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?