They say that necessity is the mother of invention, and that is how many nonprofits get their start. They are entrepreneurial by nature, but oftentimes they do not see themselves that way. Nonprofits tend to focus on immediate needs, grant cycles and annual fundraisers rather than identifying new revenue streams to support long-term sustainability. They need to think more like entrepreneurs. And that is exactly what Entrepreneurial Thinking for Nonprofits (ET) helped Freekind do.
For years, Freekind had licensed its proprietary Prevention Project™ curricula for middle and high schools, designed to equip the next generation with the tools they need to avoid becoming victims of trafficking and sexual exploitation. That program has reached 21 states since it launched in 2012 and provides a modest revenue stream for the nonprofit to reinvest in its mission. As a result of the ET classes, Freekind realized there was an opportunity to monetize another set of curricula it had been using for years to support local survivors. With seed funding from the Bernardine Franciscan Sisters Foundation, Freekind is having an independent review of its Offramps Program completed to validate the outcomes data. Once complete, Freekind will package the program and begin licensing it for use by other communities, like it did with the Prevention Project Program.
In 2021, during a time of heightened uncertainty, THRIVE enrolled in Entrepreneurial Thinking for Nonprofits. The classes encouraged participants to explore their charities’ unique resources and identify opportunities for monetization. Although the executive director did not leave with a specific idea, it opened her eyes to potential opportunities.
Fast forward to 2022: THRIVE sought a larger building. A unique property came on the market. The owner wanted to sell but lease back a portion. Recognizing this as its chance, it now owns the building, and with seed money from the Bernardine Franciscan Sisters Foundation, houses a FREE MARKET. The tenants pay more than $50,000 annually.
Drawing from the knowledge gained in the ET classes, the executive director proposed to the board that instead of selling its old, owned building, THRIVE should lease it to generate additional income. While not yet leased (2,500 square foot space on Warwick Boulevard), the potential annual income stands at $35,000 per year. An additional $85,000 of revenue is enough to prevent eviction for 70 families or provide 36,700 meals worth of healthy groceries through The Market at THRIVE.
While the classes culminated in an applied “project,” the goal was less about establishing an immediate revenue stream and more about having an entrepreneurial mindset. It was about taking a break from the hamster wheel of grants and fundraising by exploring opportunities to create new revenue streams. Using the Mission Model Canvas, an adaptation of the Business Model Canvas developed by Alex Osterwald and Yves Pigneur, participants were able to map out potential opportunities. The discipline of this tool helps to avoid false starts, where passion for the cause may blind one to implementation barriers. The Canvas is a must-use tool for nonprofit executives and their boards and would be a valuable addition to any strategic planning effort.
