Nonprofit funding as a business opportunity

Connect companies' sustainability efforts with nonprofits' need to access funding, enhancing communication and transparency to create both social and economic value. 

In the city of Mar del Plata, there are many nonprofits that conduct activities related to the 2030 Agenda but they often struggle to find funds to finance their initiatives. This interferes with their ability to innovate, grow and fully support the Sustainable Development Goals, leading to a lack of progress towards achieving the United Nations 2030 Agenda for Sustainable Development.

This lack of funding is a major barrier to the growth and success of these
nonprofits. Without adequate funding, they are unable to innovate and develop new programs or initiatives that could help further their mission. They also have a harder time scaling their existing programs and reaching more people in need. Additionally, without funds, they are unable to build a strong team or invest in the necessary infrastructure and equipment that is required to conduct their activities.

Without the work of these nonprofits, the community will be less equipped to address these important issues. For example, without funding for poverty reduction programs, more people in the community may struggle to meet their basic needs.

Similarly, without funding for programs that promote gender equality, the community may not be able to fully address issues such as discrimination and unequal opportunities for women and other marginalized groups.

Furthermore, the lack of funding for nonprofits also affects the community's ability to innovate and implement new solutions to address these issues. Currently, 543 organizations can be found in the Registry of Public Welfare Organizations of the Mar del Plata. These are oriented towards different social purposes, and it is important to highlight that close to 30% (159) can be included in the theme of inclusion of people in situations of social vulnerability, whether in Health,Rights or Social Development. Without adequate funding, nonprofits are unable to conduct the necessary research and development work that is required to identify new and effective ways of addressing these problems. This can lead to a lack of progress and a perpetuation of the same issues over time.

There might be multiple reasons behind this, but this report focuses on understanding if this lack of funding could be connected to the commitment of the private sector in the 2030 Agenda proposed by the United Nations. Even though companies are many times concerned in achieving the Sustainable Development Goals (SDGs), the different ways they decide to get involved are not always efficient.

In summary, the issue of funding for nonprofits in Mar del Plata should not only be a concern for the nonprofits themselves, but also for companies and organizations that are committed to achieving the SDGs locally. These nonprofits play a crucial role in addressing sustainable development, and without adequate funding, their ability to do so is threatened.

It is important to address this problem in order to ensure that the SDGs are
met and the community is able to thrive. By bringing together the different
stakeholders and working to find solutions we can help to ensure that these
nonprofits have the resources they need to make a positive impact on the community.

The solution includes multiple aspects.

1. Crowdfunding platform

Specifically designed for small-scale sustainable development projects, utilizing blockchain technology for secure and transparent transactions. The stakeholders would be the nonprofits and enterprises and the key activity to facilitate connections between them using AI to match the most suitable projects to the funders. The objectives would be to support SDG-oriented projects created by nonprofits to access funding and to promote sustainable development and socially responsible business practices.

2. Strategies for social projects follow-up

Another aspect would be to provide a valuable tool for evaluating the effectiveness and impact of the projects, which will help companies make more informed decisions about where to invest and how to allocate resources. This service will empower the projects that are already in place, by making sure that donors have access to the information they need to understand impact and the reach of their investment. The tool would use Big Data to provide accurate and real-time insights on the funding.

A precise follow up of the funding would make the difference from other opportunities now available. With the correct support, small scale nonprofits in Mar del Plata would be able to display their progress making funding intermittency disappear and securing the necessary resources to develop their activities. By periodically relaying information and sharing it appropriately, durability in funding could become possible and small projects would be able to attract new investment.

3. Communicate companies social and environmental impact

The last key aspect would be to help enterprises measure and communicate with transparency the value of their sustainability efforts to consumers and other stakeholders. By providing tools and resources, communication would allow them to increase transparency and trust with their consumers. The communication tools would make use of AI and Big Data to provide personalized and actionable insights on the social and environmental impact of the companies.

Our solution serves both corporations and nonprofits. By linking companies' commitment to the SDGs with ongoing social projects that are in need of funding, corporations can meet their annual corporate social responsibility goals, build a stronger reputational relationship with their clients, and upgrade their brand value by making visible their commitment to sustainable development. This allows corporations to demonstrate their commitment to sustainability in a meaningful and visible way.

The target population for this solution are nonprofits who are currently underserved in terms of funding and access to resources. These nonprofits are often working on local projects that address social and environmental issues, but may not have the funding or resources needed to achieve their goals. By connecting these nonprofits with corporations who are committed to the SDGs, we can provide access to funding and resources that can help improve the sustainability and durability of these projects.

Additionally, by increasing communication and transparency between corporations and their customers, we can help create a more informed and engaged public that can support these sustainability efforts. This solution addresses the needs of both corporations and nonprofits by providing access to funding, resources, and visibility, which can help make a real difference in achieving the 2030 Agenda.

My team and I are well-positioned to deliver this solution because of our unique blend of skills, experiences, and passion for making a meaningful impact in our community. As a nonprofit co-founder, I have firsthand experience with the challenges of finding funding for small-scale sustainable development projects. My skills in grant writing, fundraising, and event planning have been instrumental in finding funding for our organization. Additionally, my ability to think creatively and come up with outside-the-box solutions has helped our organization stand out in a competitive environment and secure funding from sources that may not have been considered before.

Furthermore, my team members bring a diverse set of skills to the table. We have team members who have experience in business development, marketing and communications, and technology development. These skills will be essential in creating and implementing a crowdfunding platform that is secure, transparent, and easy to use. Additionally, our team has experience working with the latest technologies, which will allow us to provide valuable tools for evaluating the effectiveness and impact of the projects and communicate the value of the sustainability efforts to consumers and other stakeholders.

In terms of understanding the experiences of those we serve, my life, volunteer, and work experiences have helped me understand the challenges that nonprofits face in finding funding and the impact that lack of funding can have on sustainable development projects. For example, I have worked with the Scholas Occurrentes Foundation on a project called “Escuela de Mar y Playa,” which aims to provide access to the sport of surfing and the enjoyment of the ocean to underprivileged communities in Mar del Plata. Despite the significant structure of the foundation, we still struggled to secure all the resources needed to fully develop the activities.

Additionally, my team members come from diverse backgrounds and experiences, which allows them to bring a unique perspective to the table and understand the experiences of those we serve. This diversity of perspectives is essential in ensuring that our solution is inclusive and addresses the needs of the community we serve.

Lastly, we are passionate about making a meaningful impact in our community and are committed to continuous learning and improvement. We are committed to learning more about business development, economic and administrative tasks related to finance, budgeting, financial analysis, and forecasting, as well as leadership and management skills. Additionally, we believe that partnerships with other organizations, businesses, and government agencies can be a great way to leverage our resources and maximize our impact in the community. By leveraging our diverse skills, experiences, and commitment to learning, we are confident that our team is well-positioned to deliver this solution and make a positive impact in our community.

To address this problem different methodologies have been used. A recall of my own personal experience, an analysis of hard data, the development of emphatic interviews and finally a benchmarking analysis. All of these contribute to a full understanding of the problem. 

Nonprofits

Hard data collection

In order to better understand the financial situation of emerging startups,
nonprofits and other impact-driven organizations I reviewed an interview done in the year 2021 as part of the paper “Social entrepreneurship: characteristics and application in Mar del Plata and surroundings”. This survey of the entrepreneurial ecosystem of Mar del Plata, Argentina and the area includes cooperatives, nonprofits, civil associations, social entrepreneurs, financial support projects for entrepreneurs, fairs, among others.

The results of the survey were validated with an internal consistency analysis using Cronbach's alpha, which resulted in a value of 0.764. This value, being greater than 0.7, corresponds to an acceptable level of internal consistency for a study of this style. From the 49 responses received, conclusions were obtained with a margin of error of 13%.

From the data obtained when asking where the financial resources for the
sustainability of their activities come from, there is a notable disparity in the answers. Most of the organizations are sustained by quotas and contributions from founders or owners, as well as donations from individuals.

The issue of financing, the basis of sustainability, presents great obstacles.
Only 18% can be sustained from the sale of products or services, that is, that in a certain way they have made their business model profitable and sustainable.

The other 82% must go to external financing sources, such as donations,
without generating alternative mechanisms to contribute to their financial income from their business model.

A very high number of these ventures could base their business model on the sale of products or services, but ignorance and lack of training in specific topics such as administration, innovation, marketing, business, among others, limit their consolidation as business models.

On the other hand, it is clearly interpreted that to start their activities almost half of the enterprises or organizations had to turn to personal savings. In second place, donations were used and, thirdly, loans from friends and family.

The 68% of those surveyed indicate that they have been denied loans by the financial system. It is important to take into account that this alternative to obtain resources is generally not a possibility due to the informality with which the enterprises operate, many of which do not have the minimum requirements demanded by the institutions.

In this way, a large majority, close to 90%, maintains that the financial system does not have the adequate lines to support entrepreneurial activities

Experience

Through my experience in the nonprofit Adelante that I co-founded in the year 2016, I can confirm that funding is usually one of the most critical aspects of any social development project.

Adelante, carries out independent projects, mostly guided to childhood and
people living in extreme poverty. To afford the different activities we started by connecting people working for companies and getting through them because of previous personal relationships. Because of this, we have been collaborating closely with many other similar organizations in the city of Mar del Plata such as Caritas, Noche de la Caridad, ASDEMAR, Habitat y Ciudadania among others.

One particularly good example of this collaboration is a project called “Escuela de Mar y Playa” created by the Scholas Occurrentes Foundation. This initiative aims to provide access to the sport of surfing and the enjoyment of the ocean to underprivileged communities in Mar del Plata. Today, the project has expanded its focus beyond just teaching surfing, providing a comprehensive program that includes not only the sport itself but also opportunities for artistic expression and social development.

As the Scholas Occurrentes Foundation is located worldwide, there are multiple companies that think of this organization as a legitimate place to send their money. In this context, Adelante helped with local engagement so that companies that have been working on other projects could also contribute to this new initiative.

Because of Scholas long and proven track record, many companies were interested in actively contributing to this project from the beginning. We could get all the resources to launch the project (such as surfboards, wetsuits, transportation, etc.) in a short period of time. Something that had never happened with other projects developed by Adelante on our own. Despite this, the challenge remained in securing consistent funding on a regular basis.

Interviews

In order to gather qualitative data to understand the problem, different
interviews were conducted with people that play a key role in the entrepreneurial ecosystem of Mar del Plata and could potentially help in solving this problem. After reviewing the results of the thesis investigated, which led to a deeper understanding of the problem from the perspective of the nonprofits, three different interviews were arranged to have a closer point of view of how these organizations are dealing with the problem of funding. I had the opportunity to interview the president and founder of the Scholas Occurrentes Foundation and the presidents of two nonprofits Adelante and Supertendores.

On the other side, after interviewing different agents of the nonprofits, the
investigation focused on the point of view of companies. It was noted that many of them -in addition to internal strategies- already take action in external projects related to the UN 2030 Agenda. In consequence, three more interviews were conducted.

One to a retail enterprise in the clothing business (Open Sports), in which I talked with the financial and administrative director, another to a manufacturing company that produces and commercialices coffee and related products (Cabrales) in which I talked to the founder and CEO and finally, one related to a service company in the health industry (Fares Taie) in which I talked to the general manager. 

● Interview with Scholas Ocurrentes

In regards to the interview with the Scholas Occurrentes Foundation, the main problem that stands out is the lack of continuity in the commitment assumed by the companies. In particular, when asked about the project "Escuela de Mar y Playa” the president said that at the beginning many companies invested money and supported the initiative. However, today, after two years, they no longer receive external financing beyond a state subsidy. Despite the many possible causes mentioned, he recognized a failure in communication. Specifically, he underlined the problem of letting the donors know what has been specifically done with the money or communicating the progress of the project. Finally, the interview revealed an issue that has not been contemplated and refers to the fact that many times donations are not made in money but directly as payments in kind.

● Interview with Supertenedores

In relation to Supertenedores, the most important thing to note is that,
according to what emerged from the interview, this organization has developed a mechanism to ensure continuity in the provision of funds. Thus, people and companies that want to collaborate can commit to paying a monthly fee by credit card. However, it was also pointed out that their organization does not have a mechanism for adjusting the amounts to inflation rates nor is there an adequate information system that gets to precisely know how the funds were invested. The lack of an adequate structure to monitor the projects and the difficulties in carrying out
new initiatives were also mentioned.

● Interview with Adelante

Finally, an interview was conducted with the current president of the nonprofit that I helped found years ago, Adelante. In this case, the main problem that emerged from the questionnaire was the difficulty in obtaining funds. The obstacles described were how to clearly visualize the initiatives that are being carried out and how to show legitimacy when asking people for investment. It is important to mention that Adelante is a much smaller and younger organization than the two mentioned before, making some companies skeptical to proposals of collaboration. 6 years after its creation, this still continues to be the biggest concern and barrier to allow the organization to grow.

Companies

Experience

Another important experience that I had related to the problem was my time working in Accenture. Accenture is a multinational professional services company that provides consulting, technology, and outsourcing services. It is headquartered in Dublin, Ireland and operates in more than 200 cities in 120 countries. The company is known for its work in strategy, consulting, digital, technology, and operations, and has a wide range of clients in various industries. Accenture is one of the largest consulting firms globally and considered as one of the top employers in the industry, launching their offices in Mar del Plata in the year 2019.

After 3 years of working there, I saw first hand how a company that is deeply involved in sustainability practices in Argentina16 struggled to support local
organizations in the fulfillment of their social and environmental development initiatives. These challenges included a lack of knowledge about local nonprofits and the issues they address, making it difficult to identify organizations that align with the company's values and mission.

Additionally, the company faced bureaucratic hurdles and may have been
hesitant to support local organizations, as they may not be as established or well-known as larger organizations and thus prioritized global initiatives.

Furthermore, being relatively new to the city, the company had limited connections and engagement with the local community, making it difficult to establish mutually beneficial partnerships. And on the few occasions that they did collaborate, they still encountered difficulties in effectively communicating and showcasing their efforts within the community.

Interviews

● Interview with Open Sports

Regarding the Open Sports interview, it is observed that their activities are
related to different SDGs: inclusion of children and young people in vulnerable situations through education (SDG 5), work (SDG 8) and sport (related to SDG 3). 

However, when it comes to the management and monitoring of these projects, many times the personal drive of the volunteers in charge was the factor that determined the continuity of their support. 

In terms of how they communicate these actions, it was interesting to see that they only rely on social media. They do not have any specific section on their website or in their shops that allows customers to get to know everything they do. They do not measure how this impacts their brand image and they do not seem to have any formal process in place regarding these initiatives.

● Interview with Cabrales

In the case of Cabrales, we found a company that collaborates with many
nonprofits and social projects. In particular, it was reported that it assists more than 80 schools with a monthly delivery of goods. It also cooperates with protection entities for the most vulnerable sectors and occasionally with gifts for raffles at benefit parties. However, there is no communication strategy for such actions so that they can have a positive impact on brand positioning. This is a clear case of a company that does payment-in-kind donations, but are not communicated to clients.

● Interview with Fares Taie

From this last interview, we can see that Fares Taie is a company that is very
committed to giving financial support to projects that contribute to the local community. One interesting experience that they highlighted is the funding of research projects related to reducing or eliminating the presence of agrochemicals in food (related to the SDGs 3, 8 and 9). This project is carried out by the National University of Mar del Plata and Fares Taie provides the necessary technology and support in their labs to conduct the research. This is a clear example of how private companies can provide resources and make meaningful contributions to important causes outside of their primary business focus (in this case clinical analysis).

Liminar conclusions

After our data collection and interview analysis, we can confirm that access to funding is an important challenge for nonprofits in Mar del Plata. There is not a designed and standardized mechanism to show their activities and ask for private investment. Despite being inefficient, state subsidies remain a primary source of income. Moreover, private partnerships are inconsistent and there is a defiance in keeping private grants as a regular source of income.

On the other hand, companies in Mar del Plata are investing in sustainability and social issues. However, the business industry is more focused in corporate social responsibility rather than in making those efforts valuable for their companies.

Of the different interviews, it is important to highlight as the main conclusion the lack of consideration of the invested funds as a business opportunity. The three companies stated that they carry out activities related to the United Nations 2030 Agenda.

However, none of them recognized these actions as part of their marketing and commercialization strategy. At the same time, it is noted that the investments of each company are diversified into different activities, without a clear justification of why they choose one project or another.

Customer awareness is on the rise but clients are not becoming part of social responsibility programs nor their opinion is being taken for positioning. Inefficient communication (ads and labels that do not include information about these topics and websites that do not reflect the large number of activities on course) is the common problem described by all interviewees.

Benchmarking results

The problem of private funding for nonprofits in the city of Mar del Plata does not seem to have a clear solution. Each company makes its own effort to support projects related to sustainable development and, despite organizations from the private sector being connected by the business chamber, their alliances do not appear to be focused on achieving SDG by financing external projects. There are some initiatives in other provinces of the country that could be considered as a starting point to address the problem. For example we can mention Comunidad RSE and MoveRSE.

After conducting the research, we can confirm there are multiple alternatives that address this problem from different perspectives. As mentioned, in Argentina there are two organizations that are somehow looking to approach the problem from the perspective of companies, Comunidad RSE and MoveRSE. However, these organizations are not really focused on nonprofits funding but on corporate social responsibility. Social aid is still seen as a mere business commitment, but not as an investment that can generate greater profitability in a more measurable and
organized manner.

At the same time, there are numerous global platforms that connect
companies with social projects related to the SDGs for funding, but there is no local approach that enables small organizations to access these resources. Our interviews with small-scale nonprofits revealed that they struggle to secure grants primarily due to their limited visibility and organizational structure. None of the interviewed organizations mentioned the use of any of the potential solutions previously identified or other similar alternatives.  Because of economic, location or resource barriers these sites are targeted to more developed nonprofits that already have a structure big enough to be promoted.

The interviews and benchmarking analysis also demonstrate that when
companies decide to offset projects to other organizations, this does not obey a justified pattern. Many times the different nonprofits contact the companies to ask for funds and not the other way around. From the perspective of social projects, it is clear that there are challenges in tracking investments and communicating the progress of initiatives. The problem remains in the relationship between companies that already invest in actions related to the 2030 Agenda.

The solution described provides a new approach to the problem of limited access to private funding for nonprofit organizations in Mar del Plata, Argentina by bringing together the business and nonprofit sectors in a mutually beneficial way. By linking the success of nonprofit initiatives related to the UN Agenda for Sustainable Development with the financial gain of businesses, the solution aims to increase private funding for these projects. Additionally, the solution promotes transparency and accountability by tracking money and providing information on projects, which can be used to communicate the efforts of companies to consumers and create brand value. This approach is innovative and could potentially change the market in Mar del Plata by encouraging more businesses to invest in sustainable development projects and increasing access to funding for nonprofits working on these issues. It could also have broader positive impacts by serving as a model for similar initiatives in other regions. This solution could be catalytic in several ways:

1. Changing the market: By linking the financial gain of businesses with the success of nonprofit initiatives, this solution could change the perception of business social responsibility in Mar del Plata and encourage more companies to invest in sustainable development projects. This could lead to an increase in private funding for these projects, making it more feasible for nonprofits to achieve their goals.
2. Encouraging broader adoption: By providing a model for linking business and nonprofit sectors, this solution could inspire similar initiatives in other regions. This could lead to more widespread adoption of this approach and increase access to private funding for sustainable development projects globally.
3. Promoting transparency and accountability: By tracking money and providing information on projects, this solution could increase transparency and accountability in the use of private funding for sustainable development projects. This could help build trust between businesses, nonprofits, and consumers, and encourage more companies to invest in these projects.
4. Enhancing brand value: By providing records of companies efforts on sustainability the solution would give businesses the opportunity to communicate their efforts to their consumers and create brand value. This could lead to an increase in consumer trust and loyalty, and ultimately increase the sales of these companies.

Overall, the solution has the potential to change the market and inspire broader adoption of this approach, and also to promote transparency and accountability and enhance brand value.

Our impact goals for the next year include:

• Increasing the number of sustainable development projects that align with the UN 2030 Agenda, specifically in the Mar del Plata community. This includes attracting new companies to invest in these projects and continuing to involve the companies that are already committed to the initiative.
• Improving the lives of people living in vulnerable conditions.
• Track the impact of the projects and measure the success of the initiative, this will help to ensure that the projects are durable and have the desired impact on the community.
• Encourage the private sectors’ commitment to sustainability and social responsibility.
• Raise awareness about the initiative among companies and the community and encourage them to participate.

To achieve these goals, we plan to implement a number of strategies:

• Utilize the latest technology such as blockchain, AI, and Big Data to enhance the transparency, security and efficiency of the crowdfunding platform.
• Create a comprehensive portfolio of projects that align with the SDGs and addresses the specific needs of the community, this will help to ensure that the projects are making a meaningful impact on the lives of those in the community.
• Establish a monitoring and evaluation system to track the impact of the projects and measure the success of the initiative. This will help us to identify areas where the initiative can be improved, and make adjustments as necessary.
• Design a system of incentives for companies that invest in the initiative to recognize and encourage their commitment. This will help to ensure that companies continue to invest in the initiative and continue to make a positive impact on the community.
• Develop a targeted marketing campaign to raise awareness about the initiative among companies and the community, this will help to increase participation in the initiative and increase the impact of the projects.
• Continuously involve the companies that are already committed to the initiative by providing them with regular updates on the progress and impact of the initiative, and seeking their feedback to improve the initiative.

Technology plays a critical role in the proposed solution for increasing private funding for sustainable development projects in Mar del Plata. A robust and user-friendly crowdfunding platform is essential to enable small and medium-sized enterprises to invest in these projects in a transparent and trustworthy way. The platform should provide an efficient and easy way for nonprofits to showcase their projects, track progress and share updates.

On the other hand, the platform should also provide companies with a clear and effective way to browse and select initiatives that align with their interests and values, using classification systems and a clear relationship between nonprofit projects and the SDGs. The use of Artificial Intelligence (AI) can help in this process by providing personalized recommendations based on companies' previous investments, preferences and impact goals.

Big Data can be utilized to gather and analyze information about the performance of the projects and the investment trends, and Blockchain technology can be used to ensure transparency, security, and immutability of the transactions and the impact data.

Moreover, the platform should also provide a section for measuring and reporting the impact of the companies' investments, allowing them to communicate their efforts to consumers and build brand value. Audiovisual Media can play an important role in this process by creating engaging visual content that tells the story of the projects and the impact, and can be shared with the stakeholders.

Overall, technology should play a key role in enabling easy communication, transparency, and trust between all stakeholders, and to help facilitate the alignment of projects with SDGs, measurement of impact and sharing the results with all stakeholders. The use of AI, Big Data, Blockchain and Audiovisual Media can enhance the platform capabilities and make it more efficient and effective.

As the platform has not yet been launched, the primary goal is to significantly increase the number of people being served. To achieve this, the team is working on making ongoing investments more durable and impactful by also improving the communication of the donors with their consumers. Currently, the initiative is working with one project, "Escuela de Mar y Playa" by Scholas Ocurrentes in Mar del Plata, Argentina, which receives funding from three companies and works with a target group of over 30 children.

In this stage, the aim is to develop a comprehensive strategy for effective communication and follow-up with the companies involved. This includes using different communication channels, such as social media, email, and events, to keep the companies informed about the progress of the projects, the impact of their investments, and the opportunities to get involved in new projects. Additionally, the initiative will work on creating transparency and accountability mechanisms that allow the companies to communicate the impact of their investments to their consumers.

Mar del Plata has a population of almost 50 thousand children who can not satisfy their basic needs, which highlights the importance of this initiative in creating a more equal society. The aim is to at least have 3 times the number of companies committed to the initiative so that at least 3 to 5 nonprofits can obtain funds, and when selecting the initiatives available, the number of people reached by each project should be a relevant aspect to take into account. With this approach, the initiative aims to increase the number of people being served by providing private funding for sustainable development projects, and promoting transparency and accountability in the use of these funds. Additionally, the initiative would foster a relationship of trust and engagement between companies, nonprofits, and consumers, which would ultimately lead to a greater impact.

The specific barriers that could exist to accomplish the goals of this initiative include:

• Financial barriers: The initiative may face difficulties in attracting private funding from companies, especially in a challenging economic environment. Companies may be reluctant to invest in sustainable development projects due to budget constraints or lack of understanding of the potential financial benefits of these projects.
• Technical barriers: The initiative may face challenges in designing and implementing a robust and user-friendly crowdfunding platform that can effectively connect companies with sustainable development projects. Technical barriers may also arise in the monitoring and evaluation of projects, especially in terms of data collection and analysis.
• Legal barriers: The initiative may face legal barriers such as lack of regulations or compliance issues related to the use of private funding for sustainable development projects, or difficulties in navigating complex tax or other legal requirements related to these projects.
• Cultural barriers: The initiative may face cultural barriers in terms of changing the perception of business social responsibility among companies and consumers, or in terms of convincing companies that investing in sustainable development projects is in their best interest.
• Market barriers: The initiative may face competition from other related initiatives that are already established in the market. It could also face the challenge of creating a market for sustainable development projects, where companies are not used to invest in this type of projects.

First, we have a close partnership with Adelante, a nonprofit organization that I co-founded in 2016. Adelante develops multiple projects that could greatly benefit from our solution, and we work closely with them to align our efforts and maximize the impact of our collaboration.

Additionally, we collaborate closely with the Scholas Ocurrentes organization, which already has a strong network of private donors and develops projects worldwide. By working together, we can leverage their resources and expertise to expand the reach and impact of our solution.

We also have a partnership with the Erasmus Mundus Association. As a student in the Erasmus Mundus Master in Impact Entrepreneurship, I am writing my final thesis on this solution with the support and guidance of tutors from the Zagreb School of Economics and Management in Croatia, ISM University of Management and Economics in Lithuania, and HEC Liège Management School in Belgium. This partnership allows us to tap into the expertise and resources of leading academic institutions.

Lastly, we have a strong partnership with the Institute for Training and Development in Amherst, Massachusetts, through a scholarship received in 2022 to participate in the Study of the U.S. Institutes for Student Leaders, funded by the U.S. Department of State. Through this partnership, we receive mentoring and guidance from experienced professionals in the field, which helps us to continuously improve and refine our solution.

Overall, our partnerships with these organizations allow us to leverage a diverse range of expertise, resources, and networks to deliver our solution effectively and make a meaningful impact in the community.

The proposed initiative aims to create both social and financial value by creating a platform that connects small and medium-sized enterprises with sustainable development projects that align with their interests and values. The main product or service provided by the initiative is a crowdfunding platform that allows companies to invest in these projects in a transparent and trustworthy way, and non-profit organizations to showcase their projects, track progress, and share updates.

To enhance the value proposition and increase the chances of success of the projects, the platform could also provide additional services such as:

• Impact measurement and reporting: This service will allow companies to measure the impact of their investments and create reports that can be shared with stakeholders, including consumers, to communicate their efforts and build brand value.
• SDGs Alignment: The platform could offer a classification system that would help companies align their investments with the United Nations Sustainable Development Goals (SDGs) and track the progress of the projects in relation to these goals.
• Monitoring and Evaluation: The platform could provide a monitoring and evaluation system to track the impact of the projects, and provide feedback to the non-profit organizations and companies, to continuously improve their performance.

To generate revenue, the initiative will charge a small transaction fee for each investment made on the platform, or charge a subscription fee for access to the platform's advanced features and services. It will also generate revenue from impact measurement and reporting services that companies would want to use to communicate their efforts to consumers.

Overall, the initiative serves as a bridge between companies and non-profit organizations, connecting them through a platform that allows them to align their interests and values with sustainable development projects. The platform provides additional services, such as impact measurement, reporting, and alignment with the United Nations Sustainable Development Goals (SDGs) as well as monitoring and evaluation, that enhance the value proposition and increase the chances of success of the projects. The initiative also provides a conduit for private funding that can increase access to resources for sustainable development projects and improve the lives of people living in vulnerable conditions. The populations served by the initiative will benefit from this business model by having access to private funding for sustainable development projects, and companies will benefit by aligning their investments with SDGs and communicating their efforts to consumers, which will enhance their reputation and brand value.

It is crucial to note that for companies the benefit is not limited to sharing their funding support towards non-profit organizations. The business model also includes the potential use of this information for personalized follow-up and analysis of the impact of a company's sustainable development efforts on their business growth. Through effective communication strategies, companies can tailor their services to meet their specific needs and track consumer behavior. This can reveal how information about a company's commitment to sustainability influences consumer choices, offering a wide range of potential solutions that can enhance the field of business.

The path to financial sustainability for this initiative will involve a combination of different revenue streams. Some options include:

• Transaction fees: The initiative could charge a small transaction fee for each investment made on the platform. This would provide a steady stream of revenue as more and more companies invest in sustainable development projects through the platform.
• Subscription fees: The initiative could charge a subscription fee for access to advanced features and services on the platform, such as impact measurement, reporting, and alignment with the United Nations Sustainable Development Goals (SDGs). This would provide a steady stream of revenue as more companies subscribe to these services.
• Impact measurement and reporting services: Companies may be interested in measuring the impact of their investments and creating reports to communicate their efforts to consumers. The initiative could charge a fee for these services, which would provide an additional revenue stream.
• Grant and Donations: The initiative could seek funding from grants and donations from foundations, philanthropic organizations, or government entities.
• Investors: The initiative could raise investment capital from venture capital firms, angel investors, or impact investors who are interested in investing in sustainable development projects.
• Sponsorship: The initiative could seek sponsorship from companies that are interested in supporting sustainable development projects and aligning their brand with these causes.

It's essential that the initiative continuously evaluate its expenses and revenue streams to ensure that they are aligned, and if needed make adjustments to the business model to reach financial sustainability in the long term.