Resources for Charities Interested in For-Profit Enterprises

BRAINSTORMS

Charities that seek assistance in planning or operating social-purpose businesses can look

to the following sources for guidance. Organizations

Social Enterprise Alliance. A network of nonprofit leaders and grant makers who are interested in helping charities operate successful for-profit ventures. The group, which has its headquarters in Columbus, Ohio, also offers a searchable database on its Web site of nonprofit groups that operate businesses.

Partnership on Nonprofit Ventures. This organization, under the auspices of the Yale School of Management and the Goldman Sachs Foundation, offers educational and financial support to charities that seek to create for-profit enterprises.

Online resources

Nonprofit_entrepreneurship. This e-mail list, which includes discussions of such topics as the risks and benefits of starting a for-profit enterprise, how to determine whether a charity is ready for such an undertaking, and developing business plans, is maintained by Andrew Horsnell, co-founder of Authenticity Consulting, a management-consulting group in Minneapolis. To subscribe, go here.

NPEnterprise Forum. This e-mail list, which deals with issues related to nonprofit organizations and earned income, is operated by the Social Enterprise Alliance. To subscribe, go here.

Roberts Enterprise Development Fund. The Web site of this San Francisco grant maker, which seeks to expand economic opportunities for homeless and other needy people through the creation of social-purpose business ventures, offers answers to frequently asked questions about charities and earned income, and also a database of organizations that oversee for-profit enterprises.

“Powering Social Change: Lessons on Community Wealth Generation for Nonprofit Sustainability.” Several case studies are explored in this 2003 report by Community Wealth Ventures, in Washington, a for-profit subsidiary of Share Our Strength, a national hunger organization, which helps charities generate revenue through businesses. The report is available for download online.

Publications

The Nonprofit Entrepreneur, edited by Edward Skloot. This book, published in 1988 by the Foundation Center, explains how charities can run successful business ventures. Available for $19.95 plus $4.50 shipping from the Foundation Center, Customer Service, 79 Fifth Avenue, New York, N.Y. 10003-3076, (212) 807-3690. Can also be ordered via the Foundation Center Web site.

Joint Ventures Involving Tax-Exempt Organizations, Second Edition, by Michael I. Sanders (John Wiley & Sons, 2000, $210). This book explains the regulations and laws that govern joint business ventures involving charities and businesses. Updated information can be obtained in Mr. Sanders’s volume published last year, Joint Ventures Involving Tax-Exempt Organizations, 2002 Cumulative Supplement, Second Edition (John Wiley & Sons, $65). The 2003 edition of the supplement is slated to appear in January.

“When Good Work Makes Good Sense: Social Purpose Business Case Studies.” This report, by the MetLife Foundation, in New York, offers four case studies of businesses developed by nonprofit organizations and tips for administering such efforts. Available for free online or for $7.50 plus $3 shipping from Seedco, 915 Broadway, 17th Floor, New York, N.Y. 10010, (212) 473-0255.