Donations and subsidies from the public are vital for nonprofit growth, but securing long-term and stable funding can be challenging due to a variety of factors including changing donor preferences, shifting public priorities, economic cycles, and increased competition. As a result, many smaller nonprofits struggle to invest in fundraising and marketing efforts to enhance their visibility.

The D. H. Chen Foundation has been exploring funding diversification to bolster the financial sustainability of small nonprofits. This resulted in our partnership with Second Stage, a like-minded venture builder dedicated to collaborating with impact-driven organisations, to help nonprofits develop sustainable business models and create a more scalable positive impact in Hong Kong. The outcome is Breaking Borders – a programme aimed at transforming mindsets around business development and income generation for nonprofits.

The four half-day workshops in the programme equip organisations with a business mindset concepts tailored to nonprofit operations. Participants reflect on their strengths and market fit while identifying viable income-generating ideas ready for execution. The Second Stage team, together with experienced peer nonprofit leaders, helps actualise these models, facilitating a learning experience that emphasises the meaning of a business model in an impact-first context. Participants explore new business ideas without straying from their current mission, assess alignment with target users, and build minimum viable products for practical insights. Upon completion, each nonprofit receives an assessment report from Second Stage detailing its readiness for business development and change, followed by one-on-one consultations to delve into the feasibility and functionality of their models.

Breaking Borders marks a significant step for the Foundation, introducing social business and incubation concepts within the social good sector and challenging traditional views of charitable efforts. This initiative has transformed participants’ mindsets, inspiring many to pursue the revenue-generating ideas developed during workshops. They have begun creating prototypes and testing them in real-world settings, expanding the possibilities for achieving their missions in a financially sustainable manner.

We hope that this experience will empower participants to maintain their momentum, exploring ways to secure fair compensation for their services while reducing reliance on public charity.