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LEADERSHIP FORUM
   FEBRUARY 16, 2012




 ROBERT H. HACKER
“Altruism has a credibility problem in an
  industry that thrives on intense commercial
  competition”
                   Ivan Krstic TR35 Laureate

“An ever growing number intend to fund their
  social ventures through commercially
  generated revenue rather than charitable
  donations….”
Battilana and Lee HBS
“What kind of a society isn't structured on
 greed? The problem of social organization is
 how to set up an arrangement under which
 greed will do the least harm.”
 —Milton Friedman, The Macmillan Book of Business and Economic Quotations
TOPICS


1. SOCIAL VENTURE CHECKLIST
2. VALUE CREATION-VALUE CAPTURE
3. FINANCIAL MODELING
SOCIAL VENTURE CHECKLIST




NON-PROFIT or FOR-PROFIT?
COMPETITIVE ADVANTAGE



BENEFITS OF NON-PROFIT?
BENEFITS OF NON-PROFIT
• ACCESS TO CAPITAL
• LOWER COSTS THROUGH VOLUNTEER
  COMMUNITIES
• PARTNERING-NGOS, GOV’T, MULTI-LATERALS,
  UNIVERSITIES
• BRANDING
FOR-PROFIT?



SOCIAL ENTREPRENEURSHIP OR
     ENTREPRENEURSHIP?
SOCIAL?


• NORMATIVE
• ECONOMIC
ECONOMICS


MAXIMIZE VALUE CREATION or
 MAXIMIZE VALUE CAPTURE
VALUE CREATION-VALUE CAPTURE
VALUE CREATION-VALUE CAPTURE
VALUE CREATION-VALUE CAPTURE
MODELING

• ASSUMPTIONS=RISKS
• SOCIAL AND ECONOMIC RISK
FINANCIAL MODELING NON-PROFIT
1. DONOR ACQUISITION
2. ADMIN COSTS=FINANCIAL CONSIDERATION
3. SOCIAL SERVICES=IMPLICIT COST
                                          DONOR VALUE




                                                       INTRINSIC COST
                FINANCIAL CONSIDERATION




                                          NON-PROFIT
DONOR ACQUISITION
•   TARGET DONOR LIST
•   $/DONOR
•   ACQUISITION COST/DONOR or
•   ACQUISITION COST/$ DONATED
•   DETAIL ACQUISITION COSTS BASED ON
    BUDGET OF ACQUISITION COST
ADMIN COSTS
• NON-DONOR AND NON-SOCIAL SERVICES
  COSTS
• OVERHEAD
  – EXECUTIVES, SALARIES & BENEFITS
  – RENT
  – T&E EXECUTIVE
  – PROFESSIONAL FEES
  – IT, PHONE ETC.
SOCIAL SERVICES
• DOG RESCUE SHELTER
  – DOGS RESCUED PER WEEK, PER MONTH
  – NEW DOG HOMES and TEMPORARY DOG HOMES
  – CASH COSTS PER DOG
  – NON-CASH COSTS PER DOG
    (VOLUNTEERS/DONATIONS)

    • STAFF COSTS/HR or PER DOG
    • FOOD
    • MEDICAL (VETS, DRUGS, ETC.)
DOG RESCUE KPIs
• WEEKLY, MONTHLY YTD
  – DONOR $
  – DONOR ACQ COST/$ DONATED (MONTHLY, YTD)
  – DOGS RESCUED
  – DOG HOMES
  – CASH OPERATING COSTS/DOG (MONTHLY, YTD)
Robert H. Hacker
  rhhfla@gmail.com
  305-742-8222
  Skype: rhhfla


If I said anything you disagree with, think was
confusing, stupid, or just plain wrong, please
tell me. I won’t take offense – don’t sugar coat
it – just tell me. Brad Feld

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