Fee-for-service

Non-profits and social enterprises can generate revenue by providing specific services or products to businesses. This model allows civil society organizations to leverage their expertise, networks, and resources to provide value to corporate partners while generating income. It can include:

Hiring and Recruitment: Offering recruitment support to help companies diversify their hiring pools and, in some cases, meet hiring targets for diverse candidates.
Diversity, Equity, and Inclusion (DEI) Consulting: Providing training sessions or talks on DEI topics and how they intersect in the context of the company’s work.
Events and Merchandise: Hosting events such as panel discussions, symposiums or selling branded merchandise.
Ethical Sourcing Support and Supplier Diversity Programs: Advising companies on ethical sourcing practices and connecting them with community-based enterprises to diversify their supplier base. Non-profits with social enterprises or earned income ventures producing products needed by companies can also become part of the company supply chains themselves.

When Should Your Organization Consider This Model?

Specialized Expertise: Your organization has unique expertise or experience that companies can benefit from. These can include (but are not limited to):
1. Trust and expertise in engaging with certain marginalized and/or underrepresented communities.
2. Capability of producing products that companies would require.
3. Community engagement to bring together different communities for events and convenings.
4. Expertise in ethical labour practices and creating dignified employment opportunities.
Access to Business and Corporate Networks: Your organization has access to networks where you can connect with different companies. This could be through your organization’s board members, advisory circles, existing donors, or any supporters/champions you might have in the community.
Capacity to Deliver Services: Your organization has the resources and a qualified team that can offer high-quality services on a consistent basis.

What Are Five Steps You Can Take to Establish This Model?

Conduct an Internal Assessment: Take stock of your organization’s different strengths and assets. Once you do that, think about how you can utilize these strengths to address the needs of different companies.
Define your Service Offering: Define the specific services you can offer, such as training sessions, consulting, or event organization. While defining your services, specifically think about the problem you can help solve through them. This would be an important piece of being able to convince potential corporate partners to work with you. Conduct research to also understand what the market rates for your offerings might – i.e. what prices are others charging to offer similar services? This will help you set competitive prices.
Market your Service Offering: Develop a marketing strategy to promote your services. Create some initial marketing assets about your service offerings. This could be a webpage or a 2–3 page service offering overview. Focus on companies that align with your mission and share your service offerings with them and how you can support them in their work.
Share a Proposal or Quote: If there is high interest, develop a tailored proposal/quote to share with them. In many cases, your organization would have to go through the usual procurement process of these companies where you would be competing with many other organizations. Having a strong service offering, a comparable and competitive price, and highlighting your CSOs impact and mission can help you stand out from the other competition.
Design your Internal Processes: In order to complete any contracts you receive, it is important to create clear processes for delivering high quality services, on time. This might require you to restructure your organization’s team and staffing structure. To provide a unified and good service experience, it can be helpful to develop operational templates and checklists to guide your staff.

Additional Resources on Fee-for-Service

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When Should Your Organization Consider This Model?

Specialized Expertise: Your organization has unique expertise or experience that companies can benefit from. These can include (but are not limited to):

Trust and expertise in engaging with certain marginalized and/or underrepresented communities.
Capability of producing products that companies would require.
Community engagement to bring together different communities for events and convenings.
Expertise in ethical labour practices and creating dignified employment opportunities.

Access to Business and Corporate Networks: Your organization has access to networks where you can connect with different companies. This could be through your organization’s board members, advisory circles, existing donors, or any supporters/champions you might have in the community.

Capacity to Deliver Services: Your organization has the resources and a qualified team that can offer high-quality services on a consistent basis.

What Are Five Steps You Can Take to Establish This Model?

Conduct an Internal Assessment: Take stock of your organization’s different strengths and assets. Once you do that, think about how you can utilize these strengths to address the needs of different companies.

Define your Service Offering: Define the specific services you can offer, such as training sessions, consulting, or event organization. While defining your services, specifically think about the problem you can help solve through them. This would be an important piece of being able to convince potential corporate partners to work with you. Conduct research to also understand what the market rates for your offerings might – i.e. what prices are others charging to offer similar services? This will help you set competitive prices.

Market your Service Offering: Develop a marketing strategy to promote your services. Create some initial marketing assets about your service offerings. This could be a webpage or a 2–3 page service offering overview. Focus on companies that align with your mission and share your service offerings with them and how you can support them in their work.

Share a Proposal or Quote: If there is high interest, develop a tailored proposal/quote to share with them. In many cases, your organization would have to go through the usual procurement process of these companies where you would be competing with many other organizations. Having a strong service offering, a comparable and competitive price, and highlighting your CSOs impact and mission can help you stand out from the other competition.

Design your Internal Processes: In order to complete any contracts you receive, it is important to create clear processes for delivering high quality services, on time. This might require you to restructure your organization’s team and staffing structure. To provide a unified and good service experience, it can be helpful to develop operational templates and checklists to guide your staff.

Additional Resources on Fee-for-Service

Developing a Fee-for-Service Structure, Community Toolbox. A comprehensive resource about creating and managing fee-for-service models for nonprofits. .

EpiC . A self-guided decision-making tool for non-profit leaders exploring if social enterprise is right for their organizations.

EpiC . A simple business planning tool, adapted from the lean canvas methodology, for nonprofit leaders launching social enterprises.