As traditional sources of funding for non-profits begin to decrease, socially based organizations have begun to re-evaluate, revamp and change how they do business.

“There are more groups competing for the same or declining funds to serve the social needs of their communities,” says Kevin Boberg, director of New Mexico State University’s Arrowhead Center Inc.

To stay active, organizations have turned to the Arrowhead Center to gain some insight and perspective into the for-profit way of life.

In spring 2006, the Arrowhead Center committed 15 percent of its capacity to assist socially based organizations.

Five projects of the 35 being worked on were organizations such as Habitat for Humanity, the Community Action Agency and the Rivers Academy.

Audrey Estienney, a graduate student working on her MBA, is one of many students receiving real-world experience through the Arrowhead Center. She is working with Habitat for Humanity to find out if a store that sells previously used items (building materials, appliances, furniture, etc.) would be profitable in the area.

“The idea is to use the proceeds generated by the ReStore to fund the construction of more homes,” Estienney says.

Estienney’s research revealed a potential market for such a store.

“Now I have to write a business plan in order to help them get start-up funding,” she says. “I will also give them guidelines on how to run the store.”

Although the process of working with social ventures vs. corporate entities is relatively the same, there are some differences.

“Having to deal with the issues behind the organizations is unfamiliar territory for us,” Boberg says. “In addition, the rules and regulations, and the language (jargon) were different. We spent some time translating.”

For more information:
http://arrowheadcenter.nmsu.edu/