Nonprofit Spark – There’s hope: The dual-business model for nonprofits – 11/04/13
This week we explore something called a dual-business model for nonprofits, an idea that is being actively promoted by state nonprofit associations who know their members can think smarter about generating revenue in a highly competitive environment. My guest is Allen J. Proctor, the founder and principal of Linking Mission to Money, the dual-business model to make nonprofits sustainable.
With Proctor’s model, nonprofit leaders and board members accept that their mission-critical work is going to lose money and so they run a profit-making business to offset those losses. Proctor believes this choice is smarter and more reliable than adding fundraising staff. Yes, many organizations charge fees for services, but he expands on this idea to promote social entrepreneurship outside of the context of mission-based work.
You’ll hear several examples of nonprofits that use this dual-business model. We all are familiar with Goodwill Stores, for instance, but what is your version of a Goodwill Store?
Procter has nearly 30 years experience evaluating the financial health of organizations, developing effective business strategies, and enhancing organizational effectiveness. He is the author of the book Linking Mission to Money as well as More Than Just Money.
A related show is What’s happening with the business of doing good?,which aired the week of February 13, 2012. On that show, my guest describes various social enterprise models.
I hope these shows spark some serious discussions about increasing your revenues by developing for-profit ventures. Enjoy!