???---> profit ---> helping people
January 24, 2019 11:41 AM   Subscribe

What are ingenious ways social enterprises have generated sustainable income, exclusive of government funding/grants/fundraising? What related business models have been successful (particularly in the Canadian context)? (What search terms am I even looking for?)

Looking for examples, research, books, syllabi if relevant.

I'm interested in businesses that have reinvested profit into projects that may not necessarily inspire knee-jerk sympathy from the general public (specifically, provision of low-cost, effective mental health care for serious conditions).

OR, arrangements involving incentives to e.g. networks of other businesses to invest in same.

One example: this place is amazing. They run on "rental of counselling offices, donations and grants". (I don't think donors get tax credit.)

If I've been unclear or confusing, what I'm generally after are sustainable ways of creating $ to fund effective and affordable mental health care entirely within the private sector.
posted by cotton dress sock to Society & Culture (15 answers total) 6 users marked this as a favorite
 
Response by poster: (Sorry - the business identified in the link is fantastic, but still relies on grants and donations, I'm after businesses operating entirely on profit. If any exist.)
posted by cotton dress sock at 11:47 AM on January 24, 2019


Response by poster: (Sorry, also - I'm after alternatives to the current setup, so that uninsured people can get [relatively] timely, effective, affordable help.)
posted by cotton dress sock at 11:52 AM on January 24, 2019


Some B corporations may be good examples of what you're looking for.
posted by SaltySalticid at 11:59 AM on January 24, 2019 [3 favorites]


One advocacy org that I know was very nearly self-sustaining for decades made much of their income through fiscal sponsorship. Essentially, they used their US 501(c)(3) non-profit status to process tax-deductible donations to small projects (e.g., documentary films) who didn't want to go through the legal hassles of creating an independent non-profit entity, while taking a small cut from each donation. I gather there are quite a few such orgs around. (I'm not sure how that works in a Canadian context.) They also taught professional classes and offered group healthcare plans through a large insurance company for self-employed people who became members. The made some money from both, but not enough to pay the bills. There was always kind of a weird division between the finance and education people and the activists, which made for pretty ugly office drama. I'm happy to share their name privately (I'm not sure if they want their business shared in public) but I doubt you'll find much documentation. It's not clear their funding model has continued to work in the last decade.
posted by eotvos at 12:12 PM on January 24, 2019 [1 favorite]


Grameen Bank is one of the landmarks in this space, which is often referred to as "social business enterprises" or "for profit social enterprises"
posted by the agents of KAOS at 12:32 PM on January 24, 2019 [2 favorites]


I have heard from some business friends who have dabbled in this area that Canada has been a bit behind in this field. Elisa Birnbaum who writes for the Globe & Mail has written some articles and a book about social entrepreneurs in the Canadian context. I have only read her articles but her book In the Business of Change: How Social Entrepreneurs are Disrupting Business as Usual might offer some leads. As for businesses, there's TurnAround Couriers in Toronto but I'm not sure if they get any funding from the government.
posted by Ashwagandha at 12:42 PM on January 24, 2019 [1 favorite]


Hey - looks like Elisa Birnbaum giving a talk next week on the subject at the Rotman school.
posted by Ashwagandha at 12:54 PM on January 24, 2019 [1 favorite]


I came in to plug for the B Corp model (the company where I work is one). It allows you to generate revenue and make profit through the selling of goods and services (like any other for-profit organization) but with a commitment to also do good on a social and environmental level. There is a requirement for independent certification, to try and keep B Corps honest.

It's a model that works particularly well for many companies whose core services could be said to be making a positive contribution in the world, which providing affordable mental health care certainly is. Might be worth researching.
posted by Anticipation Of A New Lover's Arrival, The at 1:16 PM on January 24, 2019 [1 favorite]


B Corp model for sure, as well as the fiscal sponsorship model. I have seen it done successfully here in the US, and in Canada, I know that TIDES is a big fiscal sponsor of projects.
posted by something_witty at 1:26 PM on January 24, 2019 [1 favorite]


I'm not aware of any mental-health specific ones, but hopefully this gives you some search terms and ideas.

Social enterprise is a hot topic in business schools these days, though probably over-hyped.

Here are a couple examples in my neighbourhood:
- BWSS (Battered Women's Support Services) apparently engages in some social enterprise which funds some of their counselling programs
- The YWCA uses a couple of social enterprises to fund their programs to assist vulnerable women and children
- Groundswell is a social enterprise training program that can be funded by microloans from a local credit union called Vancity
- This pamphlet lists a number of social organizations in BC working on health issues, some of which include mental health and substance abuse - only some are social enterprise, but it might provide some ideas

Crowdfunding may be an option and there have been certain structural changes to make it easier.

The BC government relatively introduced a business structure for a Community Contribution Corporation (CCC) (which apparently imitates the UK "Community Interest Company"). I am not certain how widely it has been taken up, but it allows the business to incorporate social objectives into its founding documents and creates certain limitations on the use of capital. There are a number of business structures apparently available though: here's a link to a BC-specific presentation.
posted by lookoutbelow at 1:49 PM on January 24, 2019 [1 favorite]


One particularly interesting initiative from BWSS is Strategic Interventions, which provides training and professional development to individuals who are in caring professions or otherwise have contact with the public on preventing violence. The fees go into funding their programs. I presume this works in part because they have developed credibility in the area, and their team's competency in assisting their clients easily translates over to training others. I could see a similar model in the area of mental health.
posted by lookoutbelow at 1:54 PM on January 24, 2019 [1 favorite]


You may want to look at the various orgs. that are run by Ashoka Fellows. They are all social entrepreneurs.
posted by melodykramer at 4:05 PM on January 24, 2019 [1 favorite]


Where I live - which is in the USA, not Canada - almost every nonprofit runs a thrift store. They may get money elsewhere as well, I can’t speak to that.
posted by MexicanYenta at 8:34 PM on January 24, 2019 [2 favorites]


OP would be wise to buy the annual return from the Corporations Canada website for the mental health groups that interest her. A group can look amazing but be managed quite badly. The reason why most community health social enterprises never reach sustainability is that they are not focused on increasing their top-three income earning activities.
posted by parmanparman at 8:34 AM on January 25, 2019 [1 favorite]


Thrift shops are not new and innovative, but lots of organizations use them... near me, a substance use treatment center, hospitals, and churches all have them (as well as Goodwill/ salvation Army). I know two of the smaller groups get half their income from them.
posted by metasarah at 8:47 AM on January 25, 2019 [1 favorite]


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