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Solutions Frameworks For Social Challenges Comm 306 Blocks 5 & 6 Wednesday March 26, 2008. Today’s objectives— Explore the social enterprise sector (SES) definitions, characteristics, examples, issues focus on nonprofit organizations Learn about SROI (social return on investment)
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Solutions Frameworks For Social Challenges Comm 306 Blocks 5 & 6 Wednesday March 26, 2008
Today’s objectives— • Explore the social enterprise sector (SES) • definitions, characteristics, examples, issues • focus on nonprofit organizations • Learn about SROI (social return on investment) • Analyze the case of Habitat for Humanity
Definitions Social enterprise sector— provides goods and services with social aims and ethical values (satisfies triple bottom line: social, environmental, financial) Nonprofit organization/NGO— formed for the purpose of serving a public need, not profit seeking. A.k.a. social sector, third sector, charitable sector, philanthropic sector, independent sector. Often, classified as a 501(c)(3). Corporate social responsibility— taking responsibility for a firm’s impact on the community; voluntary steps to improve the quality of life for the communities in which it does business
Social Enterprise Sector (SES) U.S. NP Characteristics arts, education, healthcare, human services (non-religious) • 1.4 million NPs registered with the IRS • 5.2% of U.S. GDP • 8.3% of U.S. wages & salaries • $260 billion donated in 2005 • 65 million volunteers *Urban Institute’s Nonprofit Almanac 2007
Social Enterprise Sector (SES) U.S. Funding • 70.9% from fees and services • 12.5% from private contributions • 9% from government grants • 3.9% from investment income • 3.7% from other income • No change in constant dollars over past 5 years *Urban Institute’s Nonprofit Almanac 2007
Social Enterprise Sector (SES) Global NP Characteristics • $1.3 trillion in expenditures • World’s 7th largest economy • 5% average of country GDP • 21.8 million paid employees in 35 countries • 12.6 million full-time volunteers • 190 million part-time volunteers Global Civil Society : An Overview (35 countries) 2003
Social Enterprise Sector (SES) Global Characteristics • 66% of expenditures are for labor v. 27% for non-financial corporations • revenue—fees & charges 35%, government payments 27%, 65% private philanthropy • 24% annual country average growth in employment v. 8% overall employment UN Handbook on Nonprofit Institutions 20007
Social Enterprise Sector (SES) Who are the stakeholders? • “Customers,” clients, those served or aided • Management and Board members • Staff, volunteers • Community • Government (local, national, international) • Competitors • Lenders and donors • Partners (corporations, foundations)
Social Enterprise Sector (SES) What issues and problems confront the SES? • Who are the directors? • What concerns do paid staff have? • What are volunteers’ needs? • What characterizes Boards? • What financial problems exist? • How might the mission present conflicts or limits?
Where does the money go?PBS report on rating charities Banda Ache, Sumatra & the Tsunami