Transcript A Brief History of Amity Foundation

Funding for Social
Entrepreneurship
Doug Bond and Olga Mellizo
Amity Foundation
National TASC 20th Annual Conference on
Drugs, Crime & Reentry
Birmingham, Alabama
May 9th, 2014
Funding Sources for Non-Profits
Sample Foundations:
 Ewing Marion Kaufmann Foundation:
http://www.kauffman.org
 Charles Stewart Mott Foundation:
http://www.mott.org
 Skoll Foundation:
www.skollfoundation.org
 Western Union: http://foundation.westernunion.com
Funding Sources for Non-Profits
Sample Foundations:
 Achelis and Bodman Foundations:
http://achelis-bodman-fnds.org
 Echoing Green:
http://www.echoinggreen.org
 Broad Foundation:
www.broadfoundation.org
 JM Foundation:
http://foundationcenter.org/grantmaker/jm/first.html
Funding Sources for Non-Profits
Federal Sources:
 US Dept. of Labor:
www.doleta.gov/grants
 US Dept. of Justice:
www.doj.gov
 US Dept. of Education:
www.ed.gov
 US Dept. of Health and Human Services:
www.samhsa.gov
Funding Sources for Non-Profits
State and Local Sources:
 Workforce Investment Act:
www.doleta.gov/usworkforce/onestop
 State Correctional Agencies: (CDCR)
 Department of Vocational Rehabilitation (CA)
Funding Sources for Non-Profits
Department of Rehabilitation and Vocational
Training Examples:
 Career Opportunities Development (COD)
Program
 On the Job Training (OJT) Funds
 Work Opportunity Tax Credit
 Job Coaching Services
Funding Sources for Non-Profits
Funding Sources for Non-Profits
Funding Sources for Individuals
 Microfinance/Microloans
 Crowdfunding
 Non-Profit credit lenders and unions
 Ex-Offender Banking
 Prizes
Funding Sources for Individuals
Microfinance/Microloans
 Microloans are typically smaller loans ($5-$50K) that
are used to start businesses.
 They are designed for business owners who will
experience difficulty in applying for a traditional loan
through a bank due to a poor credit history, lack of
experience, or little or no startup funds.
Funding Sources for Individuals
Microfinance/Microloans
US Small Business Administration:
 Funds are provided to specially designated intermediary
lenders, which are nonprofit community-based organizations
with experience in lending as well as management and
technical assistance. These intermediaries administer the
Microloan program for eligible borrowers.
 Loans to formerly incarcerated individuals are considered on a
case by case basis.
 They loan up to $50,000. The average microloan is about
$13,000.
Funding Sources for Individuals
Organizations providing microloans
 Microenterprise Funders Group through FIELD: Mission
is to identify, develop and disseminate best practices, and to
educate funders, policymakers and others about
microenterprise as an antipoverty strategy.
http://fieldus.org/index.html
 Bank and Corporate Foundations: mandated to designate
funds for underserved communities by the federal Community
Reinvestment Act
 Community Foundations: often have local initiatives
available
 Local Chamber of Commerce: often have financial
incentives for starting minority-owned business
Funding Sources for Individuals
Other organizations providing microloans and
support
 Community Development Financial Institutions (CDFIs)
are local financial institutions – such as non-profit credit
unions and lenders – providing credit, capital and financial
services to underserved populations and communities in the
United States.
http://www.opportunityfinance.net/industry/industry_locator.asp
 State Microenterprise Association: List of state and local
microcredit organizations
http://www/microenterpriseworks.org/index.asp?bid=70
 Individual Development Accounts (IDAs): Have match
incentives through a variety of govt and private sources
Funding Sources for Individuals
Valjean Financing
 Berkeley MA of Financial Engineering proposal to
lend ex-offenders money to become entrepreneurs or
small business owners.
 Named after Jean Valjean of Les Miserables, who
steals bread and then spends the next 19 years in
prison. He is then helped by someone who offered
him assistance to start a new life.
 Still not available…but new initiatives are being
developed every day
Funding Sources for Individuals
Crowdfunding
Crowdfunding is the collection of finance to sustain an initiative
from a large pool of backers -the "crowd"-, usually made online
by means of a web platform.
Crowdfunding has been used to start:
 a nonprofit campaign (e.g. to raise funds for a school or social
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service organization)
a political campaign (to support a candidate or political party)
a philanthropic campaign (e.g. for emergency funds for an ill
person or to produce an emerging artist)
a commercial campaign (e.g. to sell a new product)
or a financing campaign for a start-up company.
Funding Sources for Individuals
Crowdfunding
How does crowdfunding work:
 Each crowdfunding site is different, but usually no limits to who can
start an initiative.
The biggest issue with crowdfunding: Accountability
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Some crowdfunding companies have strict guidelines, others don’t
Tying to a treatment plan or to parole for accountability
Securities Exchange Commission is working on rules
Possible Crowdfunding Audit Bureau in the works
Lots of room for entrepreneurial ideas for accountability as well as
research on success rate for our population
Funding Sources for Individuals
Crowdfunding
 Kickstarter.com
 Indiegogo.com
 Crowdfunder.com
 Rockethub.com
 Crowdrise.com
 Somolend.com
 AngelList.com
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Startsomegood.com
Razoo.com
33needs.com
Buzzbnk.org
CauseVox.com
Give.fm
Ioby.org
Sponsume.com
Funding Sources for Individuals
Ex-Offender Banking
 Prisoner Assistant Inc.,: a company that helps inmates set up bank
accounts, start establishing credit and conduct a variety of services
that are difficult to perform from behind bars.
 Prisoner Assistant requires clients to grant power of attorney to the
company and charges a monthly fee, starting at $5, to manage an
inmate bank account.
 For $24 a month, Prisoner Assistant will pay bills, pick up mail, make
wire transfers and help an inmate get credit cards and lines of credit.
 The most expensive package costs $50 a month.
 Again, lots of room for entrepreneurial ideas…
Funding Sources for Individuals
Prizes
Philanthropists and governments have long used prizes to drive
innovation and engagement to produce societal benefit
 Philanthropic prizes are growing in number and size, are
appearing in new forms
 Are now being applied to a wider range of societal objectives
by a wider range of sponsors than ever before
 NYU Reynolds Program in Social Entrepreneurship developed
an overview of social changemaking and related competitions
and fellowship opportunities. (Aug 2013)
 Lists 100+ prize opportunities ranging from $100-$1 million!
Questions?
THANK YOU