Hi folks! I'm back!
I know it's been a while
since my last post, but I'm back in school. I'm currently taking a few courses
at Algonquin College, which include Introduction to Non-Profit Management. I’m really
enjoying the course – the content is quite engaging and I am learning a lot.
One of my first assignments
is address an important or challenging issue facing non-profit organizations
today. The issue that I would like to have a discussion about is the concept of
“enterprising non-profits”. I believe that there is added pressure for
non-profit organizations to a) address the core of their social issue that they
are working towards, b) create ways of either generating income, or employment
and c) finding alternative ways of funding themselves (as one of the biggest
worries for a non-profit organization is funding).
So, what is a social enterprise? What makes
it different than a non-profit organization?
In a few words, a social enterprise “makes money, and does good for the world”. A social enterprise can refer to a for-profit business entity with a social mission, or it can also be a non-profit if there is some type of product or service offered. Social enterprises can broadly be defined as “any organization or business that uses the market- oriented production and sale of goods and/or services to pursue a public benefit mission.” Now, social enterprises are not new concepts – they have been around for centuries. Take for example, a museum or art gallery – their social enterprise? A gift shop! A way to generate revenue to support the exhibit. Simple, isn’t it? Brilliant business model, for a non-profit, don’t you think? So why are talking about social enterprises more? As I mentioned above, I believe that this generation really wants to address the core of a social issue. Ie. They are less interested in funding a food bank, but rather, curbing food insecurity as a whole. Non-profit organizations have been stereotyped has operating with their heart, and not having a “business mind”. They also have a tendency to focus on charity, and not change within the system. While having a good heart is the crux of a non-profit, is that changing in 2018? I think it is.
Does that have to change? I’m really not sure….
So, what is the future of non-profits?
I work with many highly
engaged students (we call Student Leaders) at Algonquin College, and many of
them want to address some sort of social issue, or give back to their community.
I have met with over 20 students in the last year who are either Business (as
their Major) students who want to start a social enterprise, or non-Business (Major)
students who want to start a non-profit organization or a social enterprise. When
these students are getting ready to start something, they want to make it “socially-minded”
– that is what I have noticed. Many students are nervous about starting their
own non-profit organization, because they are worried about money, or "core funding". It is
more appealing to start a business, using a social enterprise model. People
feel good about creating change, and making money. With the power of Crowdfunding, it is also a lot easier to start, and fund a great initiative.
The reality is, good, or bad,
social enterprises are becoming the “new norm” for many non-profits who feel the pressure to change the way they operate, for whatever reason that might be. Take a
look at Operation Come Home, for example, a long-standing non-profit in Ottawa,
which now has over 5 social enterprises. I see this happening more and more.
So, where do we go from here? How does one
manage this trend?
I think that I would like
to wrap up by saying, whether you are managing a non-profit or a social
enterprise, it’s your responsibility to make sure that your organization is sustainable,
and creating lasting impact in your local or global community. There are some
amazing social enterprises, that are creating brilliant impact. However, there
are some social enterprises that are using the term, to gain supporters – yet all
the while, not creating any social good, or creating more problems in communities. As a famous Ivan Illich speech once said “The
road to hell is paved with good intensions”.
Here is an example, for a social enterprise - TOMS Shoes. Below are four articles that outline some major challenges with their social enterprise.
Link 1: https://www.triplepundit.com/2012/04/problem-charity-model-toms-shoes/
Here is an example, for a social enterprise - TOMS Shoes. Below are four articles that outline some major challenges with their social enterprise.
Link 1: https://www.triplepundit.com/2012/04/problem-charity-model-toms-shoes/
“You’re pretty smart, but poor people know more about their needs than you do”
So, what do you think?
Are you thinking of enterprising your non-profit organization? Is there room in Canadian society of non-profit organizations and social enterprises? Where will we be 10 years from now? Looking forward to hearing your thoughts...
In solidarity,
- The Educator, Artist, and the Activist
