From Charity to Self-Sustainability: 2 Winning Strategies

When I launched The Cookie Project a few years back, our mission was clear: to provide meaningful employment for people with disabilities, transforming what was traditionally seen as charitable handouts into a financially self-sustaining enterprise.

We proved that disabled individuals could create world-class products, be paid fairly and sustainably, and contribute to the economy.

But in this journey, I realised there is an ongoing dilemma many face: should we transform existing charity-based disability enterprises into self-sustainable social enterprises, or is it better to start from scratch?

This decision goes beyond logistics—it’s about legacy, impact, and the future of how we enable those with disabilities to thrive in a world that often discounts their worth.

As I’ve highlighted in my recent article on New Zealand's Charity Sector Needs a Good Shake-Up, charity-based disability enterprises are not sustainable in the long run, and their impact is limited.

Transforming Existing Disability Enterprises

Key Differences:

- Resources: Existing enterprises often have established resources such as facilities, staff, and client bases. They may also have some financial reserves and existing funding streams.

- Network: These enterprises generally have established relationships with stakeholders, including donors, volunteers, beneficiaries, and partner organisations.

- Assets: Existing tangible and intangible assets can include brand recognition, goodwill, and operational systems already in place.

Pros:

1. Established Presence: Existing reputation and trust within the community can ease the transition and support sustainability.

2. Resource Utilisation: Leveraging current assets, resources, and networks can reduce startup costs and time.

3. Staff and Volunteer Retention: Existing trained staff and committed volunteers can continue contributing without the need for fresh recruitment.

4. Client Continuity: Maintaining relationships with beneficiaries ensures continuity of service delivery and impact.

Cons:

1. Cultural Shift: Transforming the mindset from a charity model to a business-oriented approach can be challenging for staff, volunteers, and beneficiaries.

2. Legacy Systems: Existing processes and systems may be outdated or incompatible with a more entrepreneurial approach.

3. Funding Transition: Dependence on donations and grants may make it difficult to shift to revenue-generating activities.

4. Resistance to Change: Stakeholders accustomed to the charity model may resist changes to operations and objectives.

Establishing a New Self-Sustainable Social Enterprise

Key Differences:

- Resources: Requires sourcing new resources, including funding, facilities, and staff.

- Network: Needs to build networks and relationships from scratch with various stakeholders.

- Assets: No pre-existing assets, which means starting from a clean slate but also with the challenge of establishing credibility.

Pros:

1. Innovative Approach: Opportunity to design a modern, efficient organisation from the ground up without legacy constraints.

2. Tailored Strategy: Ability to create a strategy and operational model specifically designed for sustainability and impact.

3. Flexibility: Greater flexibility to adapt and respond to market needs and opportunities.

4. Mission Alignment: Directly align all activities and strategies with the social mission from inception.

Cons:

1. Initial Challenges: Higher initial costs and time investment required to establish the enterprise and gain traction.

2. Market Entry: Gaining market recognition and trust can be difficult without an existing reputation.

3. Resource Constraints: Limited initial resources can constrain early growth and impact.

4. Network Building: Requires significant effort to build relationships and networks from scratch.

Suitability by Type of Disability Enterprise

Transforming Existing Enterprises is suited for:

- Supported Employment Services: Organisations providing supported employment for people with intellectual disabilities or mental health conditions may benefit from transformation. The established support systems and relationships can be leveraged while integrating revenue-generating activities.

- Sheltered Workshops: Workshops employing people with physical disabilities can transition to more sustainable models by introducing commercial activities that align with their existing skills and capacities.

Establishing New Enterprises is suited for:

- Innovative Tech Solutions: Enterprises focused on tech solutions for disabilities, such as assistive technology startups, may benefit from starting fresh. The need for innovation and a modern approach aligns well with building a new enterprise.

- Social Enterprises in Emerging Markets: In regions where disability services are underdeveloped, starting new enterprises can address specific local needs with tailored solutions, such as vocational training centres for people with autism.

Final Thoughts

Both transforming existing charity-based enterprises and starting new ones come with their own unique challenges and rewards, and the right path depends on the specific needs and resources of the organisation.

As someone who has navigated the complexities of this transformation firsthand with The Cookie Project, I understand the intricate balance required between social impact and financial sustainability. I’m happy to offer pro bono advisory to disability-focused organisations considering either path, helping them navigate the landscape to create more inclusive, impactful, and self-sustaining futures. You can also join my free online course with pre-registration at My Purpose Today.

#SocialEnterprise #DisabilityInclusion #SustainableImpact #CharityTransformation #InclusiveBusiness #SocialInnovation #DisabilityRights #EmpoweringCommunities #SocialEntrepreneurship #ImpactDriven #SocialImpact #SocialEnterprise

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Eric shows up every week to serve the LinkedIn community by sharing insights from his two-decade of leadership journey in banking, social impact and social entrepreneurship. As an advisor and consultant, Eric guides organisations in developing effective social enterprise strategies and employee wellness. Based in Ipoh, Malaysia, he also promotes mental health through his non-profit initiative.