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Rich Tips is a free electronic newsletter published by Richard Male & Associates (RMA), a nonprofit consulting firm. Please send any suggestions or comments to editor@richardmale.com. This week's tips: Entrepreneurial and Earned Income Fundraising For many nonprofit organizations the idea of "Entrepreneurial Fundraising" and "Earned Income Fundraising" has provided an opportunity for: 1) Increasing revenue 2) Diversifying income sources 3) Furthered the cause of the nonprofit entity including publicity Like anything else that nonprofits do there is an element of creativity, risk, and potential for "mission drift" when an organization begins fundraising in more entrepreneurial/earned Income directions. The Legal Center Serving Persons With Disability has created and sold a "Patient Rights Bingo Game" and has published and sold manuals about the rights of individuals with disabilities who are in school systems. These "business ventures" are related to their mission of providing "protection and advocacy" for individuals who are disabled. Revenues from these ventures have helped fund increased capacity in their program that is vital to achieving their mission. Platte River Industries (PRI), a nonprofit that serves individuals with disabilities, has secured two Auntie Anne's Pretzel Stores at Denver International Airport. Not only do the stores provide job opportunities for the people PRI serves, but they generate revenues that help support areas of their program that have difficulty generating revenues. As Lester Salamon has pointed out in his various books "fee for service" is now the single largest revenue generator in the nonprofit sector. This has replaced governmental funding, which historically has been the fuel that has driven most nonprofits. This is somewhat deceptive in that much of the "fee for service" revenue generated by many nonprofits is actually governmental money, it just comes to organizations in the form of "fee for service" rather than grants. Nevertheless, "fee for service" has become a key component in the "earned income" of many nonprofits. The Community Resource Center developed a unique mission-based entrepreneurial idea when they created the Colorado Grants Guide. This invaluable resource is eagerly sought by most nonprofits throughout Colorado and it has evolved from not only a printed version that comes out every other year, but also an online version that provides up to date information. This is a wonderful example of a nonprofit creating a "marriage" between its need to raise funds using an "entrepreneurial approach" while still meeting its mission. Some nonprofit professionals would argue that this entrepreneurial/earned income phenomenon runs contrary to the value-based voluntary spirit of nonprofits. Others would say that organizations that have suffered a loss or decrease in governmental and private funding should aggressively try to gain greater control over their organizational destiny by seeking out entrepreneurial and earned income resources. Critical considerations for nonprofits who are looking at getting more involved in entrepreneurial/earned income strategies should evaluate the following: 1) Mission - does it include the ideas you have for these types of ventures/strategies? 2) Risk - what are the risks the organization is willing to take? 3) What are the business and/or earned income ideas being considered? 4) Organizational Readiness - staff, board, physical location, organization's unique assets, and financial situation must be assessed. 5) Feasibility Study - business plan and implementation strategy 6) Break-even Analysis - look at all revenue and expenses associated with the business plan. By taking all of necessary steps to evaluate, plan, and implement an entrepreneurial/earned income program the chances of success are enhanced, but don't disregard the various challenges you will undoubtedly face in this type of venture. by David Henninger David Henninger has worked in the nonprofit sector since 1973 as the executive director of Bayaud Industries, Inc. He has served as a Board member of numerous nonprofit organizations, and has been an associate faculty member for the Masters of Nonprofit Management Program at Regis University in Denver, Colorado for the past six years. ------------------------------- New Grant Opportunities (if you need grant research or grant writing help, please contact us! We have an experienced team of grant writers with a tremendous track record who will be happy to handle your grant research, grant calendars, grant writing, and grant tracking. For more information be sure to contact Nicolle Fogleson at RMA at nicolle@richardmale.com.) Harry Chapin Self-Reliance Awards Funded by the Harry Chapin Foundation and administered by World Hunger Year (WHY), the Harry Chapin Self-Reliance Awards (HCSRAs) program distributes cash grants ($5,000 maximum award) to outstanding grassroots organizations in the United States for their innovative and creative approaches to fighting domestic hunger and poverty by empowering people and building self-reliance. For detailed information go to: http://www.worldhungeryear.org/comm_conn/hcsra.asp Textron Workforce Development and Education Specifically, in this area we focus on: For detailed information go to: http://www.textron.com/profile/community.html Shell Oil Company Foundation The mission of the Shell Oil Company Foundation is to help foster the general well being of communities where Shell Oil Company employees live and work and to provide educational opportunities that prepare students and faculty to succeed while meeting the needs of the ever-changing workplace. The Shell Oil Company Foundation recently completed a review of its contributions strategy, which includes new focus areas for 2004. Broad focus areas include education, culture and the arts, civic and community, health and welfare, diversity and inclusiveness, and sustainable development interests. The strategy review resulted in greater emphasis being placed on educational, environmental, and quality-of-life initiatives, using an overall approach to philanthropy that is more closely aligned with clearly defined educational and social concerns. For detailed information go to: http://www.countonshell.com/community/involvement/shell_foundation.html Seagate Science, Math, and Technology Initiative We look for hands-on, innovative programs that provide students the opportunity to ask questions and the resources and tools to seek their own answers. One such venue for this type of engagement is regional science fairs, and we look for partnerships in our communities where these annual competitions take place. For detailed information go to: http://www.seagate.com/newsinfo/citizenship/community/corporate_giving.html NEFA - NEST NEST is a cooperative program with the state arts agencies of New England, and provides support to nonprofits for performances, readings, and related community activities by artists on the New England States Touring list, or "roster." Performing and literary artists on the NEST roster represent a range of disciplines, such as music, dance, opera/musical theater, poetry, writing, interdisciplinary work and the folk arts. Nonprofit presenters* may choose from over 900 New England writers, performing artists, and ensembles listed on the NEST roster and apply for NEST funding to help support an engagement by one of these artists, as long as that artist is based outside of the presenter's home state. The NEST roster is a compilation of the touring artist rosters from the state arts agencies of New England (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont). For detailed information go to: http://www.nefa.org/grantprog/nest/index.html --------------------------------- Federal Grant Opportunities (if any of the following grants sound appealing, please contact Mourene Tesler to learn more about the application procedure - mtesler@tcg-systems.com) Special Demonstration Programs--Model Transitional Rehabilitation Services for Youth and Young Adults With Disabilities DEPARTMENT OF EDUCATION This program provides grants to eligible entities to support activities that increase the provision, extent, availability, scope, and quality of rehabilitation services. ----------------------------------------------------------------------------- Livable Communities Initiative DEPARTMENT OF HEALTH AND HUMAN SERVICES The purpose of this project is to identify and showcase communities that best meet the criteria of a livable community, and to highlight promising practices that can be used by county and municipal governments throughout the country in preparing for the aging of the baby boom population. The award will be a cooperative agreement because the Administration on Aging will be substantially involved in the development and execution of the activities of the projects. The applicant and the Administration on Aging will work cooperatively to develop the criteria upon which the model communities will be selected and to clarify the issues to be addressed by the project. ----------------------------------------------------------- Other Announcements 22nd ANNUAL ROCKY MOUNTAIN PHILANTHROPY INSTITUTE The Annual Golf Tournament and Luncheon benefiting special needs children at the Children's Outreach Project (COP) in Denver will be held Monday, August 16, 2004 at The Ranch Country Club Golf Course in Westminster. This event, which benefits the organization's educational programming, is a major source of funding for the school. The mission of Children's Outreach Project is to provide an integrated, quality, early childhood education and preschool program for typical, accelerated, and special needs children ages 2 ½ -6. Please contact Stephanie Baer, Executive Director at 303-429-0653 for registration information. *Feel free to forward this email to a friend. **To unsubscribe to this newsletter, please send an email with the words "Unsubscribe Rich Tips" in the subject line to nicolle@richardmale.com . ***To subscribe, send an email with the words "Subscribe Rich Tips" in the subject line to nicolle@richardmale.com .
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