W06 Revenue Generation

 


"Remember who you are! Make great choices! CTR! I love you" .. are the words that I would hear Tori Sue Jacobson shout to her teen kids as she dropped them off at high school. 

The main idea this week is that making good choices is based on understanding priorities, trade-offs, and employing design thinking. The basics of business finance and sustainable funding is valuable in order to pursue best matched capital sources. To create social change one must think differently-- not just to find solutions, but to fund solutions. A sustainable social venture model is how the social venture solves the social problem and does it in a sustainable way. This week's reading teaches that the most common roadblock in social innovation is funding, specifically, nonprofits struggle to create sustainable income and often become dependent on grants and donations. If the money stops, impact stops. Therefore, sustainability is an important component of social innovation. To develop and secure the money needed to grow a social venture, social entrepreneurs must understand what it is that financiers’ value. They need to establish long-term networks, build their credit history over time, formally register the enterprise, and have contingency back-up plans.

As stated by the Algernon Sydney Sullivan Foundation, there are a number of different funding sources for a social venture. The most popular sources are: Donations – Soliciting wealthy individual donors, small donors, online donors. Grants – Foundation grants, government grants – gov’t outsourcing. Special Events – Annual fundraisers, races, charity events, etc. Selling a Product/Service – Fees from beneficiaries (charge for services) – non related - related. Endowments – Universities, nonprofits, spins off around 5% of endowed money each year. Patient Capital – Loans from “patient” capitalists who are willing to wait until the organization can return the investment capital and does not expect high levels or rates of return on the investment capital. As the financial market for capital is expanded to include social ventures, access to capital will help social ventures flourish. Unconventional Funding Sources – Traditional social ventures find unconventional funding sources to launch their venture. Often called “bootstrapping”, the organization will “bootstrap” resources including running the organization from a home, church or community organization, partnerships with a community chest/funder to manage operations until the 501C(3) status is approved, utilizing other people’s resources, etc.

This weeks reading, of chapter 11: If the World is to Be Put Into Order, on the impact that Vera Cordeiro is making in the way healthcare is administered to the poor in Brazil, was wonderfully inspirational. Cordeiro said, “ignoring poverty and the conditions of the family is a false treatment”  (p.130). I was touched by her heart-filled compassion, tenacity, and practicality. As I read about her life, family, and when she began putting her vision into motion through a simple raffle on a playground, she became real and relatable-- with the main difference between us being that she had a medical degree. As a physician who saw very ill & poor children repeatedly return for treatment, Cordeiro spoke up and over time founded Rebirth: Association for Children’s Health. Known as “Renascer” in Brazil, this flagship organization extend care to poor children after they are discharged from public hospitals (p.130). Chapter eleven stated that this was an organization that would begin where hospital care ended. Reference: Bornstein, D. (2007). Ch. 11: If the World is to Be Put Into Order . In How to Change the World: Social Entrepreneurs and the Power of New Ideas (pp. 130–150). essay, Oxford University Press.

I do feel that money buys happiness and creates change the world because that is the system in which mankind has established. ---I do not feel that money is the source of happiness nor what causes change in the world. 

😊The source of happiness and the cause of change stims from men's efforts in living God's law of consecration and commandment to love one another. 

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