Badgerdog is a small nonprofit, with about half a million in revenue last year. We think of the company as being a "social entrepreneurship." While we are a public charity and rely on philanthropic support, we run it like a for-profit business, and we’re focused on growing our earned revenue stream, now at 41%. At the same time, we fill a social and educational need in our economically depressed communities.
Badgerdog is organized into two complementary business units. One publishes our nationally distributed quarterly literary magazine, American Short Fiction. Just like playing for a AAA farm team is the right place to be seen by MLB scouts, being published in ASF is a great place for emerging writers to be seen by literary agents.
The other side of our business is an educational initiative, which contracts with local writers to conduct workshops for students in grades 3-12. We work with the students on both reading and writing, with the goal of publishing some of their work. Three times a year, a collection of the students’ work is published in a journal that we distribute. That program started in 2004 with about 40 students in four schools. This year, we will serve over 1,000 students in 21 schools covering four school districts. So we’re creating jobs for writers but also filling a void in our educational system in teaching fundamental writing skills and promoting writing as a profession as well as a vital skill.
As a nonprofit our earned revenue can grow from 41% up to 69%. My goal is to bump right up against that and be as self-sustaining as possible.
That’s probably because I come from a for-profit background---as a journalist and as a sales & marketing exec at a high-tech company. Since founding BLP in 2003, I’ve had to learn a lot about how nonprofits work----and the oblique sales approach we have to take to ensure future funding.
More than 50% of our funding must come from grants. In making our requests to government organizations or private philanthropic organizations we must present a formal Proposal, and then as partners we will provide our service to a third-party---such as children in our local schools.
Detailed Cash Planning
Financial Analysis, Projections, and Reporting
The Entrepreneur Life
With every proposal we present, we have to provide breakdowns about our revenue (what % went to admin, what % went to programs, etc.) This is why SurvivalWare has become so critical for us and would be for any nonprofit: It lets us export the data from QuickBooks by class so we can see the allocations at-a-glance across our programs.
This type of allocation is done in business all of the time but for a small nonprofit operation like ours it used to be very time consuming for our bookkeeper to create from scratch every time we needed the information. With SurvivalWare, we can view the allocations on a regular basis in real-time, from the past, or as a forecast and print a report whenever we need.
Having the data easy to access and plug into a presentation lets us create proposals that get the attention and respect of funders. They can easily see how their money will be spent (or was spent). In fact, some have been so impressed they’ve asked me to help other nonprofits get their data together in the same way to show them.
In short, every business lives and dies by its cash flow. If you can’t get a handle on where your cash is going you’re not going to make it---in either the for-profit or nonprofit world.
We have been thrilled with the way SurvivalWare puts our financial data at our fingertips so it’s easy to understand and present to others.
Melanie Moore is the founder, president and CEO of Badgerdog Literary Publishing, Inc. She can be reached at melanie.moore@badgerdog.org