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“The social enterprise model, with the fact that it has sustainability and revenue built into it, is a much stronger model and it’s a much stronger story to tell to people who are giving their money,” Samuelson said.
The model also opens up revenue streams and outside investment that can help nonprofits test more comprehensive solutions to complicated problems.
Nonprofits typically rely heavily on donors and government grants, which keeps them busy sustaining what they’re already doing rather than trying out new tacks.
Social entrepreneurship opens nonprofits up to new opportunities that could help do more good and better address systemic problems, said BH Kim, a former San Diego Foundation vice president leading Impact Without Borders, a group of social entrepreneurship evangelists.
“These social entrepreneurs are really going to start looking at more root causes of the problems rather than treat the symptoms,” Kim said.
A patchwork of local groups, including Kim’s, is rallying to set the stage for more enterprising nonprofits and cause-oriented businesses. Impact Without Bordersis hosting labs to help social entrepreneurs polish their ideas and working with Mission Edge, a nonprofit that helps other groups with front office needs, on a program to help nonprofits launch revenue-generating enterprises. Another group, the San Diego Impact Investors Network, is trying establish funding opportunities specifically aimed at mission-focused businesses and nonprofits. They’re hoping to draw $100 million in so-called impact investment to the region by 2025.
“Our interest has really been to bring that entrepreneurial spirit to the nonprofit environment, and to have that spirit you need the tools,” San Diego Foundation CEO Kathlyn Mead said.
Last month, the San Diego Foundation hired Fab Lab director Katie Rast, who’s got years of experience working with makers and entrepreneurs. She’s pulling together experts who can guide nonprofits through months-long training programs she hopes to kick off later this year.
The San Diego…