Social enterprise is the future of non-profit organizations

I spent today with social enterprise on the brain. In a class that’s part of my non-profit management program at Duke University, David Rendall, a Mt. Olive College business professor and author of some very cool books, proposed social enterprise as the future of non-profit funding.

As of 2006, there were nearly 1 million 501(c)(3) organizations in the US — a nearly 70% increase from the 536,000 there were ten years earlier — and I’ve heard that number currently grows at a rate of 1,000 per month. As the number of non-profits grows, inefficiency within our field goes up while the pool of available donors shrinks. Competition will be high for donations, and only well-oiled organizations will be able to thrive in the super-saturated market.

Given the conditions of the market for non-profits, how can non-profits protect themselves for the future? One way to look at becoming a social enterprise: a non-profit organization that generates earned income to support its social purpose. Earned income is revenue that’s received in exchange for products or services

Here are some notes from David’s class:

Organizations should combine service with business. A great example is TROSA, an organization in Durham, NC, that provides residential rehabilitation to recovering substance abusers. TROSA gives their program participants jobs in several businesses, including landscaping, framing, moving, and event logistics. The men in the program get job experience and structure to continue their rehab, and the organization gets much-needed funding from their enterprises across the state. In fact, my home-owners association contracts with TROSA to do our yard work.

Social enterprise should participate in the Experience Economy. More and more, consumers are paying top dollar to have unique experiences. It’s why Wilco broke new ground — ignoring the naysayers — by providing albums for free to generate million-dollar interest in their tours. It’s why people from all over the Mid-Atlantic region flock to Durham for the World Beer Festival and why people go to the symphony. They want non-replicable experiences. Non-profits should consider eco-tourism, travel, direct service opportunities, and experiential events as new fundraising mechanisms.

Don’t take on business models that have been rejected by the private sector. In the age of eBay, we don’t need another thrift store. Goodwill still manages to make it work very well (while linking it to their direct service to the public), but unless you have the capacity to launch a national chain, you should leave it alone.

Consider other audiences for our organization. Too often, groups dismiss social enterprise because the people they serve can’t afford to pay. Don’t concentrate solely on your service constituency, but think about businesses and individuals who are willing to pay for what you give. For example, one of my classmates today runs a violence alternative training program for prisoners and at-risk youth. They could slightly modify their program and teach conflict resolution and alternative dispute resolution techniques to corporations. The corporate training and consulting could completely fund their prison and school programs.

And finally, don’t start a non-profit, start a social enterprise that can make money and then fund charitable pursuits. Starting a business is far, far easier than starting a non-profit. All of the forms, legal information, reporting, and liability with a non-profit added to the super-saturated market for non-profits is reason enough to concentrate on social enterprise.

David’s class was by far the best I’ve had in the Duke non-profit program, and he’s an excellent thinker on leadership and how we can expand the non-profit sector. Check out David’s blog to learn more about his teaching, speaking, and international consulting and stay tuned for more info on him. I think he and I will be sharing a lot of ideas in the future.

April 30, 2008 | Filed Under Non-Profits

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Four tips for twenty-somethings to navigate the generation gap at work

Carter DuryeaI ran across this Chronicle of Philanthropy article, which discusses generation gap challenges in the non-profit workplace. As someone who has been the youngest person in every organization I’ve worked with, I can fully understand the challenges of balancing that gap.

The article reminded me of In Good Company, a 2004 film in which Topher Grace plays Carter Duryea, a naive, know-it-all twenty-something who flails in a job managing people twice his age.

In Good Company is one of my favorite movies (well worth renting or buying), and if you pay attention to the things Carter did wrong, you can learn some great lessons on how twenty-somethings can effectively handle being the NKOTB (New Kid on the Block) and use it to advance one’s career:

Enter with humility. From day one, be respectful and mannerable to all employees, no matter their rank or age and go out of your way to be nice to people. I carve time out of my day to have a conversation with each of my coworkers, and everyone in the office hears my Southern “How yall doing?” spoken to everyone I pass in our building. This shatters the stereotype of the young know-it-all punk and sets the tone for open conversation and friendships.

Build relationships with the veterans. When I took my first political job, I befriended the woman whose office was next door. She was the longest-serving employee, having served at least 7 years more than both the CEO and CFO, and had the largest state-wide network of anyone there. She not only gave me great insight into the business, but she also became my mentor, giving me valuable career and personal advice, standing up for me when a bully attacked, and giving me references. Although I moved on from that job, she and I still keep in touch.

Seek institutional knowledge. Ask the people who have been at your organization for a while to give you context on the organization’s history and current problems. Not only will you better understand the issues facing the organization, you’ll almost always learn some lessons and potential pitfalls you wouldn’t otherwise see. Plus, it helps with relationship building.

Be helpful outside of your job responsibilities. You can easily win friends and influence your older coworkers by being of service to them. At one job, the staff was responsible for taking the trash outside to the curb three times a week, and I volunteered to lead trash duty each week. At my current job, one other coworker (who is 25 and really cool) and I have helped teach MS Excel and Publisher to veterans without much computer experience. It continues relationship building and developing an office brand of being helpful and a team player.

These tips have helped me navigate the generation gap in my career, and I hope it can help someone avoid making Carter Duryea’s mistakes.

April 9, 2008 | Filed Under Blog, Career, Education

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Build your fundraising credentials through professional development

One of the most frustrating parts about a career in development is that there is no set path into the field. Most of the people I encounter come from seemingly random backgrounds and degree paths and connected to fundraising during parts of their careers. My mentors in development have been journalists, pharmacists, and even sociologists before becoming fundraisers, and I got into the field after a degree in history — North Carolina history, to be exact.

So how can someone get training in fundraising or make themselves marketable to development employers? The key is professional development.

There are many part-time or seminar-based programs in fundraising that not only give you great skills but can enhance your resume significantly. If you’re looking to break into the field, or if you’re a non-profit professional, you should check out these programs:

Duke University Certificate in Non-Profit Management: I’m partial to this program because I’m in it, but it offers workshop courses all over NC on all aspects of non-profits, but with the option to concentrate on fundraising courses. Most of the workshops last one day at a time — so you can take a day off or ask your employer for a professional day — and it’s quite affordable. More important, it’s taught by NC fundraising consultants and professionals, and gives a lot of options for networking.

The Fundraising School at IUPUI: The premiere place for development training, the Indiana University-Perdue University Indianapolis offers an excellent training program on all aspects of fundraising. It’s a bit expensive, but it’s definitely worth looking into if you can afford it. My boss is pursuing training there.

Association of Fundraising Professionals: The “trade organization” for fundraisers is an excellent place to get great training. Their website lists a host of information, including job listings, that is free, but membership gets you access their listserv (which is invaluable) and great trainings that are free to members or reduced in price. The biggest perk is that there are local chapters nation-wide, cutting down your travel that could be a problem for the other two programs.

There are also affordable programs in the political fundraising arena. Even if you aren’t interested in working in politics, the lessons of political fundraising can help you immensely in the non-profit world.

EMILY’s List has quite possibly the best political fundraising training there is. The organization specializes in getting Democratic, pro-choice women elected to office up and down the ballot, but their training is open to all genders. They take the show on the road, so check and see if they’re near you.

Camp Wellstone is the best thing I did during my career in politics. The training teaches people how to run campaigns like Sen. Paul Wellstone, UNC alum and all-around great guy who was tragically killed in a plane crash. The fundraising portion of the program is phenomenal, and they travel more than EMILY’s list does. They’re all over the US and on college campuses.

March 18, 2008 | Filed Under Blog, Career, Education, Fundraising

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