Social Entrepreneur Fund

The Kenneth A. Picerne Foundation has embarked upon a pilot program that will provide $100,000 in funding for 3-to-5 years to two social entrepreneurs during the growth phase of their non-profit organization's development. The entrepreneurs chosen will have a track record of demonstrated success and high potential for growth and social impact.

The Opportunity

• Less than 2% of all philanthropic dollars go to start-up social ventures. The most critical gap is for startups with 2-3 years of initial success that are entering the growth stage.
• There is virtually no capital market structure to support social entrepreneurs such as exists in the for-profit venture capital and equity markets. Debt capital is also rarely an option for startups as they have no assets and little profit/loss history.
• Small and medium size non-profits must continually compete for small annual grants and donations from multiple sources to survive. Committed significant long-term funding is rarely available for these nonprofits.
• Operating or unrestricted funds to build capacity are rarely available to nonprofits. The vast majority of funding is directed and programmatic.

The Objectives

• Create a venture philanthropy fund that will provide significant growth capital for successful nonprofit social entrepreneurial startups in their 3-6 year of operations.
• Support the development of innovative, impactful nonprofit service programs in human development, art, education and health.
• Create a sustaining nonprofit funding model that includes venture philanthropy concepts (engaged, long-term, non-directed funding) and sequential funders (i.e., start-up, mezzanine and mature funders).

The Project

• Prior to creating a venture philanthropy equity fund, the Foundation will conduct a pilot program. The Foundation will provide long-term funding to support two social entrepreneurs in the growth phase of their development. These are individuals who have a 3-6 year track record of demonstrated success and high potential for growth and social impact.
• Funding will be awarded for 3 years and reviewed annually. Grants can be renewed for 2 more years (5 year total).
• Funding of up to $100,000 per year in unrestricted dollars will be awarded to each entrepreneur selected.
• The Foundation will be highly engaged with the entrepreneur and will provide ongoing coaching, management consultation, organizational development, administrative training and development/fundraising assistance to the nonprofit.
• If the pilot is deemed successful, KAPF will then leverage its investment by soliciting funding from like-minded, successful for-profit investors and entrepreneurs to expand the scope of the program. KAPF will administer and manage the fund.

Click Here for Eligibility Criteria