generating new sources of revenue a guide to nonprofit enterprise

© Copyright 2006 David Rendall All Rights Reserved

Generating New Sources of

RevenueA Guide to Nonprofit Enterprise


• 10 years experience in social enterprises

• Founder/Director of SERVE

Enterprises• Doctor of Management degree• Social enterprise research• Assistant Professor of Business• Founder/Principal of Rendall &

Associates

Introduction


1. Definition2. Driving Forces3. Benefits4. Risks5. Myths6. Practical Strategies 7. Success Factors8. Next Steps

Overview


A social enterprise is a

nonprofit organization

that generates earned income

to support its social purpose

1. Definition


Earned income is revenue

that is received in

exchange for products or services

does NOT include

grants or donations

1. Definition


[---------------------|---------------------]

Nonprofit BusinessSocialEnterprise

Purpose ProfitPurpose& Profit

Enterprise Continuum


CookiesGrowing Girls

Thrift Stores

Employment EducationPublishing

LicensingChildren’s TV

Examples


• decreased government funding

• stagnant individual giving• restricted corporate donations

• new social problems• more nonprofits • increased competition• public scandals

2. Driving Forces


• increased income• greater social impact• improved sustainability• financial independence• enlarged organizational capacity

• increased visibility

3. Benefits


• loss of social purpose• reduced donations• financial losses• internal/external conflict

• negative publicity

4. Risks


• nonprofit = no profit

• loss of tax exemption

• reliance on donations

5. Myths


• fees for services• licensing• related business

enterprises• consulting• strategic alliances

6. Practical Strategies


ZOOP!

http://www.denverzoo.org/index.htm


7. Success Factors

• business planning• leadership• mission-related

enterprise• financing


• educate board members & staff• clarify mission• refine & research ideas• develop business plan• explore social enterprise

resources• attend social enterprise

conference• join social enterprise alliance• sign-up for npEnterprise listserv

8. Next Steps


Rendall &

AssociatesDavid Rendall

(919) 222-6295

[email protected]

www.drendall.com

generating new sources of revenue a guide to nonprofit enterprise

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