afp westchester npd 2013 the new intersection between fundraising and social enterprise - evan...
DESCRIPTION
Adam Gaynor - Plan A Advisors Evan Kingsley - Plan A Advisors David J. Cappiello - Ability Beyond Social enterprise is more than a buzzword in the socially responsible for-profit world, and the forward-thinking nonprofit world. Social enterprise is a new way of doing business, applying principles from the for-profit world to problems addressed by the nonprofit world, producing what is commonly called a “double bottom line.” This information session and discussion will give participants an introduction to social enterprise and help define the double bottom line concept – financial return and social benefit. Panelists will provide examples of social enterprises and help participants understand how the concept can apply across a range of nonprofit organizations’ initiatives. Perhaps most important, development professionals will understand the ways that traditional approaches to fundraising can be adapted to the demands of a social enterprise environment. For example, the need for seed monies (start-up capital) is most often satisfied by philanthropic investment from individuals and foundations, but a fundraising pitch must take the form of a business prospectus, which differs somewhat from a traditional case statement. Thus, participants will take part in an exercise on developing and refining a pitch for a social enterprise. LEARNING OBJECTIVES/TAKEAWAYS: Participants will develop an understanding of the concept of social enterprise and the impact investing landscape; an understanding of the ways that traditional approaches to fundraising can be adapted to the demands of a social enterprise environment; and working through real examples, develop strategies for approaching an idea, and assessing the risks, and developing a financial model.TRANSCRIPT
The New Intersection Between Fundraising and Social EnterpriseAFP- NY Westchester Chapter, National Philanthropy DayNovember 7, 2013
THE NEW INTERSECTION BETWEEN FUNDRAISING AND SOCIAL ENTERPRISE 2
The Joys of Fundraising
THE NEW INTERSECTION BETWEEN FUNDRAISING AND SOCIAL ENTERPRISE 3
What Do We Mean When We Say “Social Enterprise”
Businesses whose primary purpose is the common good.
Organizations that pursue a social or environmental mission using business methods.
A tool to increase mission impact and revenue.
A for-profit business operated by a nonprofit; net profits fund the nonprofit.
Goal: earned income supplements philanthropy; dramatically higher ROI.
THE NEW INTERSECTION BETWEEN FUNDRAISING AND SOCIAL ENTERPRISE 4
Pursuing “Impact Capital”
1. Do your homework: business plan, market research, customer-base/service population
2. Treat the fundraising effort like a mini-capital campaign◦ Engage the board and key volunteers
3. Write a fundraising plan◦ Cultivation and solicitation◦ Tiered structure of “returns”◦ Set funding benchmarks
4. Build the prospect list
5. Develop the pitch piece◦ Balance facts and emotion
6. Dedicate staff to the fundraising effort
7. Periodic reports on your progress
Types of start-up funding: Self-funded Grants and gifts PRIs --------- Loans Social impact bonds (SIBs) Social impact investments
THE NEW INTERSECTION BETWEEN FUNDRAISING AND SOCIAL ENTERPRISE 5
Who to Engage and How?
Source Action
Board • Select members participate in business planning• Serve as early investors; help raise capital• Open doors to potential prospects
Development team • Create the fundraising plan• Manage prospects and donors/investors• Participate in funding requests
Program team • Participate in business planning• Identify prospects
Close Donors • Serve as advisors to the business plan• Early investors
Priority Prospects • Test idea• Cultivate for support once early funding is secured
Institutions (foundations, corporations)
• Test idea• Early investors• Long-term sponsors (corporate)
Government • Early seed funding
THE NEW INTERSECTION BETWEEN FUNDRAISING AND SOCIAL ENTERPRISE 6
Benchmarks and Warning Signs
Recognize that many social enterprises are never self-sustainable on earned income
Aim for positive net income within three years
Marketing and sales are the key to success
Fundraising is a team effort