Nonprofit Social Enterprise Conference Recap
At the Fall 2024 Take Five Nonprofit Conference, Cindy Cheatham of Good Advisors spoke to an audience of nonprofit professionals about the ins and outs of social enterprise for nonprofit organizations. This article recaps her session’s highlights, key points, and important takeaways.
Harnessing the Power of Market-Based Strategies for Greater Nonprofit Impact and Sustainability
Social enterprise, a hybrid of nonprofit and for-profit organizations, has emerged as a powerful tool for nonprofits seeking to increase their impact and sustainability. By combining social missions with market-based strategies, social enterprises can generate revenue, diversify income streams, and achieve greater scale.
Understanding Social Enterprise
At its core, social enterprise prioritizes social or environmental problems over profit. These organizations generate income through the marketplace and reinvest a significant portion of their surplus towards their mission. Legal structures and financing are designed to ensure that the organization’s purpose remains central.
The Role of Social Enterprise in Strategic Impact
Social enterprise offers several key benefits for nonprofits. It can provide access to new revenue streams and capital, diversify income sources, introduce marketplace discipline, and improve efficiency. By leveraging these benefits, nonprofits can achieve greater impact and sustainability.
Nonprofit Business Models and Social Enterprise
Nonprofits have distinct business models for funding themselves. Social enterprise can help create more sustainable and scalable business models. Common models include sliding fee, fee for service, employment and skills training, market intermediary, independent support, and cooperative.
“Social enterprise is not just a trend; it’s a powerful tool for nonprofits to achieve lasting impact.”
Key Success Factors for Social Enterprise
Several factors contribute to the success of social enterprises. Strong leadership with entrepreneurial skills and a focus on social good is essential. Solid business planning and marketing skills are also crucial. Additionally, aligned supporters and investors, the ability to navigate risks and adapt to change, and effective partnerships with businesses and other organizations are key factors for success.
Financing Options for Social Enterprise
Social enterprises can explore various financing options. Grants and donations from individuals and foundations remain viable sources of funding. PRI financing, social impact funds, and crowdsourcing are also emerging as attractive options.
Trends in Social Enterprise
The field of social enterprise is evolving rapidly. Key trends include the growth of social enterprise communities and ecosystems, increasing number of incubators and accelerators, new financing models, partnerships between nonprofits and for-profits, and the growing popularity of for-profit social good models.
Success Stories
Numerous social enterprises have demonstrated significant impact. First Step Staffing, a nonprofit employment agency, has successfully scaled and helped thousands of individuals facing barriers to employment. Goodwill, a well-known social enterprise, generates revenue through donated goods and provides employment opportunities.
Resources and Learning Opportunities
Various resources are available to help nonprofits explore social enterprise. The Social Enterprise Alliance, the National Association for Nonprofit Professionals, and local chapters of these organizations offer valuable resources and networking opportunities. Additionally, online resources, conferences, and workshops can provide valuable insights.
Wrap-Up
Social enterprise presents a promising avenue for nonprofits to increase their impact and sustainability. By understanding the principles of social enterprise, exploring different business models, and leveraging available resources, nonprofits can effectively implement social enterprise strategies and achieve their goals.
Brady Ware Nonprofit Advisors want to help you fulfill your mission with financial health and compliance services and a network of nonprofit consultants who specialize in strategic decision-making.
Video:
Social Enterprise for Nonprofit Organizations with Cindy Cheatham
About Cindy Cheatham
Good Advisors LLC, is an independent management consulting organization led by Cindy Cheatham focused on strategic and business planning, board development, and organizational development for a diverse range of national, regional and local nonprofits and social-impact minded businesses. Ms. Cheatham is also a leadership coach for corporate and nonprofit leaders. Ms. Cheatham is very passionate about her work, always seeking to advance the impact of the clients she serves both during and after her engagements.
Prior to Good Advisors, Ms. Cheatham served as the VP of Consulting for the Georgia Center for Nonprofits where she led and oversaw work with foundations and hundreds of nonprofits. She also served as Venture Catalyst at Georgia Tech’s ATDC where she advised entrepreneurs and worked to build the entrepreneurial ecosystem. Ms. Cheatham began her consulting career with leading management consultancy Bain & Company. Ms. Cheatham is a frequent speaker on topics including leadership and succession, strategic and business planning, governance, collaborations and partnerships, nonprofit business models, social enterprise and entrepreneurship. She has developed and facilitated award-winning leadership programs.
Ms. Cheatham is active in the community where she serves as an elder of North Avenue Presbyterian Church and as former stewardship chair and current member of the Transition Committee. She serves on the board of two education-related nonprofits following a long history of engaging as a leader in a variety of roles within Dekalb County Schools. Ms. Cheatham is a 2010 fellow of the Georgia Partnership for Excellence in Education (GPEE) Policy Fellowship Program. And she is a Leadership Atlanta alumni.
She is a University of North Carolina at Chapel Hill Tarheel Honors Graduate and an MBA with distinction from Harvard Business School.
Cindy Cheatham
President & Senior Consultant
Good Advisors