The npEnterprise Forum
Where Nonprofits Discuss Earned Income

NESsT News, Issue 6 (March - May 2003).  Available here by permission from the Nonprofit Enterprise and Self-sustainability Team (www.NESsT.org).  Includes articles about venture capital, venture philanthropy, and social enterprise, all with an international perspective.  Read about the Slavok Venture Capital Association and about social enterprise in the Ukraine.  Adobe pdf file.  [Posted July 28, 2003 by Rolfe Larson.]

Charities Venture Into Business, from the May 15 issue of the Chronicle of Philanthropy. The article profiles the Yale Business Plan Competition "winners." It also describes the principles underlying business plan competitions and the benefits (and risks) of earned income development.  [Posted June 10, 2003 by Rolfe Larson]

Read some interesting “Letters to the Editor” at the Philanthropy Journal:

Social enterprise not enough  Nonprofits must find ways to win more grants, push for public funding.  Social enterprise takes root  Vision, determination can help nonprofits serve their market.  Nonprofits are not businesses  Solving social ills depends on giving nonprofits the tax revenue they need.

Or get a copy of Unlocking Profit Potential: Your Organization's Guide to Social Entrepreneurship from The BoardSource.  (Charity Channel review) “This booklet is a very good short introduction to the basic ideas of Social Entrepreneurship. It is just the document to put in the hands of busy Board Members who need to understand the issues before they let their carefully nurtured nonprofit enter the scary world of ‘real’ business.”   [Posted May 27, 2003 by Andy Horsnell]

NESsT, the Nonprofit Enterprise Self-sustainability Team, offers publications on nonprofit sustainability, including Get Ready, Get Set: Starting Down the Road to Self-Financing. NESsT's web site and books are available in Spanish and English.  [Posted May 15, 2003 by Rolfe Larson]

Measurement, Why Bother?" is the title of a recent newsletter article by Melanda Tuan, managing director of the Roberts Enterprise Development Fund. She points out that there are things that nonprofits can and should measure, to evaluate progress in accomplishing their missions and in achieving the full potential of their social enterprises. Visit: www.redf.org/pub_newsletter.htm. [Posted 3/19/03 by Rolfe Larson.]

Dennis Young, the CEO of the National Center on Nonprofit Enterprise, writes about earned income in the most recent NCNE newsletter. He suggests that managers should not look at earned income as a separate source of income, but rather look at the "constellation" of financial alternatives available to nonprofits and the interrelationships between these sources. Complete article at: http://www.nationalcne.org/ (click on ‘Newsletter’, then 'March 2003', then ‘Editorial’). [Posted 4/2/03 by Andy Horsnell]

New Strategies for Nonprofits
Listen to a "Smart City" interview on WKNO (NPR affiliate) with Sharon Oster, Faculty Director of The Yale Partnership on Nonprofit Ventures, Professor J. Gregory Dees, Faculty Director for the Center for the Advancement of Social Entrepreneurship at Duke University's Fuqua School of Business, and Adrian Pancucci, a consultant to a number of London-based organizations serving people with limited incomes. http://www.smartcityradio.com/smartcityradio/past_shows.cfm  [Posted 4/2/03 by Andy Horsnell.]

"Earned Income Strategies are Coming of Age" edited by Paul Clolery for The NonProfit Times (www.nptimes.com). Reviews a roundtable discussion on social enterprise, from the 2002 National Gathering for Social Entrepreneurs in Minneapolis. http://www.nptimes.com/fme/feb03/fme_2.html [Posted 3/5/03 by Andy Horsnell.]

The Canadian Society of Association Executives (CSAE) has recently published a monograph written by John Pepin. It is a guide to creative revenue diversification, including commercial ventures and venture philanthropy. If interested, the monograph can be purchased for $20CDN (about $13US) at http://www.csae.com/client/csae/payflow.nsf/web/1325!OpenDocument (volume pricing and member discounts are available). [Posted 4/1/03 by Warren Tranquada]

From Ben Murphy <Bmurphy@cfcrochester.org>
Couple of links worth looking into... Could probably cobble together a "101 Document" from this info.

• http://en.wikipedia.org/wiki/Social_enterprise

• http://www.skollfoundation.org/aboutsocialentrepreneurship/index.asp

• http://www.se-alliance.org/resources_defined.cfm

From Jina Paik <jinapaik@yahoo.com>
I'm not sure what else is out there, but here are three sources that I've read recently that I think are pretty good overviews.  Two are available online, and they're good, but the one that's not online is also very good -- I recommend seeking it out, if possible. 

• Alter, Kim (2004).  Social Enterprise Typology. http://www.virtueventures.com/setypology/semg.aspx

• Massarsky, Cynthia W. and Beinhacker, S.L. (2005). Enterprise Strategies for Generating Revenue. The Jossey-Bass Handbook of Nonprofit Leadership and Management.

• Roberts Enterprise Development Fund. (2001). A Nonprofit Guide to Developing and Implementing An Income Stream Venture. http://www.redf.org/publications-other.htm

From Natalia Goldin <ngoldin@olszak.com>
In our social enterprise courses we frequently use the following articles to familiarize the participants with the concept of SE.  Hope this helps.  

• Boschee, Jerr and Jim McClurg (2003).  Toward a Better Understanding of Social Entrepreneurship:  Some Important Distinctions.  Available at http://www.se-alliance.org/better_understanding.pdf

• Brinckerhoff, Peter C. (1994).  Is "Profit" a Dirty Word?  (And Other Questions to Answer Before Your Start a Business).  Nonprofit World 12(1):  18-20.  

• Dees, Gregory (January-February 1998). Enterprising Nonprofits.  Harvard Business Review.  

• Foster, William and Jeffrey Bradach (February 2005).  Should Nonprofits Seek Profits?  Harvard Business Review. 

• Skloot, Edward (January-February 1983).  Should Not-for-Profits Go into Business?  Harvard Business Review.

From Andy Horsnell <andy@rolfelarson.com>
Here are a few great "Social Enterprise 101" resources for your board...  

• Venture Forth! The Essential Guide to Starting a Money-Making Business in Your Nonprofit Organization.  By Rolfe Larson, Fieldstone Alliance, 2002. Chapter 1 (19 pages) can be downloaded for free from http://www.rolfelarson.com

•  The Social Enterprise Spectrum: Philanthropy to Commerce. By J. Gregory Dees, Harvard Business Review, May 1996. Seven pages, $6.50 "With the boundaries between philanthropy and commerce blurring, this note briefly gives nonprofit managers and social entrepreneurs a framework (the Social Enterprise Spectrum) for thinking creatively about structural options in the social sector. Teaching Purpose: To help students understand the economic diversity of the social sector as it ranges from philanthropic to commercial enterprise." http://harvardbusinessonline.hbsp.harvard.edu/b02/en/common/item_detail.jhtml?id\ =396343

• Enterprising Nonprofits: What Do You Do When Traditional Sources of Funding Fall Short? By J. Gregory Dees, Harvard Business Review, January/February 1998, 55-67. 12 pages, $6.50 "Because they face rising costs, more competition for fewer donations and grants, and increased rivalry from for-profit companies entering the social sector, many nonprofit organizations are looking for commercial ways to raise more funds. For example, San Francisco's Delaney Street program for addicts has opened a restaurant staffed by clients, which helps pay the bills while providing on-the-job training. There are many such opportunities but also many pitfalls in this approach. Professor J. Gregory Dees of the Harvard Business School offers a framework to help nonprofit leaders figure out when commercial activities will or will not work." http://harvardbusinessonline.hbsp.harvard.edu/b02/en/common/item_detail.jhtml?id\ =98105

• Nonprofit Enterprise: Right for You? By Cynthia W.Massarsky and Samantha L.Beinhacker, Nonprofit Quarterly, Volume 9, Issue 3, Fall 2002.  "Nonprofits are encouraged to think and act like businesses, and many are actually exploring ways to generate revenue through nonprofit business ventures. All of this blending of the sectors is sexy and in vogue. But, what does this mean for the typical nonprofit organization trying to do its important work?" 6 pages, free http://www.nonprofitquarterly.org/files/308-40.pdf

• Unlocking Profit Potential: Your Organization's Guide to Social Entrepreneurship By the Board Source (formerly the National Center for Nonprofit Boards). 64 pages, $50.00 http://www.boardsource.org/ViewBookstoreItem.asp?ID=98

From Tom White <tom@sereporter.com>
I'd recommend the following basic texts:  

• The Nonprofit Entrepreneur: Creating Ventures to Earn Income Edited by Edward Skloot http://fdncenter.org/getstarted/onlinebooks/skloot/summary.html THE classic introduction to SE.  Somewhat outdated, but still a good intro.

• Unlocking Profit Potential: Your Organization's Guide to Social Entrepreneurship by BoardSource and Community Wealth Ventures http://www.boardsource.org/ViewBookStoreItem.asp?ID=98&Qty=1 Specifically for Board Members.

• Managing the Double Bottom Line: a Business Planning Guide for Social Enterprises, by Sutia Kim Alter Reference Guide and Workbook available from the Social Enterprise Reporter by e-mailing <mailto:bookstore@sereporter.com>bookstore@sereporter.com

• Social Enterprise: The Three P's: Philosophy, Process and Practicalities by Shelley Williams A new book from a Canadian perspective, reviewed in the Social Enterprise Reporter at http://www.sereporter.com/article.php?a=232

• Links to other in-depth social enterprise texts and resources can be found at http://SEReporter.com/resources.php

From Anna Raksany [araksany@nesst.org]
I saw your message about your search for a "social enterprise for dummies." I work for the Nonprofit Enterprise and Self-sustainability Team (NESsT) and we specialize in social enterprise. Perhaps our publication Profits for Nonprofits would be useful to share with your board, it examines the practical challenges and obstacles in implementing self-financing. Another book that analyzes the basics of social enterprise is Risky Business: The Impacts of Merging Mission and Market examines the financial and non-financial impacts of social enterprise on nonprofits. Hopefully one of these books could help show the legitimacy of social enterprise to your board.   You can read more about the books here http://www.nesst.org/furthering_publication_learning.asp I could definitely offer you a discount as a nonprofit.