2. Doing Business 2.0
Introduction to
Social Enterprise
Starting and Sustaining a Nonprofit Organization – July 10, 2013

3. At Community Wealth Partners
our goal is to help change agents solve social
problems at the magnitude at which they exist.
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4. Key Question
“Can we teach others the importance of being self-sufficient
and, at the same time, not be self-sufficient ourselves?”
- Mike Burns, Former CEO
Pioneer Human Services
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5. What is social enterprise?
A profitable or self-sustaining organization or venture
that generates revenue to promote social change
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6. What is different about social enterprise?
A quick fix out of a crisis –
Typically takes 3-5 years to
break even
Traditional fundraising
Grant money
Gifts/donations
For everyone
Social Enterprise is Not… Social Enterprise is…
Generating sustainable new
resources to support mission
Engaging market forces to
work for the nonprofit sector
Devising new ways to leverage
existing assets
Allowing for greater flexibility
by bringing in unrestricted
revenue
Decreasing dependence on the
external funding community
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7. Field Study of Social Enterprise
Source: Community Wealth Ventures Field Study of Social Enterprise, 2008. Survey sent to 5,965 nonprofits, 1,008 responded and 740 completed survey.
1. Workforce Development
2. Housing
3. Community & Economic
Development
4. Education
5. Health
1. Education & Training
2. Retail/Thrift Shop
3. Consulting Services
4. Food Services/Catering
5. Art Venture
Top 5 Mission Areas of Nonprofits
Operating a Social Enterprise
Top 5 Social Enterprise Venture
Types
The Center for the Advancement of Social Entrepreneurship at Duke
University, Community Wealth Ventures, and the Social Enterprise Alliance,
with support from REDF, conducted the largest national survey to date about
Social Enterprise with a diverse set of nonprofit organizations.

8. Understanding the ultimate goal of your
venture is vital when getting started
Mission Profit
A B C
Self-Sustainable Focus –
A business that generates
enough income to make it
self-sustaining
Profit Focus –
A business that
generates
substantial
profits which can
be re-invested in
the business for
growth
Mission Focus –
A business that will
need ongoing
philanthropic
support but meets
key mission
objectives
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9. What factors are necessary to launch a
successful social enterprise?
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10. A wide range of assets can be leveraged in
social enterprises
Have Do Know
Books Culinary Training Best Practices
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11. Social enterprise is legal for nonprofits
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Nonprofits can launch community
wealth enterprises and maintain
501c3 tax status
Consult an attorney to understand
the most appropriate legal
structure for your organization
There is no standard legal
structure
• Structure often depends on size of
the venture and degree of mission
alignment

12. Alternate Legal Structures - L3C, Benefit
Corporation and B Corporation
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Attribute L3C Benefit Corporation B Corporation
Legal Form
Legal corporate structure Legal corporate
structure
Certification with no
legal standing
Description
State-regulated for- profit
LLC with primary social
goal and secondary
financial goal
State-regulated for-
profit corporation
required to create
material positive impact
Third party (B Lab)
certification of meeting
social performance,
accountability, and
transparency
Benefits
Simplifies Program
Related Investment
compliance, encouraging
foundation funding
Higher standards of
accountability and
transparency; primarily
signaling benefit
Seal of approval;
likeminded community;
discounted services
(e.g., Salesforce)
Additional
Information
Currently, 850 L3Cs Legislation passed in 18
states, pending in 10
states.
Currently, 778 B
Corporations
Tax
Taxed as LLC Election to be taxed as
C or S Corporation
No tax implications

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“Whether or not organizations succeed in creating community
wealth depends on their ability to think in new ways about
assets they may have previously taken for granted or not
initially recognized as such. …It all begins by believing and
understanding that you are worth more than you think.”
- Bill Shore, Chairman, Community Wealth Partners
& Author, The Cathedral Within