The Philantrepreneur Journal: 1
Table of Contents
EDITOR Dr. Victoria Boyd President, the GALAXY group, llc PUBLISHER Theresa Goss Creative Director, TGo & Associates
Letter from the Editor
Meet the Team
13 Philantrepreneur Approach to Starting a Nonprofit
Contributing Writers Marilyn Donnellen Dr. Tamme Shinshuri Ralph Stalter ADS FOR A CAUSE Galaxy Publishing offers a unique advertising model with 10% of the profit collected from purchased ads is donated to charity. Have your marketing dollars have community impact with meaningful marketing. For advertising inquiries contact: GALAXY PUBLISHING 702-483-8354 or email email@example.com 5500 Magi Ranch Ct. Las Vegas, NV 89131 A Division of the Galaxy Group, LLC
The Philantrepreneur Journal: 2
Dr. Tamme Shinshuri Marilyn Donnellen
An Overview to Business Philanthropy
17 The Next Path and Generation of Doing Business
The Dynamic Development of Las Vegas Cultural Corridor
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Letter from the Editor
Even in the desert a seedling can emerge. I’ve taught and supported nonprofits for many years and
y perspective through most of my career was clearly influ-
watched as they struggled. I asked
enced and driven by the nonprofit sector viewpoint. It was
myself, how can I help? At the
passion driven and all about ‘the cause’. However, with any
same time I was asking, what’s
cycle, life span or evolution, whatever your take on it, we all know time brings
next? In February 2013, I wrote
about change. The shift was made clear when I recently listened to Michael
my first blog and coined the term
Drew talk about the concept of his book, Pendulum, whom he co-authored
Philantrepreneur, a compilation of
with marketing guru Roy Williams. The concept is based on the theory that we
philanthropist and entrepreneur. You
oscillate between a civic-minded “We” society and an individual “Me” society.
might say, why didn’t you use philanthropreneur that was already in the
Currently, we are swinging from a “Me” society to a “We”. As noted by Drew, in
market place? I believe this concept has a shift and places more emphasis
2003 the pendulum began the shift and is now headed toward a society that
on the entrepreneurial component. As it emerged, the core resources are
will celebrate working together. Michael’s presentation and theory was based
focused on building strong business and management strategies.
on marketing trends and was an eye-opener for me. It helped explain some
Therefore, I am so excited to release the premier edition of The Philantre-
of the concepts oscillating within me. I had been delving more and more into
preneur Journal!! Dedicated to the growth, support and development of this
the for-profit, corporate world to learn more about their needs. In 2009 I was
movement that will revolutionize the way business is conducted for entre-
fortunate to attend a conference in Chicago that really solidified the con-
preneurs and nonprofits across the country. It is a new age as we witness the
cept. There must be a shared vision, the “We” is what I am seeking – working
maturing of cause marketing into an era of relationship building and partner-
together, building strong foundations. In addition, it was supported by the
ships to benefit the economic and social community.
numerous articles and research reports in the industry. The nonprofit sector
What you can expect
was struggling because of economic shifts and also because they were still living in the mindset of “Me” – their cause. Funding sources became harder and harder to secure as corporations already were making the shift to “We”.
The Philantrepreneur Journal: 4
In future editions you will gain insight and strategies on the various aspects of being a Philantrepreneur. Our contributing authors, Marilyn Donnellen, Dr.
TammĂŠ Shinshuri, and Ralph Stalter, Jr., are from across the country, leaders in their field and will add their own perspectives and viewpoints emanating from different vantage points. We will offer entrepreneurs and nonprofits, valuable information to build strong foundations for enduring success. We will also on occasion feature articles from guest authors, such as accountants and lawyers to provide a wide range of topics on business practices and implementation strategies.
Join us The Philantrepreneur Journal is just one benefit of membership in The Philantrepreneur community. The Philantrepreneur website, designed to attract other like-minded individuals, businesses and nonprofits encourages sharing, building relationships and creating partnership ventures â€“ which is the foundation of being a Philantrepreneur. ThePhilantrepreneur.com will be a resource hub for training, products and services to take your organization to the next level. We would love your input as we travel through this journey. To submit letters to the editor or articles for consideration, please email: firstname.lastname@example.org.
Dr. Victoria Boyd President, the GALAXY group, llc Executive Editor, The Philantrepreneur Journal
The Philantrepreneur Journal: 5
The Philantrepreneur Journal: 6
Guided by her own passion of helping individuals and organizations grow, Dr. Boyd authored, The Wealthy Teacher: Answering the Question, What’s next? Influenced by the evolving environment and her personal journey,
About the Editor
Dr. Boyd recognized the importance of keeping passion and values as the compass to guide your own journey. The book’s content supports anyone looking to answer the question “What’s next?” Delivered via mastermind
r. Victoria Boyd has been a driving force in education, non-
programs, seminars and personal coaching, participants evolve through an
profit and entrepreneurial endeavors as educator, trainer,
interactive process of self assessment to embracing an enterprising spirit to
administrator and advocate throughout the country. Through
launch an entrepreneurial endeavor with social enterprise at its core.
her companies she provides guidance and training in organizational management, individual coaching and business development.
Dr. Boyd’s emphasis on nonprofits and entrepreneurs was the inspiration behind coining the term Philantrepreneur. Now a brand recognized for
As President and Founder of the GALAXY group, llc., Dr. Boyd began her
empowering non-profits and business to build partnerships for win-win
career as a dance teacher which eventually transitioned into roles such as writer
impact. The brand consists of a digital publication, The Philantrepreneur
for district and state curriculum, city-wide dance coordinator, professional
Journal, an internet radio show and an interactive website which serves as
development trainer, and coordinator of numerous city and state events.
the hub for information and resources.
Recognized as a leader, she was offered and accepted the position of Arts/
Dr. Boyd’s long career in education
Education Consultant for Wayne County Regional Educational Service Agency
and the non-profit sector has provided
(Wayne RESA), serving 36 school districts and numerous charter schools.
her with a scope of experiences that
In this position she developed professional training, teacher certification
has made her a valuable resource. A
standards and other statewide educational initiatives. Concurrently, she was
dynamic trainer and coach her goal is
highly involved in the nonprofit sector, serving in capacities such as founder,
to help others recognize that passion
board member, president and interim executive director. After retiring from
combined with purpose can be the
education, equipped with this wide array of skills, her entrepreneurial spirit
compass that creates new rewarding
emerged, she launched the Galaxy group.llc and now serves entrepreneurs
paths and opportunities.
and nonprofits as a coach and mentor. The Philantrepreneur Journal: 7
Meet the Team! Columnists Say welcome to our contributing columnist for The Philantrepreneur Journal. They will provide articles each edition on different aspects of their involvement as a Philantrepreneur, concepts and approaches for either an entrepreneur or nonprofit and support on how to evolve into a sustainable organization.
vices, LLC (NMS). The firm works with others con-
more than 30 years ago,
sultants, authorized dealers and associations in the
left a journalism career
United States and Canada who use and sell NMS
to serve as the executive
director of a single-staff
Donnellan has written three books and training
United Way. During her
modules in use internationally: “Core Elements of a
tenure with United Way,
Successful Nonprofit,” “The Hour Series of Guides
she spearheaded resource
for Nonprofit Management,” and “The Complete
development and com-
Guide to Church Management.” She is currently
munity capacity building
working on three books for the publisher, Charity
strategies in primarily small
Channel, for a series, “Nonprofit Management Sim-
to mid-sized communities in progressively larger
plified,” which will be published in 2014. One of
organizations in Washington, Oregon, California
her books is translated into the native language of
and West Virginia. She also served as the president
the Republic of Malawi, Africa.
and CEO of the United Ways of Texas, a membership association specializing in training and public policy advocacy for the nonprofit sector. In January of 2000 she started her own nonprofit consulting firm, Nonprofit Management SerThe Philantrepreneur Journal: 8
Marilyn has a master’s degree in administration and a B.A. in Human Resources Management. For more information: www.nonprofitmanagementservices.com, or you can contact her at email@example.com.
Dr. Tammé Shinshuri is the living embodiment
Ralph Stalter grew up as the oldest of 7
of the principles she brings to the world, which
children in Pittsburgh, PA, where he gradu-
is to live as an expression of unconditional love
ated from Duquesne University with a BA in
and to be in direct deliberate action about her
Speech & Communications. He went on to
life purpose and desires.
earn his MFA in Acting from the School of
Her goal is to create with real intention each day through her devotion to live and be in phil-
Theatre at Boston University, and to do postgraduate work in Arts Administration at Columbia University.
anthropic service for the expansion and evolu-
He was fortunate enough to enjoy a 15-year theatrical career, though
tion of humanity through educational empower-
most of that time was spent in executive level positions with performing arts
organizations and nonprofit theaters -- including the role of Managing Direc-
Dr. Shinshuri is a business philanthropist de-
tor with three distinct members of the League of Resident Theatres (LORT).
voted to human evolution. Her vision and mission is to ensure that more peo-
Before relocating to Las Vegas in 2010, Ralph lived in New York City for 30
ple, through authentic living and vocational and leadership development, are
years, pursuing his “second career” as an information systems training profes-
able to live empowered by eliminating the excuses that can get in the way of
sional in the healthcare, legal, banking, and insurance industries. He contin-
their human evolution and personal prosperity.
ues to work in technology in Las Vegas, where he serves as a Physician Sup-
Her first book Super Conscious Model for Living was published in 2011
port Coordinator with Sunrise Health Hospitals, where he enjoys cultivating
to support the Personal Transformation Leadership program at OT Academy.
the spirit of life-long learning and community service among his colleagues,
Her newest book Expressions of Unconditional Love and the music CD to ac-
clients and partners.
company the book is also featured subject matter text for the Personal Transformation Leadership program.
Ralph is excited about returning to his theatrical roots as a consultant with Nevada’s first and only member of the prestigious League of Resident The-
Dr. Shinshuri plans to release her newest book Chosen to Lead: My Jour-
atres (LORT), Nevada Repertory, the sister company of Las Vegas Shakespeare
ney of Personal Mastery and How to Reactivate Your Divine Connection in
Company. He has recently been appointed Chairman of the Advisory Board
2014. Dr. Shinshuri lives in Sacramento, California where she continues to live
of the Cultural Corridor Theatre Center, which will transform the former Reed
out her life purpose as a prolific writer, business philanthropist, producer, and
Whipple Cultural Center into a permanent home to many nonprofit arts orga-
speaker. Her website is www.shinshuri.com
nizations in Southern Nevada.
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888.639.9670 路 www. ipowerpay.com/#903092
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An Overview to
By Dr. Tammé Shinshuri This article is the first in a series of articles to discuss business philanthropy. What is business philanthropy? How can it be utilized for the new federal tax structure that has been established to allow entrepreneurs and philanthropist create more socially beneficial enterprises?
Dr. Tammé Shinshuri, founder and president of Shinshuri Foundation is a business philanthropist, author, producer, and speaker. She works tirelessly to live empowered and helps others live empowered too. www.shinshuri.com
Traditionally non-profit and for-profit entities have been separate and diametrically opposed business structures. This led to business professionals¬ traversing two different paths to accomplish their vision, mission, and purpose. It also required them to choose between being an entrepreneur or a philanthropist. Entrepreneurs have the option to use a profit tax structure (e.g. sole proprietor, C-Corp, S-Corp, or LLC) to achieve your business goals. Philanthropists have a single non-profit tax structure, commonly known as the 501(c)(3). Entrepreneurs where given the ability to make money. Philanthropist could not make money or only enough to maintain business operations. Under the current taxing structure regulated by the Internal Revenue Service (IRS), this placed huge limitations on business professionals and philanthropists who had a desired to give and serve for a greater cause or social good. The limitations of the 501(c)(3) made it impossible for non-profit organizations to generate the income to maintain day-to-day business operations. It made it untenable for investors and other types of business professionals to work with non-profit business entities in a way that they could receive a return on their investment. Ultimately, non-profit entities suffered for lack of alternative ways beyond grants, sponsorships and donations to generate enough sustainable revenue to maintain business operations.
The Philantrepreneur Journal: 11
L3C and Americans for Community Development
What is Business Philanthropy? While much work has been done to bring the L3C tax structure to life, very
In 2001, Americans for Community Development (ACD) a non-profit
little effort in the area of implementation and leadership has been planned
organization started working with the IRS to create a new taxing structure.
or developed. There are few options, if any, available to entrepreneurs and
This new tax structure is the low-profit limited liability (L3C) corporation.
philanthropists for how to start using the L3C to start a new business or
The L3C is a legal business entity in the United States that was created to
convert their existing business to this type of structure.
bridge the gap between non-profit and for profit investing. An L3C is a for-
Business Philanthropy is an integrative, income generating business
profit, social enterprise venture that has a stated goal of performing a socially
operations model. It focuses on helping entrepreneurs and philanthropists
beneficial purpose while receiving a financial return.
identify, plan, develop, and implement revenue-generating solutions. It
Today, entrepreneurs and philanthropist have an alternative taxing
is a bridge that closes the gap that exists in securing investment funding
structure available to them that they can use to create great organizations
and attaining long-term profitability in any socially beneficial enterprise or
with dual operations.
Dr. TammĂŠ Shinshuri founder and president of Shinshuri Foundation
The L3C corporate structure has gained momentum across the United
created a model and leadership program called Business Philanthropy.
States. Legislation has passed in several states and Indian reservations
It aligns with the new L3C tax structureand shows entrepreneurs and
including: California, Connecticut, Illinois, Louisiana, Maine, Michigan, North
philanthropists how to become exemplary Business Philanthropists and how
Carolina, Rhode Island, Utah, Vermont, Wyoming, and federal jurisdiction of
to use the Business Philanthropy approach to develop and launch a
Crow Indian Nation of Montana and the Oglala Sioux Tribe.
successful L3C business.
Are you ready to be a Business Philanthropist or states across the union. Their efforts have been focused on proliferation of Philantrepreneur? ACD and the IRS are working together to establish new legislation in more
the L3C structure by getting more states on board to pass legislation for adoption and use.
The Philantrepreneur Journal: 12
The Philantrepreneur Approach
to Starting a Nonprofit By Marilyn l. Donnellen
Someone sees a need in their community so they start a nonprofit. Thatâ€™s the traditional approach. But there are problems with that approach. It is estimated that 50% of these start-up nonprofits will close their doors within their first five years. Why? 1. Lack of research on who else is addressing the identified problem, leading to duplication of
Marilyn L. Donnellan, MS, President of Nonprofit Management Services, LLC with 30 years experience as CEO and consultant; international author and trainer.
services; 2. Lack of solid infrastructure, due to lack of a basic understanding of what it takes to run a
nonprofit, often because the founder has no business management experience; 3. Lack of a variety of funding methods, leading to lack of adequate funding. With an estimated
1.8 million nonprofits in the USA, the competition for limited resources is fierce. And, if the
nonprofit has more than 20% of their budget coming from any single source, and that source
dries up, the nonprofit will be in trouble;
4. Failure to have any type of business plan or strategic plan. Because of the problems inherent in the traditional nonprofit start-up strategies, the philantrepreneur approach to meeting community needs is often radically different, although it too can have problems. Micro-financing strategies, developed to provide small loans to individuals in poverty, were the precursor to todayâ€™s social enterprise ventures used by philantrepreneurs. More than 20 states have either passed legislation or are considering bills on new social enterprise structures, usually led by philantrepreneurs. Examples of these new strategies include: 1. L3C â€“ Low-profit Limited Liability Corporation, which must significantly further charitable
The Philantrepreneur Journal: 13
purposes, with production of income and appreciation of property as insignificant purposes;
2. B Corporation (or Benefit Corporation) – Corporate purpose is to
create positive material impact on society and the environment; 3.
For-Profit Activity of a Nonprofit – Maintains non-profit status but pays taxes through Unrelated Business Income Tax structure (UBIT);
Partnerships with for-profit corporations – Although designated as
501(c)3 nonprofits, these types of nonprofits often ignore traditional
start-up and funding strategies and rely on the for-profit expertise of
their founders and corporate partners. Two examples of philantrepreneurs who started nonprofits as social
enterprise ventures are: Wayne Elsey, founder of Soles4Souls (www. soles4souls.org), and Shawn Seipler, founder of Clean the World (www. cleantheworld.org). Both men came from highly successful for-profit careers but used their entrepreneurial and business skills to start non-traditional nonprofits. They combined their business acumen with their passion to help, partnering almost exclusively with for-profit corporations. The philantrepreneur approach to starting nonprofits and meeting specific needs requires this kind of outside-the-box thinking and strategies. Such approaches should decrease the failures of start-up nonprofits because they often have more solid infrastructures, reduce competition for funding, have a business plan, and are founded because of unmet needs. But be cautious. These partnerships are opposites. Charities work to improve their communities, while corporations are primarily interested in profit. Even so, such partnerships can impact individual’s behaviors in positive ways by improvements in health, environment, sanitation, and by decreasing poverty. The Philantrepreneur Journal: 14
The Dynamic Development of
Las Vegas Cultural Corridor
By R alph J. Stalter, Jr. In January 1998, The Wallace Foundation commissioned the Urban Institute to conduct a five-year evaluation of the Community Partnerships for Cultural Participation (CPCP) initiative. The initiative was part of the Foundation’s long-term commitment to support a range of cultural organizations and private and public arts funders to enhance broad participation and make the arts and culture an active part of
Ralph J. Stalter, Jr. Chairman, Advisory Board of the Cultural Corridor Theatre Center; management consultant to Nevada Repertory, Nevada’s only member of the prestigious League of Resident Theatres (LORT).
people’s everyday lives.
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The published policy brief, entitled “Arts and Non-Arts Partnerships: Opportunities, Challenges and Strategies,” assessed the initiative and reached the following conclusion:
Partnerships between arts and non-arts organizations can confer benefits on both parties if the
benefits are mutual and in accord with their respective missions and if the potential risks and
costs are anticipated and addressed.
Non-arts agencies can gain fresh, high quality programming that stimulates new thought, activity,
and involvement among their constituencies. Arts and cultural organizations can broaden
community awareness of their missions and services, thus increasing the public value of their
activities and offerings.
Beyond that, such arts/non-arts collaborations provide a further and more enduring dividend for
the participating organizations and the communities they serve. As arts and non-arts groups
accumulate skills and experience in effective partnerships, additional possibilities for productive
collaborations present themselves, leading to more and better opportunities for people to
participate in cultural life.
Article series focusing on:
Foundation of The Dynamic Development of Las Vegas Cultural Corridor
c. Jeanne Meister, a contributor to Forbes Magazine, said that, “As we look to the future, we have to ask: Will the workplace be on-site at our employer’s property, or on-demand at a collaborative space? Or will work simply be a mindset independent of place or time of day?” i. When planning a new state-of-the-art theatrical facility, we must consider that today’s work environment is more flexible and communication more mobile. Collective administrative services may not require physical office space, thereby leaving the bulk
1. Why is this work valuable to any community considering the develop-
of the property available for educational programming, creative
ment of such a partnership model today?
endeavors, broader community access and extended audience
a. In today’s economic climate, there are economies of scope to be
realized in producing a range of cultural programs together than to
2. The history of the Cultural Corridor as “A vital and important part of
produce each one of them on its own.
the city of Las Vegas’ overall plan to become a world-class city and a
i. Such economies come from businesses sharing centralized func-
welcoming destination for both locals and tourists alike” (Mayor Carolyn
tions, such as marketing, technology, payroll or financial services.
ii. They also come from interrelationships elsewher in the business
3. Ongoing activities of the Cultural Corridor Coalition – cultural institutions,
process, such as cross-selling one product alongside another,
local arts and culture professionals, neighborhood business owners
or leveraging the artistic outputs of several organizations in a
and residents interested in promoting this neighborhood.
collective programming event.
4. Plans for the Cultural
b. As Dan Brown said in The Lost Symbol, “Knowledge grows
Corridor Theatre Cen-
exponentially. The more we know, the greater our ability to learn, and
ter (CCTC), a state-of-
the faster we expand our knowledge base.” Such a wealth of shared
the-art theatrical home
knowledge across the partnership is beneficial in building civic
for many nonprofit arts
engagement, public investments and making the arts and culture
central in community and economic development. The Philantrepreneur Journal: 16
The Next Path and Generation of Doing Business By Dr. Victoria Boyd
1. Startups – Build a strong foundation
his issue of The Philantrepreneur Journal contains insight, from
a. Entrepreneurs: Use social enterprise as the model
slightly different perspectives, on the organizational models
b. Nonprofits: Develop entrepreneurial systems
emerging in the industry. Stepping back a bit to assess what it all
2. Existing – Adopt new strategies and language
means, in my opinion, the concept of sponsorship is becoming defunct.
a. Entrepreneurs/business: Integrate meaningful marketing into strategies
Instead, cause marketing is maturing into what is referred to as meaningful
b. Nonprofits: Use marketing as the basis for developing partnerships
marketing or impact investing. This shift is evident across the spectrum in large
and small enterprises and gaining momentum. Businesses are intertwining
I love this image because it depicts the past, present
social conscious messages into their branding and marketing strategies and
and future. We’ve Nonprofits and business have
unfortunately those that have not made a shift are being left behind and fight
been on a long road with the double yellow lines
to be heard.
indicating, do not cross. Yet, there is a bright future
The relationship dynamics between for-profit and nonprofits is evolving into
ahead. Historically, federal and state statutes have
a collaborative approach that benefits both. These are exciting times that
viewed charitable and for-profit entities as mutually exclusive organizations
encourage communication and joint development of projects which serve
whose mission statements rarely, if ever, overlap. It was the double yellow
both sectors. This approach, repeatedly mentioned in this issue, is being
line warning. This legal distinction is being replaced by a new class of
recognized and legislative action is spreading across the nation. It is the next
entrepreneurs that believe companies can pursue profit while advancing
generation of doing business.
social causes. In response to the need for a legal designation that straddles the
So how and where do you start to follow this path? It depends on the stage
line between for-profits and non-profits, the US government and numerous
of development, launching, existing or renewal. There is not a one size fits all
states are recognizing and allowing for the creations of such enterprises.
strategy and each situation has unique circumstances that need to be evalu-
Even though discussed previously in this issue, there still may remain some
ated for the desired goals and point of entry. That is the core of the Philantre-
questions that require a few more details for clarification. To start, there are
preneur approach, to embrace multiple starting points to maximize business
three (not 2) processes currently in the industry – low-profit, limited liability
growth and community impact. To define them simplistically they include:
companies (L3C), Benefit Corporations and B-Corp certification.
The Philantrepreneur Journal: 17
Low-profit Limited Liability Corporations - L3C
however a sole proprietor, partnership, LLC, LLP, co-operative, or any other type of business can be a B Corp. B Corp certification was created by B Lab, a nonprofit organization that created an assessment tool to demonstrate an
Since 2008, L3C has been a recognized business entity that allows com-
organization’s commitment to multiple stakeholders including your workers,
panies to achieve modest profits while operating under a business model
customers, suppliers, community, and the environment. They also must pay
that emphasized impact over profits. L3Cs were specifically designed to help
a fee to join the B Corp community.
social entrepreneurs raise capital from a much broader range of investors
Concurrently, and adding to the confusion is the Benefit Corporation
than are typically attracted to traditional nonprofits. To regulate, many states
legislation which gained momentum as an initiative launched by B Lab. A
across the country implemented legislation to accommodate and encourage
distinct government constituency statute, Benefit Corporation legislation
social enterprise. Started in Vermont in 2008 there are now 10 states that have
has passed in 20 states and has introduced legislation in an additional 14
L3C designations and approximately 942 recognized companies.
states. New corporations can form under one of these statutes and existing
Under Treas. Reg. § 1.501(c)(3), L3C designated entities must:
corporations can convert into them. Benefit Corporations are required to
1. Significantly further the accomplishment of one or more charitable or
draft or amend their articles of incorporation to include the following five
provisions: Purpose, Accountability, Transparency, Right of Action, and Change
2. Be formed for the purpose of furthering said charitable or educational
Companies that operate under these standards are legally protected and
purposes; 3. Not strive for the attainment of revenues or property as their primary
obligated to pursue social benefits before profits. This obligation guarantees to investors that management will operate the business in a way that furthers
purpose; 4. Not be organized to further any legislative or political purposes.
their interest in social improvement. Whichever path is selected, utilizing any of these corporate structures or
An alternative for companies wishing to operate under a standard of social
certifications indicates a commitment as a Philantrepreneur enterprise. Our
accountability is the increasingly popular B Corp. B Corps’ are not statutory
goal is to support those efforts with a variety of strategies to build relationships
business forms and in fact, any business can receive B Corp certification. The
between entrepreneurs and nonprofits for win-win partnerships. We hope to
name creates some confusion because it implies you have to be a corporation,
help answer the three main questions regarding – What, Why and How?
The Philantrepreneur Journal: 18
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