Author: Neighborhood Development Collaborative

Publication Year: 1981

Media Type: Report

Summary:

Report to the Charles Stewart Mott Foundation. This research and analysis was undertaken by the Neighborhood Development Collaborative under a grant from the Charles Stewart Mott Foundation. The initial phase of the research was completed in the last half of 1981, the survey and analysis was completed in the first quarter of 1982.

Abstract:

Report to the Charles Stewart Mott Foundation

This research and analysis was undertaken by the Neighborhood Development Collaborative under a grant from the Charles Stewart Mott Foundation. The initial phase of the research was completed in the last half of 1981, the survey and analysis was completed in the first quarter of 1982.

The roots of this project are planted in the evolution of non-profit organizations from agents of social action into entrepreneurial organizations, an evolution that is far from over. This evolution has been forced upon organizations as their financial base--exemplified by government grants--has dramatically contracted. With more groups competing for reduced funds, many groups have begun to explore the option of establishing their own businesses as a means of generating basic core support budgets.

This project focuses on non-profit entrepreneurship from a business standpoint and addresses the basic question of how well prepared non-profits are to enter the business arena. More specifically, the study looks at the training needs of non-profits and the resources available to them to fill any business-oriented skill deficiencies. As will be made clear in the balance of this report, the business training needs of non-profits are significant, the resources to meet these needs are very limited.

During stage one, the project staff examined the profiles of over 200 non-profit groups engaged in some form of income-generating activity. The one common denominator of all these activities was that some level of government support, usually Federal, played a significant role in the acquisition of the necessary expertise and capital.

The data has been aggregated into five major categories of interest:

1. general attitudes;
2. issues involved in starting businesses;
3. skills/capabilities of non-profit groups;
4. resources considered by non-profits for starting businesses and
5. types of income-generating activities considered or started by non-profit groups.

Each question posed is delegated to one of these categories, and then analyzed along with other questions placed in the same category.

Based on the results of these surveys and discussions with several professionals, the research team has developed major conclusions, and related concomitant recommendations, for consideration by the Mott Foundation. Our conclusions are that: most non-profits are not ready to embark on entrepreneurial ventures; most non-profits need substantial training to get ready; the activities of technical assistance providers are uncoordinated and often in conflict with the interests of non-profits; a fusion of non-profit orientation with entrepreneurial skills will take place slowly; and, this fusion will require stimulation from foundations and corporations.

CONTENTS
I.  Summary. 

    Non-profits: 
         General attitudes. 
         Starting business/skills area. 
         Resources. 
         Income-generating activities. 

    Technical assistance providers: 
         General attitudes. 
         Starting businesses. 
         Non-profit skills. 
         Resources. 
         Income-generating activities. 

     Conclusions and recommendations.

II.  Background.
III. Methods.
IV. Findings: non-profits.
V.  Findings: technical assistance providers.
VI. Comparison of the surveys
VII. Conclusions and recommendations

Arts & Intersections:

Categories: Financial Management