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What’s the difference between a social enterprise and nonprofit?

by Ashlee Tate

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Nikki April 4, 2018 - 3:34 pm

Hey Ashlee!! Really enjoying your videos! Just followed you the other day on IG — I’m @motherhoodandhealth 😉 I’ve been doing lots of reading & researching & have definitely been all over the place with things but now this video might have confused me more than it should have! Ha! My goal is to have a physical location focused on moms + families. Health & Wellness classes, Programs & Healthy meal prep & cafe. I also want to provide services to new moms who need extra support, education & meals after giving birth or at times of hardships. I feel so strongly about my pursuits & vision but definitely need to clarify if I’d be able to fall under nonprofit 501(c)(3) with this. I’m not sure after watching this video. But after reading a part in the NOLO book, in chapter 7, page 121 it shows something similar to my idea which was “Women’s Health Information Resource Center” except I’d have a cafe on top of everything listed in order to offer healthy meal choices to our community & also to raise money for our services and to cover salaries for those involved. My goal was to charge for some services but offer discounted rates & free services to those in need. A friend of mine shared a similar nonprofit business in the Templeton area of California and it seems as though they charge for services and food as well (while offering free/reduced to others too) Like what I imagine I’d like to do and they are nonprofit soooo? I’m sorry if my questions are confusing! Just working towards clarity. I just need to know where I stand as if we can start to really move forward with this, I want to start the process immediately because fundraising will be necessary to pay for our location, etc.

I’m meeting with a couple girls next week to share the idea in more detail with them as they’re people who I think would be big cheerleaders & would love to be a part of it all. BUT…..from what I’m learning if I am able to make it a nonprofit, they wouldn’t qualify to be on my board because they’d doing things along side me and helping me run the programs & cafe & everything.

If I’m not mistaken, I have to choose board members who do not take part in the actual “running of everything” and who I trust to make good decisions for the nonprofit. (still need to read NOLO book thoroughly)

Can you tell, I’m taking in lots & just trying to wrap my head around everything! LOL

I seriously appreciate your dedication to helping others with their ideas, you’re such a great source!

Nikki April 4, 2018 - 5:03 pm

Ok….Sooo, obviously my last comment prompted me to just DIG DEEP in the NOLO book because I realized there are way more details on if this is even possible. Ashlee…..I’ve realized I don’t like the idea of not being able to pay those doing this with me as much as I’d love to. Like the idea of being under so much scrutiny makes me a little craze because I know my capabilities & those around me’s capabilities ya know? I’m like….oh no, they need to be paid for this amazing work & so do i 😉 I might be moving on from nonprofit and realizing it’s not for me and that continuing forward as a profit business but taking it upon myself to offer services for free & reduced rates is totally & completely ok! <3 If anything…..all this research has openend me up in lots of ways which is always good.

unleashed2016 April 12, 2018 - 8:34 am

So proud of you! This is what all of this is here for! The nonprofit side is truly for people who want to do full on charitable work! I think you would do extremely well as a for profit social enterprise aka. a for purpose organization! Hence the reason I call all of you “entrepreneurs with a purpose! I am so very proud of your decision and would love to follow your journey!

unleashed2016 April 12, 2018 - 8:25 am

My apologies for taking so long to get back to you! I love your plan! What you are considering can absolutely be done! Essentially you are looking to create a social enterprise which can be anything that has a social impact baked into the business concept. If you’d like to focus on revenue building solely then you would go the for profit route of social entrepreneurship. Selling a product or service to fund or provide services at a discounted rate. If you want to focus on pure charity than you can go the nonprofit route to raise funds to start the program and allow people to donate. Lets dig into this a little deeper.

As for board members, you can absolutely have the people who want to dig deeper and do more on your board. You would then be considered a working board. Oftentimes your initial or founding board members will help you so you can absolutely have the girls you’d like to use! Be sure to sign up for the socialife diaries and hit reply so we can connect! I’d love to help you! I see your passion girl!


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