Keys to Successful Social Enterprise

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Keys to Successful Social Enterprise
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The ongoing financial challenges for nonprofit
organizations

• Over dependence on government and foundation
  grants leads to a crisis in a bad economy.
• Sustainability of key programs is vulnerable and
  dependent on the whims of public or foundation
  funding.
• Increased competition for and dependence on
  individual donor funds demands more resources,
  leaving less for programs.
• The need for unrestricted income use where you
  need it.

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What is earned income?

• Fees for service provided
• Revenue from direct product sales
• Payment for services purchased
• Course fees/tuition, reimbursements, vouchers
• Consulting contracts, honorariums
• Royalties from books, tapes, CDs, software
  packages, training aids
• Subscriptions to newsletters and journals
• Rent or leases from equipment or buildings

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The Excitement of Entrepreneurship

• Desire for control over the future and
  sustainability.
• Diversification of revenues.
• An idea that is a match to, or furthers, the
  mission of the organization.
• Between 1982 and 2002, earned revenue as a of
  total nonprofit revenue jumped from 48 to 58
• Fund for Philanthropy Education, Boston

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The Ideal Earned Income Venture

• Related to the mission
• Feasible realistic
• Responding to a genuine need in the market
• Builds on strengths assets core competencies
• Energizes Board members, senior managers, staff
  and stakeholders
• Makes enough money to achieve realistic financial
  goals

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Getting Started

• Board discussion
• Start Social Enterprise Task Force or Committee
• Identify assets, core competencies, capabilities
  and constituencies
• Evaluate existing earned income strategies and
  determine if opportunity exists to grow revenue
• Hold idea brainstorming session
• Narrow down ideas feasibility testing
• Consider joining Social Enterprise Institute

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BRAINSTORMING PYRAMID
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How do we get started?
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Sometimes Social Enterprise is an Uphill Battle
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