I spent my career in the for-profit world where incentives and goals were pretty clear. You formed a company to bring a product or service to market and you charged a price that ensured you made enough margin to cover your costs and leave you with a profit. That profit was what you returned to your shareholders or reinvested in the company to fund growth. Profit is the fuel of progress.
This month, our CEO, Ken Davenport, talks with The San Diego Foundation about the value of social enterprise. Social enterprise is more than a strategy to create earned revenue streams; it’s a mindset shift.
“By diversifying revenue streams to include at least some earned income, organizations have more control of their destiny and are empowered to do more good,”
JoAnn Jaffe has spent her life as a fundraiser, leader, social change advocate, and passionate yogini. While her resume touts impressive experience throughout the private and public sector, JoAnn’s current role as founder and CEO of OG Yoga, a fiscally sponsored project of Mission Edge, has provided meaning in a way to which other roles can’t compare.
Developing and maintaining the financial health of your organization is a critical component of carrying out your mission. Ways to do this include actively managing your cash flow and making sure you have adequate cash to cover unplanned expenses, slow revenue collection or an unforeseen circumstance.
A best practice in nonprofit management is creating processes and procedures that help build and maintain sustainability over time. This can be accomplished by ensuring that management and board members have access to timely information, especially financial reports that depict the financial health of an organization as it stands and in the future.