Three Things to Know
Nonprofits, including animal shelters, are facing increasing financial pressure due to declining donations and government funding. To address this, researchers investigated the key success factors of two shelters that established social enterprises to generate additional revenue.
The research found that successfully building a social enterprise requires shelters to professionalize their management, including hiring qualified individuals, setting appropriate key performance indicators, and improving the efficiency of daily operations. Furthermore, enhancing their community standing is crucial for long-term success.
While engaging in commercial activities, these shelters ensured that these activities enhanced the overall shelter experience. For example, they established a relaxing cafe where animals could interact with people, opened a retail store offering fairly priced items with clear signage explaining how revenue supports shelter operations, and developed a shelter management system that could be sold to other organizations.
For Dog Welfare Practitioners:
As animal care costs continue to rise due to inflation, dog welfare organizations face even more pressure to generate sufficient funds to meet their operational needs. However, the burgeoning pet industry presents a valuable opportunity for non-profit organizations to explore. Dog welfare organizations should conduct a thorough strategic review to assess their willingness and capacity to participate in this growing market.
While this study initially focused on animal shelters in the United States and Australia, its findings have broader applicability. Organizations in developing countries and other regions, including those in the Global South, have been equally innovative and are enhancing their operations with innovative revenue streams, such as through tourism.
Regardless of location or specific cause, the foundation of a successful social enterprise remains with professional management and the recruitment of qualified personnel. It’s crucial to ensure that commercial operations enhance the core experience of the organization.
The Full Picture
Nonprofit organizations, including animal shelters, are facing increasing financial strain due to declining donations and government funding. In the U.K. alone, non-profit funding was cut by $2.8B from 2010 to 2016. To survive and thrive, they need to explore innovative ways to generate income.
Social entrepreneurship (SE) offers a promising solution. It involves using business principles to address social problems. Universities, with their diverse revenue streams, provide a good example of how nonprofits can adapt to financial challenges. For animal shelters, transforming into NSEs can include strategies like creating commercial revenue streams, professionalizing operations, and legitimizing a social-commercial business model.
Key considerations for animal shelters as NSEs include the ethical implications of commodifying services or goods and maintaining their mission of non-human animal welfare. Shelters must ensure that their efforts do not undermine their mission of improving Live Release Rates (LRRs) and providing optimal care for animals.
This study investigates how two successful animal shelters – one in the Intermountain West of the United States and another in Australia – significantly increased their Live Release Rates (LRRs) since 2011. Titled “Social Enterprise as a Model to Improve Live Release and Euthanasia Rates in Animal Shelters,” the research employs a qualitative, comparative approach to explore the factors contributing to their success and assess the potential for replication in other shelters. By focusing on the unique challenges and strategies implemented by each shelter, the study aims to understand the conditions under which these successful outcomes can be achieved.
Study Methods
The U.S. Animal Shelter, serving a city with a population under one million, handles approximately 15,000 animals annually. In contrast, the Australian Animal Shelter manages over 56,000 animals each year in a state with a population exceeding six million. Both shelters were selected for this study due to their comparable size and the significant role of social enterprise activities within their operations.
The researchers collected data using a mixed-methods approach. In Australia, 10 semi-structured interviews and brief observations were conducted over two weeks. The U.S. phase spanned six months, encompassing 11 in-depth interviews and extensive participant observation. This included activities such as fundraising, job shadowing, animal care (cleaning, walking), surgery observation, and administrative support. Over 30 informal interviews with staff and volunteers were conducted during observations. Additionally, internal and online publications were analyzed for comparative insights.
Study Results
The study identified three key themes contributing to improved Live Release Rates (LRRs):: professionalizing shelter management, engaging with non-profit social enterprise activities, and improving efficiency of daily operations.
1. Professionalizing Shelter Management
Both shelters embraced a more professionalized management approach, incorporating non-profit social enterprise models to diversify revenue streams. This included generating income through the sale of products like shelter management software and pet supplies. Internally, these changes involved higher work expectations, targeted recruitment of skilled employees, and a shift towards compensation models that rewarded mission outcomes rather than solely focusing on fundraising totals. The shelters also prioritized employee satisfaction by emphasizing leadership opportunities, implementing performance reviews, and investing in career development.
Volunteer management was significantly enhanced. Dedicated coordinators were hired to implement structured training programs, track volunteer hours effectively, and utilize data to demonstrate the impact of volunteer contributions to donors. These efforts, combined with improved volunteer recognition and mentoring programs, not only saved significant labor costs but also strengthened relationships with donors and sponsors.
By mirroring for-profit business practices, the shelters improved their overall organizational efficiency and increased public trust. A strong social media presence enhanced transparency and professionalism, while streamlined adoption processes and the creation of retail-style adoption centers contributed to higher adoption rates. These transformations resulted in stable staffing, increased stakeholder trust, and the successful fundraising for new facilities.
Respondents attributed these changes to significant improvements in operational effectiveness, a positive shift in organizational culture, and ultimately, sustained success in achieving higher Live Release Rates (LRRs).
2. Engaging with Non-Profit Social Enterprise Activities
In addition, both shelters effectively integrated social enterprise activities to enhance the overall shelter experience. The Australian Animal Shelter had a vibrant atmosphere, a stark contrast to the expected somber environment of traditional shelters. Cats roamed free in the on-site retail cafe. Dogs were housed in bright, glass-walled rooms with comfortable bedding, toys, and ample water. They received over four hours of daily enrichment through interaction with staff and volunteers, leading to calmer and more relaxed animals.
The adoption area was equally impressive, featuring a thoughtfully designed waiting area and an on-site retail store. This store offered a range of pet supplies while reinforcing the message that purchases directly supported shelter operations. This modern approach not only reduced stress for the animals but also created a more positive experience for potential adopters. Volunteers observed that the calm environment made it easier to predict animal behavior, facilitating smoother adoptions. As a result, most dogs found homes within 4-7 days of being placed on the adoption floor, and cats also experienced significantly shorter stays.
Beyond improving the shelter environment, the Australian Animal Shelter diversified its revenue streams through a variety of social enterprise initiatives. These included offering services such as shelter management software, microchipping, and pet cremation, operating thrift shops, and hosting events like puppy parties. Retail shops located both on-site and throughout the community offered affordable pet supplies, further strengthening the shelter’s financial stability.
This successful model inspired the U.S. Animal Shelter to adopt similar retail-oriented operations. Both shelters demonstrated the effectiveness of combining enterprise-driven initiatives with compassionate animal care. This approach not only improved adoption outcomes and enhanced financial sustainability but also created a more positive and welcoming experience for both animals and the community.
3. Improving Efficiency of Daily Operations
Both shelters prioritized adaptive management, combining professional expertise with the passion and commitment characteristic of non-profit organizations. This approach involved hiring individuals with relevant skills and experience while fostering a strong commitment to animal welfare. By doing so, the shelters were able to influence policies, adopt best practices, and implement innovative strategies.
Key Performance Indicators (KPIs) played a crucial role in aligning employee performance with organizational success. Financial KPIs and lifesaving metrics, such as live release rates, were linked to accountability measures and bonus systems, creating a results-driven culture. This incentivized employees to take greater responsibility for their roles while contributing to the overall mission of the organization.
Operational innovations, such as rebranding efforts, significantly improved the public image and reputation of both shelters. By showcasing enhanced adoption rates, improved animal living conditions, increased volunteer engagement, and stronger community support, the shelters demonstrated the tangible impact of their reforms. This increased public trust and appreciation translated into higher donation levels.
The shift towards a non-profit social enterprise model influenced various aspects of shelter operations, including policies, procedures, technology, facilities, human resources, and financial management. This holistic approach not only enhanced operational efficiency but also strengthened the shelters’ ability to sustain and expand their mission, ultimately improving outcomes for both animals and the organization.
Conclusion
This study suggests that non-profit animal shelters can successfully transition to a social enterprise model by professionalizing shelter management, engaging in diversified revenue streams, and enhancing operational efficiency. This transition requires a shift in focus, prioritizing mission-stated outcomes, such as live release rates, as well as revenue generation. Furthermore, professionalizing daily operations, including organizational structure, communication, and human resource initiatives, is crucial for long-term success.
By embracing these approaches, animal shelters can enhance their financial independence, promote the well-being of animals, and effectively fulfill their stated missions.
Miscellaneous
Data From Study:
–
Year of Publication:
2021
External Link:
Thomsen J, Thomsen B, Copeland K, Coose S, Blackwell S and Dante V (2021) Social Enterprise as a Model to Improve Live Release and Euthanasia Rates in Animal Shelters. Front. Vet. Sci. 8:654572. https://doi.org/10.3389/fvets.2021.654572