Have people approached you about replicating your organization in another city, county, or state? Doing exactly what you’re doing, just in another location? If so, you could be generating revenue and expanding your organization through licensing. It’s one way of growing and controlling your organization’s brand. Learn how in this episode.

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NONPROFIT SPOTLIGHT: CASA of Los Angeles
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Podcast Transcript

Speaker 1 (00:05):

Welcome to On Air with Amber Wynn, where nonprofit leaders learn to fuse passion and commitment with proven business strategies to create long-term funding impact and sustainability. And now here's your host and resident, Philanthrepreneur, Amber Wynn.

Speaker 2 (00:29):

Hey fam, it's your girl and we are on the last episode of the series Monetizing Your Assets. It's been exciting and I hope you guys have just opened your mind. Expanded a little bit about ways to generate revenue without doing the heavy lifting. You have assets as a nonprofit, you have things in your space. Sometimes you just need to have somebody say, Hey, you can monetize that. I do it all the time. Unfortunately, it's the way my brain is wired. People will be talking and I'm like, are you charging for that? And they'll be like, no. I'm like, you should charge for that. So that's the mindset that I want you to get into when you are running your nonprofit. Don't give away everything for free. Listen, I am from the hood. I'm from Watts, California, and I know how challenging it is for families, and we're not trying to put any undue hardship, but you have bills to pay.

Speaker 2 (01:31):

If normally you would charge $150 a week, don't do that. Charge $25 a week, that's affordable. I know you wanted to say, oh, it's for free, but you've got to think about the longevity of your organization, right? People spend $25 for a whole lot less. You're providing them with a safe space. You're providing them with amazing curriculum. $25 is not too much to ask. Today though, we're going to talk about licensing your brand, licensing your brand. What does that mean as a nonprofit? Well, when we come back, we are going to dive into it. So when we come back, monetizing your assets.

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Speaker 2 (02:48):

Welcome back to On Air with Amber. Today we are wrapping up our series on monetizing your assets and we're talking about licensing. When we talk about your brand, we're talking about that thing that defines you. So if your brand is only serving girls like Girls, Inc. If your brand is stem, it's your reputation and is what you do The way that you do it, I want you to think of it as sort of like franchising. McDonald's has a brand. When you see those golden arches, you somewhat know what to expect in a McDonald's, right? It's going to be different in different countries. Like I went to the Philippines earlier and they have spaghetti. That's a cultural thing. But generally speaking, when you see the golden arches, you know, should expect those golden fries, the Big Mac. So that is what I'm talking about with your organization.

Speaker 2 (03:53):

If people have come up to you and say, oh my gosh, how can we get this program in our community? Or how can we get this program in our state? If you've thought about having chapters or affiliates in different places because you want to replicate what you do, then licensing might be the way to go. What is licensing? Licensing is when someone pays you for the rights to replicate your program. So when they pay you for the rights, they don't change it. They take it and they implement it the way that you do it. And I love that part because once you figure it out, the secret sauce, you don't want somebody to come in and bastardize it. You want them to deliver it the way that it is meant to be delivered. And that's what we did at Girls Inc. If you wanted a Girls Inc in your town city, it had to have a certain logo, it had to have certain colors.

Speaker 2 (04:47):

You had to use the research-based curriculum. You knew what you were going to get because it was all packaged up for you. So if you have curriculum, you have a program, you do it a specific way, people love what you're doing. There's measurable goals and objectives, then you can license that. People will say, oh, I wanted to start a chapter over in so-and-so they've been asking me for it, and I'll say, license it. And they're like, what does that mean? Tell them, yes, you can have this program, but you've got to pay $1,200 to get the license for it. I don't know. You'll have to do the research for sure, make it worth your investment because when they license it, basically it's going to be your organization in a box and you're going to hand it to them. So you're going to hand them all of the documentation, how to build up the infrastructure, the type of people to hire, what type of people to hire.

Speaker 2 (05:47):

If you're doing, I don't know, mental health, you have to have a psychotherapist, whatever, you're going to have to list it out. So basically they won't have to figure it out. They're licensing the secret formula for how to deliver your programs. And the beautiful thing about licensing is just like a franchise, people can't go off the beaten path. This is the brand, this is what they need to do, and you've already figured it out. You're just going to hand it over to them for a fee and for a fee every year. And it may include that train the trainer part that we talked about in the beginning. So you've got the licensing fee that says this is how you put together the box. So this is how you put together your McDonald's. But then every year when they're like, okay, you need to come meet with us once a year so you know what the initiatives are, what type of new foods we're going to roll out.

Speaker 2 (06:45):

It's the same thing for a nonprofit. Okay, this is going to be the initiative for this year. Send your people in so they can get trained so we can all be on the same thing, on the same path. So you have opportunities to generate even more revenue with the trainings. It's a part of being in the licensing space. You get the secret formula, but then you need to get the updates. How would you go about licensing? Not your girl's lane. You would have to talk to an attorney who would help you set up a whole package. There's going to be legal agreements that they're going to have to sign on, make sure they don't violate the terms and conditions of that license. What happens if they do? What happens if somebody tries to roll out your program, maybe using the same name, maybe using the same lingo because they know that people know you and recognize you.

Speaker 2 (07:40):

Well, if you have legal agreements in place that's a violation of that agreement, maybe they can be sued. Definitely you can send them a cease and desist, but just want you to consider that as a resource for generating additional revenue. We're talking about monetizing your assets people, because a nonprofit is a business. It's just a business with a philanthropic purpose, and you need revenue to cover your business expenses. So I want you to think about is your organization, if it is, take a look. All right, so we're going to pause right now for commercial break, but when we come back, we have Ask Amber, and that's when you get to ask me your most pressing questions. When we return,

Speaker 5 (08:34):

You're at the stage where you need a website or perhaps you already have one, but what you don't have is the time to build it properly yourself or the resources to get someone to do it for you. This can cause your website to become very outdated very quickly. And even if you do have a webmaster, you know the frustrations of going back and forth for every little detail. What you need is a website builder that's intuitive so that you can easily make changes yourself while Apricot's Website Builder is just this. It allows you to do everything yourself. Our clients love using it because they don't have to be a techie by any means to master it. Choose from many modern and stylish themes that are ready to use and completely customizable to your liking. Plus, they're responsive for mobile applications such as tablets and smartphones.

Speaker 5 (09:16):

When creating a website, it's easy to add content with our drag and drop features or select from our many gadgets that add further functionality to your site, like event calendars, donation forms, and event directories. In just a few clicks, your new website is ready to go. There's no need to hire a designer or developer since you can do everything yourself, no matter how tech savvy you are. And even if you are advanced at web design, you can customize your Wild Apricot site using HTML and CSS to your liking. So if you're looking for an all-in-one website builder, that's quick and easy to use, that requires no technical skills to master, then Wild Apricot is for you.

Speaker 2 (09:54):

Welcome back to On Air with Amber Wynn. It's your girl. And today we are wrapping up our series on monetizing your assets, and today I posed an opportunity for you to think about licensing your brand, but right now, we are going to move into the part of the episode where you get to ask me your questions, and if you have a question for me, feel free to reach out. You can reach out to me on any of my social media platforms. You can email me at amber@amberwynn.net, but I'm on Instagram, Facebook, Twitter, LinkedIn. This question actually comes from my Twitter account, which I don't check as frequently as I should. Sorry, you guys. I'm going to do better. This question is from Julio. Hi Amber. My name is Julio, calling from East LA. I'm really passionate about helping youth from the foster care system. Thank you, Julio. I own several homes and I'm thinking about turning them into safe loving homes for this population. Any suggestions on how to go about turning them into nonprofits? First of all, Julio, thank you so much. Youth from the foster care system are extremely at risk. And as we know, having safe, stable homes is important to them being able to dream because they have stability.

Speaker 2 (11:24):

Okay, but to answer your question, here's my answer, Julio, do not turn your homes into a nonprofit. Don't do it. Don't do it. I know you guys are like, what Amber? No. The reason why I'm saying that is because when you put those homes into the nonprofit, meaning you're going to register them or whatever you do and make them a part of the nonprofit, they are no longer your personal assets and Julio and my people out in the community, I don't want you to give up your ability to create wealth, generational wealth. Keep those nonprofits as your personal assets and then guess what you do? You rent them out or you lease them out to nonprofits or people who want to start group homes or as you put them loving safe homes because there are people interested in starting these services but not interested in purchasing homes.

Speaker 2 (12:25):

If you have a website that says Create your forever home, leasing out three single family homes, people are going to jump on that. So they may have the clients, they may have the experience, they just don't have the space. They're looking for the homes. So they would lease out your homes. So number one, you still get to accomplish your goal. You set your goal is that you're passionate about helping youth from foster care. If you're leasing out your home to a person who's already qualified to deliver the programs and services, you get to accomplish that goal. The second thing is you don't have to start a nonprofit. Starting a nonprofit is a lot of work. You got to recruit and train your board. You got to build out the infrastructure, you got to fundraise. If you keep your homes and you lease them out to qualify people who are already doing the program, you don't have to do any of that.

Speaker 2 (13:24):

You still get to own your house. That becomes a part of your wealth. You get to generate revenue. Listen, you can give them a discount. Maybe if they were to go lease out a building, it would cost them 6,500 a month and you can give it to them for 45 or 55. That's winning. I am just saying I am about strengthening the community. And when you have assets in your nonprofit, it is a public charity, and so therefore you can no longer benefit from it financially the way that you could if you kept it as an asset. So Julio, love you to death, babe. This is what I want you to do. I want you to offer your homes up for nonprofits. So if someone with the experience wants to come in and run the program out of your home, they can do it for a discounted rate.

Speaker 2 (14:16):

And here's the thing, if you give them a discounted rate, you get to write that off on your tax on the other end. So you win-win all the way around. So do not start a nonprofit, grow your generational wealth, grow the wealth in your community, and support someone who's looking for a space to run their nonprofit out. Great question. Great question. All right, speaking of amazing nonprofits doing amazing work. It is time in our episode for the nonprofit Spotlight. And today I am focusing my, I'm shining the light on Casa of Los Angeles. Casa of Los Angeles organizes the community to take action and advocate for children and families in LA County's overburdened child welfare and juvenile justice system. Through an intentional, restorative and culturally relevant lens, they train consistent and caring adults who provide equitable access to resources and life forming connections. Let's check out Casa of Los Angeles.

Speaker 6 (15:22):

I believe in Casa LA because we have the power and platform to really change lives and make a real impact on the children in LA County's foster care system.

Speaker 6 (15:40):

Our mission is to impact the lives positively of hopefully every child in the child welfare system, but to really advocate and support and show up for youth to ensure they have positive experiences while in the system and outcomes when they get out. I got started with Casa LA through a friend who used to be the former CEO. She told me about the opportunity. I thought it would be a great way for me to give back to my sisters and brothers in the foster care system. I experienced the foster care and juvenile justice system, my myself, and I know how hard it is for our children that are in the system, and that's how I came here. So at Casa LA, we provide one-on-one advocacy and support for youth in the foster care system. So our services are very intentional. They're very, very culturally competent and they amplify the voice and the need of the children and the families that we're serving. As

Speaker 7 (16:24):

A concept volunteer, one of our main job is working with the children that their needs are met, educational health and mental health. But being a concert for 20 years and just seeing how I can change lives in children,

Speaker 2 (16:44):

That's how it ended. Okay.

Speaker 8 (16:48):

Wow.

Speaker 2 (16:50):

If you're interested in supporting casa, you can visit them at casala.org. All right, so now it's time for us to move into our mindset minute. And I want to ask you a question. How do you cultivate your donors? Cultivate? A lot of times nonprofit leaders will ask donors for money, get the money, and then crickets. I read an article recently where a donor was saying he stopped supporting a nonprofit because he was asking for information and they didn't get it to him. So he took his money elsewhere. And I just wanted to bring that to your awareness. Just because you've secured a donation or a donor doesn't mean that they have to stay with you forever. There are a lot of organizations out there for them to choose from, and you want to keep them in your space by cultivating your donor. What does that look like?

Speaker 2 (17:47):

Well, you want to make sure that you keep them informed. As a donor, the number one thing they want to know is, what are you doing with my money? I've had nonprofits say, well, I told 'em what I was going to do with the money. Yes, yes, yes. Now show them what you did with the money. If you said that you were going to increase graduation rates, show the work that you're doing. Not just the certificate with them holding up saying, Hey, I've graduated. But along the way, show them the SAT classes that they're participating in. Take pictures of them actually engaged. Show them visiting colleges, right? Show them where their money is going. Make sure that you let them know, Hey, your money is in good hands. Also, provide them with financials once a quarter. This is how much of the money that you have given to us we've spent.

Speaker 2 (18:40):

Here's where it's gone so that they know you have no problem with being transparent. This is how you cultivate your donors. How about you invite them out to the events? They don't always have to be galas. Tell them, come down. Come down to the organization. See how we interact with our students. See where your money is going. Sit down, talk to them. Let them tell you how this program is impacting their lives. And because of your donations, we're able to do that. Talk to the staff. Talk to the board members. Invite them even if they don't come. The fact that you've extended the invitation says a lot to them. It says, okay, they're concerned about me and not just the money, not just the check. They want me to know that they are sincere about what they're doing with my dollars. So don't forget to do things like sending newsletters.

Speaker 2 (19:34):

Thank them publicly, unless they specifically tell you they don't want to be acknowledged. Thank them. Send out little snippets in your social media, acknowledging the donations. Cultivate means to help grow. When you cultivate a garden, that means you put water into it. You put nutrients, you take out the weeds. You have to do the same thing with your donors. When I say take out the weeds, you want to make sure that they know that you are using their money in the way that you intended. And sometimes things happen. We had a shortfall. We thought some money was coming in from another donor and it didn't. And so we had to go to our donor and say, Hey, we thought that we had this other money coming in it. Would you be okay with shifting your funding so that we can cover these? That's the weeds that you're taking out.

Speaker 2 (20:26):

You don't just go in and start using the money where it's needed. You ask for permission. You let them say, yeah, that's okay. That that's perfectly fine. So cultivating your donors, making sure that you have relationship, making sure that they feel appreciated and valued is key to sustaining your organization. You don't want to keep energy finding new funders. You want your funders to feel endeared to your organization. You want them to feel like their money is going somewhere so that they give you more and more and more money. And that only happens through donor cultivation. All right, so that's it for this week. That's it for this series, monetizing Your Assets. If you have any questions for me, feel free to hit me up on any of my social media platforms. If any of this information you think is helpful, be sure to share it with a nonprofit out there. I'm here to support you the most amazing people on the planet. And until next week, you take care of yourself, like you take care of your community.

Speaker 1 (21:32):

Thanks for listening. If you enjoyed this episode, subscribe and leave a review on iTunes. Head over to www.amberwynn.net/podcast for the links and resources mentioned in today's podcast. See you next time.