You are on page 1of 22

Assistance Center of

Collin County
A Nonprofit Seeking Reliable
Funding

Hira Saleem, Jasleen Sidhu, Genelly Ramos, Kim Bui

The ACCC is a
valued and
essential part of
the community.

• Founded in 1977 as a
volunteer-run call center to
connect people in need to
resources in the community.
• Now, it provides short-term
financial assistance to lowincome families in times of
crisis.
• Objective is to alleviate
hunger and homelessness.
Risk of eviction from home
has an extremely negative
effect on children. The goal
is to avoid homelessness
before it happens.
• Over time, they
incorporated other services
including employment,
medical, arts, and utilities.

The ACCC provides necessary
services to the community.
• In addition to monetary assistance, they have seasonal
programs for back-to-school and the holidays.
• On average, they provide 22 households with rent and
49 with utilities each month.

ACCC is not a welfare agency.
• By providing only short-term
assistance, they decrease
dependency on the agency.

Layoff

• They help pay one-time rent
and utility bills.
• The one-time assistance from
the ACCC allows the family to
avoid government welfare,
saving tax dollars.
• They are adamant about not
giving handouts. They want
to pave the path to selfsufficiency for their clients.

Need
comes
during
Lapse
in
federal
benefits

Medical
situatio
n

ACCC’s existence helps numerous
families when they need it most.
Family lives
paycheck to
paycheck, and
they come
across an
unexpected
medical
expense.
Family lives
paycheck
to
paycheck,
and they
come
across an
unexpected
medical
expense.

They have no
where to turn
to, so they
forsake
another bill to
pay for this.

They turn
to the
Assistance
Center for
help with
this
expense.

They fall
behind on their
payment, and
are unable to
make ends
meet next
month. The
cycle
continues.
They are
able to get
on with
their lives,
without
having to
worry
about that
expense.

The problem for nonprofits is
funding.
• The recession affected the overall amount
that was donated to charitable groups.
• Despite the charitable giving getting back on
track since then, it is still 8% below the
amount before the recession.
• More than 50% of charities surveyed by the
Nonprofit Finance Fund said they could not
meet demand for their services last year.
• Low taxes, especially in Texas, means lower
amount of money being allocated to
nonprofits.

The volatility of funding towards nonprofits is so
complicated, UChicago students are trying to
use calculus to track it.

With only three sources of revenue, their
income strategies are inadequate.
Budget
Private
donations
TXU Energy
Governmen
t

• Fluctuation in any revenue stream causes risk for the
agency to provide services to the community.
• They are fully dependent on these revenue streams
to operate.

With 3,000 other nonprofits in Plano,
competition for grants from the
government and foundations is steep.
• In order to get grants, nonprofits must constantly
apply for them.
• The money gets divided up among the nonprofits
based on the applications.
• With only three full-time employees, they don’t
have the right resources to focus solely on grant
applications.

Some social businesses charge
fees to have reliable income.
• It is among the most commonly
used models by nonprofit
organizations, because it
recovers all their costs.
• Used by Bookshare.org- A social
enterprise founded by Benetech
Initiative in Silicon Valley. They
provide an online library to those
with learning disabilities at a
subscription fee. Subscribers get
digital Braille or talking books.
• This option is not appropriate for
the ACCC, because they want to
provide short-term assistance
that their clients require in a
time of need, not a continuous
subscription.

The business model that ACCC actually
needs is the Organizational Support
Model.

• Allows them to employ any business to leverage its assets.
• The revenue from the enterprise funds the nonprofit.
• It is commonly used among Western nonprofits.

Other nonprofits have chosen to
enterprise for reliable funds as well.
• Hope’s Doors
• Salvation Army
• Metrocrest Services

ACCC is seeking to commercialize
and earn revenue through other
means.

•What kind of opportunities are
available for ACCC to increase
its funds?
•Our analysis includes a variety
of ways for the ACCC to
branch out.

Option 1: Small online craft
merchandise store
Ideas

Resources
Available

Strengths

Weaknesse Major
s
Costs

Designing
small crafts

Utilizing
frequent
volunteers

Easily done;
small

Minimal
profit

Shipping
and
handling

Can use
available
websites
like Etsy

Only small
operating
space
required.

Social
mission
attracts
customers

Labor
intensive

Materials for
crafts

Option 2: Textbook Resale Store
Ideas

Resources Strengths
Available

Weakness Costs
es

Partnering
with UTD

Market
exists and
is in the
same
county

High
Peak
demand for seasons
cheap
books

Reselling
donated
textbooks
at a low
price.

Small and
easily
portable
items

Legal
issues

Operating
space rent
and
utilities

Competing New staff
with
existing
resale book
stores and
websites

Option 3: Increase marketing efforts to
private donors
Ideas

Resources
Available

Strengths

Weakness
es

Costs

Establish a
strong
online
presence to
increase
donations

Website
and
Facebook
page
already
exist; only
improveme
nts
necessary

Charitable
donations is
already
their
biggest
revenue
stream

Lack of
expertise
and
infrastructu
re

Online
advertisem
ent

Ask donors
to sponsor
specific
families

Angel
investors
available
locally

No physical
space
needed

Does not
add a
fourth
revenue
stream

Experience
d
professiona
l required

Online giving is increasing, and
ACCC should utilize this trend.

Option 4: Partnering with corporate
sponsors
Ideas

Resources Strengths
Available

Weakness
es

Cohosting
fundraising
and charity
events

Current
relationshi
p with TXU
gives
validity

Steady
stream of
revenue

Company
may
impose
restrictions
on how to
use the
money

Asking
employers
to charge
$1 to dress
casual on
Fridays

Board of
Directors
have
strong
networks

Promotes
donor
company’s
name

Dependenc
e on the
donor
company’s
success

Option 5: Using the FFS Model- Offering
certain assistance services at a low cost
and low price.
Ideas

Resources
Available

Strengths

Weaknesse Costs
s

Services
could
include GED
programs,
financial
planning,
ESL, or
college prep.

Market
exists and
are readily
available;
serving
current
clients

Demand for
these
classes
exists
outside of
existing
customer
base

Class
Professional
requires
teachers
commitment required
of time and
attention

Charge a
small fee
per student
per class

Space for
classroom
available

Services fit
within
mission of
paving path
to selfsufficiency

Low-income
clients may
not be able
to afford
these
services

Classroom
equipment;
desks,
chairs, etc.

Option 6: Furniture Resale Store
Ideas

Strengths

Weakness
es

Resell
donated
furniture at
lowered
prices

No local
Bulky
competitors items;
difficult to
move
around

Operating
space lease
and utilities

Offer pickup and
drop-off
services to
reach more
donors and
customers

Highest
income
because
highest
margins

Staff for
store and
truck for
transportati
on

Showroom
space and
storage
space
required

Costs

Our recommendation is to increase
revenue by opening a social enterprise.
• Revenue diversification minimizes volatility of funding for
nonprofits.
• The addition of this revenue stream, as opposed to
continuing to improving the company internally, increases
financial stability.
• Follow the path of other nonprofits and open a business.
• A furniture resale store is a solid and viable business
option.
• Key point: no existing competition.
• Costly, but has the greatest return on investment out of all
the options.

References
• The 2010 Nonprofit Fundraising Survey. The Nonprofit Research
Collaborative, Mar. 2011. Web. 5 Dec. 2014.
• Yurenka, Debra. Growth in the Nonpro…t Sector and Competition for
Funding. University of Chicago. UChicago Economics, Nov. 2007.
Web. 5 Dec. 2014.
• Carroll, Deborah A., and Keely J. Stater. Revenue Diversification in
Nonprofit Organizations: Does It Lead to Financial Stability? Oxford
Journals. Oxford University Press, 27 Nov. 2008. Web. 5 Dec. 2014.
• Alter, Kim. Social Enterprise Typology. Virtue Ventures LLC, 27 Nov.
2007. Web. 5 Dec. 2014.
• Brooks, Arthur C. Social Entrepreneurship: A Modern Approach to
Social Value Creation. Upper Saddle River: Pearson Education,
2009. Print.