Andrea Smith, director and CEO of Senior Action, said philanthropy can’t keep up with her clients’ needs.
Two problems many nonprofits face are growing costs and more cash-strapped donors. To balance budgets and serve clients, many of them have had to adopt business and for-profit measures to stay afloat.
Milestone: At 55 years old, Senior Action shows no signs of slowing down
It’s spurring a new era of philanthropy in which the old ways of simply opening the collection basket are no longer the focus — rather, nonprofits are becoming ever more entrepreneurial to meet modern challenges.
Office space
Senior Action, whose main office is at 3715 E. North St., Suite K, in Greenville, offers many services to seniors, including wellness, financial help and outreach. Still, with the Upstate’s growing senior population, the client base is growing quickly.
Several years ago, the organization had outgrown its old office space but didn’t have the funding to move. It decided it was best to get into business for itself by purchasing a shopping center, the former location of a Bi-Lo, where its office now resides and where it is also able to rent out retail space.
The move not only doubled the space of Senior Action’s headquarters, it also brought the organization into the business of real estate. The success of the project has allowed Senior Action to add 2,000 more seniors to its client base.
“We’re constantly looking for more innovation,” Smith said. “We can’t focus just on the mission.”
Home to innovation
The idea to make money independently to supplement the organization came from groups like Habitat for Humanity and Goodwill, which have been using retail stores to supplement income for years.
Monroe Free, president and CEO of Habitat for Humanity of Greenville County, said recent economic factors forced historic changes to Habitat’s business model. At the same time, he said they’re building and restoring more houses than ever before.
Habitat for Humanity is beginning to work with third party lenders to see if there are ways to leverage sub-prime interest rates that allow mortgages to be kept affordable while also generating the income necessary to continue to serve more families.
Habitat has been competing with retailers for workers as well. Free said they increased wages, in some cases 35%, at ReStore locations, which is the retail arm of Habitat. Not only that, he said other costs are up about 20%.
“Nonprofits are like every other business — we are facing the challenge of inflation,” Free said.
Storing up funding
Pat Michaels, president and CEO of Goodwill Industries of Upstate/Midlands South Carolina, said the idea of creating value in otherwise-overlooked areas is what drives the iconic thrift stores the organization operates.
The stores have long funded the mission of Goodwill, which is to provide training and job opportunities for workers around the country. As such, the Goodwill retail stores can serve as job training themselves, or they can merely supplement Goodwill’s mission.
Michaels said the goal of the thrift stores is to provide a clean, well-lit store that’s comparable to big-box retailers like Walmart and Target while keeping prices affordable.
Goodwill uses things like e-commerce sites to auction off items that might be worth a bit more in order to maximize what each donation can bring.
Greenville Goodwill’s mission extends far beyond retail stores
Recently, the organization opened a new thrift store called Auten’s Loft, 524 Columbia Ave., Chapin, to sell more upscale, name-brand items that can maximize income from donations. There’s a good amount of buzz, Michaels said, and he is hoping it lasts.
“The trick is sustaining that buzz,” he said.
He’s hoping for enough quality donations to keep the boutique open and keep customers looking for the “thrill of the find.”
For those looking to adapt to more businesslike practices, Michaels offers a couple of suggestions.
“Know what your mission is and stick with it, and make sure there are good partners,” he said.
