Cheryl (3 minutes) Welcome!Today we will introduce you to the business side of your social mission, that is earning income within a non-profit organization. Materials by: Community Wealth Ventures, a consulting company that helps non-profits develop their earned income potential. Workshop facilitators: Cheryl Kollin, CEO Full Plate Ventures, in Washington DC. Rachel Emmer, CEO, DetritusGroup, Evergreen, CO.Bonnie White, Co-Director, Olympic Community Action Program, Port Townsend, WA. 1.Goal of this session is the journey not the destination--fast-paced, imperfect decision making with not enough information—sounds like real life? 2. At the end: access to the Community Wealth Venture Guide, step by step through detailed process. 3. Introduce you to World Café engagement (more later). Switching tables so don’t get too comfortable, move quickly with your stuff to another table. 4. Ground rule: Lot to cover, so we’ve timed each activity; raise your hand, stop talking, refocus on facilitator. 5. Let’s practice by introducing yourselves to your table mates.
Cheryl 5 minutes Introduce yourself, where you are from, and answer this question. Your challenge is to have everyone answer this within the 5 minute time. When you hear the chime, everyone stops, raises hands, and directs attention back to me.
Cheryl (1 minute) Social Enterprise is: Creating a venture that generates revenue for a non-profit organization that supports its social mission . Why Social Enterprise? The National Center for Charitable statistics reports that fees for services and goods make up 70% of a public charity’s income vs 8% for government grants. Refer to handout for a list of particular advantages and risks, and the CWV guide for discussion. Advantages: Including: Creating a product or service that leverages what you already do well, pay for program that you can’t get funded. RISKS 1. Financial: Including…The venture may lose money. Tax implications and strict IRS non-profit status rules to follow. 2. Reputation: 3. Organizational: 4. Morale:
Rachel (3 minutes) includes 30 seconds to choose Table Host. How many of you have participated in a World Café session before? GREAT!For those of you not familiar, World Café is an innovative yet simple methodology for hosting conversations. You’ll find your conversations link and build on each other as collective intelligence. We’ll start with the tables as you’re currently seated. At one point through the session we’ll ask you to move to another table and consequently a new group. When we ask you to move, ideally sit at a table with new and fresh faces.Be open to your conversations growing and building:• between groups,• cross-pollinate ideas• discover new insights into the issue you’re discussing.We’ll give you a case study to explore. Each table will self-select a Table Host.• Table host keeps notes and will debrief new table mates at the beginning of the second round. This person will not change tables, remaining at the table for the duration and report out at the end.• Everyone gets to play: use the tablecloths and markers to create a &quot;shared visual space&quot; through drawing the emerging ideas. Everyone can draw, scribble, circle and connect ideas on the tablecloth. After you get settled into your new tables, the table host will briefly summarize the earlier conversation of the previous round. A key skill in successful World Café session is listening; • Listen with an openness to be influenced by the speaker;• Listen to support the speaker in fully expressing themselves,• Listen for deeper questions, patterns, insights and emerging perspectives,• Listen for what is not being spoken along with what is being shared.• Keep an open mind; be aware of latching onto a particular idea – allow for the possibility of continued evolution of these ideas. 1) Don’t get attached to any one idea-- you don’t have time; you’ll be switching tables to work with different people and a new set of ideas, not ones you generated earlier. In summary: · First Bonnie will present a case study synopsis Then we’ll present an exercise for you to complete based on the case study. · You’ll then change tables (with the exception of the Table Host) and find a new group of table mates. We’ll keep track of time and notify when it’s time to change tables. · The Table Host will debrief the new group on the thoughts and findings of the previous group. · You’ll then be presented with another couple of exercises to discuss and complete. · Finally, at the end of that conversation, Each Table Host will then report out on the ideas and findings of their table. Be assured, we’ll coach you through the session – we’ll be walking around, so if there are questions, grab us as we circulate. Take 30 seconds to designate a Table Host now. After that, I’ll turn it over to Bonnie White, OlyCAP, to share the case study your World Café work will build upon.
Bonnie: 5 minutes for 6 slides This is great fun to be here today, using my organization as our case study. Each table has a Fact Sheet, that summarizes the information I give you. You will refer to this during your activities. OlyCAP is a private, not profit - one of about 1,000 community action agencies across the country. We were one of the first caps created as an outgrowth of LBJ’s war on poverty. We serve the North Olympic Peninsula community on the shores of Puget Sound, in Washington State. We provide a blend of programming, designed to not only assist people with surviving poverty, but we continually seek creative partnerships with the community in an effort to help lift people out of poverty.
We are the largest social service provider on the North Olympic Peninsula. Our programs range from early childhood services to home care and meals for seniors. We operate an emergency food distribution program - delivering nearly 1 million pounds of food last year - to a network of 15 food banks and feeding programs. We also have a dental clinic, home repair and crisis intervention services. To provide you with a little context - we directly assisted around 11,000 individuals last year.
Bonnie Today we will focus on OlyCAP’s 3 meals programs: Senior Dining, Senior Nutrition (Meals on Wheels), and HeadStart serving ages birth to 5In 2007 OlyCAP’s programs assisted over 10% of the population in this area, serving 184,000 nutritious meals to seniors and youth. Even though OlyCAP serves a warm meal and caring experience to their clients, we lose money every year because of limited government funding and inefficiencies. We have three primary objectives, to:Provide healthy meals for vulnerable seniors & youthProvide job training Source local food and grow food security
Bonnie Strong growth rate trend in their older population as the geographic desirability and temperate climate appeal to a retirement-age population. Rural and rugged terrain poses transportation challengesU.S. Census Bureau data shows two distinct ends of the income spectrum; there is a high concentration (26%) of those living on or under the poverty level as well as a high concentration of those with disposable income. Disproportionately large % of population living on fixed income.Diverse cultures: aging hippies with eco-consciousness, senior conservatives, working class, mostly white
Bonnie Market research shows three community needs that align with OlyCAP’s mission and expertise. Daycare Center operators find getting reimbursed for government subsidized meals is too complex. Service Clubs like Rotary - can’t find dining facilities for catered meetings; and Independent retirees – are those who on their own, but when temporarily incapacitated, frail, or caring for a spouse desire a home style nutritious meals.
Cheryl: (5 min. for activity)Brainstorm as many revenue generator ideas in the next 5 minutes. Use what you know about OlyCAP&apos;s mission, assets and the community&apos;s needs. Refer to the Fact Sheet for the basis of your ideas. Don’t evaluate them now; just generate them. Write them down on your flip chart paper.
Cheryl: (3 minute explanation; 10 min. for activity)Next use the worksheet on the table rank each idea based on its criteria filter (using 3=high ranking and 0=poor ranking. Refer to definitions on your fact sheet. Total the points in each row. Here’s an example: Provide picnic meals to active, upscale seniors Fit with assets (3) Already makes meals for seniors Fit with mission (1) Serves a segment of the community, but not low income Internal capacity req. (2) Would have to develop new menu/packaging and distribution for upscale market Market potential (2) Doesn’t currently exist, but active seniors in this community cook on their own. Capital Intensive (1) expand kitchen facilities, branding/marketing, distribution channels Competitive advantage (2) Seniors know us, but think of us as low-income meal providers--must change image.
Rachel (1 min to explain) You’ve just completed one type of criteria filtering exercise – Opportunity Plotting is another technique of filtering … Here we look at the intersection of Ease of Implementation and Revenue Potential- This grid illustrates these two important concepts. On the Y-axis is Ease of Implementation (from Difficult to EASY) and on the X-axis is Potential Revenue from Low to High potential. Ease of Implementation addresses how hard or easy it will be for you to build this project; encompasses the complexity of the project, existing skills of current staff to manage, access to required capital, and ability to quickly recruit other staff. Evaluation of Revenue Potential involves things like market demand and size of market, what’s the competition landscape, product quality, estimated growth rate of your product/service.
Rachel 2 min to explain; 7 minutes to plot The Lower Left hand quadrant (red portion) of the graph is a NO-GO area – ideas falling in this area are likely not worthy of committing resources as currently flushed out. The Upper Right hand quadrant (green area) will house ideas that have a higher potential of success – Easier to implement, higher degree of alignment with your organizational capacity and mission, and hold greater income potential. Here’s a sample of our seniors picnic catering idea – we determined it would be moderately easy to implement given OlyCAP’s food service resources, and that catered picnics hold only moderate net revenue profits especially considering the demographics of OlyCAP’s service area. Now, let’s plot your best ideas. Take those two ideas from the previous exercise. You’ll place an ‘X’ at the intersection of the two for each idea. You’ll be making a lot of assumptions and generalizations here – refer back to OlyCAP’s assets and the demographics of their service area to inform your work. If need be, refer to the definitions on the FACT sheet. Use different color for each of your ideas and label each point with a short text description. You will track movement of idea as you continue to filter in next exercises.
Cheryl:Switch Tables, sit with new people. Everyone moves except the Table Host. (1 minute)Now that everyone is seated, Table Host briefs the table on the active ideas. You have 2 minutes
Bonnie: 1 minute explanation The local Walmart has just announced its commitment to battle obesity by introducing a whole new product line of healthy prepared meals, snacks, and drinks and exercise games and toys that promote a healthier and active lifestyle for adults and kids. Each of the food products is at least 15% sourced from local producers, exceeds food pyramid nutrition standards, comes in sustainable packaging, and costs 10% less than other comparable products in the retail industry. They’ve branded these products with celebrity endorsements. Changing market conditions offers new opportunities.
Rachel (2 min explanation and 8 minute exercise) As a result of Wal-Mart entering the freshly prepared prepackaged foods arena, we decided that although it doesn’t affect OlyCAP’s capacity to offer catered picnics, our target market may choose to buy pre-prepared picnic foods directly from this new low-cost competitor; Wal-Mart. OlyCAP would have to respond to this competition, and one way would be to reduce the profit margin on catering services. So we moved our plot point to reflect the lower income potential.Now, take each of your ideas previously plotted and show the effect , if any, you believe Wal-Mart might have on your ability to deliver that product or service and on it’s profitability.Remember to color code your ideas so that each idea stays the same color as it potentially moves to a new location on your chart. Draw an arrow between the points to show the resulting movement.
Cheryl: Tables report out on best idea (10 minutes)Describe your idea, Based on information given, would you go ahead with a more detailed analysis?Debrief Earned Income idea generation and filtering process and World Café process (5 minutes)
Cheryl (1min) Resource Links—on handoutCommunity Wealth Ventures Guide used as the basis for this workshop; much more detail in guide; free downloadCommunity Wealth Directory- Examples of Revenue Generating non-profitsWorld Café
Cheryl: (1 min) On behalf of Rachel, Bonnie and myself thanks for participating! We hope you are intrigued by social enterprise to explore it more.
To do if there is time at the end. Rachel: (10 min including explanation) A SWOT analysis will help reveal any underlying assumptions you have surrounding your idea and will help to determine whether you move forward with an idea. It’s a strategic planning technique used to assess the internal and external environment in which a company operates and competesChoose your best idea from the previous chart. Filter through a SWOT analysis.Refer to your Fact Sheet for definitions. Rachel, best to cut your explanation short and refer them to the fact sheet. Strengths What does the business do well? What unique resources can you draw on? What do your competitors see as your businesses strengths? Weaknesses What could you improve on the business model? Where do you have fewer resources than others? What are others likely to see as your businesses&apos; weaknesses? Opportunities What opportunities are open to your business? What trends can you take advantage of? How can you turn your businesses&apos; strengths into opportunities? Threats What external threats could harm your business? What is your competition doing? What threats do your businesses&apos; weaknesses expose it to?
Foraging for Funding Presentation
FORAGING FOR FUNDING:
Is Social Enterprise Right for Your Non-Profit ?
Cheryl Kollin, Rachel Emmer, Bonnie White
“What’s the best part of this
conference so far?”
+ Engage market forces
+ Leverage org. assets
+ Decrease public dependence
+ Support worthy programs
Generates revenue to support social mission
“OlyCAP's mission is to strengthen the community
by providing supportive services that
help people to help themselves.”
+ Adult care & nutrition services
+ Housing improvement programs
+ Housing services
+ Early childhood services
+ Community support services
+ Oral health services
50+ programs in 2 rural, Puget Sound counties.
OlyCAP’s Meals Program
SENIOR DININGHEAD STARTMEALS ON WHEELS
+ Rural and rugged terrain
+ Disproportionately large % living on low
+ High concentration with disposable
+ Aging hippies, eco-conscious, high %
seniors, conservatives, working class,
+ Highly regarded and responsive
+ Capacity to launch new business ventures
+ Expertise in federal meals funding
+ Core competency in meal service
+ SERVICE CLUBS (i.e Rotary, Kiwanis)
+ DAYCARE CENTERS
+ INDEPENDENT RETIREES
Unmet needs and untapped resources that align with
+ Community Wealth Ventures
The Community Wealth Seekers Guide:
Mapping Your Assets and Indentifying
Community Wealth Directory
+ The World Café, Inc.
+ SWOT Analysis Template
Social Enterprise Consultants
Olympic Community Action Program