Social Venture Partners Rhode Island
Approach and purpose mark the difference between for-profit and nonprofit organizations. While a for-profit begins with a business plan and a goal to be profitable, a nonprofit begins with a social ideal, and aims to bring that ideal into the world. To bring that idea forth, nonprofits need to generate income — in this, for-profits and nonprofits share a common goal. However, those who start with a business plan are often much better at raising money than those who start with a social ideal.
Social Venture Partners Rhode Island (SVPRI) combines the skills of successful businesspeople with the ideals of nonprofit organizations, creating an opportunity for engaged philanthropy that benefits everyone. "SVPRI is a group of successful business leaders who've joined together to actively and selflessly help nonprofits grow by donating time, business skills and wisdom, and their money," says Peter Rumsey, vice-chair of SVPRI.
SVPRI engages with nonprofit social enterprises in a number of innovative ways: through workshops where the basics of social enterprise are taught, by collaborating with Rhode Island colleges and universities to help local agencies research and write business plans, with the Rhode Island Social Enterprise Fund — which provides loans and technical assistance, by facilitating collaboration among agencies operating social enterprises, and by providing opportunities to support social enterprises.
Some nonprofits seek to be self-sufficient — to not rely wholly on donations — by starting up for-profit ventures. ArtTix, a program created by the Arts and Business Council of Rhode Island, is such a for-profit venture. SVPRI has been essential to its growth and continued success. ArtTix is a central online ticket agency that allows patrons to see what arts and cultural events are happening in Rhode Island and to immediately purchase tickets.
The initial success of ArtTix led to new challenges. "We outgrew the original ArtTix platform," says Peter Bramante, the Executive Director of the Arts and Business Council of Rhode Island. "We needed tech help to move ArtTix to the next level. We found SVPRI via their workshop, ‘New Business Interests for Nonprofits.' SVPRI eventually helped us with funding, but most important was their expertise."
Sharing information is one of SVPRI's greatest innovations. "While it's surely a major innovation to organize donors to engage with nonprofits in ways that utilize our business skills — and to allow them to formalize the experience, adapt and improve their techniques, share the work load and learn from each other — our greatest innovation is bringing this engagement opportunity to the nonprofit community," says SVPRI Chairman Chuck Holland.
"Previously, a nonprofit leader would have to hire consultants or beg their volunteers for business advice, but SVPRI is a resource that many organizations can take advantage of," he says. "The ability to deliver support in a flexible, customizable manner with a network of motivated and sympathetic business people is, to my mind, the true innovation."
Another innovative program created by SVPRI is the Rhode Island Social Enterprise Loan Fund. Nonprofit organizations, unlike for-profit, private sector businesses, usually have extremely limited access to capital, which hampers their ability to start and grow their own for-profit ventures. The Loan Fund receives donations from individuals, corporations and foundations, then loans the money to nonprofits engaged in partnerships with the Loan Fund. With the Loan Fund, SVPRI and the nonprofit agencies are equally invested in the success of the venture — which translates to more motivation for success.
SVPRI is part of SVP International — a network of more than 22 organizations in cities throughout North America. All SVPs are based on the original SVP Seattle, which was launched in 1997. Since then, the SVP network has expanded to more than 1,200 partners, who have supported more than 150 nonprofits and have granted more than $12 million to their partners. SVP's growth since its inception in Seattle is a clear indication of its value and of the soundness of the ideas behind it.
"We learn and grow together as a team while we pursue the goal of helping Rhode Island nonprofits," says Rumsey. "And as we do, we all become better citizens of our community."