Term
| Funding the Gap: Digital Divide Data |
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Definition
| Provides training and jobs to disadvantaged people from Cambodia and Laos. Broke even but had a hard time finding funding to expand. |
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Term
| Funding the Gap: Digital Divide Data: Why did the founder think they had a hard time finding the money to expand? |
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Definition
1. Enterprise doesn't fit into traditional models (Non-profit or for-profit)
2. Foundations/Philanthropist hard time donating to a for-profit
3. Investor hard time with social mission |
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Term
| Social Enterprise can seek funding from... |
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Definition
| commercial and philanthropic sources |
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Term
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Definition
| sell equity or make distributions of profit but can take out commercial loans |
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Term
| What is one of the main reasons hybrids are formed? |
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Definition
| allows them to get capital from different sources (Investors for-profit and donations non-profit) |
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Term
| What is one thing that hybrids have to be careful of? |
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Definition
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Term
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Definition
1. Establishing to separate entities takes more time
2. realizing synergies between the for-profit and non-profit activities can be difficult |
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Term
Direct Investors:
(APPEI) |
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Definition
Angel Investors
Philanthropic Foundations
Pension Funds
Endowed Non-profits
International Development Agencies |
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Term
| Most common type of direct Investor |
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Definition
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Term
| Angel Investors (Direct Investor) |
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Definition
| Invest typically in the beginning stages when company is small, recently they are start to invest in social enterprises |
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Term
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Definition
| network of angel Investors who fund social enterprises |
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Term
| Philanthropic Foundations |
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Definition
| Legally committed to charitable causes, large pools of capital. (Foundations like this have not been typically investing in social enterprises) |
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Term
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Definition
| particularly universities and hospitals. Pursue their charitable missions through direct programs rather than giving grants to social enterprises. |
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Term
| International development Agencies |
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Definition
| provide financial support for economic development in low income countries. Tend to be government to government but starting to increase their support of social enterprises |
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Term
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Definition
| Driven by financially returns for people pensions mostly interest in social enterprises that make competitive financial returns. |
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Term
Intermediary Investors
(SCSVSMI) |
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Definition
1. Social Venture Capital Funds
2. Community Development Financial Institutions
3. Social Enterprise and non-profit loan Funds
4. Venture Philanthropists
5. Specialized Foundations
6. Social Responsible Mutual Funds
7. International small/medium size enterprise development funds. |
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Term
| International Finance Corp. (IFC) |
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Definition
| Has begun investing directly in social enterprises. Exploring how social enterprises can help developing countries. |
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Term
| Social Venture capital Funds |
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Definition
| focus on companies that meet various social and environmental criteria |
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Term
| Community Development Financial Institutions |
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Definition
| make loans and equity investments available to social enterprises that focus on low income communities (Mostly housing and small business development) |
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Term
| Social Enterprise and non-profit loans funds |
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Definition
| make loans at market rate or below explicitly target social enterprises (Intending to fill that gap) |
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Term
| International small/medium enterprise(SME) development funds |
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Definition
| Support SME's in developing countries |
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Term
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Definition
| apply aspects of venture capital toward philanthropic giving |
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Term
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Definition
| Currently a small group but growing. Focus on giving individuals the tools to channel their investments and philanthropic dollars into social enterprises |
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Term
| Socially Responsible Mutual Funds |
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Definition
| invest in publicly traded companies. Most revelvant for-profit social enterprise that are going public or already public. |
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Term
| Methods of Income Generation |
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Definition
1. Fee for service
2. Products
3. Services
4. Membership dues
5. Tangible Assets
6. Intangible Assets
7. Investment Dividends
8. Unrelated Business activities |
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Term
| 3 Classifications of Social Enterprises |
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Definition
1. Mission centric
2. Mission related
3. Unrelated to Mission |
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Term
| Mission Centric Enterprise |
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Definition
| Enterprise in central to the organizations social mission |
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Term
| Mission Related Social Enterprise |
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Definition
| enterprise is related to organizations mission |
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Term
| Social Enterprise unrelated to mission |
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Definition
| enterprise is not related to the mission just generates profit for its social programs |
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Term
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Definition
| blending of non-profit and revenue generating strategies |
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Term
| Embedded Social Enterprise |
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Definition
| Mission centric, social programs and activities one and the same, self financed through enterprise, normal non-profits |
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Term
| External Social Enterprise |
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Definition
| unrelated to the mission, social programs are distinct from business activities but supportive, always for profit |
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Term
| Integrated Social Enterprise |
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Definition
| Mission related, social programs and activities overlap, leverage assets to create their business, for profit or non-profit |
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Term
| Mission Related Investments |
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Definition
| Investing to get a return while supporting the company's mission |
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Term
| Impact Investing Exchange Asia (IIX) |
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Definition
| to provide social enterprises in Asia with greater access to capital, allowing them to expand faster (Brings social enterprises and impact investors together) |
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Term
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Definition
| local impact first market connecting social ventures, impact funds and impact investors |
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Term
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Definition
| Non-profit lender to poor communities. Example was the coffee. |
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Term
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Definition
| helps people with aids in Colombia. Runs a series of self financing activities;membership dues, fees for service, product sales, use of hard assets and investment dividends. (Diversification was key) |
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Term
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Definition
| Support human and labor rights of women textile workers. Started Non-mission related business, started a laundry mat. Didn't really work was able to cover cost. |
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Term
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Definition
| Franchising for non-profits to create wealth (Business in a box) |
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Term
| Stream of Hope: Beaver County Rehabilitation Center |
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Definition
| Franchised Candy Bouquet. Had problems finding people to manage the business, they didn't make much money, more concerned about providing jobs. |
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Term
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Definition
| franchising which allows non-profits to focus in managing a business rather than starting one |
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Term
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Definition
| business model in which an individual or organization purchases the rights to operate a unit of an already existing business. |
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Term
| What is a key benefit of franchising? |
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Definition
| is the economies of scale that reduce the cost of doing business. |
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Term
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Definition
| Strong brand, operational expertise, training and support, liquidity, economies of scale and the ability to expand. |
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Term
| Stream of Hope: Evergreens Common |
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Definition
| Franchised American Ramp Systems, which was aligned with their mission. They wanted to diversify their income. Wasn't very successful |
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Term
| Are non-profits allowed to make a profit? |
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Definition
| Yes but use of profits are limited. |
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Term
| For a non-profit to retain it's tax-exempt status it can not.... |
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Definition
| devote the majority of it's time to activities unrelated to it purpose. The core of the activity itself must further the mission of the organization. |
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Term
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Definition
| Non-profit that provides affordable housing franchised Andy on Call. Business was unprofitable. |
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Term
| Stream of Hope: True Bethel Baptist Church |
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Definition
| Franchised a Subway. Mission related to provide jobs and training. was successful! |
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Term
| Stream of Hope: Platte River Industries |
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Definition
| Mission is to provide employment to people with disabilities. Franchised Auntie Anne's. Mission related, hired disable people. Was very successful now has 5 stores. |
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Term
| Stream of Hope: Fontana Rehabilitation Workshop |
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Definition
| Mission to train mentally retarded people. Franchised AIM Mail Center. Mission related hired disable people. |
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Term
| Some of the challenges the non-profits faced when franchising |
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Definition
1. Experience
2. Lack of employees or experienced employees
3. Capital to continue the business |
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Term
| L3C: Low profit limited liability Company |
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Definition
| Like LLC: limited liability, flexibility of partnerships, and can be sold but specifically formed to support a socially beneficial mission. |
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Term
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Definition
| bridge the gap between non-profit and for profit corporations. Social mission must be its primary objective |
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Term
| Candidates for L3C Designation |
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Definition
| Organizations that have cash flow and are entrepreneurial in finding ways to generate revenue |
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Term
| Benefits of L3C's for a foundation |
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Definition
| Reduces costs of PRI's, attracts outside investors, satisfies a foundations philanthropic mandate |
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Term
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Definition
| a new class of corporation required to create benefit for society as well as shareholders |
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Term
| Benefit Corporations have to consider.. |
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Definition
| employees, community and the environment as well as shareholders when making operating and liquidity decisions . (Legal protection is given to directors) |
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Term
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Definition
| media company for the business community to understand the triple bottom line. Dedicated to understanding and improving the triple bottom line impact of business |
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Term
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Definition
| the simultaneous pursuit of return on investment in three areas: financial, social and environmental. |
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Term
| Mission Related Investments |
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Definition
| market rate investments that support the mission of the foundations (Seeks financial returns similar to conventional investments) |
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Term
| Program related Investments |
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Definition
| below market investments to non-profits or commercial ventures for charitable purposes (return is often lower than market rate) |
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Term
| What is a tool that foundations can use to leverage their philanthropic dollars? |
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Definition
| Program related investment, unlike grants foundations get a return on their money through repayment or return on equity |
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Term
| Investors circle seeks... |
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Definition
| early stage companies whose businesses address significant social or environmental issues |
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Term
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Definition
| the ability to establish linkages with business people and stakeholders for mutual learning and benefits aimed at achieving a common goal |
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Term
| Program related investment funded programs help a programs acquire... |
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Definition
| property, reach scale, create jobs, products or service or approach self-sufficiency |
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Term
| What types of investing generally is government to government but has started to increase their support of social ventures? |
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Definition
| International development Agencies |
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Term
| Whats the difference between program related investing and mission related investment? |
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Definition
MRI= market rate
PRI= Typically below market rate |
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