Social Enterprise Initiative launches with nine nonprofit participants

With a generous $500,000 grant from the Northwest Area Foundation, the Northland Foundation is engaging with entrepreneurial organizations focused on reducing poverty and that currently operate, or want to start, a social enterprise as a means to help people with low incomes develop career pathways and build financial assets.

The Social Enterprise Initiative involves a number of partnerships: with the Northwest Area Foundation, with the participating organizations, and with technical assistance providers. In addition to Northland staff members, the UMD Center for Economic Development and MAP for Nonprofits will offer an array of assistance, based on assessed needs specific to each participant, to help their social enterprises achieve maximum impact through solid management, accounting, marketing, and other business strategies to maximize long-term sustainability and profitability.

How does profit fit into the world of non-profits? Social enterprises generally seek not only to offer needed services in the community but also to generate revenue streams that are independent of government or foundation funding. Revenues, with profitability being the end-goal, are then invested back into programs and projects to further advance the mission.

Participating Organizations

The following organizations were selected through a competitive application process to participate in this 18-month initiative.

• American Indian Community Housing Organization, Duluth

• Arrowhead Economic Opportunity Agency, Virginia

• Community Action Duluth, Duluth

• Fond du Lac Band of Lake Superior Chippewa, Cloquet

• Itasca County Habitat for Humanity, Grand Rapids

• Life House, Duluth

• One Roof Community Housing, Duluth

• Something Cool, Inc./McGregor KIDS PLUS, McGregor

• Western Lake Superior Habitat for Humanity, Duluth

Strategies to promote social enterprise success

“We anticipate exciting outcomes for organizations addressing poverty in the region, and we look forward to spreading the word to other potential funders, consultants, and technical assistance entities about the opportunities social enterprise can offer.”
—Tony Sertich, President
Northland Foundation

The Initiative will involve a multiple-strategy approach tested by the Northland Foundation in past special projects, including a 2009-2010 nonprofit capacity building effort. New are the addition of technical assistance partners, MAP for Nonprofits and the UMD Center for Economic Development, as well as a goal of raising awareness about social enterprise and fostering future opportunities for social enterprise to receive funding, financing, and technical support long after the Initiative is completed. Participants will receive:

• tailored technical assistance based on an individual needs assessment;

• training and peer learning activities to learn from and share with other social enterprises; and

• the opportunity to apply for up to $50,000 in grant funding to support their enterprise.

“The combination of these three strategies is a tried-and-tested approach that will be strengthened further by the help of our technical assistance partners,” stated Erik Torch, Director of Grantmaking and lead staff for the Initiative.

“We were hearing more and more conversation about social enterprise among nonprofits in the region when this Northwest Area Foundation opportunity surfaced, so the timing is ideal,” Torch said.

Watch for progress reports on this exciting project in the weeks and months to come.