Reflections on REDF’s Experience

Joe Beckmann, Oekos Foundation: The Roberts Enterprise Development Fund (REDF) has conducted some very intriguing research on economic and social returns on investment [Editor's Note: Read more on REDF's SROI research in the third article in this series]. And it does make immense sense that this kind of evaluation be pursued to identify levers or pry-points where small investments produce large outcomes. Yet, even with the sophistication of the REDF findings—or those of Soros or other social enterprise/venture philanthropies—it seems they undervalue or do not attach serious enough significance to some of the social benefits of economic failure.

This is the sixth in a series of articles that highlight postings from the npEnterprise Forum, the official listserv of the Social Enterprise Alliance. In the npEnterprise Forum, almost 4000 subscribers discuss practical ways that nonprofits can enhance their organizational capacity, mission impact and financial sustainability by developing business activities that generate earned income.

This article draws upon a recent discussion on the 'best' MBA schools for budding social enterprisers. We've divided this discussion between (1) how to go about your search and (2) specific MBA schools, organized geographically. Please note that comments have been edited for clarity and space.

How to Go about Your Search

The Practitioner's Perspective

Terry Titten Wiens: As a former ED for a non-profit in Canada that went through this successfully, working with students can be a mutually beneficial exercise. What worked for me was to develop an outline for the results I was looking to find. There were double benefits here in that it put the Board in a position where it really took a hard look at what they were doing. After consulting with a number of colleges and universities in the area, we put together a "request for papers" for local students (primarily grad students, but in one case a second year college class). The request asked for solutions to an issue identified by the Board.

In the npEnterprise Forum, the official listserv of the Social Enterprise Alliance, our 3000+ subscribers discuss practical ways that nonprofits can enhance their organizational capacity, mission impact and financial sustainability by developing business activities that generate earned income. Subscribers include experienced nonprofit enterprise leaders, funders, academics, consultants, and others, who post questions and answers on various social enterprise topics. Since it's a moderated listserv, there's no spam and a maximum of two to three messages per day.

This article draws upon the many excellent comments that our subscribers have posted regarding measuring the financial and social impact of social enterprise. (Note: postings have been edited for clarity and space.)

In the npEnterprise Forum, the official listserv of the Social Enterprise Alliance, more than 2500 people from around the world share practical ways that nonprofits can start and grow their business enterprises. Since its inception in May of 2000, we have received thousands of postings – questions and answers—from our subscribers. In this new series of articles, we will feature selections from the best and most useful postings. This first article focuses on the unrelated business income tax (UBIT) and its impact on social enterprise planning. Please note that this article is for general information only, and should not be interpreted as legal advice specific to your organization. For that, you should consult with qualified legal counsel.

The following profiles were posted by our subscribers, describing nonprofits that are engaged in social enterprises that specialize in workforce development. These kinds of ventures typically provide training and employment for individuals who are otherwise unable to join the workforce. Some ventures work with people who were formerly homeless, incarcerated, or substance abusers. The ventures described below present examples in youth employment, janitorial services and thrift stores. (Note: postings have been edited for clarity and space.)

Youth Employment