Harvard Case - Funding Philanthropy: Creating a Service NGO for Mothers
"Funding Philanthropy: Creating a Service NGO for Mothers" Harvard business case study is written by Veena Srinivasa, Joan Winn. It deals with the challenges in the field of Entrepreneurship. The case study is 16 page(s) long and it was first published on : Apr 1, 2006
At Fern Fort University, we recommend that ?Mothers for Mothers? (MFM) pursue a hybrid business model that combines social impact with financial sustainability. This approach will involve leveraging technology and analytics to develop a scalable platform for providing essential services to mothers, while simultaneously generating revenue through fee-based services and strategic partnerships. This strategy will allow MFM to achieve its philanthropic goals while ensuring long-term financial viability.
2. Background
This case study focuses on ?Mothers for Mothers? (MFM), a non-profit organization founded by Dr. Maya Singh, a passionate advocate for maternal health. MFM aims to address the critical needs of mothers in developing countries by providing access to essential healthcare, education, and economic opportunities. The organization faces a significant challenge in securing sustainable funding to scale its operations and reach a broader audience.
The main protagonists of the case study are Dr. Maya Singh, the founder and driving force behind MFM, and the organization?s board of directors, who are tasked with navigating the complex path to financial sustainability.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong Mission and Vision: MFM?s dedication to improving maternal health is deeply rooted in Dr. Singh?s passion and resonates with potential donors and partners.
- Experienced Leadership: Dr. Singh?s expertise in healthcare and her commitment to social impact provide a strong foundation for the organization.
- Focus on a Critical Need: Maternal health is a global priority, creating a significant demand for MFM?s services.
Weaknesses:
- Limited Funding: MFM?s reliance on grants and donations makes it vulnerable to funding fluctuations and limits its ability to scale.
- Lack of Diversified Revenue Streams: The organization?s sole reliance on donations restricts its financial sustainability.
- Limited Technological Infrastructure: MFM?s current operations lack the technology and data analytics capabilities needed to effectively scale.
Opportunities:
- Growing Demand for Digital Health Solutions: The increasing adoption of mobile technology in developing countries presents an opportunity for MFM to leverage digital platforms to deliver services.
- Partnerships with Corporations and NGOs: Collaborating with organizations with aligned missions can unlock new funding sources and expand MFM?s reach.
- Social Impact Investing: The growing interest in impact investing provides opportunities for MFM to attract investors seeking both financial returns and social good.
Threats:
- Competition from Established NGOs: MFM faces competition from established organizations with larger resources and broader reach.
- Economic Volatility: Economic downturns can negatively impact MFM?s fundraising efforts.
- Regulatory Challenges: Navigating the legal and regulatory landscape in developing countries can pose significant hurdles for MFM.
Porter?s Five Forces Analysis:
- Threat of New Entrants: High, as the non-profit sector is relatively easy to enter, and new organizations can emerge with innovative approaches.
- Bargaining Power of Buyers: Low, as mothers in developing countries often lack the resources to choose among different service providers.
- Bargaining Power of Suppliers: Moderate, as MFM relies on a range of suppliers, including healthcare providers, educators, and technology companies.
- Threat of Substitutes: Moderate, as alternative solutions, such as government-funded programs, may exist, but often lack the quality and accessibility of MFM?s services.
- Competitive Rivalry: High, as MFM competes with established NGOs, government programs, and for-profit organizations offering similar services.
Business Model Canvas:
- Value Propositions: Access to essential healthcare, education, and economic opportunities for mothers.
- Customer Segments: Mothers in developing countries, particularly those facing socioeconomic challenges.
- Channels: Mobile applications, community outreach programs, partnerships with local organizations.
- Customer Relationships: Personalized support through mobile applications, community-based events, and ongoing communication.
- Revenue Streams: Fee-based services (e.g., health consultations, educational programs), corporate sponsorships, grants, impact investments.
- Key Activities: Program development, service delivery, fundraising, technology development, data analytics.
- Key Resources: Technology infrastructure, skilled staff, partnerships with healthcare providers and educational institutions.
- Key Partnerships: Government agencies, NGOs, healthcare providers, technology companies, educational institutions.
- Cost Structure: Staff salaries, program costs, technology development and maintenance, marketing and outreach.
4. Recommendations
MFM should adopt a hybrid business model that combines social impact with financial sustainability. This model will involve:
- Developing a Scalable Technology Platform: MFM should invest in developing a user-friendly web and mobile application that provides mothers with access to essential information, services, and support. This platform should leverage technology and analytics to personalize content, track user engagement, and optimize service delivery.
- Offering Fee-Based Services: MFM should introduce a range of fee-based services that generate revenue while addressing the needs of mothers. These services could include:
- Health Consultations: Providing virtual consultations with healthcare professionals through the mobile application.
- Educational Programs: Offering online courses and workshops on topics such as maternal health, nutrition, and financial literacy.
- Micro-Finance Programs: Providing small loans and financial literacy training to mothers seeking to start businesses.
- Strategic Partnerships: MFM should actively seek out partnerships with corporations, NGOs, and government agencies to expand its reach, access new funding sources, and leverage complementary resources.
- Impact Investing: MFM should explore opportunities to attract impact investors seeking both financial returns and social good. This can be achieved through:
- Developing a compelling investment thesis: Demonstrating the financial viability of the hybrid business model and the potential for social impact.
- Engaging with impact investors: Participating in impact investment conferences and seeking introductions to potential investors.
- Structuring attractive investment opportunities: Offering equity stakes, debt financing, or revenue-sharing models.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The hybrid business model aligns with MFM?s core competencies in healthcare, education, and social impact. It also ensures that the organization remains true to its mission of improving maternal health.
- External Customers and Internal Clients: The recommendations are designed to meet the needs of both mothers in developing countries and MFM?s internal stakeholders, including staff, volunteers, and donors.
- Competitors: The hybrid business model allows MFM to differentiate itself from competitors by offering a unique combination of social impact and financial sustainability.
- Attractiveness ? Quantitative Measures: The hybrid business model has the potential to generate significant revenue through fee-based services and partnerships, while also achieving significant social impact.
- Assumptions: The success of these recommendations depends on several assumptions, including:
- Growing demand for digital health solutions: Mothers in developing countries are increasingly adopting mobile technology.
- Availability of skilled staff and resources: MFM can attract and retain qualified staff to develop and manage the technology platform.
- Supportive regulatory environment: Governments in developing countries are receptive to innovative solutions for maternal health.
6. Conclusion
By adopting a hybrid business model, MFM can achieve its philanthropic goals while ensuring long-term financial viability. This approach will allow the organization to scale its operations, reach a broader audience, and make a lasting impact on the lives of mothers in developing countries.
7. Discussion
Other Alternatives:
- Traditional Non-Profit Model: This model relies solely on grants and donations, which can be unpredictable and limit the organization?s ability to scale.
- For-Profit Model: This model focuses on generating profits, which may not align with MFM?s social mission and could lead to prioritizing financial returns over social impact.
Risks and Key Assumptions:
- Technological Challenges: Developing and maintaining a robust technology platform requires significant investment and expertise.
- Market Acceptance: Mothers in developing countries may not be receptive to fee-based services, particularly if they lack access to financial resources.
- Regulatory Hurdles: Navigating the legal and regulatory landscape in developing countries can be complex and time-consuming.
Options Grid:
| Option | Strengths | Weaknesses | Risks |
|---|---|---|---|
| Hybrid Business Model | Scalability, Sustainability, Social Impact | Complexity, Investment Requirements | Technological Challenges, Market Acceptance, Regulatory Hurdles |
| Traditional Non-Profit Model | Simplicity, Focus on Social Impact | Limited Scalability, Funding Uncertainty | Dependence on Donations, Limited Growth Potential |
| For-Profit Model | Financial Sustainability, Growth Potential | Potential Conflict with Social Mission, Focus on Profits | Market Saturation, Ethical Concerns |
8. Next Steps
- Develop a Detailed Business Plan: MFM should create a comprehensive business plan outlining the hybrid business model, including financial projections, market analysis, and operational strategies.
- Secure Funding: MFM should seek funding from impact investors, foundations, and corporate sponsors who support its mission.
- Develop the Technology Platform: MFM should invest in developing a user-friendly web and mobile application to deliver services and engage with mothers.
- Pilot Programs: MFM should conduct pilot programs in select communities to test the effectiveness and feasibility of the hybrid business model.
- Build Partnerships: MFM should actively seek out strategic partnerships with corporations, NGOs, and government agencies to expand its reach and resources.
By taking these steps, MFM can successfully implement the hybrid business model and achieve its goal of improving maternal health while ensuring long-term financial sustainability.
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Case Description
This case is about an affluent and educated woman who decided to start her own organization to support young mothers. Shortly after the birth of her first child, Karin Marques stopped working full-time and soon felt the pangs of "maternal isolation" that mothers commonly report. Finding no satisfaction in the already-existing network of Mothers' Centers, which were geared more towards childcare, Karin formulated a concept for a mothers' center that would "provide support to women before, during, and after their maternity leave." By adopting a theme of "equal opportunities for men and women" - a priority for European Union Member States and an area where the Czech nation planned to grow - Karin registered Klub K2 as a non-governmental (non-profit) organization (NGO), and hoped to access funding from foundations or the European Union. The thematic focus Karin has chosen - women's reentry to the labor market after maternity leave - is a hot-button issue, particularly in new European Union Member States. Yet as Karin's start-up costs rose, and some members of her team of instructors backed out, Karin wondered how all of the pieces would come together by the time she was ready to launch her organization.
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