Completed Programs > Nonprofit Venture Network
The Nonprofit Venture Network (NVN) offers community-based nonprofit organizations a comprehensive package of technical assistance and financing designed to enhance their capacity to launch Social Purpose Businesses. While there are several definitions of Social Purpose Businesses, for purposes of NVN we define it as a business activity started by a nonprofit organization that applies market-based solutions for the purposes of furthering the mission of the organization, generating income, and addressing social needs.
In this context, Social Purpose Businesses serve to:
- Promote innovative programs;
- Create job and training opportunities;
- Encourage entrepreneurial endeavors; and,
- Contribute to the financial viability of the parent nonprofit organization.
The Challenge
In a demanding operating and funding environment, nonprofit organizations must look to new models of generating revenue streams while also fulfilling their expanding missions. Launching a Social Purpose Business is an innovative economic development strategy that has emerged in recent years as a way for community-based nonprofits to do both.
Through SPBs, nonprofits can:
- Increase their ability to fulfill the organization's mission while serving their constituents in new ways; and
- Diversify revenue.
Starting a Social Purpose Business venture can pose risks for the sponsoring nonprofit. When a nonprofit launches a new business venture, it strives to earn income and achieve tangible social outcomes. This undertaking can quickly test an organization's culture and management practices. The organization must constantly strive to balance its internal goals of supporting a social mission and generating revenue. The Nonprofit Venture Network helps organizations find that balance through a comprehensive package of technical assistance services and low-cost financing.
Tools You Can Use
As part of the NVN program Seedco development the 'Toolkit for Developing a Social Purpose Business Plan,' a resource for nonprofits that are considering starting a revenue-generating activity or a business venture. It includes comprehensive organizational assessment tools and details for developing each part of a social purpose business plan.
There is also an online version of the Toolkit for Developing A Social Purpose Business.
The NVN Model
NVN technical assistance and services are delivered in three phases.
Phase I: Learning.
Community-based organizations are introduced to the principles of business planning and receive assessment and capacity
building tools through the MetLife Introductory Workshop Series on Social Purpose Businesses.
Phase II: Planning.
Following completion of the introductory workshop, eligible organizations can apply to join the Nonprofit Venture
Network. Over the course of the year, successful applicants receive intensive technical assistance individually and in
group settings with the goal of developing a business plan.
Phase III: Implementing.
Organizations that develop business plans and meet NVN's due diligence requirements may be offered access
to several forms of financial assistance as they launch or expand their social purpose business. Assistance ranges
from below-market-rate loans from Seedco's Loan Fund and near-equity instruments.
How the Program Works
Throughout the year, Seedco offers a three-part introductory workshop series on Social Purpose Businesses,
designed to provide community-based nonprofit organizations with introductory knowledge of the field.
Organizations that have completed the Introductory Workshop Series are eligible to apply for competitive pre-development grants through Seedco's Entrepreneurial Assistance Fund. Once awarded, organizations move on to the year-long grant period, Phase II: Intensive Business Planning. Over the course of the year, Seedco works with organizations to prepare a business plan and to begin to approach funders. Phase III: Financing, provides access to various funding sources to position organizations to successfully launch their Social Purpose Businesses.
NVN Grantees
Seedco has provided funding through the Entrepreneurial Assistance Fund and technical assistance to the following organizations:
Massachusetts Bay Cohort 2004
- Boston Asian Youth Essential Services is developing the 'Teen Art Studio and Gallery', a creative program where teens will design and create artistic items to sell wholesale to businesses, companies, and stores and also in their own retail shop located on a high-pedestrian traveled street in Chinatown. Participating teens will learn work and craft skills to prepare them for future employment, while also receiving a modest salary.
- Child Care Resource Center is expanding their Consult/Works business. Consult/Works provides fee-for-service technical assistance to local child serving organizations in the Boston area.
- Health Care for All plans to establish the HCFA Advocacy and Mediation Program which will help Massachusetts consumers address problems with health insurers and medical care systems. HCFA will also provide low-cost/subsidized professional mediation services to consumers statewide.
- Jewish Vocational Service, Inc. is launching a medical billing business in Boston that will service medical providers wishing to outsource billing functions. This social purpose venture will provide employment opportunities for participants in the JVS Medical Office Skills Training Program, where participants are trained in keyboarding, basic computer skills, third-party billing and general office procedures.
- JFYNetWorks is expanding its e-learning program, which provides educational software and support services to teachers and students to help schools meet federal and state standardized test performance standards. JFY is working to market its products and services to new schools and organizations.
- Roca is developing a mobile tacqueria truck. Known as Tacos Unidos, the social venture will train and employ high risk young adults in the Boston Chelsea area.
New York City Lower Manhattan Cohort 2004
New York City 2001-2003
Tampa Bay 2004
Tampa Bay 2003
Supporters
In New York, NVN is supported by the MetLife Foundation, United Way of New York City, and Mizuho Corporate Bank, with core support from the Ford Foundation.
In the Tampa Bay Area, NVN is supported by the Eckerd Family Foundation, the MetLife Foundation, and the Ford Foundation.
In Boston, NVN is supported by the United Way of Massachusetts Bay, and the Boston University School of Management.
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