1. Should We… or Shouldn’t We… Earned Revenue

2. earned revenue, earned income ventures, nonprofit business activity, social ventures, social entrepreneurship, community wealth creation, social purpose business, social enterprise, common good enterprise, mission-driven business, socially-responsible small business, double- bottom line; triple-bottom line, benefit corporation Social Enterprise

3.  “We don’t hire people to grow vegetables. We grow vegetables to hire people.”  —Woody Woodruff, Red Wiggler Farm

4. Types of Social Enterprises Fees for service Manufacturing and product sales Rent and leases Licensing and cause-related marketing activities

5. Examples

6. Keep in Mind It’s ok.  Substantially related  No personal, private benefit  Fair market value  After reasonable expenses, “profit” goes back into the tax exempt  Charity distribution upon dissolution

7. Is it ok to operate a venture unrelated to the nonprofit charitable purpose? Is it okay?

8. Continuum Nonprofit Charity Nonprofit Social Enterprise Hybrids, Combos, New Forms Socially- Responsible Business Business

9. We should…We shouldn’t…

10. Why You Should  Diversifies revenue  Autonomous, predictable revenue  Businesslike discipline  Entrepreneurial habit Why?

11. Why You Should Be Careful  Organizational and cultural fit  Legal and tax issues  Implementation expertise  Not easy money Why Not?

12. Managing Expectations  “For most nonprofits, it is unrealistic to expect that ventures could ever completely replace traditional funding sources. Even the most successful ventures seldom provide more than one-third to one-half of an organization’s annual budget.” Rolfe Larson

13. There are exceptions.

14. Profile of Social Enterprises How does your organization compare?  By budget  By mission  By number of employees  By location

15. So, what could be our business? Assets OrganizationOpportunity

16. What does this community need? That someone (customers) will pay for. Opportunity

17. 1. Extending and monetizing current practice. 2. Starting a business. 3. Cause-related marketing Three Types to Consider

18. Organizational Assets

19. Organizational Capacity

20. Funding  Reserves  Customers  Clients  Funders and donors  Investors  Lenders  Social venture capital  Crowdsourcing platforms  Fellowships  Social venture competitions  Web-based intermediaries

21. Anticipating Impact If this venture succeeds, what might be the impact on  Mission  Organizational capacity  Money  Community  Reputation  And if the venture fails?

22. ChangeMatters @changemtrs @amykincaid  Amy Kincaid  www.changematters.com www.changematters.com  info@changematters.com info@changematters.com