Source: enp enterprising non-profits (PDF)
If your non-profit is considering launching an enterprise to align with your mission while generating revenue, this guide is an essential resource. It’s designed to help organizations like yours explore social enterprise as a tool to strengthen programs, achieve greater impact, and diversify funding streams. With a focus on thorough planning and strategic execution, this guide walks you through key steps—from assessing your readiness to identifying opportunities and understanding legal frameworks specific to Canada. It’s built on real-world insights, offering actionable advice to set your organization up for success in the social enterprise space.
Some of the key takeaways include:
Here are some of the key takeaways from the document:
- Mission Alignment: Non-profits should ensure their social enterprises align with their mission and do not cause “mission drift.” It’s essential to maintain a clear connection between the new business venture and the parent organization’s objectives.
- Risk Management: Proper planning and an exit strategy are critical. Organizations are advised to identify potential risks and to have a plan in place in case the enterprise fails.
- Legal Considerations: It is important to create a legal separation between the parent non-profit and the for-profit subsidiary, if applicable, to avoid legal and financial entanglements. This can include separate boards, financial records, and possibly different spaces and equipment.
- Staff and Board Readiness: Both the board and staff must be prepared and supportive of the venture. Organizations may need to allocate specific time for enterprise development and possibly recruit board members with business experience.
- Community and External Image: Consider how starting a social enterprise could affect the organization’s image, particularly in relation to other businesses in the private sector. Managing perceptions of fairness and competition is key.
- Sustainability and Scaling: The guide emphasizes the importance of planning for growth, sustainability, and potentially sun-setting the business, as well as recognizing the social impacts that must be continuously monitored and evaluated.
Source: enp enterprising non-profits (PDF)
