Q: I work for a university providing technical assistance in rural economic development. However, I am not able to advise a new client, a startup social entrepreneur, on how to work with the university's Research & Development people on the client's cutting edge ideas and subsequent patents. Rather than the relationship being client-driven and all-in-the-client's-interest, I've known of too many instances at other universities where such clients are taken advantage of.

This person has very little money but a tremendous idea for rural revitalization using green technologies. She would be my first client to work directly with the other side of the campus.

Do you know of any helpful studies or reports, or do you have any advice, on working with universities so as to gain the most and lose the least?


Patrick O'Heffernan responds:

I don't know of any studies or reports but I have worked with a university incubator and can offer some advice there.  I would start with a meeting with the R&D staff first, without your client, and determine what ground rules they are operating under.  Make sure before you meet that you have a clear idea of what services you will want from the university before starting the process.

Often college incubators have policies passed by the trustees and vetted by their lawyers that they must follow.  Get copies of guidelines and policies if you can (it should be public information) in advance of the meeting so that you have an idea of where they will start from and what kind of flexibility there is in their position.  If it appears from your discussion that they will not operate fairly, this may not be your best strategy.  But, chances are that the guidelines lay out processes for negotiating profit and cost sharing. 

Try and reach a consensus with them before bringing your client in.  Although you will ask them to sign secrecy pledges/non-compete, etc papers, these may or may not be useful.  What may be more useful is a non-binding MOU that you work out with them regarding, in general, how the negotiation of costs and earnings will be shared.

Give all of this information to your client and discuss the MOU with her.  Bring them together only if she wants to move forward.  If not, you likely have clarified what is needed if you are going to meet next with the private sector.

Q: I work for a program for marginalized, disengaged young people between 15-21, known as JPET (Job Placement, Employment and Training), in Australia.

Until recently this program had broad outcome goals which encompassed both "economic" outcomes (i.e. the young person found a job), and social outcomes (overcoming barriers such as homelessness, attending rehabilitation for drug use, etc).  However, the official focus is shifting towards one which solely values an "economic" and measurable outcome, that is, that the young person obtains employment.

The government body responsible for overseeing the program has indicated it will listen to arguments attesting to other worthwhile benefits from work with disengaged young people, and specifically, how these can be measurable.

These outcomes would include factors such as improving self-esteem and ability to communicate and therefore seek work or training, establish a social network, friendships and meaningful, healthy relationships, overcome drug and alcohol addictions, (or begin this often long process by entering rehabilitation or having their awareness raised), etc.

Are there similar programs overseas using measures which demonstrative qualitative results like these, and in some way measure the potential savings to society?  Any help in terms of directions for research would be greatly appreciated.

Ruth Norris, Senior Program Officer with the Skoll Foundation, responds:

Many organizations measure social as well as financial return on investment.  The most common method for measuring the kinds of outcomes described in this inquiry is statistical sampling of beneficiaries to participate in follow-up interviews at regular intervals. 

Here are links to the websites of some organizations who have been recognized for their work in measuring social return, and have made
their methods available:
http://www.redf.org/results-intro.htm
http://www.socialenterprise.org.uk/Page.aspx?SP=1919
http://www.socialedge.org/discussions/success-metrics/measuring-social-impact/


You might also want to look at publications on monitoring and measurement prepared specifically for nonprofits, such as the following. A good source for these types of publications is Jossey-Bass.

Handbook of Practical Program Evaluation, 2nd Edition [E-Book]
Joseph S. Wholey (Editor), Harry P. Hatry (Editor), Kathryn E. Newcomer (Editor)
ISBN: 978-0-7879-7388-9

Q: I make solar lights for reading and task lighting -very affordable and very reliable for Africa, where I lived for 20 plus years. My partners are the World Bank and UNHCR, among others. My lights are really great - and I have a web site, where an American can buy a light for $25 and then I send a second identical light off delivered to Africa or elsewhere in the developing world, and pay $1.00 to the non-profit who passes out the light.

There are two billion people who rely on kerosene, candles and conventional flashlights. This has a massive impact on education, the environment, safety, security and overall quality of life.

Problem - after a news segment on a local channel and a Dallas Morning News article, both of which can be viewed on my site - total sales in Feb/March - less then 250.

How can I get word out about this problem/soloution?  When people hear about this issue, they like it  - but few are called to action. Suggestions?

Diana Reid responds:

First I congratulate you on creating such an impactful, yet wholly simple and attainable, social venture. It's clear you've done your research on the issues and built some strong partnerships to help enable you to fulfill your mission. But, because things aren't selling as quickly as you'd like, maybe it is indeed time to take a fresh look!

You might start by building or updating a comprehensive marketing and PR plan. Try to assess who your ideal target audience is to buy these lights - anyone and everyone (too hard to market to the entire world), or are there specific segments of people (age, income, geographic location, social commitment, etc.) that the product AND your mission most appeal to?

Find out who they are, what they read, who influences them and try to tailor your marketing to hit that sweet spot. You may not have lots of dollars for things like advertising, so can you instead to go events or conferences where groups of socially minded people congregate? Can you build a partnership with an organization or company that sells other types of light bulbs and see if they'd be willing to align with you to help your cause (e.g. Home Depot has a really strong social responsibility program)?

Can you leverage your distribution partners' marketing activities and have them help promote your product and your work? Can you link your blog to other like-minded blogs? Can you partner with the Red Cross or some other agency that focuses on emergency preparedness and try to get your flashlights included as a recommended product for a home emergency preparedness kit? Can you get a major donor or key partner to buy  a ton of lights and distribute them for free at conferences or other events so people can see and understand the quality and your mission (and ultimately become word of mouth ambassadors and paying customers)?

In terms of PR and media stuff, congratulations for getting some early news coverage! It's not easy, so it's a great testament to you and your work. As you've seen, PR doesn't always translate into sales, so it's wise to understand that PR is often best used to create some initial awareness of the cause and your product - not as a sales tool to convert them. You then need to back this up with great information on your website, compelling human interest stories (e.g. very clearly connecting the product with the mission) and some kind of clear call to action. Be sure to get your URL mentioned in each media article and then have a clear way to move people through the information and sales process once they come to your site, piqued by curiosity from a media placement.

You might also want to consider creating some PR "urgency" towards sales by building some sort of time-sensitive campaign - e.g. "We are trying to sell 5000 light bulbs in time for the holidays, you can help by buying today!" Or, you might enable people to try the product for free in return for helping you with your marketing & PR (e.g. a customer focus group or ambassador group that blogs about your product, actively tells friends, speaks on your behalf, links to your site, etc.).

There are a lot of inexpensive ways to get the word out, so feel free to get creative. Be sure to stay focused on your target audience and try to build/maintain a very simple and clear process that helps walk (potential) customers through the information and sales process. And, be sure to always tie your compelling social mission to strong, real product benefits. As much as we'd like social causes to be self-evident, people typically buy products because they work well, not just because they do good (but if something does both, stand back - you're on a roll!).

Good luck!

Q: Can non profits like Kiva, Unitus, or the Grameen Foundation be cloned in other cities?  Can microlending non profits be franchised?  Can the model be shared for an accelerated global solution?  In this instance the problem being a solution to poverty?  Many hands make the task light, so I have heard.

Patrick O'Heffernan responds:

Yes, and some have been.  There are many offshoots of the Grameen Foundation around the world.  Cloned is not quite the right word - replicated in a way that meets local conditions.  For a great condensed lesson doing this, see Michael Gerber's book, "The E-Myth".  It goes through the "how" of replication and tells why some don't work and how to fix them.

Franchising is also possible, although it has to be thought through carefully.  In a franchise, the franchising company is selling something of value - name, formula, business model, etc.  It has equity and it requires an investment.  NPO's can also sell something of value and transfer equity, but it has to be carefully valued. The trick is to realize that what is being franchised is the business model, the brand, knowledge. Those must be protected in the franchise agreement or they lose their value.  That being said, I would question if franchising is the best model for replicating an NGO/NPO.  Training and education programs to transfer the working knowledge, rather than selling it and setting up an agreement, may work better.  Again, also look to Gerber's books for strong how to's.

Q: I am fascinated by the contribution of Community Foundations, in the U.S. and Europe. However, I wonder if there is a universal model for replicating their success especially in the developing and under-developed countries. My apprehensions arise mainly from the following:

Responses provided by Patrick O'Heffernan

• Who will provide the seed capital for start ups and under what terms and conditions?

Community foundations by nature begin with the community. Often one or a few wealthy individuals provide the seed capital as investments, requiring that the funds be invested in stocks or bank instruments and the interest be used to grow the foundation and to funds its programs. After the seed investment, the foundation markets itself to more modest-income people who see that their smaller amounts, when combined with the seed funds, can make a difference.

• Do these Foundations necessarily require the backing and patronage of the rich and thriving philanthropists/foundations?

No. Many have no connections to other foundations.

• Are there foundations/funding organizations which help with grants and seed capital and may be, fund the start-up costs of community foundations in the developing/under-developed countries?

Yes. The Ford Foundation, the Aga Kahn Foundation (for the Asmali people) are two that come to mind. A better strategy is to go to international funding foundations with a proposal to underwrite a community foundation. Have some other donors ready to match the foundations funds when you go.

• Is there an ideal percentage-figure for operational costs in the annual finance statement, say in the initial years and for subsequent years? Should there be one at all?

That varies with the country. I have seen a range of 5% to 20%. I would try to stay at 10% or under.

• Should there be an ideal cost of funding and what should not be included in its computing?

No, it depends on your country and what you want to do. Determine what you want to accomplish, and how much investment that will require. If the interest rate in your country (paid on savings or investments ) is 10% and you would like to distribute $1000 in micro grants and your overhead is 5%, you will need $15,000 to begin.

• How should the aspects of inflation, erosion of interest incomes and rising staff-costs be overcome?

That question needs to go to a local economist because it varies so much from one country to another - there is no rule that fits every one.

• In my view, unless the staff-costs are near what they are in developed world, the long-term sustainability of Community Foundations as professionally run and managed entities will be in doubt?

Why? It is not the cost of the staff that is important, it is their effectiveness. Running a community foundation in India will be much different than running it in California or New York. Look at the staffing of community foundations in the developed world as rough guides, but don't assume their model is best for you. You might need more staff because you have less access to technology (not likely in Bangalore!!)

Incidently, you may want to approach the economics department at ITT to work with you on this. You might find some allies there.

Q: We have been operating for seven years now and have not been able to secure partners worldwide who can suport us with grants and material assistance for the suffering communities of Cameroon. All those we've tried contacting have been making excuses. We therefore wish to inquire on how to approach these partners so as to win their confidence and bring them closer to appreciate our work. What are the steps involved in getting a good partnership?

Patrick O'Heffernan responds:

First of all, let me say how inspired I am at your work. I visited your website and I was deeply touched at your courage, your persistence and your heart. Thank you for doing what you do.

I can't say why donors have declined your applications.  I know some foundations do not fund organizations that mix health care with trying to convert people to a particular religion, as yours clearly does, so that may be a problem.  Also, your website did not mention condom distribution, which many foundations and government donors have found is an important tool in preventing AIDS;  if this is part of your work, you should indicate that. If it is not, this may be a barrier for some donors who prefer to give their funds to organizations that use this tool.

I did notice that your work with the Ministry of Women.  Since educating women and giving them to power to control their own lives has been found to be one of the most effective tools for preventing AIDS, as well as improving the economy of a country, you might want to stress this more in your information.

As to your specific question: I sense that you are looking for funds rather than a partner.  A partner works with you by providing materials and people and by working with you in designing and executing programs.  If your question is how do you apply for funding, I would start by analyzing the "excuses" they give you.  They may not be excuses, but reasons. 

Some of those reasons may be your small geographic focus (some foundations and agencies prefer to work on a national or regional basis), your religious objective (as noted above), or any number of other reasons why you don't fit their guidelines.  After you have looked at the rejections, you might explore requesting funding for activities that do meet their guidelines.  For instance, if the rejection was because of your religious content, ask for funds that  exclusively fund  purchase of  drugs or medical supplies and are separate from any funds that support preaching  If the rejection was because of your geographic focus, partner with a larger organization  that works nationally so that you become part of their larger focus.
 
If  you find  funds available for condom distribution or drug trials, add those actions to your program.  In general, try to fit the donor guidelines so you don't get turned down, but have room to negotiate.  Obviously you are doing good work and people's lives rest on your shoulders.

The Foundation Center shows four American Foundations that fund work in AIDS in Africa: the Bill and Melinda Gates Foundation, the Ford Foundation, the Pfizer Foundation, and the Levi Strauss Foundation.

Good luck!