The third and final participant-led session that I attended today had a dual focus.  The group discussed the ways in which third-party consultants can add value to nonprofits and gain value in return.  In addition, the group explored how for-profit ventures can emerge from nonprofit structures.

In regard to the third-party consultants and nonprofits, the group considered how business and management expertise can be incorporated into nonprofit operations in a way that meets a consultant’s goals and a nonprofit’s mission. One participant stated that with nonprofit/consultant arrangements it is important that both sides make their values clear up front.  The group wondered how nonprofits are made aware of various consulting services.  A question was raised as to whether there is a need for a matchmaking group that would connect those who need a service with those who provide that service.  Kris Prendergast, from the Social Enterprise Alliance, indicated that her organization offers a list on its website of third-party organizations.  A participant spoke to his belief that it is important that nonprofits pay for services (as opposed to being provided services free of charge).  He said that this route brings legitimacy to the services provided, and also creates incentive for both sides to take the process seriously.

One participant asked about Great Bay’s position on making consulting services available to our grantees.  I noted that while we’ve funded such services in the past, we insist that decisions on what services are needed, and by whom the services should be provided, be left to the grantees. I explained that Great Bay takes an engaged, yet non-directive approach to grantmaking.

In regard to for-profit ventures emerging from nonprofit structures, the group had the opportunity to explore a case study in depth.  A participant described her current situation in which she has been hired by a nonprofit to develop an income-generating venture.  The concept is to create a marketplace where eco-friendly fabric suppliers and clothing designers can find each other.  It is clear from her initial work that the venture has the potential to succeed as a stand-alone for-profit; however, there are issues relating to ownership and governance that need to be ironed out.  The participant was peppered with questions from the group, but in the end received beneficial advice as to how she can create a viable social enterprise model.