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Commercial Sustainability

Converting from Non-profit to For-profit Status
Social Edge, February 9, 2007

Should you consider changing your organization's status from non-profit to for-profit? Patrick O'Heffernan lays out the five key questions to ask before you make the decision.

>> More Details  |  created on: 02/09/2007


Nonprofit Enterprise and Self-Sustainability Team (NESsT) Publications
NESsT, 2006

From NESst website “Designed to further the theory and practice of social enterprise by providing useful analyses and tools to donors, practitioners, researchers and students. The SET documents experiences from around the world and examines the recurring challenges organizations face when attempting to develop social enterprise. The series also provides CSO practitioners the necessary tools to determine how or whether to implement social enterprise strategies.”

>> More Details  |  created on: 02/21/2006


Nonprofit World Magazine
Nonprofit World Magazine, 2006

A bi-monthly magazine focused on nonprofit leadership, management, and governance. It has several articles about earned income activities, mainly under “Entrepreneurial Spirit” section. Subscription is required but some are free.

>> More Details  |  created on: 02/21/2006


The Process of Social Entreprenurship: Creating Opportunities Worthy of Serious Pursuit
By Aysey Guclu & J. Gregory Dees and Beth Battle Anderson, Center for the Advancement of Social Entrepreneurship, November, 2005

From CASE website “All acts of entrepreneurship start with the vision of an attractive opportunity. For social entrepreneurs, an "attractive" opportunity is one that has sufficient potential for positive social impact to justify the investment of time, energy, and money required to pursue it seriously. This note provides a framework to guide social entrepreneurs through the process of creating a worthwhile opportunity. It is designed to help increase the chances of success for anyone contemplating the journey of social entrepreneurship, and it may also be helpful for those considering investing in new social ventures.”

>> More Details  |  created on: 02/21/2006


Should Nonprofits Seek Profits
By William Foster & Jeffrey Bradach, Harvard Business Review, February, 2005

Analyzes the experiences with earned-income ventures of nonprofits in United States. Argues that, contrary to the general perception and excluding nonprofits in education, healthcare and arts, such as universities, hospitals and theater groups, the increasing number of business ventures launched by nonprofits represent only a small share of their funding and financial success is an exception not a rule. In addition, explains several nonprofits’ characteristics that reduce their chances of running business ventures with financial success, and highlights the risks of compromising the organization mission.

>> More Details  |  created on: 06/13/2006


Population Services International
Population Services International, 2005

According to PSI’s website, “PSI is a non-profit organization that harnesses the viability of the private, commercial sector to address health problems, with programs in safe water, malaria, micronutrients, family planning and HIV/AIDS in more than 70 countries. PSI collaborates with some of the world’s largest corporations to implement workplace health programs. For example, Coca-Cola transports condoms in South Africa. ChevronTexaco, ExxonMobile, Esso, BP, Marathon Oil Company, and Pfizer have been instrumental in increasing HIV/AIDS awareness.”

>> More Details  |  created on: 02/22/2006


International Center for Not-For-Profit Law
ICNL, 2005

The ICNL’s mission states: “The International Center for Not-For-Profit Law is an international not-for-profit organization that promotes an enabling legal environment for civil society, freedom of association, and public participation around the world.” They work in the areas of: Legal Framework for Civil Society, Civil Society Sustainability, Good Governance & Accountability, Public-Private Partnerships, Self-Regulation, Public Participation & Advocacy, Educational Initiatives, and The ICNL Knowledge Center. Their online library is free but requires registration.

>> More Details  |  created on: 02/23/2006


NESsT's Legal Advocacy Working Group
NESsT, 2005

The Legal Advocacy Working (LAW) Group is the result of NESsT's increasing interest in securing enabling environments for NGO income generation. The LAW Group has published a series of country social enterprise legal briefs, including Czech Republic, Hungary, Romania, Slovakia, Chile, Colombia, and soon Croatia.

>> More Details  |  created on: 02/22/2006


Arias Foundation for Peace and Human Progress
Center for Organized Participation, 2005

The Arias Foundation was created by former Costa Rican president and Nobel Peace Prize winner Oscar Arias. The Foundation’s Law and Civil Society Program began in 1993, when it produced case studies of the legal environment for NGOs in each Central American country. Next, the foundation began to advocate for a positive enabling environment for NGOs through public awareness campaigns. They are currently working to implement draft laws written by the country working groups in five Central American countries.

>> More Details  |  created on: 02/23/2006


Columbia Law School Public Interest Law Initiative
Columbia Law School, 2005 (Subscription Required)

PILI’s mission is to “advance human rights principles by stimulating the development of a public interest law infrastructure,” with a particular focus on Central and Eastern Europe. The organization has published numerous country reports in the region assessing the public interest legal climate in the country. Their NGO Advocacy Training program trains lawyers affiliated with NGOs in workshops designed to help them hone their public interest advocacy skills.

>> More Details  |  created on: 02/22/2006


Partnership on Nonprofit Ventures - Yale School of Management
The Goldman Sachs Foundation, 2005

Provides an interesting bibliography under Resource Center – Public/Private Partnerships.

>> More Details  |  created on: 02/21/2006


Helping Nonprofits Do Business
By Heinz-Peter Elstrodt & Anamaria Schindler and Andrea C. Waslander., The McKinsey Quarterly, Web exclusive, December, 2004

Highlights the importance of conducting business plan competitions for nonprofits in emerging markets. Describes the experiences of the Social Entrepreneur Award and its key factors of success. 1 Provides free access to some articles, but previous registration is required.

>> More Details  |  created on: 02/20/2006


The Pitfalls of Profits
By Burton A. Weisbrod, Stanford Social Innovation Review, December, 2004 (Subscription required)

Argues that nonprofits should avoid commercial activities given the legal, and reputational risks involved as well as the possibility of distracting from their social goals. The author supports this argument with examples in United States, and recommends a more favorable tax incentive environment to encourage more donations.

>> More Details  |  created on: 02/21/2006


Business Approaches for the Reproductive Health NGO
By Anna Benton, Commercial Market Strategies (CMS) Paper, February, 2004

Addresses the public-private partnerships between the Commercial Market Strategies (CMS) and a number of NGOs working in the reproductive health sector.  CMS provides sustainability assistance to NGOs in 12 countries and holds regional sustainability workshops in Africa, Latin America, and the Arab world, and is considered a leader in private-sector approaches to reproductive health.

>> More Details  |  created on: 02/22/2006


Generating and Sustaining Nonprofit Earned Income. A Guide to Successful Enterprise Strategies
By Sharon Oster & Cynthia Massarsky, Jossey-Bass, 2004

Presents key issues for nonprofits interested in starting business ventures. It is divided in three sections: how to develop a business plan, find an attract capital, and implement the business plan. The fist part of this book starts with a presentation o

>> More Details  |  created on: 01/18/2006


Social Enterprise Typology
By Sutia Kim Alter, Virtue Ventures, 2004

Presents an overview of the place of Social Enterprise in the spectrum of different organizations, from philanthropic to commercial oriented. Proposes different typologies to analyze social enterprises, and key operational aspects that affect the success of these ventures. Finally, it illustrates some models of social enterprise with case studies in Latin America.

>> More Details  |  created on: 02/14/2006


USAID Europe and Asia The NGO Sustainability Index
USAID - Europe and Eurasia, 2004

This index measures the strength and viability of the NGO sector in the region. It includes a legal environment analysis, a financial viability assessment and a general description of NGOs’ commercial activities. It is available for several countries and on the web since 1998.

>> More Details  |  created on: 02/21/2006


Alexandria Small Business Association (ABA)
UNESCO, 2004

UNESCO, the Management of Social Transformation Program -MOST- Clearing House Best Practices.

This database documents the case of ABA, an NGO that provides lending to small and medium enterprises in Egypt, and the methods ABA used to cover its operation costs.

Additional information can be found at The Microfinance Network.

>> More Details  |  created on: 02/21/2006


Powering Social Change - Lessons on Community Wealth Generation for Nonprofit Sustainability
Community Wealth Ventures, 2003

Many of the country’s most innovative nonprofit leaders are transforming their organizations by creating new, unrestricted sources of funding. Through business ventures, cause-related marketing partnerships, and licensing agreements, nonprofits are generating revenue to support their services and grow to scale.

>> More Details  |  created on: 07/06/2006


Sustainable Expansion Strategies, Case Studies of 18 Regional Leaders in Microfinance
Microfinance Center for Central and Eastern Europe and the New Independent States, 2003

Central and Eastern Europe and the Newly Independent States (CEE & the NIS) are the newest frontier in microfinance. While a few microfinance institutions (MFIs) have existed for nearly ten years, the average MFI in the region is three years old. A key di

>> More Details  |  created on: 01/19/2006


The Best of Both Worlds
By David Yanovich, Poder, October, 2002

The concept of venture philanthropy is proving to be one of the most efficient means of financing non-profit organizations.

 


>> More Details  |  created on: 05/31/2006


Case Study: Adriadna and the International Education Center for Youth
By Sutia Kim Alter, In Case Studies in Social Enterprise Counterpart International’s Experience, September, 2002

Case Studies in Social Enterprise: Counterpart International's Experience explains: (1) social enterprise, (2) its importance as a developmental tool in emerging economies around the world, and (3) through four in-depth case studies in Ukraine, highlights

>> More Details  |  created on: 01/23/2006


Case Studies in Social Enterprise: Counterpart International Experience
By Sutia Kim Alter, Counterpart International, Inc, 2002

Documents case studies of four nonprofit business ventures in Ukraine, which were part of the Counterpart Alliance for Partnership Social Enterprise Program. The cases highlight challenges, social impact, business results, and key success factor of these social enterprises.

>> More Details  |  created on: 02/20/2006


Ensuring Impact: Reaching the Poorest While Building Financially Self-Sufficient Institutions, and Showing Improvement in the Lives of the Poorest Families
By Anton Simanowitz & Alice F. Walter. Chapter one, Pathways Out of Poverty. Innovations in Microfinance for the Poorest Families. Kummarian Press, 2002

Explores the trade-offs between reaching the poorest and achieving financial self-sufficiency, and how microfinance institutions can overcome them. Presents case studies of two nonprofit organizations, SHARE and CRECER.

>> More Details  |  created on: 02/20/2006


Strategic Tools for Social Entrepreneurs
By J Gregory Dees & Peter Economy and Jed Emerson, John Wiley and Sons, Inc., 2002

This is a complementary book to “Enterprising Nonprofits: a Toolkit for Social Entrepreneurs.” It covers additional critical issues organized in two topics: (1) value creation and performance, and (2) addressing growth, change and earned income strategies. The first offers insights to identify the service value that an organization can provide, and explanations, practical examples and deep analysis of how to develop a strategic vision, to position the organization’s value, to compete and/or to cooperate with other nonprofits and corporations, to recruit and motivate employees, establish relationships with donors and community, to implement a performance evaluation system. The second topic explores various earned income strategies their risks and challenges, strategic alternatives to scaling up, and how to successfully implement changes in an organization.

>> More Details  |  created on: 06/13/2006


Enterprising Nonprofits: A Toolkit for Social Entrepreneurs
By J. Gregory Dees & Peter Economy, John Wiley & Sons, Inc., 2001

Provides practical tools to help nonprofits to become social enterprises through the adoption of entrepreneurial behaviors and business techniques. Covers important concepts of effective social entrepreneurship such as defining the organization mission.

>> More Details  |  created on: 02/20/2006


The Microcredit Summit’s Challenge: Working Towards Institutional Financial Self-Sufficiency while Maintaining a Commitment to Serving the Poorest Families
By David S. Gibbons & Jennifer Meehan, June, 2000

Studies the cases of CARD, CRECER and FINCA Uganda, microfinance institutions that have reached institutional financial self-sufficiency and also serve large numbers of the poorest households. Identifies lessons in key areas that can be learned from these experiences.

>> More Details  |  created on: 02/21/2006


PRIDE/Finance Linking an African Microfinance Institution to a Formal US Banking Structure
USAID, News Stories. The Virtual library of Microcredit, 2000

Describes the efforts of USAID and the government of Guinea to help PRIDE/Finance to become financially self-sustainable, by implementing performance-based standards and linking the institution to a formal banking system.

>> More Details  |  created on: 02/14/2006


The Evolution of Nongovernmental Organizations Toward Financial Intermediation
By Otero, Maria.Chapter five & Rhyne, Elizabeth (eds)., The New World of Microenterprise Finance: Building Healthy Financial Institutions for the Poor. Part I No.5, 1994

Identifies the characteristics that NGOs should display in order to engage in financial intermediation. This transformation is considered one effective way for NGOs to achieve significant expansions in a sustainable way.

>> More Details  |  created on: 06/13/2006


Enterprising Nonprofits
By Greg Dees, Harvard Business Review, January, 1988

Analyses several options to raise additional funds available to nonprofits in United States. Hightlights its advantages, risks and challenges, in particular in terms of fulfill the organization social mission.

>> More Details  |  created on: 06/13/2006