Mission Fit

At the March meeting of the Social Enterprise Network, the group discussed the importance of aligning your social enterprise with your nonprofit's mission, core competencies and values.  Host Neal Spinler of Pillsbury House Theatre also shared the story behind Pillbury's innovative Breaking Ice Program and how it relates to the mission of the theatre and Pillsbury United Communities.

Notes from Mission Fit

Mission Creep

  • Sometimes it's obvious that an idea does not support your mission, then it's easy to say no.  The real challenges are the times when you could make the case and pretend it's in line with your mission.
  • It's a slippery slope, it can be easy to slide due to financial pressures.
  • You run the risk of diluting the mission if you engage in unrelated activities.
  • Ask: Which is more important - the money or the mission?
    • Some earned income ventures provide revenue that supports programs and services, but are not job training programs or sources of employment for an organization's core constituencies.
      • There is tension around this issue, however the employees end up being the best advocates for the nonprofit's mission and services in the larger world.
      • Sometimes the organization's history can help mitigate this tension - a long-standing business venture that provides revenue and is integrated into the organization's external brand is different from launching a new venture.

Business Planning

Ideally your organization has an intentional business model for both earned and contributed income.

  • Be true to your core competencies and values when identifying new sources of income. Your core competencies are already based on your mission.
  • Evaluate all of your income streams.
    • New business ventures are often scrutinized and vetted.
    • However, some organizations chase funding dollars and do not evaluate the connection to mission.
      • There can be mission creep with grant money too.
  • Think long-term:
    • A social enterprise requires long-term planning and investment, it will take time to reap financial rewards.
    • Grant dollars can be short-lived, you have no guarantee of additional funding.  It does not make sense to create something just because it meets foundation guidelines.

Mission versus Core Competencies

Is there a difference between mission and core competencies?

  • Some organizations hold different programs to different standards: 
    • Mission is mission. If a service or program is mission critical, you will find ways to subsidize it.  
    • Earned income ventures based on core competencies exist to raise revenue to support the mission.
      • These programs have different expectations and evaluation measures.
      • Sometimes the distinction is about audience, not skill sets or services.  Providing services to an entire community is different than contracting to deliver those same services to the clients of a single business partner.
    • Discomfort because that sets up an inequality - not all work is equal.  That is hard in nonprofit culture.

Values

  • Consider your values - does your social enterprise align with your organizational values?
    • For example, employee compensation should match your organizational values as well as market rates.
  •  How will your core constituencies perceive this venture?  Will they see a connection to your mission and values?
    • If it would raise questions about your organization in the community, don't do it.
    • If it was in the paper tomorrow, would that be ok? 
  • Boards can have fear about a business venture - it's good to ask questions and evaluate, but don't let fear undermine a good opportunity.
  • How can you enhance an experience? What does your audience need/want?
    • Gift shops at a museum, library, zoo, etc carry goods associated with the mission, for example educating the public about science and nature.
    • Gift shops at a hospital, Gilda's Club, or Ronald McDonald House provide goods to make a difficult experience slightly easier or comfortable.

Goodwill/Easter Seals Minnesota's Evaluation Criteria

The organization believes it's important to be mindful of mission drift and carefully examine new opportunities to ensure they support the mission.

  • The Goodwill thrift stores are training sites and reinforce their mission.
  • The organization has an established guidelines to evaluate any new venture. 
  • If an idea does not meet all the criteria then it does not move forward.

Evaluation Criteria

  • Consistent with values and mission
  • Based on core competencies
  • Generates revenue - there is a threshold dollar amount
  • Ease of access to market
  • Low risk to organization

If the answer is yes to all those factors, then the organization moves forward.

Evaluating Mission Alignment

How do you evaluate the connection and/or relevance to mission? 

  • Think about it on the front end, decide what to track and do it.
    • No mission creep when you know how the enterprise supports the mission and you can illustrate the contribution.
    • Don't start something unless you know where you want it to go.
  • If you pick the right venture, it will be an obvious extension of your organization and mission. 

Cost/Benefit Analysis

  • Understand the true costs associated with any business venture- how much will it take you run?
    • How much time will it require?
    • What are the start-up costs?
    • What are the overhead costs?
    • Consider tax structures, liability issues, etc
  • Weigh the revenue versus the associated costs. 
    • How much money is needed to keep the social enterprise operating? 
    • How much money will go the support the organization's mission?
  • Are there other benefits to your organization?
    • Enhancing your name recognition/brand.
    • Some businesses (such as a coffee shop) are community gathering places - this can be a way to support your core audience by providing a space to share stories and resources and build connections.

Possible Evaluation Metrics

  • Profit
  • Customer satisfaction
  • Client retention
  • Behavioral changes
  • Market demand 

Other Discussion Topics

  • Nonprofit services clearinghouse - gather and catalog all the nonprofits who could be vendors to the business community. Then they could visit one place to find information about possible vendors/nonprofit partners. Possibility for shared marketing efforts.
  • Partnerships:
    • With other nonprofits
    • Across sectors
  • Different organizational structures - the Red Cross as an example
    • Their market - hospitals - wanted to ensure that all blood banks were run consistently.
      • The blood bank is run at the national level - board, fundraising, management, and policies and procedures
      • Local affiliates have a lot of control over emergency assistance and other human services. 
      • The two wings have entirely different management structures, reporting requirements, etc.

Breaking Ice

Pillsbury House Theatre is program of Pillsbury United Communities; the mission of the theatre supports and complements the work of Pillsbury United Communities.

The Breaking Ice Program is social enterprise that has been around as long as the theatre itself.  It generates significant income, helping financially support the organization's other programs.  Breaking Ice also enhances Pillsbury's mission  of creating challenging theatre to inspire choice, change and connection.  It is a way to take the mission out of the theater and into the community. 

It is a unique theatrical performance that seeks to facilitate dialogue and understanding of difficult, complex issues.  A company or organization hires Breaking Ice to create and perform a piece of theater around a topic such as racism, power issues in the workplace or employee burnout.  Each performance is customized to meet the needs of the client, using language and situations from their workplace.  The performance is delivered on site to staff, followed by a talk back facilitated by the actors.  

Learn more about Breaking Ice, recipient of the 2008 Nonprofit Mission Awards for Anti-Racism Initiative.