Becoming a social enterprise — for NGOs

Transitioning from donations and grants, to a mixed revenue stream

Photo by Mathew Schwartz on Unsplash

So you’ve seen the number of grants and projects in your area of expertise diminish, be it due to emerging trends or a change of government. Donations are down as the economic crisis looms, or your service users aren’t deemed donation worthy.

You’d read about social enterprise a long time ago, and thought it’s about time you change your model to ensure the sustainability and longevity of your organisation. However you’re unsure what steps you need to take next.

Here are a few pointers that we found useful when working with NGOs before:

Get the board on board

No matter where you are based, the likelihood is that you have a board of some sort to help with the direction and strategy of your NGO. This board will stay in place as you become a social enterprise, however you need to ensure that it gives you support during the transition.

Having a board that is extremely risk averse, slow and unresponsive will not help. Selling a product or service needs a certain amount of quick decision-making and the ability to meet current market trends, if these decisions don’t need board approval then great, but if they do, you better have a…