June 14, 2007
Charities' Business Ventures Hard to Sustain, Study Finds
The hype surrounding social enterprises has fostered the idea that nonprofit groups can produce significant income by creating spinoff businesses.
But a new report by the Seedco Policy Center in New York finds that most social-enterprise efforts fail to make money and that such ventures rarely, if ever, generate enough revenue to sustain a nonprofit organization.
"We could not identify a single example of an entirely self-sustaining nonprofit-based social enterprise," says Neil
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