Illinois Community Action Network Social Entrepreneurship in Action: A White Paper Examining...

Illinois Community Action NetworkSocial Entrepreneurship in Action

A White Paper Examining Prospects for Program Development

DECEMBER 2013

Illinois Community Action Development Corporation

2 ILLINOIS COMMUNITY ACTION DEVELOPMENT CORPORATION | SOCIAL ENTREPRENEURSHIP IN ACTION

Table of ContentsIntroduction .................................................................................................................................................................3

Project Scope ................................................................................................................................................................3

Defining Social Enterprise .........................................................................................................................................4

Illinois Community Action Network and Social Enterprise .................................................................................5

Insights from Community Action Agencies ............................................................................................................10

Social Entrepreneurship in Action ............................................................................................................................15

National Perspective ....................................................................................................................................................17

Recommendations and Conclusions ........................................................................................................................19

Resources ......................................................................................................................................................................22

Acknowledgments .......................................................................................................................................................23


IntroductionRecently, the Illinois Community Action Development Corporation (ICADC) decided to examine more closely the feasibility and the need to augment existing programs with an emphasis on earned income and social enterprise.

From its inception, the ICADC has operated in an entrepreneurial manner, identifying opportunities and building economic development throughout Illinois. Under staff and board leadership and with the engagement of a diverse group of Community Action Association members across the state, ICADC has pursued a multi-faceted community development agenda supported by an array of programs and services.

The key objective for this project was to determine the need and capacity for earned income and social enterprise services and programs, which ICADC and potentially IACAA and IVCA could offer to Community Action Association members. Prospective earned income and social enterprise development is meant to augment, not supplant existing programming.

Project ScopeThe project scope focused on identifying opportunities, needs and gaps in ICADC’s and to some extent IACAA, IVCA’s programs and services to support earned income and social enterprise development within the network of 40 Community Action Agencies.

From September through December 2013, the primary project activities included:

1. Interviews with IACAA, IVCA, and ICADC staff and leadership

2. Comprehensive review of strategy documents and program materials

3. IACAA Earned income and social enterprise member survey

4. Collaboration support and development for Rockford deconstruction social enterprise

Top InsightMember Interest in Social Enterprise. The majority of Community Action Agencies responding to the member survey indicated an interest in exploring social enterprise or earned income opportunities (83% of respondents).

Top OpportunityEarned Income and Social Enterprise are Key Community Economic Development Strategies for the Illinois Community Action Network. In Illinois and throughout the U.S., earned income and social enterprise have become incorporated in the community development landscape through innovative ventures creating jobs, generating unrestricted income and contributing to long-term financial sustainability.


Defining Social EnterpriseSocial enterprise, social entrepreneurship, social entrepreneurs, earned income and non-traditional revenue streams are terms associated with generating revenue in support of a social (and in some cases environmental sustainability) mission. They are often used interchangeably. For consistency, this report primarily uses the terms earned income and social enterprise.

Several resources included at the end of the report, provide excellent expanded definitions of these terms. For the purposes of this project, we have included brief definitions and icons as a roadmap to understand issues related to the Illinois Community Action Network.

Terms and DefinitionsSocial enterpriseBusiness where the primary purpose is to address a social issue.

Social entrepreneurshipThe field or movement of individuals who seek to solve societal issues through innovative practices.

Social entrepreneursThe individuals who start, develop, lead or manage social enterprises or other innovative companies or organizations.

Earned incomeRevenue generated from sources other than grants and donations.Examples: Fees, product sales, rentals.

Financial sustainabilityThe ability to secure predictable revenue to support organizational needs.

Non-traditional revenue streamsIncome that is not typical for that particular nonprofit organization.Example: Income from a catering business started by a Head Start program that serves meals.


Illinois Community Action Network and Social EnterpriseQuestion: Is there a role for ICADC to support Community Action Agencies interested in earned income and social enterprise development?

Findings:1. Earned income and social enterprise programming is an essential next step to advance ICADC

and IACAA’s comprehensive community and economic development strategy for Illinois.The range of supportive community development services provided by IACAA and ICADC is extensive, robust and geographically distributed throughout Illinois. IACAA’s supportive services are geared to supporting Community Action Association members as they provide direct community development services throughout Illinois. ICADC in turn supports members as they engage in affordable housing and economic development in their communities. ICADC often works side-by-side with members to augment their staff and resource capacities. Creating jobs, addressing poverty and promoting individual and family self-sufficiency are at the core of IACAA and ICADC’s mission of member support. ICADC and IACAA program directors consistently described these goals and their interest in helping Community Action Agencies “think out of the box” when it comes to achieving their missions.

Historically, ICADC has supported entrepreneurial development within the Illinois Community Action Network. While not designed as earned income or social enterprise programs per se, ICADC’s efforts in affordable housing development are notable for generating income in support of community development goals. Developing affordable housing has resulted in new business formation. Community Action Agencies have created new for-profit ventures, typically LLCs to hold apartments and houses in their communities. CAAs own and operate these for-profit ventures as separate entities, which in turn support the parent CAA through earned revenue. IACAA has supported ICADC’s strategic direction with this work. However, at present, neither ICADC nor IACAA offer programs or services that are explicitly described or branded as earned income or social enterprise development.

In Illinois and throughout the U.S., earned income and social enterprise have become incorporated in the economic development landscape through innovative ventures creating jobs, generating unrestricted income and contributing to long-term financial sustainability. While there is currently no comprehensive listing of all social enterprise ventures or organizations using earned income revenue strategies in Illinois, anecdotal evidence from within the field suggests a strong increase over the past ten years. Indeed, economic development organizations, social service agencies and individual social entrepreneurs have been starting up social enterprise ventures and activating existing assets to generate non-traditional revenue at an increasing rate throughout Illinois. Additional detail about earned income and social enterprise examples in the Illinois Community Action Network is provided on pages 15-16.

The Business Opportunities Committee of the Illinois Task Force on Social Innovation, Entrepreneurship, and Enterprise is in the process of mapping existing social enterprises in the state. The resulting “Illinois Social Enterprise Directory,” will eventually serve as a guide and networking platform for mission-driven,


social purpose businesses and nonprofits in Illinois. Thus far, approximately 325 Illinois social enterprises have participated. Additional efforts of the Illinois Task Force on Social Innovation, Entrepreneurship, and Enterprise involve a range of initiatives and strategies to support and accelerate the social purpose business sector, which can serve as valuable resources for the Illinois Community Action Network.

2. Financing for Community Action Agency-initiated business and social entrepreneurial ventures is an opportunity to support new earned income and social enterprise activity.

At present, IVCA plays an important role in financing high impact economic development and business development projects within the Illinois Community Action Network. IVCA invests CSBG funds in entrepreneurial ventures that can demonstrate solid financial returns and job creation benefits. IVCA projects are identified through IVCA’s network and the Illinois Community Action Network.

Community Action Agencies may also engage in business development lending within their local communities using Category D funds from their CSBG allocation to support entrepreneurial development. However, only a small number of business development finance projects are generated each year through this channel. Community Action Agencies have three options for managing Category D CSBG funds, which are unencumbered at the end of a fiscal year: 1) a request for a waiver to modify fund use can be submitted, although there are significant restrictions, 2) funds can be returned to the state to be reallocated and 3) funds can revert to IVCA for investment purposes.

Identifying a critical mass of appropriate projects at the local Community Action Agency level has been for the most part challenging. A number of reasons may account for this disconnect including lack of capacity for outreach to prospective business development clients or mismatch between CSBG rules and regulations and business financing needs. However, to understand fully the nature of these circumstances, a more in-depth investigation that engages Community Action Agencies throughout the state is needed.

In sum, at present financing programs are not strategically optimized for earned income and social enterprise development within the Illinois Community Action Network. This creates an opportunity to leverage existing CSBG resources in new and innovative ways. IVCA can play a unique role in augmenting existing successful financing programs in a manner that complements ICADC’s prospective program development for earned income and social enterprise ventures generated at the Community Action Agency level.

3. ICADC and IACAA’s current organizational capacities are well suited to earned income and social enterprise program development support.

Three key factors evident in ICADC and IACAA operations align well with prospective earned income and social enterprise programs and services including:

i. Continuous Program Development to support member needs and generally a high level of participation in program offerings

ii. Ongoing Program Adaptation that bodes well for social enterprise and nontraditional revenue stream development

iii. Strong Commitment to look for new ways to address poverty in Illinois


4. Leadership teams’ commitment to innovation and impact complements new program development.

IACAA, ICADC and IVCA leadership teams are comprised of veteran community development executives with extensive experience and expertise in program and strategy development aimed at addressing poverty and job creation in Illinois. New program development for earned income and social enterprise revenue development will require innovative strategies and new levels of collaboration evident in the current leadership teams.

Long-term financial sustainability is one of the most daunting challenges facing Community Action Agencies. This is simply a reflection of the reality of decreasing local, state and federal resources for community development and poverty alleviation. In light of these challenges and realities, ICADC, IVCA, and IACAA strive to support the Community Action Agency network’s financial sustainability goals, particularly, in a manner that fosters or even encourages less dependency on grant funding for general operating support. Earned income and social enterprise are important elements in the financial sustainability environment.

Leadership at the three statewide agencies recognize that needs and interests vary across CAAs in this regard with some agencies seeking more support and technical assistance than others do. Program directors see opportunities to leverage and even replicate their existing format and process to support opportunities throughout the Illinois Community Action Network for earned income and social enterprise development. For IACAA this might translate into supportive services around leadership and organizational development, fiscal accountability, best management practices, and strategic planning in the earned income and social enterprise context. For ICADC, it will involve new efforts to augment an agency’s staff capacity by providing a core team of experts and advisors that can accelerate the process of achieving earned income and social enterprise goals. Additional details of prospective earned income and social enterprise services are provided on pages 19-21.

“Topics such as social enterprise, corporate social responsibility, and public-private partnerships have emerged as opportunities that can support our missions and strategies to address the economic issues affecting Community Action’s customers with low incomes.”

-Niccole Clements, Director of Community and Economic Development, Illinois Community Action Development Corporation, December, 2013


Question: Do earned income and social enterprise revenue development fit within ICADC’s mission?Findings:ICADC’s strategic plan was updated in 2012 through a comprehensive planning process, which involved the board and members. Prospective new earned income and social enterprise programs and services must be aligned with this strategic plan. A review of the 2012 strategic plan indicates this alignment in the key areas of mission, vision and strategic goals and objectives.

Prospective development of earned income and social enterprise programs and services aligns with the following strategic goals and objectives from the 2012 plan:

Goal #3: Provide access across the state to high quality training and technical assistance services in affordable housing and other areas of identified need.

Goal #6: Diversify and grow the funding base.

Goal #7: Build and strengthen partnerships and alliances with organizations and groups who work with the corporation to achieve its mission.

Goal #8: Increase the visibility and strengthen the reputation of ICADC both inside and outside of the Community Action Network.

ICADC Strategic Plan Elements

ICADC Strategy Furtherance of Strategic PlanMission:

The Illinois Community Action Development Corporation is a statewide community development organization that works through the community action network to create affordable housing, create jobs and engage in financial opportunities that strengthen communities and the wellbeing of individuals and families in need.

PWorkforce development opportunities

PJob creation possibilities

PLong-term organizational stabilization

Vision:

The Illinois Community Action Development Corporation fosters partnerships to create affordable housing and development opportunities so that individuals, families, and communities will have a stable and more prosperous future.

P�Individual and family economic self-sufficiency attainment

PCommunity development perpetuation


Goal #9: Build institutional strength to achieve the expanded mission.

Goal #10: Assist member agencies to position themselves to take advantage of opportunities provided to them.

“If an agency relies on state funds, it is problematic if you do not have six to nine months of working capital on hand. Community Action Agencies need to broaden their economic development scope to generate unrestricted funds for these and other circumstances.”

-McFarland Bragg II, President/CEO, Peoria Citizens Committee for Economic Opportunity, Inc. and Chairman, ICADC Board of Directors, November, 2013


Insights from Community Action Agencies

“Social enterprise is a wave of the future for the CAA Network.”Survey Respondent, 2013

Question:Are members interested in exploring earned income and social enterprise programs and services?

Findings:Open Door Advisors worked with ICADC to survey its members to gather information about their interest in social enterprise as a strategy to advance their missions. Throughout October 2013, Open Door Advisors collected survey responses from 18 agencies; all but three respondents were the senior-most executives in their agency.

Limited Social Enterprise ExperienceThe majority (66.67%) of respondents report that their agency has not developed a social enterprise or earned income initiative, and a small group report not being sure (16.67%).

Three agencies (16.67%) report that their agencies have developed social enterprise or earned income initiatives, including the following:

Social Enterprises Reported in Community Action Agency Survey

Agency Social EnterprisesProject NOW • Rental Housing

• Resale Shop

Community Action Partnership of Lake County • Special Events & Catering Business• T-Shirt Shop• Resale Shop• Rental Housing

Illinois Valley Economic Development Corp. • Crafts to Sell


These initiatives include the following features:

• Hired disadvantaged people • Trained disadvantaged people • Sold products • Sold services • Filled a market gap for a disadvantaged community• Developed and/or leased real estate

Each of the three respondents reported that they operate social enterprises as programs of the host 501(c)(3) nonprofit corporations, however, one initiative (at Project NOW) was established as a partnership. These three agencies reported earning $135,000 on average (range of $15,000 to $350,000) from their social enterprise activity in the preceding fiscal year.

Significant Member Interest in Social Enterprise

The majority of respondents (83.33%) indicated an interest in exploring social enterprise or earned income opportunities, with two agencies indicating they were not sure and only one indicating it would not be interested. Agencies cited a number of reasons for their interest:

Revenue: • “To provide more flexible resources in meeting the goals and mission of our agency and advance economic

self-sufficiency for difficult to employee populations;” • “To maintain a strong financial position for the Agency;”• “Need to generate additional revenues;”• “Decrease in grant funding.”

Challenges in Developing Social Enterprise and Earned Income Initiatives

Respondents identified the following most significant challenges facing their agency’s current or potential social enterprise efforts:

Challenge• Limited market opportunities

• Unfamiliarity with social enterprise and earned income strategies

• Lack of donor support for social enterprise and earned income strategies

• Lack of business development experience

• Unrealistic revenue projections

• Other: Controlling labor costs


Mission: • “A way to support our mission and the work we do.”

Strategy: • “Flexibility to meet the expressed needs of our communities.”

When asked to state their agreement or disagreement with the following statements, members registered a number of strong views, reflecting a belief in the promise and value of social enterprise tempered with limited expectations about its potential to eliminate the need for traditional sources of revenue.

Member Capacity Development Needed to Advance Social Enterprise VenturesThe majority of respondents (72.25%) indicated that their agencies have not received planning support to develop social enterprise or earned income initiatives. Only one agency indicated that it had received some technical assistance through attendance at national Community Action Agency conference sessions regarding business development, market research and/or feasibility and market development. Three agencies indicated that they were not sure.

Statement Agree Disagree Not SureSocial enterprise can generate unrestricted, new revenue.

88% 6% 6%

Our staff is interested in learning more about social enterprise.

81% 0% 19%

Social enterprise is appropriate for any organization or agency.

56% 19% 25%

Social enterprise sounds compelling, but we are concerned about losing our nonprofit status.

13% 53% 33%

Nonprofits should not get involved with generating revenue from business activity.

13% 81% 6%

Our board members have asked us to be wmore involved in social enterprise or earned income ventures.

13% 63% 25%

Social enterprise will eliminate the need for traditional funding (i.e., grants and donations).

6% 81% 13%

Beliefs and Attitudes Towards Social Enterprise


Less than half of the respondents (43.75%) indicated that their agency currently has organizational “assets” (for example, space to rent, curriculum to sell, etc.) that could be put to use to generate funds to support its mission, including the following:

• Physical space (71.43%)• Contractual staff (28.57%)• Real estate (28.57%)• Intellectual property (14.29%)• Other: “Trained staff i.e., regular assessments and lead licensed” (14.29%)

In addition, 37.5% of respondents noted that they did not have organizational assets to devote to new social enterprise ventures, and 18.75% of respondents indicated that they were not sure.

Respondents indicated that their agencies would be interested in learning more about the following topics through training and/or technical assistance, with half or more selecting the top four topics:

One member noted that information about “existing models would be helpful.”

The majority of respondents (81%) indicated that their agencies would be interested in participating in a focus group with other ICADC members and social enterprise experts to discuss social enterprise and earned incomes strategies. Three respondents indicated they were not sure.

Training TopicPercentage Interested

Social enterprise 101 69%

Agency capacity assessment 56%

Social enterprise product/service opportunity assessment 50%

Capital financing/resource development 50%

Board governance for social enterprises 44%

Marketing and communications strategy 44%

Financial management strategy 44%

Community impact measurement 44%

Market research/competitive analysis 38%

Business planning 25%

Social impact bonds 19%

Brand identity 13%

Real estate development 0%

Interest in Training


Member Perspectives on Funding ExploredRespondents identified the following as the best sources of start-up or planning funding for social enterprise ventures:

Building on our agency assets to strengthen our core programs that change lives is what we do well. We operate social enterprise businesses in catering and custom t-shirts (and have several more in development) to build a foundation of support for our organization.”

-Mary Lockhart-White, Executive Director and CEO, Community Action Partnership of Lake County, October, 2013

Source of Start-up or Planning Funding for Social Enterprise VenturesPercentage Responding

IVCA (Illinois Ventures for Community Action) 67%

ICADC (Illinois Community Action Development Corporation) 47%

Private (non-foundation) philanthropy 40%

State government 33%

Private foundations 33%

IACAA (Illinois Association of Community Action Agencies) 27%

Self-funding from our organization: general operating funds 27%

Local government 20%

Private for-profit investor 20%

Self-funding from our organization: reserves 20%

Federal government 13%

Corporate donation 13%


Social Entrepreneurship in ActionIn keeping with ICADC’s strategy of engagement, throughout this process ICADC 1) listened to member agencies to better understand their needs and unique circumstances, 2) continuously reviewed key questions and challenges posed and 3) designed a prospective program strategy (see pages 19-21) based on gaps in services and the most pressing member needs.

The experiences at two member agencies offered in-depth insights that further informed the findings of this report. The context at each agency is quite different. However, each is engaged in dynamic earned income and social enterprise development among their other ongoing large-scale programs and services.

In terms of earned income and social enterprise ventures, Community Action Partnership (CAP) of Lake County, a 501(c)3 nonprofit organization, operates and develops multiple earned income and social enterprise ventures. Rockford Community Action at the City of Rockford, Human Services Department (CRHS) serves as the thought-leader and convener for the development of a regionally focused social enterprise deconstruction business to be operated by a Rockford-area nonprofit organization.

The CAP of Lake County and CRHS experiences are also instructive as they indicate that 501(c)3 organizations and public agencies have roles in earned income and social enterprise programming, which may be distinctive, but complementary. Even with distinctive approaches, social impact through job creation and poverty alleviation and the development of unrestricted income serve as the rationale for both entities. Highlights on the current state of earned income and social enterprise at CAP of Lake County and CRHS are provided below.

Community Action Partnership of Lake County Type of Community Action Agency: 501(c)3 nonprofitEarned income and social enterprise role: Founder, Strategist, Investor, Operator, OwnerVentures: Cap Catering, CAP T-shirt Company, “Changing Lives” Upscale Resale Shop and Deli Corner (new), others in development

CAP of Lake County has differentiated itself in Illinois and nationally for its entrepreneurial ventures in support of its mission. Its first venture, CAP Catering Service started small in 2005 building off the agency’s existing assets and infrastructure for Head Start meal preparation. Each year the catering business has expanded and generated additional customers, new products and new locations including a cafe at an area health club. CAP of Lake County’s latest social enterprise venture, “Changing Lives” Upscale Resale Shop and Deli Corner opened in November 2013. Staffing is largely provided by the agency’s senior volunteer program.


Key factors for success include:

• Leadership: entrepreneurial executive director who balances risks with opportunities and social impact• Business acumen: leadership and team possess a range of business expertise necessary to start and

operate multiple ventures• Market opportunity: community support for the agency’s mission-based businesses, need for

unrestricted funds for agency operations• Quality service and products: consistent repeat customers who value CAP Catering’s quality and pricing

Rockford Community Action, the City of Rockford, Human Services Department Type of Community Action Agency: Public agencyEarned income and social enterprise role: Convener, Facilitator, Strategist, Investor and Thought-leaderVentures (supported): Deconstruction business

Rockford Community Action-CRHS leads a wide range of social impact programs and is called upon as a thought-leader, convener and facilitator as new initiatives take shape in the community. Reducing the growing number of vacant and abandoned properties in a manner that improves conditions and creates training and job opportunities has been a priority for many community stakeholders. CRHS, with consulting support from ICADC has stepped in to advance the dialogue into action. Since September, CRHS has been convening stakeholders to examine the need and feasibility for a Residential Deconstruction Social Enterprise to be operated by Rockford’s Youth Build program, which already operates a social enterprise, Salvage Too. The prospective social enterprise will build on the strengths of Salvage Too in the building materials reuse industry to leverage new workforce development training and job creation opportunities.

As lead convener, CRHS has organized project working groups in the following areas: pre-business planning and resource development, value-added entrepreneurial training, new market development and policy and regulation. Each working group is comprised of stakeholders from multiple organizations that interface with training, building and demolition/deconstruction in the community. The working groups are creating short-term and long-term goals and identifying commensurate roles and responsibilities for group members. The project is ongoing and expected to continue through 2014 at minimum.

Key factors for success include:• Leadership: highly engaged director who includes and encourages other senior public officials committed

to accelerating social impact• Leverage: willingness to devote resources, if appropriate and/or needed• Stakeholder engagement: ability to attract community leaders and key players to participate and support• Administrative infrastructure: support systems for convening and facilitation


National PerspectiveThe National Scene

“Social enterprise is a mindset change. Business acumen is key and without it, these projects are daunting. With the Illinois Community Action Network examining how to support members interested in social enterprise, there will be better opportunities and resources in the future.”

-Stacy Flowers, Director of Community Economic Development, Community Action Partnership- The National Association, September, 2013

Earned income and social enterprise development vary among state community action associations across the country. The Community Action Partnership (CAP) has recognized it as an area of interest for Community Action Agencies. In 2011, CAP developed a comprehensive resource, the Community Action Partnership Social Enterprises Toolkit to serve as a guide for Community Action Agencies. ICADC recently modified the toolkit for the Illinois Community Action Network.

The 2011 toolkit highlights social enterprise best practices in the field at-large. Within this context, California stands out as an early adopter in the social enterprise field. However, in terms of the national community action network, no one state in particular stands out as having a critical mass of earned income or social enterprise revenue support services or business ventures.

Outside of Illinois, two community action agencies provide insights into innovative social enterprise practice through business ventures they established. ICADC has identified these two agencies as best practice models that can be instructive for Illinois. They include Westmoreland Community Action’s Shop Demo Depot and Northwest New Jersey Community Program Action, Inc.’s Arthur and Friends.

Shop Demo Depot, Westmoreland Community Action, Mount Pleasant, Pennsylvania

Founded in 2009, by West Moreland Community Action, Shop Demo Depot (SDD) is a building materials reuse store and deconstruction social enterprise. SDD’s mission is as follows:

To reduce landfill waste and promote the resale and reuse of goods, while financially supporting Community Action initiatives that help those in need. (Source: Shop Demo Depot)

Shop Demo Depot is the Community Action Partnership’s 2010 Community Economic Development Entrepreneurship and Innovation Award Winner Project Case Study. A link to the full case study is provided on page 22.


Arthur and Friends, Northwest New Jersey Community Program Action, Inc., Newton, New Jersey (multiple locations)

Founded in 2008 by the Northwest New Jersey Community Program Action, Inc., Arthur and Friends provides employment and training opportunities for very marginalized individuals including those with disabilities. Arthur and Friends’ mission is as follows:

To develop employment opportunities in agribusiness occupations and industries based on the strengths, needs, and desires of the individual with a disability, including self-employment and entrepreneurship where appropriate. (Source: Arthur and Friends)

Arthur and Friends operates in multiple locations in New Jersey including garden centers, training centers and greenhouses and is seeking further expansion opportunities.

Indeed, through the current project, ICADC is beginning to distinguish itself as a state community action agency association that is taking a proactive role in defining an earned income and social enterprise platform of programs and services. This work could become a benchmark for other interested state community action associations.


Recommendations and ConclusionsBased on the analysis of Community Action Agency interest and need and Community Action Association interest and capacity, there is an opportunity to build an Illinois Community Action Service Model for earned income and social enterprise programs and services.

The recommended course of action includes:1. Developing the Platform

Earned income and social enterprise program concept statement to clarify ICADC’s role

2. Clarifying ICADC’s Role and Responsibility Management strategy including complementary roles and responsibilities for IACAA and IVCA

3. Defining the Program Model Programs and services to support earned income development within the Illinois Community Action Network

4. Establishing a Timeline Important milestones and next steps.

The PlatformGenerating revenue in support of Community Action Agency goals is an economic development opportunity. Community Action Agencies can generate revenue through a range of methods such as social enterprise businesses and activation of existing agency assets.

These strategies are meant to augment community and economic development programs and services, not supplant them. Indeed, while agencies typically seek to secure additional revenue in support of their mission, not every Community Action Agency will be interested in doing so through earned income and social enterprise.

ICADC will develop new programming to support Community Action Agencies interested in earned income and social enterprise as an augmentation of existing programming. Programming will reflect agency needs and capacities and as such will be directed at specific audiences from agencies simply interested in learning more to agencies well underway with business ventures.

ICADC will approach this work with the understanding that Community Action Agencies need particular organizational capacities along with the financial and human capital to proceed. Further, ICADC will ensure that agencies have sufficient plans in place to mitigate the inherent risks associated with these efforts.

ICADC’s Role and Responsibility Consistent with ICADC’s mission to create jobs, and engage in financial opportunities that strengthen communities, ICADC will serve as the lead entity for earned income program and service delivery for the Illinois Community Action Network. ICADC will coordinate and collaborate with IACAA and IVCA to leverage programming, administrative and financial resources. For example, IVCA may designate an earned income fund to support business development efforts. Further, ICADC can leverage IACAA’s infrastructure for organizational and professional development.


The Program ModelICADC will offer three levels of programming: introductory, intermediate and advanced. The Program Model Chart below provides an overview of each level and agency rationale or status, prospective ICADC programs and services along with the format for program and service delivery. Following the program model chart is the Intermediate and Advanced Program and Services Chart, which provides additional detail on program content for the intermediate and advanced programs.

LevelAgency Rationale or Status

ICADC Programs, Services Format

1. Introductory • Professional development

• Exploration• Contemplation

• Social enterprise 101• Legal and tax

considerations• Organizational

capacity assessment

• Group• Conferences• Online

2. Intermediate • Early plans and feasibility underway

• Business ideas generated

• Funding under consideration

• Organizational development

• Pre-business planning• Financial planning• Pre-development

funding

• Group• Conferences• Online• One-on-one• Peer-to-peer• Consultant advisors

3. Advanced • Earned income project underway

• Expenses being incurred• Revenue being

generated• Staff assigned to various

business functions

• Business planning • One-on-one• Peer-to-peer• Collaboration

facilitation• Consultant advisors

Program Model Chart


Organizational Development Financial Planning Pre-Business Planning Business PlanningOrganizational capacity assessment & planning for internal and external groups• Staffing plan• Board development

plan• Community

engagement plan

Program planning• Priority/key areas• Community relations

Resource development• Financial sustainability

plan• Resource development

plan• Earned income

assessment

Financial management strategy & plan

Pre-feasibility analysis• Defining the value

proposition• Elements of a

feasibility analysis• Basic market research

strategies

Pre-development funding

Strategic goals development

Community impact projections• Priority/key areas• Metrics

Brand identity• Development• Awareness strategy

Marketing and communications strategy

Intermediate and Advanced Program Chart

Timeline for Key Milestones 12-Month Timeline

2014 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecRefine scope of programs & services (S, I)

Detemine content for Levels 1, 2, & 3 programming (S)

Continue support to Rockford Deconstruction Project (S)

Confirm ICADC EI/SE Platform (S, I)

Programming begins (S)

Examine fee-for-service options for new EI/SE programming (S)

Report back to Board, Members on Year 1 results (S)

December 2013: Report presented to ICADC Board of DirectorsKey: (S) = ICADC Staff; (B) = ICADC Board; I = IACAA Leadership; (EI/SE) = Income & Social Enterprise


ResourcesArthur and Friendswww.arthurandfriends.org

Ashoka www.ashoka.org

Community Action Partnership of Lake County (also see CAP Catering)caplakecounty.org

Community Action Partnership, Westmoreland Case Studywww.partnershipced.org/images/stories/ced-pdf/Westmoreland_CS__2010_Final.pdf

Community Action Agency for Winnebago and Boone Counties (lead by the City of Rockford, Human Services Department)http://www.rockfordil.gov/human-services.aspx

Directory of Social Enterprise Directorieswww.lawforchange.org/NewsBot.asp?MODE=VIEW&ID=4871

Echoing Green Foundation www.echoinggreen.org

Illinois Social Enterprise Directory (under development)illinoissocialenterprise.org

Illinois Task Force on Social Innovation, Entrepreneurship, and Enterpriseillinoistaskforce.com

REDF www.redf.org

Salvage Toowww.youthbuildrockford.org

SE Toolbelt www.setoolbelt.org/

Shop Demo Depotwww.shopdemodepot.com

Skoll Foundation www.skoll.org

Social Enterprise Alliance (National)www.se-alliance.org

Social Enterprise Alliance (Chicago)www.socialenterprisechicago.org

Stanford Social Innovation Review www.ssireview.org/

The Great Social Enterprise Censussocialenterprisecensus.org/

The Yunus Center www.muhammadyunus.org


AcknowledgmentsSpecial thanks to Ms. Mary Lockhart-White, Mr. McFarland Bragg II, Mr. George Davis, Ms. Stacy Flowers, Mr. John Farrell, Dr. Dalitso Sulamoyo and Ms. Niccole Clements.

This report was prepared by Open Door Advisors at the request of the Illinois Community Action Development Corporation (ICADC), and the views expressed herein are those of Open Door Advisors and do not necessarily reflect the positions or policies of ICADC, IACAA or IVCA.

Open Door Advisors1030 West ChicagoSuite 300Chicago, IL 60642

[email protected]

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