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SOCIAL ENTERPRISE INVESTMENTS
Transcript of SOCIAL ENTERPRISE INVESTMENTS
Allowing Clients to Maximize Social & Financial Returns
A New Model
Since the establishment of the nonprofit sector with its corresponding IRS regulations, individuals have had to maintain a clear boundary between their philanthropic activities and revenue-generating pursuits.
What's Your ROI?
But what happens when a sizable tax write-off isn't worth the Investment?
What happens when the social return alone doesn't warrant the financial loss you've incurred?
Is there an alternative to giving money away?
The Answer is YES...
Welcome to the World of Social Enterprise Investments.
The Social Enterprises we target are revenue-generating programs/ventures operated within nonprofit organizations.
Where there are revenues, there can be financial returns.
Step 1: Customized Investment Selection
You, our client will have the opportunity to choose from our database of available social enterprises investment opportunities or have us identify a new social enterprise to invest in based on your specific criteria.
The greatest appeal of Social Enterprise Investments is that your return will last as long as the social enterprises you've invested in is active and producing a profit. This investment product is perfect for clients in need of long-term passive income.
Deo V. Development & Investments
"How You Make Your 1st Investments"
Step 2: Research
Our process begins with an extensive research period in which we identify the best candidates for investment. Our research is unique in our use of the Graham and Dodd valuation method. Benjamin Graham shared this ideal nationally in 1949 through his book, “The Intelligent Investor”. These principles were also adopted by Graham’s star pupil; Warren Buffett. Our firm uses the principles from these investors to identify the best social enterprises to invest in. We typically target distressed social enterprises with high “intrinsic value” and growth potential.
Step 3: Evaluate Human Capital
Once we’ve identified a number of social enterprises with strong business models, we assess their management. Investors know that a great business idea only has as much potential as the quality of its management. Our assessment of management includes issues of experience, competence, resource allocation, track record of financial stewardship, etc.
Step 4: 501c3 Management Consulting
Prior to finalizing your investment, our associates work with the social enterprise as management consultants. We ensure that issues such as costs, competition, market share, demand, and more are all being taken into proper consideration. The goal is to maximize the performace potential of the social enterprise in order to hedge risk and provide our clients with the best chance for reasonable, long-term returns.
Phase 2: Deal Execution
Our clients are presented with multiple social enterprise investments options that allow them to select the investment best suited to their risk tolerance.
Investment Profile Presentation
After Phase One due diligence is completed, our associates present a handful of investment options to our client.
These investment profiles will include:
- % of revenues that the social enterprise offers ("shares available")
- Potential social return of investment
- Type of investment (long-term growth, income, philanthropic, seed capital, etc)
Close the Deal
Finally, after all bases have been covered, we make the "shares" available for purchase. The terms of the investment are that the social enterprise will allocate a percentage of its revenues to the client for the life of the invested in social enterprise.
Each “share” represents 1% of revenue. For example, if Deo V. Development & Investments has a contract, which secured 10% of annual net revenues from Goodwill Industries (a nonprofit social enterprise), we would then make 1-10 shares of Goodwill available for purchase at a specified price per share. A client’s purchase of 5 shares of “Goodwill Industries” would be the equivalent of having rights to 5% of Goodwill’s annual net revenues produced by their social enterprise activities. These revenues would be passed on to the client on a quarterly, bi-annual or annual basis.
“Share” prices would be determined based upon the social enterprise’s growth potential, current revenues, market share, etc.
For additional information regarding our firm, its services, and products...
Contact Shaun Randolph
Deo V. Development & Investments is owned and operated by a small group of young, entrepreneurial, UCLA students/alumni.
Our team has combined business education with practical experience in the nonprofit sector in order to amass an impressive company resume in just over 3 years.
What Makes Us Unique...
Deo V. Development & Investments and its strategic partners are the only firms which operate Investment models that adheres to strict IRS guidelines addressing financial returns generated from nonprofits.
This means that we are the sole intermediaries and brokers of nonprofit social enterprise investment deals.
Our Unique Investment Model
Deo V. Development & Investments
Our firm and intermediary clients enter into two separate contractual agreements with both the social enterprise and client.
Our agreement with the social enterprise secures "ownership" or rights to a percentage of future revenues from their business activities.
Our contractual agreement with the client ensures that the previously negotiated percentage of revenue from the social enterprise passes untouched from the intermediary firm to them.
Our primary competitive advantage is rooted
in our ability to facilitate "Investments" while
remaining in compliance with the following:
Inurement/Private Benefit - Charitable Organizations
A section 501(c)(3) organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of the net earnings of a section 501(c)(3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization.