About 20 years ago, I was handed a copy of the Red Cross business plan. When asked what is the business of the non-profit Red Cross, most people respond: disaster relief. My response, after reviewing their document, is that the business of the Red Cross is selling blood. It’s a billion dollar business.
And the Girl Scouts? Money from cookie sales fuels the Girl Scout programs and summer camps. Mi Casa? The Latino community and working families served by this non-profit gain access to resources for improving education, after school enrichment, business training, and career development.
Most non profits are risk-adverse. They don’t want to – or are unable to – borrow money and go into debt to fuel their programs. So the idea of a for-profit social enterprise that is tasked to make money for the non-profit is a new, innovative concept for many organizations like Mi Casa.
Over the past seven years, after the loss of major government funding during the Bush Administration years, Mi Casa has made steady progress to identify a money making social enterprise that would both align with their mission statement, and bring in a steady cash flow to fund their non-profit programs.
Last December, they launched TalentSource Staffing, a full service staffing agency in Denver, CO. After a slow start, they are now experiencing exponential growth and a welcome cash flow that goes directly to support services and resources that the non-profit offers. A second Mi Casa social enterprise that will teach financial skills to Latina women, is just launching.
The addition of money making social enterprises to fund the work of non profits is gaining widespread support by Denver area philanthropies and foundations. In response, they have established grant directives for non profits whose social enterprises accelerate access to micro enterprises for the people they serve. Some of the social enterprises may also include a return on investment for donors.
Alexia Parks: As founder of the Women’s Potential Movement, a United Nations UN-Habitat virtual mentor, and inspirational speaker, Alexia Parks uses communication technology and the New Science of the female brain to inspire and motivate a new generation of leaders.
