Powering Social Change - ILJ

1 Powering Social Change Lessons on Community Wealth Generation for Nonprofit Sustainability 733 15th Street, NW, Suite 600. Washington, DC 20005. Powering Social Change Lessons on Community Wealth Generation for Nonprofit Sustainability Whether or not organizations succeed in creating community wealth ( , resources generated through profitable enter- prise to promote Social Change ) depends on their ability to think in new ways about assets they may have previously taken for granted or not initially recognized as It all begins by believing and understanding that you are worth more than you think.

2 Bill Shore, The Cathedral Within Community Wealth Ventures is a consulting firm that assists: Nonprofit organizations in becoming more self-sustainable by generating revenue through business ventures and cor- porate partnerships. Corporations in improving the bottom line through the design and implementation of community investment strategies. As a for-profit subsidiary of Share Our Strength, a leading anti-hunger and antipoverty organization, Community Wealth Ventures demonstrates one approach to nonprofit sustainability. Community Wealth Ventures operates on the premise that every organization can increase its Social impact by building on its internal assets, rather than relying on sup- port from external organizations.

3 Copyright 2003 by Community Wealth Ventures, Inc. All rights reserved. No portion of this publication may be reproduced without written consent of Community Wealth Ventures, Inc. Design by Hinge Incorporated, 733 15th Street, NW, Suite 600. Washington, DC 20005. Powering Social Change Lessons on Community Wealth Generation for Nonprofit Sustainability 733 15th Street, NW, Suite 600. Washington, DC 20005. This report has been generously supported by Atlantic Philanthropies and the David and Lucile Packard Foundation. Community Wealth Ventures would especially like to thank Suzanne Aisenberg and Ruth Norris for their support during this project.

4 Community Wealth Ventures also wishes to extend its sincere thanks to: Advisory Board Casey Coleman James E. Austin, John G. McLean Brian Connor, The Center for the Professor of Business Administration Homeless and chair of the HBS Initiative on Bob Cote, Step 13. Social Enterprise, Harvard Business Joseph Davis, Davis Memorial Goodwill School Industries J. Gregory Dees, adjunct professor and Marilyn Dickey faculty director of the Center for the Grant Din, Asian Neighborhood Design Advancement of Social Amy Goldfarb, Gould Farm Entrepreneurship, Fuqua School of Brother Jim Holub, SJ, Homeboyz Business, Duke University Interactive Jed Emerson, senior fellow with the Monique Hunter, Food From the 'Hood Hewlett Foundation and lecturer in Steven Iams business at the Graduate School of Michael Keene, TROSA, Inc.

5 Business, Stanford University Robert Kubiniec, Boomtown Caf . Charles King, founder and co-executive Kevin McDonald, TROSA, Inc. director, Housing Works Kathy Mejasich, Special Olympics Richard Steckel, president, AddVenture Mary Jo Mullen, FB Heron Foundation Network Rick Padilla, Neighborhood Reinvestment Corporation Essayists Chris Park, Washington Mutual Michael J. Burns, Pioneer Human Services Jaycee Pribulsky, Seedco Stacey H. Davis, Fannie Mae Foundation Catherine Tower, Gould Farm Rosanne Haggerty, Common Ground WB&A Market Research Charles King, Housing Works Tensie Whelan, Rainforest Alliance Trinita Logue, Illinois Facilities Fund Charles MacCormack, Save the Children Community Wealth Ventures Staff Mark S.

6 Rodriguez, Acirca Ed Barker William E. Strickland Jr., Manchester Mollie Finch Craftsman's Guild Robin Gelinas Julius Walls Jr., Greyston Bakery Amy Gleason Evan Hochberg Contributors Katie McNerney Keith Artin, TROSA, Inc. Darren Miao David Becker, Davis Memorial Goodwill Stephanie Patterson Industries Bill Shore Cindy Bohne Melissa Smith Beth Bubis, Social Enterprise Alliance Joshua Tripp Drew Buscareno, The Center for the Alfred Wise Homeless Alan Wolf Neil Carpenter Beth Chandler, Neighborhood Reinvestment Corporation Contents 1. Introduction.

7 5. 2. Powering Social Change by Bill Shore .. 7. 3. Insights on the Field from Community Wealth Ventures .. 12. 4. Essays on Nonprofit Ventures and Partnerships .. 18. The Need for a New Paradigm: Social Entrepreneurship .. 20. Charles King, Housing Works Entrepreneurship and the Nonprofit World .. 24. William E. Strickland, Jr., Manchester Craftsmen's Guild A Successful Social Enterprise Responds to the Market .. 26. Julius Walls, Jr., Greyston Bakery Self-Sufficiency: How Important Is It? .. 30. Michael J. Burns, Pioneer Human Services Lessons From Operating a Franchise to Support Housing Development for the Homeless.

8 34. Rosanne Haggerty, Common Ground The Varieties of Corporate Partnerships .. 38. Charles MacCormack, Save the Children Starting Off on the Right Foot: Walnut Acres &. Share Our Strength .. 43. Mark S. Rodriguez, Acirca Community Development Finance and Social Enterprise . Natural Partners .. 46. Trinita Logue, Illinois Facilities Fund Shifting Nonprofit Organizations to Entrepreneurship: How Foundations Can Help .. 49. Stacey H. Davis, Fannie Mae Foundation 5. Survey of Organizations Running Enterprises .. 52. 6. Case Studies: Lessons From the Field.

9 63. Nonprofit Ventures Boomtown Caf and Boomtown Caf Catering .. 65. A restaurant that serves nutritious meals to low-income people launches a catering business to provide contract services to homeless shelters. PAGE 3 | Powering Social Change . CONTENTS. The Center for the Homeless and CFH Landscape Services .. 69. A homeless facility partners with a management company to run a landscaping business that also provides job training. Davis Memorial Goodwill Industries and DMGI Janitorial Services.. 73. A nonprofit expands its employment training program to compete for commercial contracts.

10 Gould Farm and the Roadside Store and Caf .. 76. A nonprofit organization creates products as part of its therapeutic services for people with mental illness and sells these products through its own distribution channel. Homeboyz Interactive and hbi consulting .. 80. An information technology consulting business and training program provides services to large corporations while training former gang members for high-tech careers. Rainforest Alliance and Smartwood Certification .. 84. A certification program, the first for an environmental organization, is aligned with a nonprofit's mission.