Funding for Social Entrepreneurship

Doug Bond and Olga Mellizo

Amity Foundation

National TASC 20th Annual Conference on Drugs, Crime & Reentry

Birmingham, Alabama

May 9th, 2014

Funding Sources for Non-ProfitsFunding Sources for Non-ProfitsSample Foundations:

Ewing Marion Kaufmann Foundation: http://www.kauffman.orgCharles Stewart Mott Foundation: http://www.mott.orgSkoll Foundation: www.skollfoundation.orgWestern Union: http://foundation.westernunion.com

Funding Sources for Non-ProfitsFunding Sources for Non-ProfitsSample Foundations:

Achelis and Bodman Foundations: http://achelis-bodman-fnds.orgEchoing Green: http://www.echoinggreen.orgBroad Foundation: www.broadfoundation.orgJM Foundation: http://foundationcenter.org/grantmaker/jm/first.html

Funding Sources for Non-ProfitsFunding Sources for Non-ProfitsFederal Sources:

US Dept. of Labor: www.doleta.gov/grants

US Dept. of Justice: www.doj.gov

US Dept. of Education: www.ed.gov

US Dept. of Health and Human Services: www.samhsa.gov

Funding Sources for Non-ProfitsFunding Sources for Non-ProfitsState and Local Sources:

Workforce Investment Act: www.doleta.gov/usworkforce/onestop

State Correctional Agencies: (CDCR)

Department of Vocational Rehabilitation (CA)

Funding Sources for Non-ProfitsFunding Sources for Non-Profits

Department of Rehabilitation and Vocational Training

Examples:

Career Opportunities Development (COD) Program

On the Job Training (OJT) Funds

Work Opportunity Tax Credit

Job Coaching Services   

Funding Sources for Non-ProfitsFunding Sources for Non-Profits

Funding Sources for Non-ProfitsFunding Sources for Non-Profits

Funding Sources for IndividualsFunding Sources for Individuals

Microfinance/Microloans

Crowdfunding

Non-Profit credit lenders and unions

Ex-Offender Banking

Prizes

Funding Sources for IndividualsFunding Sources for IndividualsMicrofinance/Microloans

Microloans are typically smaller loans ($5-$50K) that are used to

start businesses.

They are designed for business owners who will experience

difficulty in applying for a traditional loan through a bank due to a

poor credit history, lack of experience, or little or no startup funds.

Funding Sources for IndividualsFunding Sources for IndividualsMicrofinance/Microloans

US Small Business Administration:

Funds are provided to specially designated intermediary lenders, which

are nonprofit community-based organizations with experience in lending as

well as management and technical assistance. These intermediaries

administer the Microloan program for eligible borrowers.

Loans to formerly incarcerated individuals are considered on a case by

case basis.

They loan up to $50,000. The average microloan is about $13,000.

Funding Sources for IndividualsFunding Sources for IndividualsOrganizations providing microloansMicroenterprise Funders Group through FIELD: Mission is to identify, develop and disseminate best practices, and to educate funders, policymakers and others about microenterprise as an antipoverty strategy. http://fieldus.org/index.htmlBank and Corporate Foundations: mandated to designate funds for underserved communities by the federal Community Reinvestment ActCommunity Foundations: often have local initiatives availableLocal Chamber of Commerce: often have financial incentives for starting minority-owned business

Funding Sources for IndividualsFunding Sources for IndividualsOther organizations providing microloans and supportCommunity Development Financial Institutions (CDFIs) are local financial institutions – such as non-profit credit unions and lenders – providing credit, capital and financial services to underserved populations and communities in the United States. http://www.opportunityfinance.net/industry/industry_locator.aspState Microenterprise Association: List of state and local microcredit organizations http://www/microenterpriseworks.org/index.asp?bid=70

Individual Development Accounts (IDAs): Have match incentives through a variety of govt and private sources

Funding Sources for IndividualsFunding Sources for IndividualsValjean Financing

Berkeley MA of Financial Engineering proposal to lend ex-offenders money to become entrepreneurs or small business owners.Named after Jean Valjean of Les Miserables, who steals bread and then spends the next 19 years in prison. He is then helped by someone who offered him assistance to start a new life.Still not available…but new initiatives are being developed every day

Funding Sources for IndividualsFunding Sources for IndividualsCrowdfunding

Crowdfunding is the collection of finance to sustain an initiative from a

large pool of backers -the "crowd"-, usually made online by means of a web

platform.

Crowdfunding has been used to start:

a nonprofit campaign (e.g. to raise funds for a school or social service

organization)

a political campaign (to support a candidate or political party)

a philanthropic campaign (e.g. for emergency funds for an ill person or to

produce an emerging artist)

a commercial campaign (e.g. to sell a new product)

or a financing campaign for a start-up company.

Funding Sources for IndividualsFunding Sources for IndividualsCrowdfunding

How does crowdfunding work:

Each crowdfunding site is different, but usually no limits to who can start an

initiative.

The biggest issue with crowdfunding: Accountability

Some crowdfunding companies have strict guidelines, others don’t

Tying to a treatment plan or to parole for accountability

Securities Exchange Commission is working on rules

Possible Crowdfunding Audit Bureau in the works

Lots of room for entrepreneurial ideas for accountability as well as research on

success rate for our population

Funding Sources for IndividualsFunding Sources for Individuals Startsomegood.com Razoo.com 33needs.com Buzzbnk.org CauseVox.com Give.fm Ioby.org Sponsume.com

CrowdfundingKickstarter.comIndiegogo.comCrowdfunder.comRockethub.comCrowdrise.comSomolend.comAngelList.com

Funding Sources for IndividualsFunding Sources for IndividualsEx-Offender Banking

Prisoner Assistant Inc.,: a company that helps inmates set up bank accounts, start

establishing credit and conduct a variety of services that are difficult to perform from

behind bars.

Prisoner Assistant requires clients to grant power of attorney to the company and

charges a monthly fee, starting at $5, to manage an inmate bank account.

For $24 a month, Prisoner Assistant will pay bills, pick up mail, make wire

transfers and help an inmate get credit cards and lines of credit.

The most expensive package costs $50 a month.

Again, lots of room for entrepreneurial ideas…

Funding Sources for IndividualsFunding Sources for IndividualsPrizes

Philanthropists and governments have long used prizes to drive Philanthropists and governments have long used prizes to drive innovation and engagement to produce societal benefitinnovation and engagement to produce societal benefitPhilanthropic prizes are growing in number and size, are Philanthropic prizes are growing in number and size, are appearing in new formsappearing in new formsAre now being applied to a wider range of societal objectives by Are now being applied to a wider range of societal objectives by a wider range of sponsors than ever beforea wider range of sponsors than ever beforeNYU Reynolds Program in Social Entrepreneurship developed NYU Reynolds Program in Social Entrepreneurship developed an overview of social changemaking and related competitions and an overview of social changemaking and related competitions and fellowship opportunities. (Aug 2013) fellowship opportunities. (Aug 2013) Lists 100+ prize opportunities ranging from $100-$1 million!

Questions?Questions?

THANK YOU