Loading ...
Sorry, an error occurred while loading the content.

1-Minute Tuneup

Expand Messages
  • Rolfe Larson
    Good Morning! The 1-Minute Tuneup is a regular feature of the npEnterprise Forum.  Its purpose is to offer you a quick shot of useful information for your
    Message 1 of 68 , Oct 1, 2003
    • 0 Attachment

      Good Morning!

      The "1-Minute Tuneup" is a regular feature of the npEnterprise Forum.  Its purpose is to offer you a quick shot of useful information for your nonprofit enterprise work.  It's written by Rolfe Larson and Andy Horsnell.  We welcome your input and suggestions. 

      News and Events

      Check out Social Edge's current online event, What Does It Take to Be a Social Entrepreneur?  Most of the discussion addresses opportunities for socially-motivated "innovation," in all sectors, which is much broader than the earned income focus of this Forum.  Yet many of the insights and perspectives offered are interesting, and some are downright inspirational. The live event runs until October 5. www.socialedge.org

      Notable Quotables

      Statistics - "On average, survey respondents currently operating ventures say that their enterprises generate 12% of annual net revenue."  Source: Massarsky & Beinhacker, www.nonprofitquarterly.org/section/343.html  "For 501(c)3 nonprofits, earned income accounts for 64% of nonprofit revenues, or $486 billion."  Source: Michael O'Neill's book Nonprofit Nation Posted by David Rendall 9/19/03.

      Definitions - Earned income:
      "The quid pro quo exchange of a product or service for monetary value.... includes such elements as tuition, membership dues (when dues purchase tangible benefits), sale of intellectual property, rental or consulting fees, and commercial services." Earned Income Strategies:  "Attempts to capitalize on the earned income potential of a program or other organizational asset in order to cover more of the program's costs or to offset a portion of the organization's overall expenses."   Social Enterprise:  "Any earned income business or strategy undertaken by a nonprofit for the dual purpose of generating revenue and achieving the nonprofit's stated social mission." Sustainability: "The ability of a nonprofit to pursue its mission indefinitely through a combination of earned income, charitable contributions and public sector subsidies."  Self-sufficiency: "The ability of a nonprofit to pursue its mission indefinitely through earned income alone without relying in whole or in part on charitable contributions or public sector subsidies."  Posted by Jim McClurg 9/18/03

      Suggested Reading

      The most comprehensive, overall textbook on nonprofit marketing is Andreasen & Kotler's Strategic Marketing for Nonprofit Organizations, 6th edition (2003).  It's thorough coverage of just about everything under the sun regarding nonprofit marketing strategies makes it a useful  reference manual.  (Caveat: it can be dense at times.) Copies are often available for ~$50 at amazon.com and half.com

      Did You Know…

      You can access a searchable database of npEnterprise archives, just by getting a Yahoo ID (free at www.yahoo.com) and "associate" your Yahoo ID to your npEnterprise subscription.  Email us if you have any problems doing this. 

      Your Turn...

      Do you know of a useful tool, a book or magazine article, or an upcoming event that you'd like to share with other members?  Let the group know by emailing your idea to npEnterprise@yahoogroups.com

      From the moderators of the npEnterprise Forum:

      Rolfe Larson, Rolfe Larson Associates (RolfeL@...) and
      Andy Horsnell, Authenticity Consulting LLC (andy@...)




    • Rolfe Larson
      GOOD MORNING! The 1-Minute Tuneup is a regular feature of the npEnterprise Forum, the official listserv of the Social Enterprise Alliance. SEA is supported by
      Message 68 of 68 , Nov 10, 2004
      • 0 Attachment
        GOOD MORNING!

        The 1-Minute Tuneup is a regular feature of the npEnterprise Forum, the
        official listserv of the Social Enterprise Alliance. SEA is supported by
        contributions from members like you. Support the social enterprise movement
        by becoming a member at http://www.se-alliance.org/membership.cfm

        SPREAD THE WORD

        Want to let a friend or colleague know about the npEnterprise Forum? Send
        them to our web site: www.npEnterprise.net

        STAND UP AND BE COUNTED

        If you are connected to an existing social enterprise, please take this
        survey to help the Social Enterprise Alliance explore the topic of market
        research, specifically whether or not any was performed prior to starting a
        social enterprise. Go to: http://www.surveymonkey.com/s.asp?u=33291700452
        The results will be shared via this listserv.

        NOTABLE QUOTABLES

        (1) Re: Toronto Enterprise Fund -- Posted November 29 by Janet Murray
        (ekonomos@...)

        Since its inception in 2000, the Toronto Enterprise Fund has supported the
        development of 15 social purpose enterprises working with homeless and
        low-income people. TEF has also invested in research and evaluation to
        document and disseminate our learning about effective practices in
        developing enterprises and to assess what happens to the low-income people
        who are involved in those enterprises.

        We've been following the recent conversation thread that discussed the
        evaluation of social returns in this work. Over the past five years we've
        been using an asset-based Sustainable Livelihoods framework to explore five
        critical dimensions of results. We've had a great deal of success using
        participatory and collaborative research methods to document outcomes
        (particularly the harder to measure qualitative indicators).

        The Business of Inclusion explores both sides of the double bottom line.
        Some papers look at the business side of the equation, supporting
        feasibility assessment and business planning, but it is the papers that look
        at the social side of the equation that we think provided the most
        significant learning. [More info at http://www.torontoenterprisefund.ca/%5d

        (2) Re: Valuation of Knowledge Assets -- Posted November 1 by Warren
        Tranquada

        Valuation of knowledge assets is a tricky business. The true "bottom line"
        is that an asset is worth "what someone is willing to pay for it". That
        being said, benchmarks are a good place to start in thinking about what you
        might want to ask of a buyer. There are four approaches that we have used in
        similar situations. Generally, we try to do as many of these as are
        applicable and use the range of values to guide negotiation:

        A) If there is a revenue / profit stream attached to the asset (such as a
        earned income business), then there are pretty standard methods for valuing
        cash flow that can be found in any finance text book. This is standard
        business valuation.
        B) Think of the opportunity cost of what it would take to recreate the
        knowledge asset if the buyer just replicated the work instead of purchasing
        it (including the value of lost time)
        C) Think of the opportunity cost of doing something different that
        accomplishes the same social / financial result
        D) Look at the price of other assets or situations that are similar in
        nature

        I think B and C are of particular value for a non-profit to non-profit sale.
        A is the gold standard for a non-profit to for-profit sale. It is generally
        a good idea to have a third party do this analysis.

        (3) Re: Legal Structure for an Enterprise -- Posted November 2 by Allen
        Bromberger (abromber@...)

        You can see a basic description and comparison of different types of
        corporate entities at http://www.allbusiness.com/articles/content/9932.asp.
        It's a basic overview, and a good place to start depending on your level of
        knowledge. Generally, there are two primary considerations when choosing a
        corporate structure in a situation such as yours: limiting liability and
        avoiding unnecessary taxation. Flexibility of decision-making and governance
        and minimizing the burdens of management and compliance are also important.
        I know it sounds trite, but every situation really is different, depending
        on the type of business and charitable activities you plan to conduct and
        their degree of relatedness, the capital structure of the enterprise and the
        expectations of investors, how funds will flow between the two
        organizations, the levels of risk involved, etc. So there is no "right" or
        "wrong" way to structure the enterprise. It is more a matter of making
        trade-offs between the advantages and disadvantages of each form of entity
        and devising a combination that fits your needs. Experience is very helpful
        in this regard, because there are many subtleties, and just knowing the
        right questions to ask makes a big difference in getting a result that will
        allow you to go forward in the way that you want.

        POSTING MESSAGES

        Any subscriber can email a message to the npEnterprise Forum. Just send it
        to npEnterprise@yahoogroups.com, or click "reply" to an existing message,
        editing the subject to fit your subject. Please send your message as
        "plaintext," without attachments. Be sure to include your name and
        organizational affiliation. If you want to send a message DIRECTLY to the
        author of a posting, be sure to cut and paste his/her email address into the
        "to" portion of your email.

        Also, if you wish to get at most one email per day from npE, you can choose
        to receive the daily digest. That can be done by going to
        www.yahoogroups.com and signing in under your yahoo id (if you have
        one),then click on npEnterprise and finally Edit My Membership. Or you can
        just ask us to do it for you - our email addresses are listed below.

        The moderators reserve the right to select messages for distribution to the
        list, to combine messages, and to publish distributed messages (with proper
        attribution) in other venues.

        Thanks! From the moderators of the npEnterprise Forum:

        Rolfe Larson, Rolfe Larson Associates (Rolfe@...) and
        Andy Horsnell, Authenticity Consulting LLC (andy@...
      Your message has been successfully submitted and would be delivered to recipients shortly.