Guiding Nonprofits to Financial Sustainability
Volunteer Center Launches New Initiative To Benefit Local Nonprofits

Compiled by Renee L. Wilson Gaines

"Orange County nonprofits are in trouble," says Carol Stone, President and CEO of Volunteer Center Orange County in Santa Ana, Calif.

According to Stone, "we are anticipating a very tough year for agencies. Those not involved in the international relief efforts in Asia are going to experience a huge drop in contributions from both individuals and corporations. Some of them won't be around this time next year. The only ones exempt from this fate are likely to be those who are substantially engaged in earned income business strategies, or 'social enterprise,' a new paradigm based on social entrepreneurship, by which not-for-profits generate the unrestricted earned income needed to fulfill their missions."

The Social Enterprise strategy is embraced by many of the country's most innovative nonprofit leaders because of its potential to transform their organizations and significantly improve their long-term self-sufficiency by creating new, unrestricted sources of funding.

This strategy is based upon the concept of earned income, payments received in direct exchange for a product, service or privilege. Earned income for a nonprofit includes such elements as tuition and fees for service, commercial products or services, government contracts, consulting fees, membership dues (when dues purchase tangible benefits), sale of intellectual property, agreement to use the nonprofit's identity, and property rentals.

Volunteer Center Orange County's groundbreaking Earned Income Initiative focuses on teaching charities to make money for their organizations, with the ultimate goal being financial sustainability for all nonprofit organizations. This initiative will support nonprofits in Orange County by providing:

• Knowledge about the opportunities represented by the concept of social enterprise
• Understanding the relationship between social enterprise and traditional fundraising, and collective ability to impact sustainability
• Processes for surveying organizational assets, identifying opportunities, evaluating options, and choosing a funding source
• Skills to apply immediately–strategic planning, feasibility assessment, and change management
• Confidence in discussing social enterprise strategies with key stakeholders–clients, customers, board members, business partners, and investors
• Awareness of the organizational challenges of operating a social enterprise within the context of the larger "parent" organization

The Earned Income Initiative will offer ongoing workshops, consulting services, opportunities to apply to a loan fund, and other resources to support the nonprofit community and its business partners in developing successful earned income business strategies. National Partners supporting the initiative include the Points of Light Foundation and the Social Enterprise Alliance (SEA), the membership organization leading the creation of a social enterprise movement.

To learn more about the Earned Income Initiative, contact Dave McDonough, 714-953-5757, ext. 132, DMcdonough@volunteercenter.org, or visit Volunteer Orange County's Earned Income Initiative website.