Should nonprofits seek profits?

Twenty years ago, it would have been shocking for a children's choir to sell singing telegrams or for an organization serving the homeless to dabble in property management. Today, it seems routine. Nonprofits increasingly feel compelled to launch earned-income ventures--not only to appear more disciplined and businesslike to stakeholders but also to reduce their reliance on fundraising. There's plenty of hype about the value of earned-income ventures in the nonprofit world, but such projects account for only a small share offunding in most nonprofit domains, and few of the ventures make money. Moreover, when the authors examined how nonprofits evaluate potential enterprises, they discovered a pattern of unwarranted optimism. The potential financial returns are often exaggerated, and the challenges of running a successful business are routinely discounted. But the biggest downside of such ventures is that they can distract nonprofits' managers from their core social missions and, in some cases, even subvert those missions. There are several reasons for the gap between the hype and the reality. One is that an organization's nonfinancial concerns-such as a desire to hire the disadvantaged-can hamper it in the commercial marketplace. Another is that nonprofits' executives tend to overlook the distinction between revenue and profit. For example, a youth services organization that had received funding to launch a food products enterprise hired young people and began making salad dressing. The nonprofit believed it spent $3.15 to produce each bottle of dressing that was sold for $3.50. But when expenses such as unused ingredients and managers' salaries were factored in, the cost per bottle reached a staggering $90. Earned-income ventures do have a role in the nonprofit sector, the authors say, but unrealistic expectations are distorting managers' decisions, wasting precious resources, and leaving important social needs unmet.

What are entrepreneurial dietitians charging? The Consulting Dietitians Network National Fee Survey

To respond to a need to develop a national fee guideline, the Consulting Dietitians Network conducted a membership fee survey. A questionnaire requesting fee information for various nutrition consulting services was distributed to members as an insert with the Consulting Dietitians Network quarterly newsletter and by electronic mail. The response rate was 38.4% (98 respondents) and most respondents (74.5%) had urban practices. The most frequently charged fees (mode) for individual counselling ($75/hour), industry and commercial firm consultations ($150/hour), group facilitation ($150/hour), and media consultations ($150/article) were highest in the region of Ontario, Quebec, and the Atlantic provinces. The most frequently charged fees (mode) for home visits ($100/hour), writing for newspapers ($250/hour), and menu reviews ($60/hour) were highest in the region of Saskatchewan and Manitoba. The minimum and maximum fees were significantly different for the three regions (Ontario, Quebec, and the Atlantic provinces; Manitoba and Saskatchewan; and Alberta, British Columbia, and Yukon Territory) studied for initial client consultations, industry and commercial firm consultations, and menu reviews (p<0.05). For home visits, teaching in an institution, seminar presentations, group facilitation, media consultations, and writing media articles, the differences in the minimum and maximum fees charged were highly significant (p<0.001). Entrepreneurial dietitians may use these data as a reference to establish and negotiate consultation fees.

Is the dentist an entrepreneur?

Although dentists may have an entrepreneurial spirit, they are not true entrepreneurs. Simply by selecting dentistry as a profession, dentists have engaged in a business that has a high level of success and limited growth potential. By limited growth potential, I do not mean to imply that practices cannot be successful and create excellent lifestyles for dentists. As stated above, they will be limited in growth by the physical capacity of the dentist, the team and the facilities. There is a great deal of security in dental practice if basic management principles are followed and business systems are put in place. In my next column, I will continue to explore the similarities and differences between entrepreneurs and dentists, and how a dentist can take a practice through the multiple stages necessary to achieve the highest levels of dental practice success.

Germany: financing innovation is the future challenge

Changes are required to encourage innovation in the industry. Some ways forward are described.

Supporting undergraduate biomedical entrepreneurship

As biomedical innovations become more sophisticated and expensive to bring to market, an approach is needed to ensure the survival of the best ideas. The tactic used by Iowa State University to provide entrepreneurship opportunities for undergraduate students in biomedical areas is a model that has proven to be both distinctive and effective. Iowa State supports and fosters undergraduate student entrepreneurship efforts through the Pappajohn Center for Entrepreneurship. This unique partnership encourages ISU faculty, researchers, and students to become involved in the world of entrepreneurship, while allowing Iowa's business communities to gain access to a wide array of available resources, skills, and information from Iowa State University.