Our vision at NESsT is of a new, more accessible capital marketplace that addresses the limitations in the current nonprofit capital market at three levels: market level, sectoral level and organizational level:

NESsT believes that some CSOs can increase their long-term viability and independence by generating some of their own resources through "social enterprise" or "self-financing" to supplement philanthropic support from public and private donors.

NESsT does not promote the commercialization of CSOs. Rather we believe that social enterprise can provide CSOs with a certain level of independence and sustainability. Income from social enterprise can be one alternative for CSOs to support work oftentimes more difficult to finance through traditional philanthropic sources of funding (e.g., "core" operational expenses, on-going programs, advocacy efforts, etc.). Through social enterprise, some CSOs are also empowered by their own abilities to generate new revenues and to determine the course of their work.

NESsT also believes that when used in a socially- and environmentally-responsible manner, the social enterprise activities of some CSOs can help create an "alternative economy" more responsive to the needs of local communities, small producers and low-income people. By purchasing products and services sold by social enterprises, consumers are simultaneously helping to further the missions of CSOs and contributing to a more equitable and sustainable world.

 

Traditional nonprofit resource generation methods merely redistribute existing donor resources rather than create streams of new 'wealth.'

We are calling for a completely new breed of nonprofit 'entrepreneur' to stimulate the creation of a larger, sustainable pool of resources for the nonprofit sector.

Going beyond traditional donor-grantee relationships, we propose a new organizational hybrid..."


- Lee Davis, in
The NGO-Business Hybrid

(NESsT and the Johns Hopkins University School of Advanced International Studies, Program on Social Change and Development, Washington, DC, 1997)


Top of page