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The National Foundation for The National Foundation for Teaching EntrepreneurshipTeaching Entrepreneurship
Then and NowThen and Now
NFTE OverviewNFTE Overview Educational non-profitEducational non-profit 501(c) 3 status501(c) 3 status Dedicated to serving underprivileged Dedicated to serving underprivileged
youthyouth Started by Steve Mariotti in the early Started by Steve Mariotti in the early
90s90s Highly successful in reaching its target Highly successful in reaching its target
marketmarket Experienced serious trouble with cash Experienced serious trouble with cash
flow and organizational structure in its flow and organizational structure in its early yearsearly years
NFTE’s Structure NFTE’s Structure
Then Then
Steve held the headquarters at Steve held the headquarters at his apartmenthis apartment
National staff was there to National staff was there to oversee all operationsoversee all operations
Now Now 7 regional offices7 regional offices
structure of New England regional officesstructure of New England regional offices set positions versus the positions that set positions versus the positions that
they havethey have
Regions are autonomous with Regions are autonomous with accountabilityaccountability
Score card maintains accountability Score card maintains accountability National office oversees the New National office oversees the New
York area keeps the organization York area keeps the organization is sync with the missionis sync with the mission
Regional OfficeRegional Office
3 pre-determined positions3 pre-determined positions DirectorDirector
Decide and carry out their own Decide and carry out their own programsprograms
National OfficeNational Office
Program DirectorsProgram Directors
Communication in NFTE Communication in NFTE
New England RegionalNew England Regional Biweekly meeting with everyone in Biweekly meeting with everyone in
the officethe office NationalsNationals
Monthly meeting with all the regional Monthly meeting with all the regional and with the National Officeand with the National Office
Good, bad, barriers, breakthroughsGood, bad, barriers, breakthroughs Solicited reviewSolicited review
Regions submit ideas for approvalRegions submit ideas for approval
Business ProcessBusiness Process
The Score CardThe Score Card
PurposePurpose
Encourage the sharing of ideas Encourage the sharing of ideas across regionsacross regions
Self assessment and goal-Self assessment and goal-settingsetting
ImplementationImplementation
Representatives of each region Representatives of each region meet once a yearmeet once a year
Each regions sets it own goals Each regions sets it own goals for the year and presents them for the year and presents them to the other regions and the to the other regions and the national officenational office The national office provides The national office provides
directions and approve the goalsdirections and approve the goals
ImplementationImplementation
Goals from the previous year Goals from the previous year are evaluatedare evaluated
Each regions is given a rating Each regions is given a rating based on reaching their goalsbased on reaching their goals
Bonus are given based on score Bonus are given based on score cardcard
NFTE FinancesNFTE Finances
Cash Flow in the Non-Profit WorldCash Flow in the Non-Profit World
Then and NowThen and Now
NFTE thenNFTE then $180,000 per year budget$180,000 per year budget No endowment No endowment
NFTE nowNFTE now $9 million per year budget$9 million per year budget $2 million endowment$2 million endowment
Problems of the PastProblems of the Past
Relied on grants and gifts that Relied on grants and gifts that rarely funded overheadrarely funded overhead
No steady or reliable cash flowNo steady or reliable cash flow Not uncommon for non-profitsNot uncommon for non-profits Possible Solutions: member Possible Solutions: member
fees, merchandise sales, annual fees, merchandise sales, annual fundraising drivesfundraising drives
The AdaptationThe Adaptation
Develop curriculum for sale to the Develop curriculum for sale to the publicpublic Annual revenue of $450,00 a yearAnnual revenue of $450,00 a year Partnership with a publishing firm Partnership with a publishing firm
minimizes resource drainminimizes resource drain Write overhead into the grantsWrite overhead into the grants
Include salaries and rent in project Include salaries and rent in project budgetsbudgets
Rely on multiple grants to fund rent Rely on multiple grants to fund rent and salariesand salaries
How is it Working?How is it Working?New England Regional OfficeNew England Regional Office
Responsible for all their own Responsible for all their own fundraisingfundraising
60% foundation, 20%corporate, 60% foundation, 20%corporate, 20%individual20%individual
Partnership with Babson Partnership with Babson eliminates renteliminates rent
Sees little revenue from Sees little revenue from curriculum salescurriculum sales
Possible AlternativesPossible Alternatives
Government FundingGovernment Funding NFTE does pursue some government NFTE does pursue some government
supportsupport Widespread concern about Widespread concern about
government regulationgovernment regulation For-Profit BranchFor-Profit Branch
Does this undermine NFTE’s Does this undermine NFTE’s mission?mission?
Requires more resources than are Requires more resources than are currently availablecurrently available
Growth of NFTE Growth of NFTE and and
Other ObstaclesOther Obstacles
Steve Mariotti’s RoleSteve Mariotti’s Role President Steve Mariotti still very President Steve Mariotti still very
involved:involved: FundraisingFundraising curriculum development (his pet project)curriculum development (his pet project)
Dilemma: Is there a point when a Dilemma: Is there a point when a founder of an organization should founder of an organization should leave that organization, so that the leave that organization, so that the organization can take on its own organization can take on its own identity and possibly go in a new identity and possibly go in a new direction?direction?
Operating Unit ScorecardsOperating Unit Scorecards
Each unit (each of the 7 regions) Each unit (each of the 7 regions) gets a scorecard every year gets a scorecard every year Each unit sets its own standards, Each unit sets its own standards,
then attempts to meet those then attempts to meet those standardsstandards
Communication between regions Communication between regions improves scoresimproves scores
5 scorecard criteria:5 scorecard criteria:
- teachers - teachers
- students- students
- alumni- alumni
- finances - finances
- programs- programs
Company cultureCompany culture
How does NFTE preserve the How does NFTE preserve the company culture as NFTE company culture as NFTE grows?grows? NFTE wants an open and NFTE wants an open and
understanding culture.understanding culture. Management is cooperative, not Management is cooperative, not
punitive.punitive.
MCAS state standard exams MCAS state standard exams
Schools are focusing on getting Schools are focusing on getting students to pass the MCAS students to pass the MCAS state standard exams.state standard exams. NFTE programs aren’t as NFTE programs aren’t as
important to school administration.important to school administration. NFTE is looking at ways to NFTE is looking at ways to
embody MCAS standardsembody MCAS standards
Bootstrap Grant FundBootstrap Grant Fund
Provides startup money for Provides startup money for student businessesstudent businesses $5000 fund provides rotating $5000 fund provides rotating
credit for startup loanscredit for startup loans Most students only need a few Most students only need a few
hundred dollars to start their hundred dollars to start their businessbusiness
Enables students to pay a vendor, Enables students to pay a vendor, etc.etc.
NFTE International NFTE International
ArgentinaArgentina
BelgiumBelgium
El SalvadorEl Salvador
IndiaIndia
NetherlandsNetherlands
United KingdomUnited Kingdom
NFTE International is a program NFTE International is a program partnership, not a subunitpartnership, not a subunit
Language barrier: NFTE CETIs Language barrier: NFTE CETIs only speak Englishonly speak English
teachers must speak English to teachers must speak English to become certifiedbecome certified
RecommendationsRecommendations
Find colleges (like Babson) to host NFTE Find colleges (like Babson) to host NFTE regional officesregional offices NFTE won’t have get funds for rent (difficult)NFTE won’t have get funds for rent (difficult) donors want their money to go directly to donors want their money to go directly to
studentsstudents Create a for profit section of NFTE to sell Create a for profit section of NFTE to sell
the program and teacher training to higher the program and teacher training to higher income studentsincome students more students would benefit from more students would benefit from
entrepreneurship educationentrepreneurship education Revenue would help students that NFTE now Revenue would help students that NFTE now
servesserves Possible drawback: NFTE might stray from its Possible drawback: NFTE might stray from its
mission and start focusing on profits instead of mission and start focusing on profits instead of helping disadvantaged studentshelping disadvantaged students
Questions?Questions?