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Discover how PEI Council of People with Disabilities navigates the world of social enterprises and non-profits, with insights on structure, pros, cons, and future steps to empower their community. Learn from the Scotland experience and key entities.
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PEI Council of People with Disabilities Who we are: Provincial organization 12 full time staff Services to 10,000 islanders Core programs Gov’t funds 3 social enterprises
PEI Council of People with Disabilities Our Journey • Social Enterprise – the new way • Becoming an enterprising non profit • Calgary • St. John • Scotland
PEI Council of People with Disabilities Our Social Enterprises Snoezelen Room Summer Tutoring Program Designated Parking Permit Program
PEI Council of People with Disabilities Gov’t contribution / Return on Investment Snoezelen Room – Govt largest customer Summer Tutoring – Dept Ed & Wage Subsidies Designated Parking – Legislation, Partnership & Contract
PEI Council of People with Disabilities Structure Three Possibilities: Within the non profit structure Separate Entity B- Corporation
PEI Council of People with Disabilities Within the non profit structure Pros • Gives the enterprise access to grants • No Income Tax on generated revenues • More flexible use of in-house staff, space, and equipment Cons • Not able to attract outside Investors • organizations assets may be exposed to risks • CRA only related business is permitted • definition of related business is a gray area but if business is not related - charitable status can be revoked. • business activity is only supposed to receive a minor portion of the charity’s attention and resources
PEI Council of People with Disabilities Separate Entity Pros • isolate and limit liability to NGO by creating separate taxable corporation • Access to capital and financing and ability to share returns with investors • organization can own and control the corporation and be the ultimate beneficiary, through share ownership and control of the board • enterprise can make pre-tax charitable donations to the parent organization • greater focus on business purpose • arrangement can reduce perceptions of unfair competition with the private sector.
PEI Council of People with Disabilities Separate Entity Cons • No access to charitable grants • pay income tax on revenues (Although paying taxes is a sign the enterprise is making money, and the Income Tax Act allows a corporation to deduct 75 percent of its annual net income through charitable donations.) • Can use NGO resources but need a formal written contract agreement and should pay for services and space
PEI Council of People with Disabilities Next Steps • Look at existing operations • Identify strengths • Create wish list (gap analysis) • Use strengths to fill gaps and generate revenue
Scotland Experience • Embers Staffing Solutions • MadLug • Brewgooders • Jaipur Rugs • Women’s Beans Project • Hey Girls • ARCH – Australia's Centre for Rural Entrepreneurs
PEI Council of People with Disabilities Comments or Questions