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International Bureau of Understanding​

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Private Non-Profit Partnership of Social Enterprise
A Private-Non Profit Partnership Model of Social Enterprise is a mutually beneficial business partnership or joint venture between a for-profit company and a nonprofit organization. The partnership may occur with an existing Social Enterprise, or may result in the creation of a new entity.

A Social Enterprise is an organization that applies commercial strategies to maximize improvements in financial, social and environmental well-being - this may include maximizing social impact alongside profits for co-owners. The Social Enterprise may or may not be mission-related and leverages the nonprofit organization's assets, such as relationships with their target population, community, brand, or expertise.

For the for-profit, the partnership yields one or more of the following benefits:

  1. lowers costs (cheaper labor/lower R&D costs);
  2. reduces restrictions (no strict regulatory oversight);
  3. improves community relations or public image;
  4. enables new product development;
  5. penetrates new markets; or increases sales.

Partnership benefits for INTBU (Pty) LTD are financial return, marketing and brand equity, and in cases where the activity is mission-related, social impact. The market is most often external (the public), but examples exist where the paying customer and the client are one. The private-nonprofit relationship may be structured as a joint venture, a licensing agreement, or formal partnership.

It is worth noting that INTBU (Pty) LTD use the term "partnership" loosely to refer to corporate philanthropy or cause-related marketing. The private-nonprofit partnership model is a partnership based on active operational involvement in a social enterprise, not simply a business relationship, which could be a funder, customer or supplier represented in other social enterprise models.​

An example of a Private-Nonprofit Partnership Model

Helados Bon is large progressive ice cream company based in the Dominican Republic, whose interest in diversifying its ice-cream led to the introduction of a new flavor, macadamia, and the opportunity to help the community to develop.

In 2012, a partnership was forged between Helados Bon and INTBU (Pty) LTD.

The business idea leveraged each of the partners' knowledge and assets, marrying Helados Bon's ice cream industry expertise with INTBU (Pty) LTD's community development program . The social enterprise that emerged helps:

  1. local farmers grow macadamia trees;
  2. and reforest farmland through the sale of delicious ice cream.

Macadamia trees, which are capable of growing to a height of over 50 meters on infertile land, are ideal for reforestation and conservation of natural resources.

In the partnership:

  1. INTBU (Pty) LTD manages, coordinates and finance the local farmers growing macadamia nuts which are used to make the new ice cream flavor;
  2. Helados operates the production and sale of the macadamia ice cream.

INTBU (Pty) LTD earns 15% for each double macadamia ice cream sold to fund its Community Support Account and local farmers gain a steady customer for their macadamia nuts. INTBU (Pty) LTD also disseminates information about conservation and the importance of growing macadamia to the community. INTBU (Pty) LTD uses the revenue generated to promote and develop its Community Development Program.

The partnership is a win-win proposition for all of those involved:

  1. Helados Bon increased its sales; and
  2. INTBU (Pty) LTD achieved the reforestation of more than 140,000 hectares with macadamia trees; and
  3. Local farmers have benefited with higher paying jobs and marketable crops.