Intense competition for grants and donations has prompted some nonprofit organizations to help support their missions by generating revenues in the marketplace. Generally, however, these groups are led by people who, though entrepreneurial, have never launched a competitive venture. One way for nonprofit organizations to learn from the for-profit sector is to enter business plan competitions, whose sponsors, such as universities, provide free business consulting to entrants and offer awards based on the strength of the business plan developed. The process of developing the plans helps participants understand economic realities and foresee conflicts with their core mission.
For example, CIPO Productions, the 2001 winner of Brazil's Social Entrepreneur Award, was created in 1999 by journalist Anna Penido. The organization offers impoverished young people in northeastern Brazil training in media skills such as journalism, photography, and video production. Recognizing that CIPO's video and computer equipment was in use only part-time, Penido believed she could exploit the idle capacity and sell communications services to other organizations. By producing educational brochures, magazines, and Web sites, CIPO could generate income to supplement the donations that financed its educational work. It would also give its graduates an opportunity to continue their professional development. Realizing that accomplishing these objectives required a viable business plan, Penido submitted a general description of her business idea and its objectives to the competition and was one of 80 applicants accepted in 2001.
