profits are circulated back into mission without
   shareholders.
3/15/12	
                  SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     9	
  
The Stake-holder/Share-holder Dilemma

                 WHAT COMES FIRST:
                 MISSION OR PROFIT?

              If you have to appease shareholders, how do you
                prioritize your beneficiaries of your programs?




3/15/12	
                      SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     10	
  
What’s Right for your Organization?

DO THE ANALYSIS
•  Who are your stake-holders? Do they care about social
    responsibility?
•  How compelling is your competitive advantage?
     –  Do you need grants or other donor based start-up capital?
     –  Do you need volunteers? Tax incentives?
•  Is it worth it to give up equity?
•  What is going to yield the MOST social impact?
•  Do you have relationships with influencers that could be a
   impactful board of directors?


3/15/12	
                SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     11	
  
Scale for Social Change
Global Brigades’ Vision: To improve equality of life, by igniting the
largest student-led social responsibility movement on the planet.




 3/15/12	
                      SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     12	
  
Centralized vs. Decentralized
Recommended	
  reading…	
  	
  
“The	
  Starfish	
  and	
  the	
  Spider”	
  	
  




  3/15/12	
                              SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     13	
  
Global Brigades Org Chart 2012




               SOCIAL	
  ENTERPRISE	
  Cer4ficate	
  	
  
3/15/12	
                                                  14	
  
                            DRAFT	
  
Social Enterprise Certificate




                      Social Enterprise Leadership Certificate
                           June 17-September 11, 2012
                               Where: Bellevue, WA

              http://www.uwb.edu/business/nondegree/socialenterprise




3/15/12	
                      SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     15	
  
Int’l Internship with Global Brigades




               Sustainable Development Internship
                         July1-31, 2012
              Where: Honduras, Panama and Ghana

                    www.globalbrigades.org




3/15/12	
             SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     16	
  
Questions?

     Feel free to contact me at:
     Steve@globalbrigades.org




3/15/12	
                SOCIAL	
  ENTERPRISE	
  CERTIFICATE	
  	
     17	
  

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Scaling for social change

  • 1. “The Big Idea: Scaling” 3/15/12   UWB  Social  NTERPRISE  CERTIFICATE     SOCIAL  E Sector  Cer4ficate  Program   3/15/12   1   DRAFT  
  • 2. About Me •  Co-­‐Founder  and  Execu4ve  Director,  Global  Brigades   Associa4on  and  Empowered.org   •  Program  Manager,  Social  Enterprise  Leadership  Cer4ficate  at   University  of  Washington  Bothell   SOCIAL  ENTERPRISE  Cer4ficate     3/15/12   2   DRAFT  
  • 3. What is a Social Enterprise? CSR ≠ SOCIAL ENTERPRISE SOCIAL  ENTERPRISE  Cer4ficate     3/15/12   3   DRAFT  
  • 4. What is a Social Enterprise? An  organiza4on  that  u4lizes  market-­‐based   business  principles  to  achieve  pro-­‐social  goals.   Examples:     3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     4  
  • 5. Today’s Agenda 1.  Does  nonprofit  mean  you  don’t  get  paid?   2.  Dis4nguishing  for-­‐profits,  social  enterprises,  and  non-­‐profits   3.  The  shareholder  vs.  stakeholder  dilemma   4.  What  is  the  best  en4ty  structure  for  your  organiza4on?       5.  Decentralized  vs.  centralize  d  organiza4ons   6.  Scaling  for  social  impact   7.  Q/A   3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     5  
  • 6. Does Nonprofit Mean No Money? 3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     6  
  • 7. For-profit vs. Non-profit vs. SE FOR-PROFIT ADVANTAGES •  Can sell equity to shareholders –  Can do an IPO –  Raise capital by conventional methods •  Less government regulation / audits •  More flexible business models (c-corp, LLCs, LLPs, etc…) •  Easier to get loans •  Profit-based culture •  Higher compensation structures 3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     7  
  • 8. For-profit vs. Non-profit vs. SE NON-PROFIT ADVANTAGES •  Tax deductable receipts •  Access to donors and grants •  Access to volunteers •  No taxes •  Mission-based culture •  No share-holders 3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     8  
  • 9. For-profit vs. Non-profit vs. SE SOCIAL ENTERPRISES •  Can either be for-profit or non-profit •  Double or even triple bottom line •  Element of charitable programming/mission driven •  Can leverage mission-based culture to: o Market your company o Retain and attract talent •  Have a market-based revenue model that is more sustainable than grants/donations alone •  Ideally all profits are circulated back into mission without shareholders. 3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     9  
  • 10. The Stake-holder/Share-holder Dilemma WHAT COMES FIRST: MISSION OR PROFIT? If you have to appease shareholders, how do you prioritize your beneficiaries of your programs? 3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     10  
  • 11. What’s Right for your Organization? DO THE ANALYSIS •  Who are your stake-holders? Do they care about social responsibility? •  How compelling is your competitive advantage? –  Do you need grants or other donor based start-up capital? –  Do you need volunteers? Tax incentives? •  Is it worth it to give up equity? •  What is going to yield the MOST social impact? •  Do you have relationships with influencers that could be a impactful board of directors? 3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     11  
  • 12. Scale for Social Change Global Brigades’ Vision: To improve equality of life, by igniting the largest student-led social responsibility movement on the planet. 3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     12  
  • 13. Centralized vs. Decentralized Recommended  reading…     “The  Starfish  and  the  Spider”     3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     13  
  • 14. Global Brigades Org Chart 2012 SOCIAL  ENTERPRISE  Cer4ficate     3/15/12   14   DRAFT  
  • 15. Social Enterprise Certificate Social Enterprise Leadership Certificate June 17-September 11, 2012 Where: Bellevue, WA http://www.uwb.edu/business/nondegree/socialenterprise 3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     15  
  • 16. Int’l Internship with Global Brigades Sustainable Development Internship July1-31, 2012 Where: Honduras, Panama and Ghana www.globalbrigades.org 3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     16  
  • 17. Questions? Feel free to contact me at: Steve@globalbrigades.org 3/15/12   SOCIAL  ENTERPRISE  CERTIFICATE     17