Entrepreneurs can use their skills to create self sustaining non-profits, by Paul Lavallee

If entrepreneurs put their venture developing skills to work, more non-profits would be self sustaining, and not reliant on government grant funds from tax payer money. In addition, more services would be made available to those who need it, while the costs to society would be decreased by lessening the loads on systems such as health care and criminal justice. Here is one example which has accomplished all of these goals.

I know this is true because the latest venture I am involved with has nothing to do with the software industry - it is a 501 (c) 3 non-profit located on the historic former homestead of Daniel Webster in Franklin NH. The name of this venture is Webster Place Recovery Center. It is a place of hope for people from all walks of life who have problems with alcohol and other drugs.

My other ventures included founding software ventures, raising venture capital for software ventures, getting involved in mergers or acquisitions of software ventures, or taking software ventures public.This was my first venture into the world of non-profit services.

In 2007, several others and I were asked if we would help form a non-profit board to create a recovery center. I accepted the call, as did the others, and I took on the Chair role during the start up years (2008-2009) and remain a committed board member today.

The person bringing together the board was mutual friend and restaurant entrepreneur Alex Ray, founder/owner of The Common Man family of restaurants in New Hampshire (where our family has a second home.) The non-profit organization would be leasing a portion of Alex's newly acquired property consisting of the Daniel Webster homestead and farm. This historic property had a rich history over the years and had  morphed  from farm, to post civil war orphanage, to convent / school run by the Sisters of the Holy Cross and finally abandoned and left in disrepair. Alex picked up the property as the last standing bidder, and saved the property from demolition and a condo project. There were three 30,000 sq. ft. brick buildings and several house sized structures and a good sized parcel of farm land along the Merrimack river. His vision was to create a place of service and hope for people in need of recovery from alcohol and other drug problems, and to do so with a new model.

The model for this project would be to gut and renovate 1 of the main buildings first, and to create an environment of dignity and respect where people who need services could find an affordable alternative to expensive celebrity type rehabs popularized by movie stars and sports figures. This facility would house a non-profit organization, governed by a volunteer board of directors with diverse backgrounds, who would hire a staff of people who were capable of providing peer based recovery support heavily relying on the 12 step evidence based models successfully used in non-organized recovery peer support groups. The staff would be complimented by local peers in recovery who would come in to offer their stories, mentoring, experience, strength and hope that the new residents could learn how this all worked and see that recovery is real.

There would be no government grants to start the operation, rather it would be self sustaining from program fees. Most of the high end private pay rehabs charge anywhere from $15,000 to $150,000 (on a beach in Malibu) but this program would be targeted to be less than half the low end. In addition, being a non-profit, the mission would be to also include scholarships for those who could not afford such services. In this way, people from all walks of life, would have a recovery experience where professional, lawyers, doctors, pilots, musicians, carpenters, software engineers, restaurateurs, publishing ad executives, electricians and unemployed  single moms (see a case story published in the Plymouth Record Enterprise) could all learn from and support each other in a nurturing environment.

In addition, as opposed to institutional rehabs, people would not just sit around smoking cigarettes and drinking coffee, but would be engaged in enhancements to the program of recovery which would include some of the enjoyable things life has to offer such as gardening, farming, culinary arts, music, reiki, acupuncture, karate, furniture refinishing, exercise, spa trips, sports and other activities.

The operation was angel funded via a cash flow loan guarantee from Alex and bootstrapped from operations.

Start-up included renovation of the first building by Alex's realty company - a minimal investment resulted in converting the institutional layout into semi private rooms each with it's own bathroom and showers. All furniture (ALL) was provided by the surrounding community and businesses. Beds, bureaus and the like, giving the place an eclectic, almost antique and homey feel. The first resident arrived in March 2008, and by December the 40 bed capacity was half utilized. By December of 2009 the operation had become cash flow positive and has been so since - facilitating substantial repayment of the initial cash flow loans. The loan should be completely paid down with substantial positive cash flow during the coming year. This money can be used for capacity building and additional scholorships. Another benefit is this private pay model does not add any cost to the overburdened health care system as it is not funded by insurance. Those who can afford the low cost of care, and a low operating cost due to the peer based model (no expensive licensing or regulation to drive up costs) combine to provide opportunities for care for those who can not afford it. To date, some donations have come in, but we have yet to have to have a major fund raising effort.

Most importantly, residents and alumni, from all over New England and beyond, are getting help with their problems with alcohol and drugs. A community of over 400 alumni continues to build. Social networking is keeping folks in touch with each other when on the road, or for those who don't live in the area. Referrals are coming in from industry professionals, treatment centers, rehabs, doctors, and alumni. A need is being served for services. Services which had been all but shut down in the state due to budget cuts, insurance abuses in past years, and lack of political support.

There were the usual start up challenges, but as with any other start up, a program of continuously surveying, monitoring and improving is in place to refine the model as we grow.

The hope is that this model peer based recovery system of support can be replicated in other places where facilities can be re-deployed into value building investments that improve the surrounding community. Perhaps alliances with other non-profits will develop to adjunct competencies. Perhaps mergers to gain scale. The key is that the same skills used to build successful ventures in the business world can be put to use in the non-profit world. It's a way to give back, and help the community without taxing to do it.

So, you're perhaps wondering, why this cause for me personally? Fair question. Family, friends and I have all been positively impacted by the power of long term sustained recovery from alcohol and other drug problems. As a result our lives have become substantially better, and so have those of our families and friends around us. We have also witnessed the destructive nature of these problems if unaddressed. A life of recovery, including giving back to help others, is a much better life.This is just one way to give back. Other non profits I am volunteering my board skills to include Saving Teens in Crisis Collaborative as well as RI Communities for Addiction Recovery Efforts.

Questions or comments? Feel free to email me.