The enterprise is not related to the organization's mission, or intended to advance the mission other than by generating income for its social programs and operating costs.
Business activities may have a social bent, add marketing or branding value, operate in an industry related to the nonprofit parent organization's services or sector, however, profit potential is the motivation for creating a social enterprise unrelated to mission.
Social enterprises unrelated to mission usually take the form of external social enterprises.
Save the Children's Licensing Program, an example of Social Enterprise Unrelated to Mission
Save the Children is an international development organization dedicated to creating real and lasting change for children in need. Save the Children was founded in 1932 and operates in over 40 developing countries and in 17 states across the United States. In addition to traditional nonprofit fundraising activities and child sponsorship, Save the Children has established a corporate licensing program to help fund its social programs and overhead. The first licensing agreement was negotiated in 1992 with an exclusive line of neckties featuring original artwork created by children. It would not be an exaggeration to say that today millions of Americans recognize the Save the Children name, logo and distinctive artwork on a host of products. Several dignitaries, including President Clinton, and have been photographed wearing Save the Children's ties and scarves.
Licensing relationships are sought with companies in consumer-related industries, based on the mutually beneficial goal of increased profit for companies and a significant and steady income stream for Save the Children's work worldwide. Licensees use Save the Children's name, logo to market their products. Enclosed with each licensed item is a tag that describes the organization's mission and work, which functions as a marketing vehicle for Save the Children. Corporate partners benefit from Save the Children's reputation to boost their image and to attract socially conscious consumers. Since the program's inception, Save the Children has developed licensing agreements with some 30 companies representing a wide range of products: infant wear, men's boxer shorts, bow ties, cummerbunds, eyeglass cases, mugs, cookie jars, checks, t-shirts, greeting cards, stationary, candles, puzzles, and women's silk scarves. Many of Save the Children's licensee's products have high visibility and are distributed through major retailers such as TJ Maxx, Nordstroms, Walmart and broadcast shopping channels such as Shop NBC.
Although unrelated to Save the Children's program activities concerning children's education, health, economic security, physical safety, etc., the licensing social enterprise generates a significant amount of unrestricted revenue ($4.5 million in 2003) and represents millions of dollars in marketing value for the organization. The licensing social enterprise is structured as a profit center within the organization along with other corporate partnership alliance programs such as cause-related marketing campaigns.
