Harvard Case - Ramadan Sharing Fridges: Keeping a Non-Profit Afloat
"Ramadan Sharing Fridges: Keeping a Non-Profit Afloat" Harvard business case study is written by Gita Bajaj, Bernard Buisson. It deals with the challenges in the field of Social Enterprise. The case study is 6 page(s) long and it was first published on : Jul 27, 2018
At Fern Fort University, we recommend that the Ramadan Sharing Fridges (RSF) organization adopt a hybrid organizational model that leverages both nonprofit and social enterprise elements to ensure its long-term sustainability and maximize its social impact. This approach will involve diversifying revenue streams, exploring impact investing opportunities, and engaging in strategic partnerships with corporations and government entities.
2. Background
The case study focuses on the Ramadan Sharing Fridges (RSF) initiative, a non-profit organization in the United Kingdom that addresses food insecurity during Ramadan by providing free food to those in need. Founded by a group of volunteers, RSF utilizes a network of refrigerators strategically placed in community centers and mosques, allowing individuals to donate surplus food and others to access it. The case highlights the organization's challenges in securing funding and scaling its operations while maintaining its core mission of providing food assistance during Ramadan.
The main protagonists of the case are:
- The RSF founders and volunteers: Dedicated individuals passionate about alleviating food insecurity but facing resource constraints and organizational challenges.
- The beneficiaries: Individuals and families experiencing food insecurity who rely on RSF for sustenance during Ramadan.
- Potential donors and partners: Corporations, government agencies, and individuals who could contribute to RSF's mission through financial support, resource allocation, or strategic partnerships.
3. Analysis of the Case Study
The case study highlights several key challenges faced by RSF:
Financial Sustainability: RSF relies heavily on donations, which are often sporadic and insufficient to cover operational costs, particularly during the non-Ramadan months. This reliance on seasonal funding creates a precarious financial situation and hinders long-term growth.
Organizational Structure: RSF operates with a volunteer-driven model, which lacks the capacity and expertise for efficient operations, fundraising, and strategic planning.
Scaling Operations: Expanding the network of refrigerators to reach a wider audience requires significant investment in logistics, infrastructure, and personnel, resources that are currently limited.
Marketing and Awareness: RSF struggles to raise awareness about its mission and services, limiting its reach and potential donor base.
Legal and Regulatory Compliance: Navigating the legal and regulatory landscape for food safety and distribution poses challenges for a volunteer-led organization.
To analyze these challenges, we can utilize the following frameworks:
- Triple Bottom Line: This framework emphasizes the importance of considering social, environmental, and economic impacts. RSF excels in social impact but needs to improve its financial sustainability and environmental impact through responsible food sourcing and waste management.
- Stakeholder Theory: RSF needs to engage and manage its stakeholders effectively, including beneficiaries, donors, volunteers, and community partners, to ensure their needs are met and the organization's mission is fulfilled.
- Social Impact Measurement: Developing robust metrics to track the impact of RSF's activities is crucial for demonstrating its value to donors, partners, and the public.
4. Recommendations
To address the challenges and ensure RSF's long-term sustainability, we recommend the following actions:
1. Embrace a Hybrid Organizational Model:
- Establish a Social Enterprise Branch: Create a separate social enterprise arm within RSF that focuses on generating revenue through sustainable business models. This could involve launching a food-related business, partnering with food retailers to sell surplus food at discounted prices, or offering catering services for events.
- Develop Impact-Driven Business Models: Focus on business models that align with RSF's mission, such as fair trade practices, ethical sourcing, and sustainable food production.
- Explore Impact Investing: Seek out impact investors who prioritize social impact alongside financial returns. This could involve pitching to impact funds, social impact bonds, or venture philanthropists.
2. Enhance Organizational Capacity:
- Recruit and Train Staff: Hire a small, dedicated team with expertise in finance, operations, marketing, and fundraising.
- Develop a Strategic Plan: Create a comprehensive plan outlining RSF's long-term goals, financial projections, and operational strategies.
- Implement a Robust Governance Structure: Establish a board of directors with diverse expertise to provide oversight and guidance.
3. Expand Reach and Awareness:
- Develop a Comprehensive Marketing Strategy: Utilize digital marketing, social media, public relations, and community outreach to raise awareness about RSF's mission and services.
- Partner with Community Organizations: Collaborate with local mosques, community centers, schools, and food banks to expand RSF's reach and access to beneficiaries.
- Host Awareness Events: Organize public events, such as food festivals, cooking demonstrations, and volunteer drives, to engage the community and promote RSF's work.
4. Foster Strategic Partnerships:
- Engage Corporations: Seek partnerships with corporations that prioritize corporate social responsibility (CSR) and have a vested interest in addressing food insecurity. This could involve joint fundraising initiatives, in-kind donations, or employee volunteer programs.
- Collaborate with Government Agencies: Partner with local government agencies responsible for food security and poverty alleviation. This could involve accessing grants, receiving support for infrastructure development, or collaborating on outreach programs.
5. Ensure Legal and Regulatory Compliance:
- Seek Legal Advice: Consult with legal professionals to ensure compliance with food safety regulations, data privacy laws, and other relevant legislation.
- Develop Standard Operating Procedures: Establish clear procedures for food handling, storage, and distribution to maintain food safety and quality.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The proposed hybrid model aligns with RSF's mission of alleviating food insecurity while ensuring long-term sustainability. The social enterprise arm will generate revenue to support the non-profit operations, allowing RSF to expand its services and reach more beneficiaries.
- External Customers and Internal Clients: The recommendations prioritize the needs of both beneficiaries and donors. By diversifying revenue streams and engaging in impact investing, RSF can attract a wider range of donors and investors while ensuring its services remain accessible to those in need.
- Competitors: RSF needs to differentiate itself from other food banks and charities by focusing on its unique Ramadan-specific focus and its innovative use of sharing fridges.
- Attractiveness: The hybrid model offers a promising approach to achieving both social and financial sustainability. By demonstrating its impact through robust metrics and engaging in transparent communication, RSF can attract investors and partners who prioritize social impact alongside financial returns.
6. Conclusion
By embracing a hybrid organizational model that combines non-profit and social enterprise elements, RSF can achieve long-term sustainability, expand its reach, and maximize its social impact. This approach will require a strategic shift in organizational structure, fundraising strategies, and partnerships, but it offers a promising path to addressing food insecurity during Ramadan and beyond.
7. Discussion
Other alternatives not selected include:
- Remaining solely a non-profit organization: This approach would require RSF to rely heavily on donations, which may not be sufficient to cover operational costs and scale its operations.
- Focusing solely on a social enterprise model: This approach could potentially alienate some donors who prioritize purely charitable giving and may not be aligned with the organization's core mission.
Key risks and assumptions of the recommended approach include:
- Success of the social enterprise arm: The success of the social enterprise venture will depend on its ability to develop a profitable and sustainable business model.
- Attracting impact investors: Finding investors who prioritize social impact alongside financial returns may be challenging.
- Maintaining organizational focus: Balancing the non-profit and social enterprise aspects of the organization requires careful management and clear communication.
8. Next Steps
To implement the recommendations, RSF should take the following steps:
- Develop a detailed business plan: Outline the social enterprise model, financial projections, and operational strategies.
- Form a dedicated team: Recruit and train staff with expertise in finance, operations, marketing, and fundraising.
- Seek legal and financial advice: Consult with legal and financial professionals to ensure compliance and secure funding.
- Engage in outreach and partnership development: Reach out to potential donors, investors, corporations, and government agencies.
- Develop a comprehensive marketing strategy: Promote RSF's mission and services through digital marketing, social media, and community outreach.
By taking these steps, RSF can transform its organization into a sustainable and impactful force in addressing food insecurity during Ramadan and beyond.
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Case Description
In June 2016, Sumayyah Sayed, a resident of Dubai, United Arab Emirates, decided to donate food to those who needed it through a sharing fridge for the full month of Ramadan. When she noted the extent of the need for more help, she turned to social media. What followed demonstrated the power of social media campaigns and the collective management of supply chains and perhaps initiated a new entrepreneurial venture. Within one month, the Facebook Inc. group Sayed had created to support her Ramadan Sharing Fridges initiative had 22,000 members, 165 donating fridges had been set up, and the story was creating waves in international media. What kind of entrepreneurial style was this? Was it sustainable? Was it an alternative model that could be adopted by others who aspired to set up business ventures, or was it a fluke?
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