Apprentice Power collaborates with the Enterprise Capital Institute to build capacity, financial strength and resilience for independent news rooms, national and community service organizations and others serving our most economically-distressed communities. Enterprise Capital is the catalyst for a financial leveraging model designed to cultivate a fertile landscape for responsible banking and investing, including place-based impact investing and foreign direct investment.
What is enterprise capital? A new paradigm for philanthropic funding, enterprise capital (EC) treats long-term, flexible capital as high-value fuel that helps nonprofits fulfill their social and economic missions. Also called “philanthropic equity” or “net asset grants,” it is any form of long-term, unrestricted funding that targets a group’s balance sheet rather than its income statement.
How does enterprise capital differ from general operating support? Many funders have come to see unrestricted general operating support as a more effective alternative to traditional restricted grants. Unrestricted support and enterprise capital share many goals, but they differ in the same way that revenue and equity capital differ: revenue, whether earned or raised, supports ongoing operations; equity builds infrastructure and capacity, allowing investment where it’s needed most.
How does enterprise capital help build organizational capacity? An EC investment becomes even more effective when combined with an assessment of how business and financial models drive the funded organization’s impact. An assessment can also identify technical resources or capacity-building services that will help the group implement its business model and guide the evolution of the financial model. Examples include • organizing an “EC cabinet” of advisors; • helping identify professional development opportunities to provide staff members; or • providing financial modeling services
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