Growing Impact or Growing Organizations?-Financial Stability is the Key to Long Term Success

This submission will highlight my experience working at a nonprofit in San Francisco which utilized a variety of the tactics in the course readings to maintain financial stability and independence from the burdens of fundraising. They incorporated a business model for their nonprofit which eliminated the need for fundraising completely. In addition, they managed multiple businesses which both supported their mission and generated revenue which was unburdened by the rules and regulations of grants or donations. Did they sacrifice quality of services by operating under a business savvy model?

The issue at hand: Serving adults with disabilities by providing in home care, day programs, or job training. 

The catch phrase/rallying cry: Connecting ability to opportunity. 

The how and its relation to venture development and growth:

1. Become financially stable. Financial stability and diversification allows the program to withstand market trends, changes in donation income, and "popularity" of these services. Toolworks does absolutely no fundraising. This has a dual effect of saving both financial resources needed to acquire the funds and human capital needed to maintain donor relationships. In turn, more human capital and financial resources are expended on clients who receive job training and living support. But how is Toolworks funded without donors?

2. Toolworks operates three separate businesses which employ people with disabilities. This is again quite efficient as it both generates unconstrained revenue and supports the mission of the organization by providing job training and employment to adults with disabilities. Instead of offering charitable services, clients are provided with marketable skills, and when available full time positions. There are obvious benefits including more financial independence for the client but this is all possible because the businesses are profitable. 

3. Alliance building. Toolworks is constantly building partners to both employ their clients and contract out their janitorial services which expands their presence in the region. These partnerships allow both companies to benefit; the company from the provision of a trained laborer and the nonprofit by being able to increase impact. 

4. Give clients with disabilities access to income. Profiting from their services is the only way Toolworks is able to continue and expand their operations. Participation in the market through traditional means is essential to long term poverty reduction. By being able to wholly participate through income generation and spending (with the support of financial coaches), those with disabilities become independent in ways that wouldn't be possible through traditional charitable giving. 

5. Secondary impact. Through the Recylability program, Toolworks and their hotel partners have created secondary successes including a diversion rate of 85% at one of the largest hotels in San Francisco. This adds environmental sustainability initiatives to the list of measurable impacts on the community. 

Combining impact with profits, building strong alliances, and maintaining a strong business model has allowed Toolworks to provide services with measurable impacts for more than 40 years. The key to their success has been financial sustainability and not shying away from business methods to reach their mission.