Nonprofit Business Planning

Nonprofit Mission versus Sustainability

The Boyd Theater in Philadelphia is at a crossroads: financial sustainability is only achievable with, for all intensive purposes, with the destruction of the theater.  What you say: destruction of the theater?  Yes, that's the conclusion of the latest assessment and desire of developers who propose to effectively gut the building and convert it into what maybe could be a sustainable opportunity.  The alternative to this plan: government and possibly philanthropic subsidies.

I would wager that government and philanthropic subsidies is pretty much par for a great number of such historic entities.  But maybe that was the past and maybe the future for such sustainability strategies is not so feasible.  And so shall these institutions fall?  

These are obviously difficult challenges for a nonprofit board.  Nonprofit boards must pusue mission and the pursuit of mission requires ensuring the model for sustainability is sound.   It appears there is no win:win solution or at least that the win:win solution is not consistent with what the board believes was its mandate.  But, feasible is feasible....is it not?  There is certainly much work ahead for this board.

See here for the story.

Nonprofit Social Enterprise Win:Loss

The folks who brought many cities what is now recognized as a bike-sharing are bankrupt -- seriously bankrupt owing their founding city some $40 million dollars and other creditors another $9 million.

Oops!  Is this an indicator of the prospects for nonprofit social enterpise?  It just doesn't work?  

I for one do not believe this organization's belly flop is a harbinger of the evils of social enterprise but it sure does offer some warning lessons.  One such lesson: social enterprise is a risk.  But what revenue generating venture is not?  The risks are huge for every venture: upredictable market demand; unpredictable economic environments; unpredictable competition.  One can't be guaranteed a win.

But there are lessons to be had about what it takes to launch, maintain and manage a social enterprise and as the NPQ notes: the lessons will be one of this program's legacies.  

Nonprofit Marketing & Sustainability Planning

If you didn't watch the Rose Parade and haven't yet heard the story of Meatball the Bear, check-out this Wall Street Journal article.  

Meatball is a bear who's appetitite has brought him into the spotlight, at least temporarily.  Meatball earned his name when seen rummaging through garbage and apparently having favored discarded meatballs.  But this of course is not THE story.  THE story is about a "disagreement".  

Sadly for the preserve, an area entrepreneur got on Meatball's bandwagon ahead of the preserve producing revenue generating stuff.  The preserve has challenged the entreprenuer's "right" to economic claims over the bear recognizing that it, the preserve, has to bear all the costs without any of the benefits.  It want's all the benefits not just a "cut" as offered from the entrepreneur.

In the meantime, the two players compete while Meatball is still "hot" resulting in a dividing of the pot.  

One lesson: nonprofit sustainability in today's economy (this is not really new though) demands marketing saavy ahead of opportunities.  Meatballs don't roll-in every day but a saavy nonprofit should have it's plate ready for when just such an event might occur.

One solution: the Preserve should consider inviting its competitor to join its board.  The two share a joint passion and perhaps strengthening the relationship could result in a win:win proposition for both by using some of the basic rules of negotiation: separate the problem from the people; distinguish between interests and position.

A sustainable new years to all!