In a brief interview with Robert S. Budd, CEO Family Residences and Essential Enterprises (FREE), explained how he initiated a “reculturing” of his entire organization starting in 2008.

In a brief interview with Robert S. Budd, CEO Family Residences and Essential Enterprises (FREE), explained how he initiated a “reculturing” of his entire organization starting in 2008. With a staff of 1,500 and revenues in excess of $70 million, FREE had a casual “Mom & Pop” atmosphere with a focus on programs not on clients or business management. Using the Stephen Covey concept of Managerial Leadership, Budd is transforming his organization to be individual-focused with an eye toward developing a strong business mindset. Since the process began four years ago, FREE has entered into partnerships or acquired 15 organizations. In evaluating these partnerships, Budd looked for shared core mission, similar values and vision, and a cultural fit with staff. In fact, he did not move forward with several organizations as they did not meet his criteria.  Each entity added value in program delivery as well as from a business development perspective. Budd said, “Don’t be afraid to learn from your partners. They may have a solution to an issue that woke you up at 3 o’clock this morning.”

Budd recommends for partnerships to work, both organizations must:

• Share core mission
• Have similar values and vision
• Have a cultural fit

Hear Robert Budd speak on Collaborations and Partnerships at the NESC Workshop on November 14^th.  Register here.

Kerry McCarthy

Attention all NYC Arts organizations! Our 18th Annual Arts Reception will be taking place this January 23, 2013. Kerry McCarthy, Program Officer of Arts and Historic Preservation, for The New York Community Trust is the featured speaker.

Ira Schwartz

In addition, Ira Schwartz, Former Executive Vice President of D’arcy, Masius, Benton and Bowles and Marketing Guru for NESC clients, will be giving a special presentation on branding.

Join us for an evening guaranteed to entertain and enlightened. Starts at 4:30 p.m at The Salmagundi Club, 47 5th Avenue (between 11th & 12th Street) New York, NY 10003. Wine and cheese will be served.

RSVP is required.

Contact Betty Lefferts for registration at 212-269-1234 x. 103

Can collaborating help your organization achieve its objectives?

In this challenging environment, nonprofits are considering collaborations as a strategy to sustain and/or enhance their missions.  Such collaborations can range from simple cooperation to more strategic forms including affiliations, alliances, joint ventures or mergers.

When nonprofits consider collaborating they often have questions like:

To help nonprofits address these issues and other questions, National Executive Service Corps (NESC) has partnered with The Fairfield County Community Foundation’s Center for Nonprofit Excellence (CNE) to offer this Nonprofit Collaboration Workshop.

Components of the workshop include:

Date: Wednesday, March 6, 2013
Time: 8:30 am – 12:00 pm
Cost: $25
Location:   Fairfield County Community Foundation,
Merritt View Conference Room
383 Main Ave, Norwalk, CT 06851 Map
Register:   Please register by Friday, March 1, 2013.

Interested in attending?  Click here to register for this event

About NESC

The National Executive Service Corps (NESC) is a nonprofit consulting firm committed to strengthening the management of nonprofit organizations so that they can deliver more efficiently and effectively on their missions.  NESC’s volunteer consultants are skilled, experienced business executives and professionals who understand nonprofits and have experience in collaborations, as well as strategic planning; board development and governance; branding and marketing; organizational assessments; and social enterprise.

About CNE

Strong nonprofit organizations make the greatest impact. The Fairfield County Community Foundation’s Center for Nonprofit Excellence (CNE) was created to enhance the effectiveness of nonprofits throughout our region.

The CNE offers high-quality and affordable professional development workshops for Fairfield County nonprofit executive directors, senior staff and board members.

For more information, please contact:

Deborah Brennan, Regional Director
NESC SW CT
(212) 269-1234 #112

OR

Elaine Mintz, Director Center for Nonprofit Excellence
Fairfield County Community Foundation
(203) 750-3209

Could your board be more effective?
Does your strategic plan guide decision making?
Are board members engaged and their skills being utilized?
Does the board address critical issues effectively?
Is the relationship between Board Chair and ED appropriately balanced?

If your organizations is facing with any of these issues, our new service Board Performance Checkup is right for you.

NESC’s Board Performance Checkup® is an unbiased, diagnostic service that helps nonprofit boards identify areas for improvement. It is an opportunity to clarify roles and responsibilities, reflect on the value the board brings to the organization, and re-energize board members.

Benefits
• Interpretation of results by NESC’s experienced, objective nonprofit experts
• Board member education regarding board best practices
• Identification of opportunity areas to enhance your board’s effectiveness
• Confidentiality to encourage honest, candid responses
• Analysis within the context of your particular organization
• A channel of communication to re-energize board members

How it Works
NESC consultants will conduct the following four steps:

1. Interview the Board Chair and the ED individually
2. Observe a board meeting
3. Conduct a confidential, on-line board survey, based on established best practices
4. Present findings at board meeting

The fee for the service is $1,200.

Please contact Debbie Brennan to discuss how Board Performance Checkup® can work for your organization. Inquiries can also be submitted here.

Leaders of about 90 nonprofit arts organizations gathered on January 23 at New York’s Salmagundi Club for NESC’s 18th Annual Arts Reception.  Ira Schwartz, former Executive Vice President of D’Arcy, Masius, Benton and Bowles, delivered a robust presentation on branding for nonprofits. Since joining NESC in 2004, marketing guru Ira  has helped many nonprofit clients to understand the value of branding as part of their marketing effort, and to design and implement branding programs. The detailed discussion and comprehensive slide show was followed by a lively question and answer session. Following Ira, David Sweeny, Executive Director of HAI, gave a compelling client testimonial of NESC services.  

Kerry McCarthy, The New York Community Trust

The Arts Reception also featured Kerry McCarthy, Program Officer of Arts and Historic Preservation for The New York Community Trust. The Trust is one of the oldest and largest community foundations in the country and the largest private funder of New York City nonprofits. Ms. McCarthy has more than twenty years of experience in museum and performing arts administration with organizations. In her discussion, Ms. McCarthy reviewed the challenges of the current business climate from the standpoint of grant making organizations. With the Trust’s net assets of nearly $2 billion and the $137 million giving power in 2011, all participants were captivated by McCarthy’s presentation.

Check out the photo album on our Facebook page.

If your arts organization is interested in attending future receptions, please contact Jeanne Linnes, Arts & Culture Sector Head. 

Special Guest Post from Sheetal Mehta, NESC Consultant

Social media can be very helpful in spreading the word about a nonprofit’s cause, given its vast reach, and a highly interactive and personal nature. It can also be a valuable fund raising tool, given that it’s also easy to connect offline events to social media. 

Although social media accounts are free, they are not completely without costs.

They can require a significant amount of human capital to respond/interact with the stakeholders in a timely manner. Nonprofit organizations, often strapped for resources, should therefore focus on reaching the most valuable target audiences through the most engaging social media platforms.

By sharing content that’s relevant, interactive and interesting, organizations can involve the audience in the cause. Highly engaged audiences tend to be more loyal, donate more resources and spread positive word of mouth among others of similar profile. Thus, for social media programs to be successful, they should be built on a foundation of careful planning and strategy. Only then it is likely for the organization to derive a positive ROI from its social media efforts.

For learn more about social media and nonprofit, we recommend the following links as  additional resources:

Nonprofit Tech 2.0 Blog: A Social Media Guide for Nonprofits, “11 Nonprofits That Excel at Social Media”

Nonprofit Quarterly, “Report Explores Nonprofit Social Media Trends”

Nonprofit Marketing Guide, “Need a Social Media Strategy? Start with These Three-Pronged Approaches”

Guidestar Blog, “Is social media right for your organization?”

Guest post by Anne Finn, Senior Vice President of Social Services for NESC

What’s the payoff from Social Media? Having spent 40 years as a consumer marketer, I was skeptical about measuring the impact of Social Media on our marketing efforts. Last Spring we looked at our Communications Plan and decided to fully integrate Social Media into our efforts. Our newsletter features are sent out on our blog, interfaces with our website, Facebook, Twitter and LinkedIn, all with consistent messaging geared to our audience.

Here’s the payoff…  Today NESC is on the first page of Google search for Nonprofit Consulting NYC (a year ago we were on page five). We are attracting talented consultants and motivated new clients through these efforts. I am no longer skeptical about Social Media… with the right strategy it does work!

Share your social media experience in the comments.

Raising Branding Awareness with a 70-year-old Nonprofit

Cabrini-Eldercare has provided comprehensive eldercare services to its communities for almost 70 years.  These programs include nursing homes, home healthcare, rehabilitation, adult day care, senior housing and immigrant assistance. With such a variety of program offerings, Cabrini-Eldercare aspired to enhance its image among key client and stakeholder groups.

Moreover, Cabrini wished to broaden awareness of the organization’s vital role through a strengthened branding and marketing program. Soon after engaging NESC, the plan to help improve visibility among a community of users, referrers, potential contributors, funders and prospective board members was on its way.

NESC consultants developed in-depth understanding of Cabrini’s current service offerings. In addition to conducting interviews with key players, our consultants also reviewed relevant documentation including history, marketing activities, revenue expectations, and future prospects.  A thorough evaluation produced a competitive review that defined the appropriate parameters necessary for creating a comprehensive marketing/branding plan focused on building broader awareness of Cabrini-Eldercare as a first-rate provider of long-term and other eldercare services.

The program identified target audiences and recommended specific efforts aimed at each.  Building around a brand of “We Love Caring for People,” the consultants, among other things, developed action plans for multi-channel direct mail, website changes, developing ambassadors to the community, and promotional materials, and suggested ways to differentiate individual programs and pursue certain internal changes.

The agenda was enthusiastically accepted and implemented by Cabrini.

Patricia Krasnausky, President and CEO of Cabrini-Eldercare, wrote the following:

“I would like to thank National Executive Service Corps for the wonderful work they did for Cabrini!  After numerous failed attempts with other agencies to develop a brand to elevate Cabrini’s image, we had the good fortune of discovering the high-caliber expertise and professional commitment that the NESC offers to non-profit organizations.”

Subsequently, NESC has completed a Social Enterprise engagement for Cabrini-Eldercare.

NESC Marketing Consultants Gather for Roundtable Discussion

What happens when a group of NESC’s marketing consultants are together in a room? With a wealth of knowledge from careers in IBM, D’Arcy, Masius, Benton and Bowles, Magazine Publishers of America, Merrill Lynch and The Smithsonian, an enlightening conversation on nonprofit marketing occurs. Below is the synopsis of that conversation. Many thanks to the following NESC consultants for participating:  Elaine Berk, Anne Finn, Joan Giansante, Dave Mollen, Dorothy Philips, Scott Rockman, and Ira Schwartz.

­

Marketing is much more than a logo or a slogan.  Nonprofits know this to be true. Nonprofits also know that their limited human and financial resources paired with ever increasing demand for services leave almost no time to go beyond a logo or slogan.  Gaining marketing insight doesn’t require extra out-of-the-box thinking. It just requires an honest look at the organization. A focus on marketing can be stimulated by the realization that a nonprofit entity is not entirely unique, and that competition does exist.

Marketing helps to address issues such as:

• How is our program/organization different?
• What do we want to be known for?
• Why is our work relevant?

—and to communicate the answers to those questions.

Sounds much more complicated than what it can be.

The process involves identifying how to get the desired response from those groups the organization has targeted for involvement; few nonprofit leaders would deny the worthiness of that goal.  While selling is offering something in exchange for money, marketing is a process that entails satisfying certain needs of clients or consumers.  Nonprofits must understand what target constituencies want and how to truly provide them the expected benefits.

Marketing consists of strategies and tactics used to identify, create, and maintain satisfying relationships with clients/stakeholders that result in value for all parties involved.  Strategies are the direction of the marketing effort over some period of time, while tactics are actionable steps to facilitate the accomplishment of the strategic goals.  Marketing plans often spell out the steps that will be taken to address specific strategic objectives such as to attract more volunteers or funds or to change or enhance the value provided to particular stakeholders.  Without prior strategic planning, marketing efforts will be less effective in moving the organization toward better fulfillment of that mission.

Marketing is also a process of internal communications that transforms everyone in the organization into a marketer.  All individuals in an organization should not only understand the key internal/external “drivers” of its business model, but should also identify with the brand and be able to articulate an “elevator speech.”

The basic steps in nonprofit marketing are:

• Start with a well formulated mission statement
• Carry out strategic planning to clarify what the organization wishes to accomplish
• Develop clear goals
• Review and carefully select target groups, and do research to understand their needs; evaluate environmental factors
• Develop and review marketing plans for consistency with each other and with the strategic plan
• Implement
• Monitor and evaluate outcomes

In the nonprofit arena, fairly simple and straightforward marketing plans are often most effective.

For further reading, see our white paper on branding for nonprofits.

The Last Word from Betsy Weber, NESC President

Betsy Weber,
NESC President

Have you ever asked yourself these questions:

• How can we build visibility for our nonprofit?
• How can we best let potential clients know what we do and our impact in the community?
• How can we attract more donors? More volunteers? More media attention?
• How should we use Social Media, if at all? The communication environment is changing so rapidly, how can I tell if I am using the most appropriate platforms for my message?
• Is better marketing the answer?

Our email is loaded with messages like these as well as from “marketing gurus” exhorting nonprofit leaders to increase their use of marketing to realize many strategic objectives. But what is meant by a “good” marketing plan? How do you distinguish between what is effective for your nonprofit and what will have limited, or very little, impact on helping you to reach your goals? How do you select the right individuals or consultants to help you?

The answer may seem simple, but it is much more difficult if you are not clear about your strategic priorities and have not identified and understood the target audiences you are trying to reach. Marketing is not a stand-alone program, nor is it meant to “sell” an idea. It quite simply is to create an environment in which your product or service is viewed positively by the target audience(s) you want to reach. Once your targets fully understand how your product or service can benefit them or their organization, then the “selling” part of the equation becomes easier. Creating a Strategic Plan first allows the nonprofit to create a marketing plan that supports the strategic priorities that the nonprofit has adopted.

We recently gathered a group of NESC marketing consultants to discuss marketing for nonprofits and the lively discussion centered on what is actually meant by the term “marketing” and how it differs from branding and how it differs from selling.  Our consultants, many of whom have spent their careers in marketing, now apply that knowledge to help the nonprofit sector create meaningful, effective marketing plans to achieve their objectives, adjusting of course to the size, budgets and resources of our nonprofit clients.

I hope you enjoy this edition of NESC’s quarterly e-newsletter and that some of the marketing ideas and tips are helpful to you.

We look forward to bringing you information on the NESC approach to Social Enterprise in our next newsletter. NESC’s definition of Social Enterprise is the entrepreneurial pursuit of an earned income business activity – within the nonprofit’s mission – as a means for generating unrestricted cash flow. Look for it in your email this Spring.

If you would like to discuss some of these ideas more, please contact us.

Michael Bass, NESC Chairman

Michael E. Blass, a longtime NESC Board member, became Chairman at the end of 2012. He  is the Managing Partner of the New York office of the law firm Arent Fox, and a member of the firm’s Executive Committee.  He concentrates on corporate transactions and regulatory matters involving health care providers, and has represented some of the nation’s largest health care companies.  His expertise in these areas has been widely recognized.  Michael is a graduate of Georgetown University and the Fordham University School of Law. Learn More about him in the latest interview below.

Michael, what are NESC’s greatest strengths and most distinctive features?  

There’s no question that our greatest strength lies with our large and diverse pool of volunteer consultants.  We at NESC are privileged to be able to offer training to these very successful individuals and to serve as the platform from which they deploy their skills for the improvement of their communities. And I think what distinguishes NESC from most nonprofits is the broad range of constituencies that we serve.  Because our consultants come from so many professional backgrounds, we are able to provide professional advisory services to organizations in just about every nonprofit field, including healthcare providers, schools, museums, performing arts organizations, and even government agencies.

Each year NESC has several classes of new consultants.  What thoughts and advice would you offer to new consultants?

Well, I think the first thing I would say is to enjoy the opportunity.  One of the great things about NESC is that our consultants have the chance to work with people and organizations that share a passion for helping others, usually in very creative ways.  In many respects, it’s a very different environment from the business world that most of our consultants worked in during their for-profit careers.  Also, I would urge all of our new consultants to always keep in mind the ultimate missions of the organizations that they will be helping, and how they are really making a difference in the lives of so many people.

What do you regard as NESC’s most important strategic objectives?

Probably, our most important strategic objective is to increase our visibility among the many, many nonprofits that would benefit from the services we can offer them.  Most nonprofits are not aware of the tremendous talent pool that is available to their organizations through NESC.  Amazingly, many nonprofits continue to turn to large and expensive for-profit professional firms for the kind of assistance that we can offer them for far less cost, and usually with a more senior level of hands-on attention.

How is NESC’s business environment changing?

Nonprofits are feeling the pinch of less government support and increasing competition for foundation and charitable dollars.  That means, of course, that our nonprofit clients are finding it harder to pay even the modest fees that NESC must charge to continue its own nonprofit services.  As a result, we as an organization will have to find ways to run leaner and even more efficiently.

What are our biggest challenges?

 Our biggest challenge is attracting corporate and foundation support.  Unlike many – if not most – nonprofits, we work behind the scenes for other nonprofit organizations..  We’re getting under the hood and helping these entities run smoother and stronger.  Consequently, we don’t have the visibility to the public that a lot of corporate benefactors and large foundations desire when they’re giving money to charities.  We’re looking at ways to address this, including possible collaborations with other nonprofits in developing projects that provide a direct service to a public constituency.

How might NESC look different a year from now?  What changes might occur over the next five years?

Like a lot of the nation’s nonprofits, NESC is at a transitional time in its long history.  We are going to have to find ways of operating on less and, at the same time, elevating our brand.  So I think that over the next 12 months we will probably get a little leaner, but stronger, as we forge new relationships with funding sources and other nonprofits.  Five years from now, I think we will be using new technologies to deploy and work with our consultants, as well as to serve our client organizations.  I also think we will have established strategic collaborations with two or three other nonprofits that will enable us to achieve economies of scale, leverage our resources and even deliver new kinds of services to our clients.  Hopefully, we will be looking back at the challenges we are facing now and realize that this was a time of great opportunity, and that we seized that opportunity to build an even better NESC.      

RUTH NELSON HONORED BY ALMA MATER

Ruth Nelson, who joined NESC as a consultant in 2008 and has been working on Special Projects for the organization, has been given the Distinguished Business Alumnus Award by the University of Wisconsin, at a Gala at the business school in Madison. According to the school, “this award recognizes graduates of the Wisconsin School of Business who achieve outstanding success in their careers and have given back in meaningful ways to the community and UW-Madison campus.  It is the highest honor given by the school.”

Ruth has held executive positions at Time, Inc. and at its American Family Publishers subsidiary.  She is also active in Fifth Avenue Presbyterian Church, where she headed its Center for Christian Studies from 1999 to 2007.

DOROTHY PHILIPS, OUR HALL OF FAMER

Dorothy Philips, an active NESC consultant, has been named to the Medical Advertising Hall of Fame.  This honor is accorded to only three individuals each year; Dorothy is one of a small handful of women who have received it.

Following a stint in academia Dorothy worked for two advertising agencies, and opened her own agency, Philips Healthcare Communications, in 1990.  She is particularly known for her work promoting vaccines.  In 2012 Dorothy retired from formal agency work.  She remains an active board member for Lighthouse International.

Dorothy has  MBA and PhD degrees from NYU.  She won a Ford Foundation grant for her PhD study of promotional tools in healthcare communications.

Barry Rand, CEO of AARP

Barry Rand, Chief Executive Officer of the American Association of Retired Persons (AARP) will be the honoree at the ninth annual NESC Gala, to held this year on October 17th at the Yale Club in New York.

“We are blessed with a truly outstanding honoree” said Marv Berenblum, NESC’s CEO.

Mr. Rand also serves as Chairman of the Board of Howard University, and has previously been Chairman and CEO of Avis Group Holdings, CEO of Equitant Ltd., and EVP of Xerox Corporation’s worldwide operations.  He has served on many corporate and nonprofit boards.

According to NESC Board Chairman Michael Blass, “Mr. Rand exemplifies the model corporate executive NESC has recognized over the years–a very accomplished leader in corporate America who has extended his talents and generosity to the nonprofit community.”

If you’d like more details about the Gala or ticket information, contact Mary Anne Liss.

Jon Goldfarb

Jon Goldfarb, who stepped down as Chief Financial Officer of NESC in December, was elected to the organization’s Board of Directors at its March meeting.  He was also named Secretary of the Board.

Jon joined NESC in 2002, and became CFO in mid-2005.  He remains active on communications and other special projects.

He is also an arbitrator on securities cases for the Financial Institutions Regulatory Authority (FINRA).

Jon retired in 2001 from a career of more than 30 years as a Wall Street investment analyst–the last 25 of which were at Merrill Lynch, where he was Managing Director.  In 2011 Institutional Investor magazine named him one of the 49 “best stock analysts of all time.” Full article here.  He has an MBA from Harvard Business School.

William McAndrews

William D. McAndrews will become Director of NESC’s Long Island region.  He is taking over from Bob O’Connell, who will remain active in the organization.

Bill has had a successful career within the telecommunications industry, and has an extensive background within the nonprofit sector, including leadership and board experience in youth services and education organizations.  He has worked as an NESC consultant in the past.

“I am excited about joining NESC at a time when nonprofit organizations are facing the twofold challenges of increasing client demand and decreasing support from the corporate, government and private sectors.  The nonprofit community plays a vital role in communities and, often, they are the difference between a life of quiet desperation and one of achievement. ” said Bill, “It is great to be a part of the NESC team and be able to help nonprofits continue to provide their important services and support to their communities.”

On March 20, NESC conducted its second workshop on Social Enterprise at the annual Nonprofit Consulting Day sponsored by the Baruch College School of Public Affairs’ Center for Nonprofit Strategy and Management, and Con Edison.  Our morning session, attended by 34 New York nonprofit organizations, included a presentation titled “Social Enterprise: Strategies for Taking Advantage of Underutilized Assets and Developing Unrestricted Cash Flow.”  In the afternoon the team addressed “Social Enterprise: Organizational Challenges.”  Participating for NESC were Senior Vice Presidents Joe Townsend and Anne Finn, and Coordinator of Consultants Sergio Sedita.

Social Enterprise has become one of NESC’s most dynamic practice sectors. As an attendee wrote, “Your workshop on social enterprise opened my mind to this and other profit making possibilities … I can’t wait to exercise that type of thinking more.”   If you’re interested in learning more, contact Joe Townsend. Here are photos from the day:

Great #tech showcase at Google last night. Thanks for the shoutout NYCHandsOnTech and NYCares!

Joe Townsend
Senior Vice President,
Social Enterprise

Social Enterprise has become one of NESC’s most active consulting sectors.  Senior Vice President Joe Townsend has headed this practice since its inception. Follow the link to learn more about this growing sector.

Joe, what is a simple definition of Social Enterprise?

Social Enterprise is the entrepreneurial pursuit of a business activity—within a nonprofit organization’s mission—as a means of generating unrestricted cash flow.  It entails monetizing and leveraging existing assets.

Why has Social Enterprise become so much more important in the nonprofit world?

The reasons are clear.  The slow economy has negatively affected both for-profit and nonprofit entities.  And there has been a two-fold change in the funding environment.  First, there is less funding for nonprofits available from both public and private sources.  Second, unrestricted grants are becoming increasingly rare.  Many nonprofit organizations are struggling to obtain sufficient unrestricted funds for operations.  Earned income can be one solution.  Social Enterprise ventures can contribute greatly to organizational stability.

Please describe NESC’s Social Enterprise business.  What distinguishes our efforts?

We offer customized, cost-effective solutions.  The keys are people and process.  Our team has developed considerable expertise in this area.  And we have a highly-disciplined and structured three-phase approach.  Here are the three phases, and some of the key activities and considerations for each:

• IDENTIFY existing underleveraged and/or nonmonetized assets.  Brainstorm and evaluate opportunities.  Measure social value, market potential, competition, and ease of entry.  Study organizational capacity, readiness and resource requirements.  Estimate scalability and sustainability.
• CREATE a focused business plan.  Define the strategy.  Perform SWOT analysis.  Set goals.  Prepare financial projections.  Set a timeline.  Consider stakeholder involvement.
• IMPLEMENT the business venture.  Identify and empower leadership. Dedicate resources.  Detail the organizational and business structure.  Plan tactics.   Consider financing.

How can a nonprofit organization determine if it possesses the potential to develop a Social Enterprise venture?

The one necessity is to possess underutilized and/or nonmonetized assets, which can be of four types: human assets, physical assets, technological assets, and social/brand assets.  We ask questions such as the following:  Do your staff and/or volunteers have the time and energy to do more?  Do you have physical space that is not being used?  Could you offer services to another agency in your community?  Do you have a proprietary technology or system?  Is there demand for the product or service you may offer?  Does your organization have local or regional visibility?  Is it known as a recognized brand?

Does one element stand out as the biggest roadblock to success?

Leaving aside issues related to the nature of the asset(s) to be exploited and the availability of resources to do so, viable Social Enterprise endeavors require greatly broadened mindsets on the parts of both managements and staff.  People who have spent their lifetimes dedicated to a nonprofit organization’s mission sometimes need help transitioning their thinking to the requirements of running a business with the purpose of generating cash flow.  NESC, whose entire existence has been focused on assisting nonprofits with business problems, is especially well-suited to help with this process.

Are there ways that organizations can obtain unrestricted cash/investment funds or other start-up financing?

An exciting trend which is still in its early stages is the development of Social Venture Philanthropy/Impact Investing, which I would define as applying the tools of venture capital funding to promote start-up, growth and risk-taking social ventures.  We prepare and connect our clients to attract funds.  NESC can act as a catalyst to bring new Social Enterprise investees and projects to social venture funding sources, and conversely, to guide social venture funding sources in finding mission-suitable Social Enterprise projects for their portfolios.

For a typical medium-sized nonprofit organization considering moving in the direction of Social Enterprise, what are the chances of success?

The record is that about one venture in four can be truly categorized as having prospered.  At NESC we believe that we can improve those odds for our clients.  Beyond the requirements already discussed, we have found that scalability is a critical determinant of success.  An enterprise must be capable of attaining a certain size or critical mass.  Scalability engenders sustainability.

Joe Townsend joined NESC in 2006, and became Senior Vice President of its Social Enterprise sector when it was formed in September 2008.  Previously, between 1972 and 1997 he was successively Treasurer, Secretary Treasurer, and Senior Vice President at Club Med, Inc. (NYSE), and was then involved in several other travel-related ventures in South America.

NESC Social Enterprise Team Presents at Baruch College on May 22, 2013

Members of NESC’s Social Enterprise consulting group made presentations at two recent functions hosted by The Center for Nonprofit Strategy and Management of the Baruch College School of Public Affairs.

On May 22, Senior Vice President Joe Townsend and NESC board member Gregg Young addressed a standing-room only group of about 90 at a seminar titled “Special Impact Investing: New Strategies for Financing Nonprofit Ventures,”  which explored the small but rapidly developing field of Social Venture Philanthropy.   

The panel was moderated Thomas S. Lyons, Ph.D., Lawrence N. Field Family Chair in Entrepreneurship, Baruch College, Zicklin School of Business. Panelists included Matthew Klein, Executive Director, Blue Ridge Foundation New York; John MacIntosh, Partner, Sea Change Capital Partners; Susan Constantino, President, Cerebral Palsy of New York State. Leaders of the organizations that provide financing for nonprofit social enterprise ventures described their approach to this business and how they identify and work with the nonprofits in which they invest.

Joe Townsend discussed the role that NESC can play in bringing together funders and the operators of social enterprise entities, and the importance of demonstrated scalability in attracting such funds.  Board member Gregg Young, drawing upon his experience in private venture capital and “angel” investing, talked about the forces spurring activity in this area and about NESC’s efforts in the critical task of developing an infrastructure that facilitates these transactions.  He also explored the need to come to agreement about how to define “success” in social enterprise activities.

At the March 20 “Nonprofit Consulting Day” sponsored by Baruch and Con Edison, NESC conducted its second annual Workshop on Social Enterprise.  Participating for NESC were Senior Vice Presidents Joe Townsend and Anne Finn, and Coordinator of Consultants Sergio Sedita.  The morning session, attended by 34 New York nonprofit organizations, focused on a presentation titled “Social Enterprise:  Taking Advantage of Underutilized Assets and Developing Unrestricted Cash Flow.”  In the afternoon the team addressed “Social Enterprise: Organizational Challenges.”

One attendee wrote, “Your workshop on social enterprise opened my mind to this and other profit making opportunities…  I can’t wait to exercise this type of thinking more.”

See more photos on our Facebook Page.

The Cerebral Palsy Associations of New York State (CPofNYS) is a multi-service organization with 24 affiliates and a long-time client of NESC.  Its mission is to advocate and provide direct services with and for people with cerebral palsy and other developmental disabilities.  A staff of 17,000 employees provides services to over 85,000 disabled people, and their families, across New York State.

As a key part of its services, CPofNYS trains people with developmental disabilities and prepares them for meaningful employment in its own business ventures as well those in the business community.  NESC was engaged to examine possibilities for the enhancement of this vital social enterprise activity.

The focus would be particularly upon an existing start-up, a document management service for CPofNYS itself and for outside business organizations.  The enterprise, headquartered in Staten Island, provides employment and a work environment for people it has trained. It has piloted digitizing documents with the thought of expanding that capability to other aspects of document management.  As an initial business client was serviced at its own site, the mobility inherent in the organization’s ability to “go to the work” could prove a key competitive advantage.

NESC prepared a three-year business plan for this enterprise which led to a series of discussions with management.  Given the CPofNYS’s limited marketing expertise, NESC was asked to propose ways in which it could provide guidance and hands-on support to the unit’s staff in marketing and developing this new business.  We recommended and led regular preplanned monthly structured and interactive sessions over a year’s time. Starting with the basics of marketing, the process moved into client identification, proposal development, client tracking, branding and communications. Successively, it led to product-line expansions and other long-term strategic considerations of document management.

During the course of these sessions, specific actions and tactics were developed and implemented.  Service offerings expanded to include shredding, file classification and indexing.  Branding developments included the new name, “Secur-E-doc”, logo and tag-line: “Your Mobile Document Solution.”  The planned “launch day” on Staten Island attracted new potential customers as well as local dignitaries and the press.

According to Jerry Schiller, President of NESC’s Healthcare Consulting Group, “This process of empowering the CPofNYS staff is what stands out about this Social Enterprise project. NESC was able to benefit our client significantly by facilitating the implementation of this project.”

Joseph M. Pancari, Executive Vice President and Chief Operating Officer of CPofNYS, writing to NESC on March 4, stated “I would like to thank the NESC team for helping us bring our ideas about Secur-E-doc social enterprise project to fruition…  You effectively helped us break down the many tasks that were necessary to create our business into concrete and measureable outcomes… You provided us with great feedback on marketing and sales initiatives that helped shape our message to prospective customers.  We consistently left our meetings with new ideas and a sharper focus of what needed to be done to grow our business.”

At NESC’s invitation, CPofNYS President Susan Constantino was a panelist at the May 22 Baruch College seminar on Social Impact Investing. Find the featured article in this link.