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Week 8 Notes (Tues & Thurs)

by: Dianna Montzka

Week 8 Notes (Tues & Thurs) PPPM 280

Marketplace > PPPM 280 > Week 8 Notes Tues Thurs
Dianna Montzka
GPA 3.8
Intro to the Nonprofit Sector
Dr. Mason

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Social Enterprises and Social Entrepreneurship. Guest lecture by Tim Armstrong from NEDCO
Intro to the Nonprofit Sector
Dr. Mason
Class Notes
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This 5 page Class Notes was uploaded by Dianna Montzka on Friday February 27, 2015. The Class Notes belongs to PPPM 280 at a university taught by Dr. Mason in Fall. Since its upload, it has received 199 views.

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Date Created: 02/27/15
Week 8 2242015 Guest lecture Tim Armstrong at NEDCO the nonprofit incubator incubator get business up and going in a short period of time accelerator for well established businesses that need more help with technicalities shared space coworking spaces may have services BEESPACE New York incubator set up welcoming work space incubator set up model tides shared space and services thoreau center multi tenant nonprofit a lot of incubators do not provide accounting services FORGE portlandonly forprofit businesses but target nonprofit while they were trying to get up and running Y Combinator for profit tech incubator in silicon valley have decided to start funding and incubating some nonprofits provides health care funding in a social media platform Kick incubator combination of for and nonprofit as well as hybrid models huge number of locations around the world standard model short fast get them out the door types of conflict and challenges in an incubator setting advising on fundraising conflict of interest not run in a democratic fashion its a top down digitorial manner noise factor can be a difficult conflict to deal withconfidential issues etc types of spaces in an incubator coworking spaces meeting spaces shared office space alot of collaboration space nonprofit HUB virtua services propeller focus on social welfare enterprise and nonprofits food education water education housing work with non and for profit Meyer memorial trust gives grants to a majority of nonprofits in oregon strugging with money now not giving out any new grants Hatch nonprofit incubator have resident nonprofits in a building virtua membershipsgives people access to advising grant database other services meeting space and classroom spaces but they are not housed in the building had to make assumptionscanvassing nonprofits in the area research on organizations gaining a good understanding of the nonprofit world in lane county Assumptions 1 small and medium nonprofits who lacked the capacity in key operational areas such as accounting and grant writing 2 That NEDCO could use existing staff to economically deliver the needed capacity through a shared facility 3 nonprofits needing to grow would readily take advantage of the opportunity and join the incubatorthere is nothing like eugene currently like this REALITY 1 building wasnt ready to use and only virtual memberships could be established 2 small and medium nonprofits DO lack the capacity in areas such as accounting and grant writing 3 NEDCO s growth restricted its ability to use existing staff to economically deliver the missing capacity through a shared facility 4 nonprofits needing to grow either did not want to relocate to springfield or simply could not afford cost 5 NEDCO got too ambitious about what they could charge cost was too high Lessons learned 1 key services such as accounting and grant writing are very important to potential incubator members the incubator building is in springfield and this has proven to be a barrier the building lacks a creative ambiance and the space cost is high related to the incubator services available a virtual incubator membership has attracted startup organizations few with financial resources Successes despite some of the relities there are some incredible successes 1 we worked with a startup organization to recruit and build a phenomenal board willing to work and to fundraise ex women who wanted to work to create a better work atmosphere for workers with family members with mental illness she now has the opportunity to merge with NOMI after she assembled a really really good board of directors 2 we helped write yearend fundraising appeals that brought in more donations than ever before 3 we ve helped a few established nonprofits develop policies and procedures to reduce risk and increase affectiveness Burrito Brigade wanted to go out and help feed the homeless and hungry with burritos didn t have enough capacity to grow and feed more became a nonprofit to take in donationsstil waiting to become a 501 C3 could use a different model where they sell the burritos to then take the profits to make more burritos to feed the hungry food truck cafe etc young mountain tea company for profit much easier to import teas lots of other reasons to go with for profit rather than nonprofit hybrid business providing support for plantations in india Week 8 22615 Social Enterprises and Social Entrepreneurship social entrepreneur creates business social value create a different outcome or opportunity than available before combining resources profit tools and social benefits idea and an mobilize research and ideas 4nnova ve progressivenew ways to do things pushing the boundaries create a new solution to an existing problem driven by creating social value notjust profit pursue advancing the mission despite resources anheier about social innovation working towards a social cause entrepreneur a person who combines existing resources in new and interesting ways new combinations of the means of production assembly line 1949 allowed for lower price and increased efficiency the implementation of change close link to the role of innovation and risk taking in entrepreneurship flipside of innovation is gt RISK introduction of a new or good service introduction of a new method of production assembly line the opening of a new market the conquest of a new source of raw materials reorganization of an industry music industry movie industry netflix Social entrepreneurship and social innovation organization forms nonprofit business or private forprofit can exist in current organizations or be new ventures ex CCCprogram funded by gov to put people to work during the great depression ex new health care billnew social innovation ex social innovation developing pollution permitsclean air act revised in early 90 ssell pollution vouchers if you can reduce pollution more than needed led to even more clean air ex kickstarter for profit but support for and nonprofits ex changeorgfor profit ex incubator projects something that already exists inside an organization NEDCO Social Enterprise use market mechanisms to make money for a good cause ex homeboy bakery allows those in troubled times in their lives gang members people who have served time homeless people to have a job and get their life started up again gang intervention program doesnt only provide jobs but classes counseling tattoo removal etc to support them in a new life never easy to meet payroll 35 million a year in revenue also get grants and donations turns a social problem into a way to reintegrate these people into society building social capital for the people who work here and allowing them to be respected and have a purpose contribute to society in a meaningful way trying to build a sense of place and a community gives a large support system social business using trade for social purposes ex young mountain tea company often for profit companies toms shoes also takes away from local companies growing into coffee now using the people where they are serving to work to harvest the coffee and then sell the coffee to americans and use the profit money to build water systems in the towns they are working with does he have a certificate for fair trade coffee yess similar models pink washing toms is for profit L3Csonly available in 9 states low profit limited liability corporation recognize a low profit along with a social impact intention missions can consider social value along with shareholders BCorps benefit corporations aows organizations to have a profit and social value mission as part of their organizations purpose heps protect the company from anyone trying to claim those profits back in the future now in more than 20 states have to get certified by a third party organization nonprofits can help certify forprofits as Bcorps interesting ex warby parker redefine success in business and be the best for the world attempt to address the problems of contract failure the Bcorporation certification gives validity and legitimacy to the companypeople can trust it more and contract failure and info asymmetry can be avoided The stamp of certification tells a story about what the business does or does not support tells their practices etc gt there is currently some movement to give LCs and Bcorps some tax benefits similar to nonprofits democratic enterprisesVenn diagram in lecture economic social participatory governance venture philanthropy provides seed to social enterprises for or non profit money through grants or loans to nonprofits with innovative ideas donors may seek the drive their own agendas about what is the best way to go about change exashoka vppartners social mission organizations notjust concerned about profitinterested in making the most change in social value out of their contributions


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