In the face of our current economic downturn, as funding streams from foundations, corporations, and governments grow weaker, the question many non-profit organizations are asking is: how else can we generate revenue to support our mission?
In the traditional models, non-profits provided services to the community while businesses focused solely on maximizing profit — and then donated a percentage back to non-profit organizations of their choice. As a new generation of entrepreneurs emerge, social enterprise blurs the line between profit and social mission. For-profits are becoming more socially and environmentally conscious and non-profits are becoming less dependent on grants by generating revenue to support their social mission.
I walk in both the for-profit and non-profit worlds and see the benefits that each sector brings to social enterprise. In this social enterprise blog series, I’ll share examples of those who are reinventing business and social mission into this third sector. My first example describes how a non-profit organization and a for-profit business collaborate to leverage their strengths and financial sustainability.
Let’s Eat Pie!
Pie Ranch and Mission Pie share several commonalities: a devotion to pie, a founding member, a mission that includes youth education, and sustainable food production. Yet they were individually conceived and launched, and they succeed with different legal structures. Their autonomy and clarity of purpose is a critical element in framing their collaboration, and their differences yield some unique synergy where their missions overlap.
Pie Ranch is a non-profit farm that sits on two 14-acre triangular pieces of land along the central California coast. It offers a sustainable working farm and a food system education to urban and rural high school students and community members, mentors young adult farmers and marketing apprentices, and catalyzes strategic land use collaboration to maintain a healthy and vibrant agriculture in the region.
Mission Pie is a for-profit pie shop located in the Mission District of San Francisco. This women-owned business is committed to local sourcing, at-risk youth training for work readiness, and eco-consciousness in their café and operations.
Karen Heisler was one of the founders of Pie Ranch with Jered Lawson and Nancy Vail. Karen now co-owns Mission Pie with Kystin Rubin. One of Mission Pie’s core business practices is to cultivate collaborations with local farms for mutual benefit. For example, Mission Pie wanted to source locally-grown wheat flour, a rare commodity in California. In support of its educational mission, Pie Ranch recovered a heritage wheat variety called Sonora, originally grown on the California missions. The farm produced it on a demonstration scale in its historic production zone. Mission Pie provided some investment support for equipment to scale up grain production and now Pie Ranch is able to supply Mission Pie and other commercial and individual customers with Sonora wheat. This enhances the non-profit farm’s visibility and its earned income from farm products.
In another example, Mission Pie mentors and employs at-risk high school students so that they can learn work preparation skills. The business provides staffing and mentorship for the youth vocational training program, while other non-profit partners whose missions support youth work readiness provide compensation to the youth subsidized by various funding sources.
Social enterprise thrives here in the District as well. For example, the DC Central Kitchen has a twin mission of providing job training and addressing hunger. In addition to its public and private funders, DCCK generates earned income through its catering services and DC government-contracted meals. (Read DC Food For All’s profile here.)
Social enterprises, whether for-profit or non-profit, are finding creative ways to serve community—addressing food security by serving people, planet, and profit simultaneously. This third sector might just be the most sustainable business model of all.
Stay tuned for more social enterprise stories from the field to inspire new business opportunities right here in our Nation’s Capital.
YAYYY!!! I’m so glad you’ve written about Mission Pie & Pie Ranch! They’re neighbors of mine and I *love* their food, the people behind this business, and the wonderful space they’ve created for the community. They’re true model citizens and by all appearances they’re doing well by doing good — they’ve expanded from a tiny side-street cafe to a gorgeous (and huge!) corner storefront. You must come visit them and me! Sayyy, this reminds me… I’m due to bring one or two of their pies to work and be the office hero.
Great to see your new direction, and the way you’re pulling together so many of your interests and talents!