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The business model canvas of NGOs The business model canvas of NGOs door Judith Sanderse

Profile image of Frank  De Langen

In 1999 the global non-profit sector had a turnover of over $1 trillion with 19 million fully paid employees. It was the equivalent of the eighth largest economy (Sustainability 2003). Despite this, it was poorly understood. In 2008 Lambell, Ramia, Nyland and Michelotti concluded that non-governmental organisations (NGO) are still relatively absent from the mainstream scholarly management and broader business studies literature. On the other hand, business models and business model canvas is a subject that has been discussed and much researched since the publication of Osterwalder’s dissertation in 2004. The importance of the NGO sector and a desire to better understand their business models was the inspiration for this research - the creation of a tool useful for NGOs, academics and practitioners. Hence, the main objective is the development of a specialized business model canvas for NGOs. The central research question of this study is defined as ‘how is a NGO business model canvas structured?’ A business model canvas for NGOs was conceptualised utilising Osterwalder and Pigneur’s (2010) third party funded model as the foundation. The building blocks and definitions were initially based on literature review sources (business, social business and NGO management literature). Following interview responses and analysis of annual reports of NGOs both the building blocks and definitions were adapted to align better to NGO terminology. These are presented below. This conceptual business model canvas for NGOs was tested through interviews with four NGO experts and leaders of two Foundations and five International NGOs (INGO) using the case study method. This testing led to the development of two separate business model canvases. The canvas for Foundations is a slight adaption from Osterwalder and Pigneur’s third party funding business model (2010). The other canvas is applicable for INGOs with multiple streams of income. This is made up of two sections, one for programmatic and the other for fundraising/ marketing and financing activities. This division is the result of a desire to maintain clarity and hence the usability of the business model canvas as a tool for communications, visualization of business models and analysis. The interviewees confirmed the practical relevance and utility of the business model canvas. In addition, it has academic relevance due to the business model canvas’s specific usage for NGOs. This provides a basis for further research, such as, comparative analysis and historical analysis of NGO business models and so forth.

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Indonesian Journal of Business and Entrepreneurship

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Irina Suteu , Elena Perondi

Founded on the social awareness and personal dedication of single individuals, and small communities, non-­‐profit and non-­‐governmental organizations (NGO's) are some of the most important actors that promote social innovation and entrepreneurship. In many cases such organizations help reinforce local economies, strengthen the social capital and sustain inclusiveness (Moulaert et al., 2005) and local governance (Gerometta et al.2005). Moreover small NGO's are the essence and driver of the social businesses and have an important impact on the wellbeing of the communities to which they belong. While many literatures have shown the development of the social business models (Yunus, 2007; Yunus et al. 2010;), it is less clear how to translate the effort and dedication of the single individuals in coherent business models that can ensure the economic sustainability of their social activities. This is in part because individuals managing, working or volunteering in organizations with a high social and or environmental orientation (Triple Bottom Line) are motivated by the mission and values and interested in achieving social and environmental impact more than in economical sustainability. This emotional orientation and involvement has a deep role in shaping the organizational structure and activities: often people are unable to give the right economical value at their activities and to evaluate the economical investments necessary to deliver their activities.

Frank de Langen

This study addresses the literature on the use of for-profit developed management practices and tools by nonprofit organizations (NPOs), especially focusing on business models. In this study a conceptual NPO business model framework is designed and tested with eight nonprofit case studies for its utility. Based on the case studies a NPO business model framework with separate programmatic and operational sections connected via the organization’s value proposition was developed. We discern the following business model components: value proposition, key partners, key activities, key resources, relationships, program delivery methods, ultimate beneficiaries, channels,customer/donor segments, income, expenditure and impact. The results further show that a business model framework for nonprofit organizations is useful as a descriptive, communication, analytical and visual tool. Given the paucity of studies on this subject, this study expands the knowledge on nonprofit business models by p...

Journal of Social Entrepreneurship

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The main purpose of this article is to introduce the Social Enterprise Model Canvas (SEMC), a Business Model Canvas (BMC) conceived for designing the organizational settings of social enterprises, for resolving the mission measurement paradox, and for meeting the strategy, legitimacy and governance challenges. The SEMC and the analysis that explains its features are of interest to academics concerned with the study of social entrepreneurship because they offer a new analytical tool that is particularly useful for untangling and comparing different forms of social enterprises. Also, it is of interest to social entrepreneurs, because the SEMC is a platform that can be used to prevent ‘mission drifts’ that might result from problems emerging from the mismanagement of such challenges. The arguments presented are grounded on scientific literature from multiple disciplines and fields, on a critical review of the BMC, and on a case study. The main features of SEMC that makes it an alternative to the BMC are attention to social value and building blocks that take into consideration non-targeted stakeholders, principles of governance, the involvement of customers and targeted beneficiaries, mission values, short-term objectives, impact and output measures.

ICERI2016 Proceedings

Elena Perondi , Irina Suteu

Far from being a negligible aspect of modern societies, non-profit organizations permeates almost all aspects of life in the vast majority of countries 1 : non-profit organizations supply medical care, education, welfare and many other services and products to millions of people, mostly the underprivileged 2,3. Based on the social awareness and personal dedication of individuals and small communities, non-profit and non-governmental organizations (NGO's) are some of the most important actors that promote social innovation and entrepreneurship. In many cases such organizations help reinforce local economies, strengthen the social capital and sustain inclusiveness 4 and local governance 5. Moreover small NGO's have an important impact on the wellbeing of the communities to which they belong. Despite this evidence, an increasing interest on the topic and a well-developed literature on the social business models 1 , it is less clear how to translate the effort and dedication of individuals in business models that can ensure the economic sustainability of their social activities. Individuals, that manage, work or volunteer in organizations with a high social and or environmental orientation (Triple Bottom Line), are mainly interested in achieving social and environmental impact more than in economical sustainability. This emotional orientation and involvement has a deep role in shaping the organizational structure and activities: often people are unable to give the right economical value at their activities and to evaluate the economical investments necessary to deliver their activities. The paper proposes and presents a BN4NP tool based on the Business Model Canvas developed by Osterwalder 2 that aims to help non-profit workers and volunteers to address the gap in understanding the business modelling as an essential activity for non-profit organizations. These organizations focuses on an imaginary related to the language of social impact and charity rather than business that imposes strong constraints on the understanding of the importance of the economic sustainability of their activities. We used the participatory observation as the method to understand the constraints of the canvas in real settings and present the BM4NP tool and methodology and mind set. And present BM4NP as an alternative tool and methodology can help and facilitate the understanding of the business model language in non-profit contexts. After testing the tool and the methodology in different workshops, we present a case study and explain how the workshops enabled an experiential learning activity 3,4 in which the tool became a boundary object that helped creating a shared territory of negotiation 5,6 opening new ways to understand business modeling as a participative activity and integrating the emotional and affective aspects as a resource and main part of the value proposition.

World Journal of Business and Management

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Business models describe the way organizations create and deliver value necessary for their existence. In the mid-1990s, they arose as a buzzword relating to the development of-dot-com‖ firms and their hunt for capital. The theory and application of business models have focused on business. Consequently, the definitions and archetypes of business models proposed in the extant literature have addressed profit-making organizations. This paper argues that business models are equally useful in the establishment, evolution, and analysis of non-profit organizations. Moreover, there is a real need for these models, as non-profit organizations are part of the national and international economic governance. Thus, the paper reframes business models through a non-entrepreneurial lens and proposes a new archetype with generalized applicability to all organizations, whether for-profit, non-profit, public, or private. A-hybrid‖ archetype is developed, synthesizing existing business model archetypes while extending their reach to better embrace the overarching core logic of organizations, reflecting the political mandate of not-for-profit entities and the business remit of firms. The validity of the proffered archetype is tested on two international not-for-profit organizations and serves well as a conceptual map of their decision-making and policy-making activity. Furthermore, the testing process demonstrates that business models, when devised externally and retrospectively, can be equally well used in hindsight as organizational analysis tools, possibly conjointly with other methods.

Global Business and Organizational Excellence

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An analysis of how Entrepreneurs du Monde, a nongovernmental organization, transformed its operations in Burkina Faso into a social enterprise highlights the actions that organizations can take to improve the sustainability, as well as the social and economic value, of their operations in bottom‐of‐the‐pyramid markets. Using the business model canvas, the study shows how the business model of the Save for a Stove development program changed as it became Nafa Naana, an independent social enterprise that shifted an original focus on social goals toward a dual focus on social and economic objectives. In effect, Entrepreneur du Monde acted as an incubator for Nafa Naana, allowing it to develop its key competencies through its partnerships with local suppliers, producers, and distributors, and to access the knowledge and financial resources needed to ensure its sustainability in the long term.

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