In our previous post, we discussed some of the challenges your clients might face in the course of starting or running a social enterprise, when it comes to funding such a venture. These types of organizations rely on investors who are looking to fund a profitable company; one which will create social and environmental change. Financial backing is essential, but often difficult to obtain. So, what are some solutions for funding this type of non-profit organization?

What investors want to see is that their money is being spent wisely. While it is a non-profits’ job to help communities and encourage social change, an investor is always looking at the bottom line financially. One way to encourage financial backers is with tax incentives. Incentives such as these make the social enterprise more attractive to potential investors.

Another method that could increase social enterprise funding is transparent and clear measurements. The social enterprise must make it easy to compare investment opportunities both in social and financial terms. An investor may look at factors such as the number jobs created by this social enterprise, or the number of people affected by the activities of the organization.

Partnerships are another great way to encourage funding. Local and central government agencies could be excellent support for start-up social enterprises that are involved in rural activities, for example. Overall, the solution to social enterprise funding lies in making the organization appealing to investors in both the social and financial sense.

At Charity First, we understand the unique funding needs of all types of non-profit organizations. For more information about our products and services, please contact us today at (800) 352-2761.