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Social Enterprise: How to start one!

With funding for nonprofits and charities an increasingly competitive arena, we have lately received several questions on social enterprise. Below you will find links to resources , case studies and organizations that can help answer these questions.

  • What is a Social Enterprise and can charities operate them (without losing charitable status)?
  • How do we go about starting a social enterprise if we are a charity or a nonprofit?

Context can sometimes change how we define social enterprises, but here is a broad definition:

"Social enterprises are revenue-generating businesses with a twist. Whether operated by a non-profit organization or by a for-profit company, a social enterprise has two goals: to achieve social, cultural, community economic or environmental outcomes; and, to earn revenue". The BC Centre for Social Enterprise expands on this definition at their website.

Can registered charities or nonprofits operate social enterprises? In short, registered charities have regulations that define what they can and cannot do and should follow the Canada Revenue Agency’s guidelines [link to CRA]. (If you do not know about the legal difference between a charity and a nonprofit in Canada see our subject guide here

For more detail see Chapter 8 of Enterprising Nonprofits’s Canadian Social Enterprise Guide, here.
A sample of what you can find in their chapter: "If you’re a non-profit that has charitable status (under section 149.1 of the federal Income Tax Act) or you’re applying for charitable status, you can — operate your enterprise within your non-profit structure, If your business complies with the guidelines and policies established by the Canada Revenue Agency (CRA)" (Page 129, Enterprising Nonprofits’s Canadian Social Enterprise Guide)

Order the full guide here.

Some case studies and examples of social enterprises can be found here:

A Snapshot of Social Enterprise in Canada from Enterprising nonprofits. Order here

Enterprising Nonprofits that has an "ask the expert" service - that might be of benefit to you. Here is the link to their site.

Starting a Social Enterprise and fitting it into your charity’s or nonprofit’s mission:

Insights of non-profit leaders; Canadian social entrepreneurs who have demonstrated outstanding creativity, commitment, and introduce their businesses. http://www.enterprisingnonprofits.ca/sites/www.enterprisingnonprofits.ca...

Aboriginal social enterprise: Hopeful alternatives, by, Elisa Birnbaum January 11, 2010

 

Organizations:

Enterprising Nonprofits (located in BC, with partners throughout Canada) offers the best in resources on this topic. You will notice most of our links point to their website.
The Canadian Social Entrepreneurship Foundation
Centre for Social Innovation in Toronto is a Social Enterprise as well as a resource for knowledge on social enterprises
Canadian Social Entrepreneurs Network