Q: I am a consultant with a not-for-profit organisation -Institute of Leadership & Institutional Development (ILID), Bangalore, India. For the past three years we have been rendering probono world class consulting and advisory services to over 50 NGOs in the country of all hues and sizes. We bring to the development sector the benefits of management principles and practices employed by business corporations world-wide and help them build on the networking and collaborations as strategic planning processes.

Is there any funding agency/donor agency that we can approach for seeking funding for continuing this service to the development sector that works exclusively for the welfare of the poor and disadvantaged in the country?  All our funding so far is from within and from the personal fortunes of theTrustees.


Patrick O'Heffernan responds:

This sounds like a wonderful Social Enterprise ready to be born. It sounds like you have built the beginnings of a strong business in providing valuable services. Congratulations. This is no easy accomplishment and you should be proud of what you have done -created a world class consulting organization in a very tough environment. That is a valuable asset.  Now to grow it and make it self-supporting, maybe the best route is not looking for a funder, but for an opportunity, an opportunity to monetize your asset.

Let me suggest that you sound like you are ready to move from Dependency - depending on grants and charity, to Sustainability - relying on revenue streams that you generate and control.  My suggestion therefore is to make the move.  Here is how:

1.  Institute a small fee schedule.  That's right, charge for your services. 
Not a lot,  but enough to cover  at least your direct costs since your "customers" are NGOs.  But, if your services are as good and as valuable as you describe - and I am sure they are, the people you help should pay something for them.  I would suggest a sliding scale based on the size of the organization you consult to. Once you have developed a revenue stream from fees, I would explore three pathways:

2.  Approach foundations that underwrite these kinds of training and management services. 
You might try the Rockefeller Foundation in New York, or the Levi Strauss Foundation or the Asia Foundation in San Francisco.  (I don't have to direct you to the Asia Development Bank and the development fund of the British government, because those are so well known. ). Don't ask for a grant for operating funds;  as for an investment in your growth.  Ask for a grant to upgrade what you and market it to regional development banks, the Indian government and other governments that work with development NGOs, foundations that work in India.

3.  Set up a for-profit branch and approach an international management consulting firm that works in India to invest and partner with you.
Pitch them for investment and a partnership in which their staff work with your staff in consulting to NGOs and development organizations. You have a developed a market that could be valuable to larger firms;  by partnering with a firm, you keep control of your market, gain access to cash and marketing, and possibly upgrade your own knowledge base.

4.  Develop new markets. 
Same as #1, but do it whether or not you get a grant.  If you are good enough and successful, the new markets will generate a revenue stream that you can use to subsidize your work with NGOs who can't pay full fees.

Q:  I currently own an educational consulting company specializing in academic test preparation for college search, selection and application.

I would like to open a non profit division to be able to get grants to do my work in the at-risk school districts.

Currently, my services are available only to those who can "afford" them. This increases the disparity between groups rather than begin to close the gaps. I have no idea as to how to proceed. I am very confused about the "intermingling" of the for profit and non profit aspects.


Patrick O'Heffernan responds:

Setting up a NPO to "be able to get grants to do my work in the at-risk school districts" is putting the cart before the horse. If you are truly concerned with the disparity between at-risk districts and children who are in high income districts, you should just allocate a part of your revenue and resources to helping the at-risk districts, rather than expect foundations to pay you to do it.

Not only will this action demonstrate that you are dedicated to solving a problem in our society, rather than competing with other non profits for limited resources, it will give you experience in working in these districts. You will build skills, networks, and understanding. And you will find it an exciting and joyful experience - you will earn "psychic dollars" in the form of satisfaction that far exceeds any funds grants would provide.

As your work in the at risk-districts is successful and expands, you will see what needs to be done, how to it can best be done, and what role foundations can play in it.  The best role may be for foundations to provide support services to your students, like child care or transportation, rather than subsidies to PEN.  You might also find that the affluent parents who buy your services will be happy to donate a percentage of their fees to families who cannot pay for the services, or to a NPO that you set up to help at-risk kids.

Finally, you may want to contact organizations that work in at-risk neighborhoods and with at-risk kids to learn what is needed.  You may find that you have to design different kinds of programs.  You might get in touch with the Tutor/Mentor Cabrini Connections in Chicago or the Ella Baker Center in Oakland as places to start.

Q: Do you know of some great resources regarding corporate branding strategies and community development lending? I am trying to understand how large financial institutions may play a role in advancing social entrepreneurship, green building, community rebuilding, through targeted strategies that bring their clients to the table in key urban marketplaces specifically low and moderate income neighborhoods?


Consultant Bridget McNamer responds:

Here are a few resources highlighting ways that financial institutions are addressing the challenges and opportunities of community development:

• Shorebank

• Bank of America 

• Social Funds

• Grameen Bank

Q: Help! The previous Director of Development agreed to provide board members who write lift notes to individual donors with the amount of individual donations made as a result of their efforts. I am concerned about protecting the privacy rights of our donors. Is there something more substantial other than ethics that will help me to maintain their privacy.

Patrick O'Heffernan responds:

It depends on what you told them to begin with. If your materials, including your web site and your solicitations, clearly state that privacy will be protected, you can point to those. I would also check with the Association of Fund Raising Professionals for their guidelines. A good argument is that you might anger them and lose them --so why take a chance?  Don't forget to put an aggregate amount in the note :-)

Q: I am writing this with the hope of getting a solution. My father was an entrepreneur in the brick industry. He has basically done his Diploma in ITI. My father has never been sucessful in his carreer and to overcome his struggle, he now has to sell vegetable and fruits on the road.

As his daughter, I have identified a few drawbacks in him :
• He gets angry very easily and during this time he does not have control over him.
• He does not know to differentiate people and very often misunderstand them.
• When he get cheated he feels the whole world is a cheater.

He is now 54 and I can't see him going through this mental trauma. I tried getting him small jobs but I found out that he cannot work under anybody. I hope and request that your advice and guidance helps me make my father a sucessful entrepreneur soon.

Shruthi


Paul Lamb, a Man on a Mission, responds:

Dear Shruthi: Your question is quite a challenging one to answer, because in my humble opinion it seems to have more to do with personality than with entrepreneurial skills. From what you say about your father it would seem he is indeed better served by working for himself, but even that will take patience and good customer relation skills.

Given the situation you described, if at all possible it might make sense to try and partner him with another entrepreneur who has some of the skills he is lacking - someone who is more patient than your father and perhaps in a position to help mentor and encourage him? Of course it will have to be someone that your father respects and will make a strong effort to understand him.

In the United States we have a saying that "you can't teach an old dog new tricks". I don't believe that, but rather believe that "old dogs can learn new tricks if they find new tricks worth doing." Obviously your father's challenge is to find both a business/occupation that he enjoys and is good at, which may not be easy. Ultimately, he may not be cut out to be an entrepreneur, and perhaps he should look elsewhere for other opportunties that suit him?

Best of luck to both you and your father!