Main requirements that have to be met:
Legal Structure – there has to be a legal structure that allows for raising equity capital – commercial (for profit) organization that also contributes to society.
Solid Business Model. The condition for the proposal to work is that the SE will be able to create a strong business that will make enough money so that it can pay dividends to investors.
- articles of association
- certificate of registration of the business entity
- business plan for the proposed project (for minimum of two years)
- executive summary.
Established organizations must provide ONE of the following (minimum of two fiscal years):
- audited financial statements
- unaudited financial statements.
New organizations or projects MUST provide pro-forma projections for five years (recommended) or two years (minimum)
Proof of social impact
Provide any info (references in the media, recommendation letters, business plan for new organizations or projects) that proves positive contribute to society.
Additional Information (optional)
For potential investor – presentation (PowerPoint, PDF, or video, or both)
For investment fund managers – one example of previous investment
Donors/investors – institutional investors (funds), commercial organizations and private persons.
Sellers of social “products” (social enterprises) – organizations with strong social impact activity, educational and healthcare institutions, and social “start-ups”.
N. B. Exempt are federal and local government agencies, political parties and organizations whose activities are carried out outside the legal field (extremist, criminal, etc. organizations)
PARAMETERS AFFECTING THE MARKET WEIGHT – “CAPITALIZATION” OF SOCIAL ENTERPRISES
- Availability of infrastructure (real and/or virtual “assets”), which allows efficient implementation of charitable programs: premises, equipment, qualified personnel, convenient interactive website, electronic donation/payment systems, etc.).
- The ratio of the total budget of the organization and its actual impact on the target group.
- Rating of organization, awarded by independent organization/agency.
- The transparency of the organization and its annual reporting.
- The structure of the organization expenses (administrative expenses/welfare programs).
- Organization’s management and all events associated with it.
- Financial self-sustainability of the organization: the structure of income sources (foundations/corporations/private donations/paid services).
- Competitors in this niche.
- The quality of the social “products” and the effectiveness of social programs.
- Creativity of the team, ideas and projects (low/medium/high).
- Size of target group (quantity and quality).
- Location of activity.
- Reviews on the activities of the organization.
- PR and rate of mentioning in the Media.