Q: I'm the Executive Director of the Fresno Nonprofit Advancement Council and I would like to figure out how to add podcasts to our website and links to podcasts on our partners' websites.

Patrick O'Heffernan responds:

So, you want to start a podcast? Well, fortunately, not only is it easy and inexpensive, there is lots of advice on the web on how to do it. 

Before I give you a list of websites that can take you step by step through the process, my advice is to use a Mac. Apple's Macintosh computers are designed for podcasting: they come with the software built–in (GarageBand) and a hosting service (iWeb) that does it all for you. You will need:

• A microphone
If your PC came with a Creative or Labtec microphone , you can use that but you should get a good microphone.  You can buy an adequate mic at a computer store for $15 -$20 or you can spend up to $100. In general, the quality of the microphone is the most important determinant of the quality of your sound.  Also, get a small table-top stand for it and a breath cover or screen to eliminate that "breathless effect".

• A connecting cable
You need to get a cable if the mic does not come with one that plugs into the jack in your computer.  Or, if it does but it is the wrong size, you will need an adapter.  RadioShack should have everything you need.

• Software
If you use a Mac, it comes with GarageBand, which has a podcast element.  If you use a PC, try WebPod Studio for Windows or Audacity (which you can download here).

• Headphones
Good ones.  You will appreciate them.

• A Podcast host
If you use a Mac, just sing up for iWeb and follow the instructions to set up a podcast host. It costs about $100 a year. If you use a PC, try Podbean. It is free and easy.

• A quiet room
...with lots of soft surfaces that absorb sound. Don't forget to turn off your phone when you start a recording!

• Something to say
It helps to outline or even script your podcast, at least a first.

For step by step, check out these sites:
- http://www.jakeludington.com/podcasting/20050222_recording_a_podcast.html
- http://www.macworld.com/2005/04/secrets/junecreate/index.php
- http://www.howtostartapodcast.com/
 

Q: I am setting up a non-profit scholarship foundation aimed at teaching students with learning disabilities. We are at the point where we need to structure a sliding scale for the scholarships. How do we go about setting something like that up?

Patrick O'Heffernan responds:

First, establish the criteria. Colleges often use the following data:
* Household income
* Existing savings for college
* Outside earnings (summer jobs, campus jobs)
* Other aid (fellowships, salary for serving as a lab tech or teaching associate
* Athletic scholarships
* Major

These are a good place to start. 

Depending on your objectives, you might add in or substitute gender, sexual orientation, disability and/or race. Don't forget to check with your attorney that recent legal decisions will not impact your effort.

When you have determined which criteria can best achieve your objectives (such as "encourage women of color from lower income families to obtain degrees in engineering"), determine metrics and assign points to your criteria to determine the amount of the scholarship. In the example above, your sliding scale might look like this this:
 
Family income:
* $0 - $30k/year = 5 points
* $31k - $40K = 4 points
* $41k - $55k = 3 points
* $56k - $65K = 2 points
* Over $65k = 0 points

Financial criteria:
* College savings (set up point scale)
* Outside earnings (set up point scale)
* Other aid (set up point scale)
* Athletic scholarships (set up point scale)
etc.

Then allocate your scholarships based on points; the more points the more aid.

Q: I am currently the owner and clinical director of Shoreline Center for Eating Disorder Treatment. I want to provide scholarships for "Satori House," my extended care residential care home, for those in recovery from anorexia nervosa or bulimia nervose who would not otherwise be able to provide this type of care.

I want to continue the for profit business, but add an "arm" that can fundraise and award scholarships. I am trying to determine if I have to create a non-profit or if there is a way I can do this without doing all that.

Any thoughts on combinding non and for profit business would be apppreciated.
 

Patrick O'Heffernan responds:

While I cannot give you legal advice and I  suggest you do consult a lawyer, forming a non profit corporation will depend on what you want to do.. 

Do you plan to raise money?  If you plan to raise money for the scholarships and then give it to recipients, you will need a NPO so your donors can take the tax deduction.  However, if the NPO pays the for-profit for the services, that payment is taxable income to the for-profit.  There is no deduction for you, just for your donors.

Do you plan to provide free facilities? If you plan to just provide facilities for free and call it a scholarship, you don't need a NPO. I cannot advise you on the tax deductibility of providing a free service at a for-profit firm, but I assume that the cost of providing the service will already be deducted from your overall income.  Check with an attorney.

Do you intend to donate cash to the scholarship fund?  If so, the scholarship fund needs to be a NPO so you can deduct the donation from your income (or the firm's income if the firm does the donating).  However, check with an attorney because the IRS may object to your donating tax deductible money to a fund that pays it back to you.

If you do have to set up a NPO, DON'T pay an attorney thousands of dollars to do it.  Check the seminars at the Foundation Center and Nolo Press on how to do it yourself or with minimum legal cost. 

Q: My work is at a pivotal point and I do not know which direction to follow.  Please, is anyone of the Social Edge team willing to put in a pro-bono hour or two with me to determine my best laid course?  In a nutshell, I have developed several grassroots Montessori-based teacher training modules and courses that will contribute greatly to significantly increasing quality teachers and am stuck in the funding and marketing aspects.

Patrick O'Heffernan responds:

Social Edge cannot offer pro bono consulting --we have very limited resources.  I would direct you to the Foundation Center in San Francisco, which offers many free seminars and very inexpensive courses in just the topics you are looking for.  Also, you can use their Foundation Directory online for free there, where you can do sophisticated searches for funders, often with advice from the staff.  Finally, I would  take a look at elearning and at the Media Education Foundation for good ideas.

Q: If a start up organization wants to have a hybrid structure, at what point and what tools are needed to develop a hybrid from the start-up phase? Do you make one business plan outlining the structure/models and smaller business plans for each entity/venture?

Patrick O'Heffernan responds:

Before writing business plans for either, make sure you have good legal and tax advice. Many of the advantages of having both a for-profit organization and a non-profit one derive from tax advantages of the NPO, but these vary with each country's tax laws and accounting codes. 

If you set up two completely separate organizations, this may not be an issue unless they deal with each other, have interlocking boards, share space or people --then your first tool is a tax lawyer with knowledge of NPO law in your country.

Since you don't indicate if the startup is being planned or is in existence, I will assume that it is being planned. I would consider using a hybrid
structure from the beginning if you have the opportunity. This will allow you to base your business plan on revenue streams from both NPO grants and for-profit operations. More important, it will allow you to see the synergies that you can take advantage of between the two.

But first, get legal and tax advice.

Q: In association with Development Gateway Foundation, Intellecap is starting an online portal to connect investors and investees with a multiple bottom line approach. It will play an active role in attracting capital from both donors and investors to innovative social businesses. For supporting business development, it will also create an on-line network of service providers like investment, legal advisory, marketing, etc.

1) What are some of the services that could be a value-add for either investors or social businesses?

2) What are the value-added services that can be provided for investors?

Patrick O'Heffernan responds:

This is an excellent idea --one that is needed and one that will be well used. Similar ventures exist in the political realm to connect donors with non-profits or 527 organizations.

In the cases I am familiar with, the donors and investors remain unnamed to prevent the site from becoming a search engine for development officers looking for more leads and sending unsolicited proposals to investors who do not want them.

More importantly, keep in mind that it is very likely you will be visited by many more social entrepreneurs than investors or donors. If this occurs and is not anticipated, criticism and cynicism from the social entrepreneurs will begin to show up on the site and on other sites in discussion boards, undercutting what you are trying to do.  I would strongly suggest that:

- you consider lining up your investors first and be sure you have a strong critical mass of investors before launch

- you find a fair and equitable way to limit the number of entrepreneurs chasing your limited number of investors at any given time

- when investment is made, your site posts a case study or news note, not naming the investor, but naming the NPO or entrepreneur so other entrepreneurs can see that your site really does result in successes

I don't know if you were thinking of charging a fee to service providers for listing or advertising on the site, but if so, I discourage it. Some of them  might get business as a result of appearing on the site, but most entrepreneurs who visit the site will not have the need for or resources for accountants, lawyers, PR, etc - they are looking for cash. They also likely have some of those relationships in place.

Having said all of that, you might consider working with the donors/investors to offer entrepreneurs not only cash, but a package of services that the donor feels they need to succeed. 

Those could include:
- Legal and tax consulting
- Market research
- Banking and investment advice
- PR
- Accounting
- Management consulting
- IT consulting
- Human Resources/benefits
- Insurance
- Staff development/employment agency

If you have a pool of pre-qualified, highly competent, ethical and dedicated service providers, the donors can offer packages of cash and services, using this pool.

Good luck!

 Q: I am exploring ways of empowering women in developing countries through education and self awareness and nurturing their spirits, (I know there are numerous programs already in place, but more are needed). The aim is to have a ripple effect in positively influencing their children, husbands and families. I envision starting long distance training for corporate women to generate revenues which can be applied to help low/no income women. 

Is there someone who will help fine tune this idea and work with me to make it practically possible?


Patrick O'Heffernan responds:

There are four organizations that I work with that seek to do this, the Global Fund for Women and the International Museum for Women (IMOW), both in San Francisco.  The GFW understands fully Kofi Annan's words that nations which marginalize the female half of their population will never succeed financially, politically or culturally.  The GFW provides grants to organizations that help women get an educational start businesses, escape from poverty and brutality and religious or sexual slavery.  They also build women leaders in developing countries.  I cannot praise them enough.

IMOW works to demarginalize women by bringing their works and successes out of the shadows and letting the world know that women have been responsible for at lest half of humanity's progress.  IMOW seeks to educate men while it gives women voice.  Their "Imagining Ourselves" online exhibition attracted over  1 million participants - many from developing countries - mostly women who told their stories and the stories of the heroines of their countries in art, song, dance, poetry, stories.  Going through the online exhibition is a breathtaking experience.  And it does not ignore men...they are represented, telling stories about the women that inspire them.

The Center for Partnership Studies in Carmel, founded by best-selling author of  The Chalice and the Blade, Riane Eisler, seeks to educate men and women about the inherent structure of many societies that puts men in a position of dominance over women - and over other men - by devaluing the work and role of women and of caring in society .

Regionally, NamesteDirect Foundation provides small grants and technical assistance to women in Guatemala, Ecuador and southern Mexico to help them become financially independent. There are many micro loan organizations like this, but I work with them and love to see the power they give women in male-dominated so-called "traditional" societies.

Q: Can a nonprofit still retain its tax exempt status if its primary source of revenue to cover administrative costs is advertising?

Patrick O'Heffernan responds:

We at Social Edge cannot give legal advice, so your best bet is to go to the IRS site for non-profits.  Click on the "Charitable Organizations" tab and explore the requirements.

The IRS does state that: "Even though an organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. Unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis of the organization's exemption. An exempt organization that has $1,000 or more or gross income from an unrelated business must file Form 990-T."

See Unrelated Business Income Tax Returns and the Form 990-T instructions  for more information about return filing. The obligations to file Form 990-T is in addition to the obligation to file the annual information return, Form 990, 990-EZ or 990-PF.

I would either contact a tax attorney or your local IRS office with this question.

Q: I work for a university providing technical assistance in rural economic development. However, I am not able to advise a new client, a startup social entrepreneur, on how to work with the university's Research & Development people on the client's cutting edge ideas and subsequent patents. Rather than the relationship being client-driven and all-in-the-client's-interest, I've known of too many instances at other universities where such clients are taken advantage of.

This person has very little money but a tremendous idea for rural revitalization using green technologies. She would be my first client to work directly with the other side of the campus.

Do you know of any helpful studies or reports, or do you have any advice, on working with universities so as to gain the most and lose the least?


Patrick O'Heffernan responds:

I don't know of any studies or reports but I have worked with a university incubator and can offer some advice there.  I would start with a meeting with the R&D staff first, without your client, and determine what ground rules they are operating under.  Make sure before you meet that you have a clear idea of what services you will want from the university before starting the process.

Often college incubators have policies passed by the trustees and vetted by their lawyers that they must follow.  Get copies of guidelines and policies if you can (it should be public information) in advance of the meeting so that you have an idea of where they will start from and what kind of flexibility there is in their position.  If it appears from your discussion that they will not operate fairly, this may not be your best strategy.  But, chances are that the guidelines lay out processes for negotiating profit and cost sharing. 

Try and reach a consensus with them before bringing your client in.  Although you will ask them to sign secrecy pledges/non-compete, etc papers, these may or may not be useful.  What may be more useful is a non-binding MOU that you work out with them regarding, in general, how the negotiation of costs and earnings will be shared.

Give all of this information to your client and discuss the MOU with her.  Bring them together only if she wants to move forward.  If not, you likely have clarified what is needed if you are going to meet next with the private sector.

Q: I work for a program for marginalized, disengaged young people between 15-21, known as JPET (Job Placement, Employment and Training), in Australia.

Until recently this program had broad outcome goals which encompassed both "economic" outcomes (i.e. the young person found a job), and social outcomes (overcoming barriers such as homelessness, attending rehabilitation for drug use, etc).  However, the official focus is shifting towards one which solely values an "economic" and measurable outcome, that is, that the young person obtains employment.

The government body responsible for overseeing the program has indicated it will listen to arguments attesting to other worthwhile benefits from work with disengaged young people, and specifically, how these can be measurable.

These outcomes would include factors such as improving self-esteem and ability to communicate and therefore seek work or training, establish a social network, friendships and meaningful, healthy relationships, overcome drug and alcohol addictions, (or begin this often long process by entering rehabilitation or having their awareness raised), etc.

Are there similar programs overseas using measures which demonstrative qualitative results like these, and in some way measure the potential savings to society?  Any help in terms of directions for research would be greatly appreciated.

Ruth Norris, Senior Program Officer with the Skoll Foundation, responds:

Many organizations measure social as well as financial return on investment.  The most common method for measuring the kinds of outcomes described in this inquiry is statistical sampling of beneficiaries to participate in follow-up interviews at regular intervals. 

Here are links to the websites of some organizations who have been recognized for their work in measuring social return, and have made
their methods available:
http://www.redf.org/results-intro.htm
http://www.socialenterprise.org.uk/Page.aspx?SP=1919
http://www.socialedge.org/discussions/success-metrics/measuring-social-impact/


You might also want to look at publications on monitoring and measurement prepared specifically for nonprofits, such as the following. A good source for these types of publications is Jossey-Bass.

Handbook of Practical Program Evaluation, 2nd Edition [E-Book]
Joseph S. Wholey (Editor), Harry P. Hatry (Editor), Kathryn E. Newcomer (Editor)
ISBN: 978-0-7879-7388-9

Q: I make solar lights for reading and task lighting -very affordable and very reliable for Africa, where I lived for 20 plus years. My partners are the World Bank and UNHCR, among others. My lights are really great - and I have a web site, where an American can buy a light for $25 and then I send a second identical light off delivered to Africa or elsewhere in the developing world, and pay $1.00 to the non-profit who passes out the light.

There are two billion people who rely on kerosene, candles and conventional flashlights. This has a massive impact on education, the environment, safety, security and overall quality of life.

Problem - after a news segment on a local channel and a Dallas Morning News article, both of which can be viewed on my site - total sales in Feb/March - less then 250.

How can I get word out about this problem/soloution?  When people hear about this issue, they like it  - but few are called to action. Suggestions?

Diana Reid responds:

First I congratulate you on creating such an impactful, yet wholly simple and attainable, social venture. It's clear you've done your research on the issues and built some strong partnerships to help enable you to fulfill your mission. But, because things aren't selling as quickly as you'd like, maybe it is indeed time to take a fresh look!

You might start by building or updating a comprehensive marketing and PR plan. Try to assess who your ideal target audience is to buy these lights - anyone and everyone (too hard to market to the entire world), or are there specific segments of people (age, income, geographic location, social commitment, etc.) that the product AND your mission most appeal to?

Find out who they are, what they read, who influences them and try to tailor your marketing to hit that sweet spot. You may not have lots of dollars for things like advertising, so can you instead to go events or conferences where groups of socially minded people congregate? Can you build a partnership with an organization or company that sells other types of light bulbs and see if they'd be willing to align with you to help your cause (e.g. Home Depot has a really strong social responsibility program)?

Can you leverage your distribution partners' marketing activities and have them help promote your product and your work? Can you link your blog to other like-minded blogs? Can you partner with the Red Cross or some other agency that focuses on emergency preparedness and try to get your flashlights included as a recommended product for a home emergency preparedness kit? Can you get a major donor or key partner to buy  a ton of lights and distribute them for free at conferences or other events so people can see and understand the quality and your mission (and ultimately become word of mouth ambassadors and paying customers)?

In terms of PR and media stuff, congratulations for getting some early news coverage! It's not easy, so it's a great testament to you and your work. As you've seen, PR doesn't always translate into sales, so it's wise to understand that PR is often best used to create some initial awareness of the cause and your product - not as a sales tool to convert them. You then need to back this up with great information on your website, compelling human interest stories (e.g. very clearly connecting the product with the mission) and some kind of clear call to action. Be sure to get your URL mentioned in each media article and then have a clear way to move people through the information and sales process once they come to your site, piqued by curiosity from a media placement.

You might also want to consider creating some PR "urgency" towards sales by building some sort of time-sensitive campaign - e.g. "We are trying to sell 5000 light bulbs in time for the holidays, you can help by buying today!" Or, you might enable people to try the product for free in return for helping you with your marketing & PR (e.g. a customer focus group or ambassador group that blogs about your product, actively tells friends, speaks on your behalf, links to your site, etc.).

There are a lot of inexpensive ways to get the word out, so feel free to get creative. Be sure to stay focused on your target audience and try to build/maintain a very simple and clear process that helps walk (potential) customers through the information and sales process. And, be sure to always tie your compelling social mission to strong, real product benefits. As much as we'd like social causes to be self-evident, people typically buy products because they work well, not just because they do good (but if something does both, stand back - you're on a roll!).

Good luck!

Q: Can non profits like Kiva, Unitus, or the Grameen Foundation be cloned in other cities?  Can microlending non profits be franchised?  Can the model be shared for an accelerated global solution?  In this instance the problem being a solution to poverty?  Many hands make the task light, so I have heard.

Patrick O'Heffernan responds:

Yes, and some have been.  There are many offshoots of the Grameen Foundation around the world.  Cloned is not quite the right word - replicated in a way that meets local conditions.  For a great condensed lesson doing this, see Michael Gerber's book, "The E-Myth".  It goes through the "how" of replication and tells why some don't work and how to fix them.

Franchising is also possible, although it has to be thought through carefully.  In a franchise, the franchising company is selling something of value - name, formula, business model, etc.  It has equity and it requires an investment.  NPO's can also sell something of value and transfer equity, but it has to be carefully valued. The trick is to realize that what is being franchised is the business model, the brand, knowledge. Those must be protected in the franchise agreement or they lose their value.  That being said, I would question if franchising is the best model for replicating an NGO/NPO.  Training and education programs to transfer the working knowledge, rather than selling it and setting up an agreement, may work better.  Again, also look to Gerber's books for strong how to's.

Q: I am fascinated by the contribution of Community Foundations, in the U.S. and Europe. However, I wonder if there is a universal model for replicating their success especially in the developing and under-developed countries. My apprehensions arise mainly from the following:

Responses provided by Patrick O'Heffernan

• Who will provide the seed capital for start ups and under what terms and conditions?

Community foundations by nature begin with the community. Often one or a few wealthy individuals provide the seed capital as investments, requiring that the funds be invested in stocks or bank instruments and the interest be used to grow the foundation and to funds its programs. After the seed investment, the foundation markets itself to more modest-income people who see that their smaller amounts, when combined with the seed funds, can make a difference.

• Do these Foundations necessarily require the backing and patronage of the rich and thriving philanthropists/foundations?

No. Many have no connections to other foundations.

• Are there foundations/funding organizations which help with grants and seed capital and may be, fund the start-up costs of community foundations in the developing/under-developed countries?

Yes. The Ford Foundation, the Aga Kahn Foundation (for the Asmali people) are two that come to mind. A better strategy is to go to international funding foundations with a proposal to underwrite a community foundation. Have some other donors ready to match the foundations funds when you go.

• Is there an ideal percentage-figure for operational costs in the annual finance statement, say in the initial years and for subsequent years? Should there be one at all?

That varies with the country. I have seen a range of 5% to 20%. I would try to stay at 10% or under.

• Should there be an ideal cost of funding and what should not be included in its computing?

No, it depends on your country and what you want to do. Determine what you want to accomplish, and how much investment that will require. If the interest rate in your country (paid on savings or investments ) is 10% and you would like to distribute $1000 in micro grants and your overhead is 5%, you will need $15,000 to begin.

• How should the aspects of inflation, erosion of interest incomes and rising staff-costs be overcome?

That question needs to go to a local economist because it varies so much from one country to another - there is no rule that fits every one.

• In my view, unless the staff-costs are near what they are in developed world, the long-term sustainability of Community Foundations as professionally run and managed entities will be in doubt?

Why? It is not the cost of the staff that is important, it is their effectiveness. Running a community foundation in India will be much different than running it in California or New York. Look at the staffing of community foundations in the developed world as rough guides, but don't assume their model is best for you. You might need more staff because you have less access to technology (not likely in Bangalore!!)

Incidently, you may want to approach the economics department at ITT to work with you on this. You might find some allies there.

Q: We have been operating for seven years now and have not been able to secure partners worldwide who can suport us with grants and material assistance for the suffering communities of Cameroon. All those we've tried contacting have been making excuses. We therefore wish to inquire on how to approach these partners so as to win their confidence and bring them closer to appreciate our work. What are the steps involved in getting a good partnership?

Patrick O'Heffernan responds:

First of all, let me say how inspired I am at your work. I visited your website and I was deeply touched at your courage, your persistence and your heart. Thank you for doing what you do.

I can't say why donors have declined your applications.  I know some foundations do not fund organizations that mix health care with trying to convert people to a particular religion, as yours clearly does, so that may be a problem.  Also, your website did not mention condom distribution, which many foundations and government donors have found is an important tool in preventing AIDS;  if this is part of your work, you should indicate that. If it is not, this may be a barrier for some donors who prefer to give their funds to organizations that use this tool.

I did notice that your work with the Ministry of Women.  Since educating women and giving them to power to control their own lives has been found to be one of the most effective tools for preventing AIDS, as well as improving the economy of a country, you might want to stress this more in your information.

As to your specific question: I sense that you are looking for funds rather than a partner.  A partner works with you by providing materials and people and by working with you in designing and executing programs.  If your question is how do you apply for funding, I would start by analyzing the "excuses" they give you.  They may not be excuses, but reasons. 

Some of those reasons may be your small geographic focus (some foundations and agencies prefer to work on a national or regional basis), your religious objective (as noted above), or any number of other reasons why you don't fit their guidelines.  After you have looked at the rejections, you might explore requesting funding for activities that do meet their guidelines.  For instance, if the rejection was because of your religious content, ask for funds that  exclusively fund  purchase of  drugs or medical supplies and are separate from any funds that support preaching  If the rejection was because of your geographic focus, partner with a larger organization  that works nationally so that you become part of their larger focus.
 
If  you find  funds available for condom distribution or drug trials, add those actions to your program.  In general, try to fit the donor guidelines so you don't get turned down, but have room to negotiate.  Obviously you are doing good work and people's lives rest on your shoulders.

The Foundation Center shows four American Foundations that fund work in AIDS in Africa: the Bill and Melinda Gates Foundation, the Ford Foundation, the Pfizer Foundation, and the Levi Strauss Foundation.

Good luck!

Q: I am a consultant with a not-for-profit organisation -Institute of Leadership & Institutional Development (ILID), Bangalore, India. For the past three years we have been rendering probono world class consulting and advisory services to over 50 NGOs in the country of all hues and sizes. We bring to the development sector the benefits of management principles and practices employed by business corporations world-wide and help them build on the networking and collaborations as strategic planning processes.

Is there any funding agency/donor agency that we can approach for seeking funding for continuing this service to the development sector that works exclusively for the welfare of the poor and disadvantaged in the country?  All our funding so far is from within and from the personal fortunes of theTrustees.


Patrick O'Heffernan responds:

This sounds like a wonderful Social Enterprise ready to be born. It sounds like you have built the beginnings of a strong business in providing valuable services. Congratulations. This is no easy accomplishment and you should be proud of what you have done -created a world class consulting organization in a very tough environment. That is a valuable asset.  Now to grow it and make it self-supporting, maybe the best route is not looking for a funder, but for an opportunity, an opportunity to monetize your asset.

Let me suggest that you sound like you are ready to move from Dependency - depending on grants and charity, to Sustainability - relying on revenue streams that you generate and control.  My suggestion therefore is to make the move.  Here is how:

1.  Institute a small fee schedule.  That's right, charge for your services. 
Not a lot,  but enough to cover  at least your direct costs since your "customers" are NGOs.  But, if your services are as good and as valuable as you describe - and I am sure they are, the people you help should pay something for them.  I would suggest a sliding scale based on the size of the organization you consult to. Once you have developed a revenue stream from fees, I would explore three pathways:

2.  Approach foundations that underwrite these kinds of training and management services. 
You might try the Rockefeller Foundation in New York, or the Levi Strauss Foundation or the Asia Foundation in San Francisco.  (I don't have to direct you to the Asia Development Bank and the development fund of the British government, because those are so well known. ). Don't ask for a grant for operating funds;  as for an investment in your growth.  Ask for a grant to upgrade what you and market it to regional development banks, the Indian government and other governments that work with development NGOs, foundations that work in India.

3.  Set up a for-profit branch and approach an international management consulting firm that works in India to invest and partner with you.
Pitch them for investment and a partnership in which their staff work with your staff in consulting to NGOs and development organizations. You have a developed a market that could be valuable to larger firms;  by partnering with a firm, you keep control of your market, gain access to cash and marketing, and possibly upgrade your own knowledge base.

4.  Develop new markets. 
Same as #1, but do it whether or not you get a grant.  If you are good enough and successful, the new markets will generate a revenue stream that you can use to subsidize your work with NGOs who can't pay full fees.

Q:  I currently own an educational consulting company specializing in academic test preparation for college search, selection and application.

I would like to open a non profit division to be able to get grants to do my work in the at-risk school districts.

Currently, my services are available only to those who can "afford" them. This increases the disparity between groups rather than begin to close the gaps. I have no idea as to how to proceed. I am very confused about the "intermingling" of the for profit and non profit aspects.


Patrick O'Heffernan responds:

Setting up a NPO to "be able to get grants to do my work in the at-risk school districts" is putting the cart before the horse. If you are truly concerned with the disparity between at-risk districts and children who are in high income districts, you should just allocate a part of your revenue and resources to helping the at-risk districts, rather than expect foundations to pay you to do it.

Not only will this action demonstrate that you are dedicated to solving a problem in our society, rather than competing with other non profits for limited resources, it will give you experience in working in these districts. You will build skills, networks, and understanding. And you will find it an exciting and joyful experience - you will earn "psychic dollars" in the form of satisfaction that far exceeds any funds grants would provide.

As your work in the at risk-districts is successful and expands, you will see what needs to be done, how to it can best be done, and what role foundations can play in it.  The best role may be for foundations to provide support services to your students, like child care or transportation, rather than subsidies to PEN.  You might also find that the affluent parents who buy your services will be happy to donate a percentage of their fees to families who cannot pay for the services, or to a NPO that you set up to help at-risk kids.

Finally, you may want to contact organizations that work in at-risk neighborhoods and with at-risk kids to learn what is needed.  You may find that you have to design different kinds of programs.  You might get in touch with the Tutor/Mentor Cabrini Connections in Chicago or the Ella Baker Center in Oakland as places to start.

Q: Do you know of some great resources regarding corporate branding strategies and community development lending? I am trying to understand how large financial institutions may play a role in advancing social entrepreneurship, green building, community rebuilding, through targeted strategies that bring their clients to the table in key urban marketplaces specifically low and moderate income neighborhoods?


Consultant Bridget McNamer responds:

Here are a few resources highlighting ways that financial institutions are addressing the challenges and opportunities of community development:

• Shorebank

• Bank of America 

• Social Funds

• Grameen Bank

Q: Help! The previous Director of Development agreed to provide board members who write lift notes to individual donors with the amount of individual donations made as a result of their efforts. I am concerned about protecting the privacy rights of our donors. Is there something more substantial other than ethics that will help me to maintain their privacy.

Patrick O'Heffernan responds:

It depends on what you told them to begin with. If your materials, including your web site and your solicitations, clearly state that privacy will be protected, you can point to those. I would also check with the Association of Fund Raising Professionals for their guidelines. A good argument is that you might anger them and lose them --so why take a chance?  Don't forget to put an aggregate amount in the note :-)

Q: I am writing this with the hope of getting a solution. My father was an entrepreneur in the brick industry. He has basically done his Diploma in ITI. My father has never been sucessful in his carreer and to overcome his struggle, he now has to sell vegetable and fruits on the road.

As his daughter, I have identified a few drawbacks in him :
• He gets angry very easily and during this time he does not have control over him.
• He does not know to differentiate people and very often misunderstand them.
• When he get cheated he feels the whole world is a cheater.

He is now 54 and I can't see him going through this mental trauma. I tried getting him small jobs but I found out that he cannot work under anybody. I hope and request that your advice and guidance helps me make my father a sucessful entrepreneur soon.

Shruthi


Paul Lamb, a Man on a Mission, responds:

Dear Shruthi: Your question is quite a challenging one to answer, because in my humble opinion it seems to have more to do with personality than with entrepreneurial skills. From what you say about your father it would seem he is indeed better served by working for himself, but even that will take patience and good customer relation skills.

Given the situation you described, if at all possible it might make sense to try and partner him with another entrepreneur who has some of the skills he is lacking - someone who is more patient than your father and perhaps in a position to help mentor and encourage him? Of course it will have to be someone that your father respects and will make a strong effort to understand him.

In the United States we have a saying that "you can't teach an old dog new tricks". I don't believe that, but rather believe that "old dogs can learn new tricks if they find new tricks worth doing." Obviously your father's challenge is to find both a business/occupation that he enjoys and is good at, which may not be easy. Ultimately, he may not be cut out to be an entrepreneur, and perhaps he should look elsewhere for other opportunties that suit him?

Best of luck to both you and your father!

Q: I am interested in knowing about the working aspects of city-based Community Foundations that are created exclusively to address local issues through mobilisation of funds from the community members themselves. Can you help? Are there success stories or papers researching on their efficacy aspects?

Ruth Norris, Senior Program Officer with the Skoll Foundation, responds:

You may want to start with two websites with information and research about community foundations:

• Community Foundations of America

• The Monitor Institute and Blueprint's site on emerging philanthropy