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Staying Strong: Report 1

Report to Green Communities Canada member organizations, August 2011 Background Staying Strong is a Green Communities Canada project to develop revenues from sales aka social enterprise. The project, funded by the Ontario Trillium Foundation, is designed to help member organizations boost the success of existing ventures, and to develop new ventures by borrowing successful ideas from others, or working jointly. The project is also intended to help address capacity development needs of members through workshops, resources, and referrals. During the past few months Clifford Maynes and Beth Jones have interviewed member organizations across the country about their current revenue-generating ventures, ideas and aspirations, and capacity needs. This report is a summary of our work so far.1 It is being distributed to member organizations for your feedback to determine priorities for the remainder of the project through the fall and into our March 2012 conference, which is the culmination. This report contains three main sections: 1. social enterprise related capacity development priorities 2. ventures current and planned 3. Appendix: general reflections on Green Communities and social enterprise, including barriers to growth To move forward, we need you to read and comment on this report, including: your capacity development priorities (which are most important to your organization? are there others we have missed?) which ventures interest you the most? (Where there is strong interest among two or more member organizations, we will organize appropriate follow-up, e.g., linking members with a common interest, web workshops, GCC support for a working group, and possibly joint research and development.

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Staying Strong Interim Report | Green Communities Canada (August 2011)

Please do not quote or distribute. There is sensitive business information in this report which is for internal consumption only.

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A.Capacitydevelopmentneeds
The following have been identified so far as topics for capacity development support, including workshops, referrals, and possibly coaching. Let us know what interests you. Missing topics? (Note that is list refers solely to capacity development, not issues related to specific ventures.): 1. overview of the evolving world of social enterprise and how we fit in 2. social enterprise readiness a process for engaging your organization, including staff and board, in evaluating your appetite and readiness for social enterprise in order to better understand the required shift in culture and practice, decide where you want to go and take the necessary steps 3. business planning how-to could include at least two sessions, one on market research, and another on financial projections possibly also an introductory session on whats involved in feasibility screening/business planning and how to go about it (Green Venture says: do business planning yourself, dont contract it out because it is cheaper and you need to go through process anyway.) 4. access to external social capital what is the potential? terms? requirements to get access to this money? 5. valuing ourselves a discussion about what we are worth and need to charge, including policies about how much to charge for our expertise workshops, advice, etc. 6. legal/tax barriers are there genuine restrictions on our ability to generate revenues from sales as non-profits? as charities? some say yes, others say no. We need to assess the risk.2 7. GST revisit the rules about when to charge, which remain confusing (ecoSuperior: We dont charge HST on anything. Our auditor says we dont have to. Ive always been a little uncomfortable about that but its the advice weve been given over and over again.) 8. other ???

The following are charities: Biosphere Institute of the Bow Valley, Conservation Corps of Newfoundland and Labrador, EcoSource, Elora Environment Centre, Green Action Centre, Greening Nipissing, Muskoka Heritage Foundation, Peterborough Green-Up, Rideau Environmental Action Centre, REEP Green Solutions. All other members are non profits, except Hearthmakers (a coop, but looking to change), and Severn Sound Environmental Association (an unincorporated municipal board).

Staying Strong Interim Report | Green Communities Canada (August 2011)

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B. Venturebyventure
Here is an overview of the ventures shared in the member interviews we discussed. Sorry for the rough notes. Once we identify priorities, based on your feedback, we will explore selected ventures in greater detail. Please review this document and let us know which ventures interest you, and the nature of your interest. Based on this feedback, we will follow up with more in-depth sharing, research, and cooperative development ... 1. environmental indicator reporting Biosphere Institute of the Bow Valley does this for Canmore regularly, and for Banff irregularly - 200 page reports plus public workshops, for $25K (vs. $8090K at commercial rates) doing it for ten years - a loss leader - does not cover staff time - but Canmore gives cash and in-kind space 2. library/resource centre Biosphere gets some money to manage and staff a specialized library of reports on ecological integrity in Bow Valley, including Banff and Kananaskis - used by consultants and other researchers. Has lots of grey literature that cant be found elsewhere. AB government donated materials, Biosphere Institute had more. AB government contributes $3K to $9K. Helps to keep the door open and maintain office hours. Biosphere maintains an online database of reports, etc. 7000 docs contact researchers to be sure its up to date - Parks Canada sometimes contributes doesnt really pay e.g., $5K 3. map production Biosphere Institute got $ from G8 to create specialized map excluding security regions - and messaging Severn Environmental Association could use GIS specialist to create and sell beautiful layered maps - need to review legalities 4. space/admin services to other groups ReThink Green (Sudbury) gets some dollar/in kind benefit from sub-letting space to other orgs, sharing services Bisophere used to charge 15 per cent admin fee to host Wildsmart project 5. social enterprise industrial park Warm up Winnipegs next big project with others - 30,000 ft2 building for social enterprises - need $100K down payment 6. public facilitation

Staying Strong Interim Report | Green Communities Canada (August 2011)

CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH Biosphere does a bit - e.g., Lafarge wanted to meet with clean air groups Biosphere institute is positioned as a neutral go between for developers and environmentalists Lafarge paid one of staff

7. workshops/public speaking Biosphere Institute - we are content rich. A valuable asset. However, revenues depend on who it is - e.g., a Chinese delegation paid $500, and another group paid $1400. Usually we do for free and ask for donations ecoSource (Peel) does elementary school workshops 15-18,000 children per year. Thinking of charging a fee again, for cost recovery and to make the school value it more. Durham doing lunch and learns for $100 per session Green Action Centre (Wpeg) says schools should pay $50-$100 for presentations - but no - some will pay honoraria - $20-$50 Green Calgary tries to sell courses and workshops at commercial rates this is new has contract less than 10K to deliver water education module in Grade 2 (local financial institution), plus charge, but tough to squeeze much out of it also Clean Air Champions - HSBC $5K Green Calgary doing sustainability series - registrations cover costs - in person workshop - very well received - potential to grow that 8. research Biosphere e.g., report on economic impact of environmental work in Bow Valley - a little one City Green Solutions (Victoria) getting smaller contracts doing data analysis e.g., NRCan electricity audit tied into ERS - tested in 50 homes 9. ecoENERGY/home energy audits has been leading revenue source for many Ontario members affected by 31 March shutdown of federal incentives (some efforts to market w/o incentives) currently program has renewed but only until March 2012 City Green during federal program shutdown, over 200 Ds in May, less than boom years (up to 500) provincial grants extended for two more years - lots of competition in BC Elora Centre looking to establish corporate program - energy/electric - audit and upgrade as an employee bonus ready to pitch it to the friendlies but Elora wants to diversify - not 90 per cent of business exposed ecoENERGY is a black hole - hard not follow the money reThink homes Sudbury pilot funding ended in February this is not an actual ERS assessment - focus on energy working with people to help them through the process ERS is hit and run - a couple of user pay bookings REEP Green Home Planner - web-based tool for determining payback and energy savings on retrofits - supposed to do 1500 by February for OPA - an

Staying Strong Interim Report | Green Communities Canada (August 2011)

CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH additional tool - need to engage people - online decision-making tool compares costs co2 etc. builds on hot2000, but can only model three typical houses - not generating dollars now - hope for future, charge for it and/or get contractors to pay for it - had a grant to create but not ready for prime time need to pilot it - report on results to OPA - has reference to all OPA programs - e.g. shows spray vs. batts Kortright Centre interested, schools interested - can generate plan and click things off as they do them OPA went for it because of recording concrete savings will see if there are incremental savings for ecoENERGY customers who also use the planner - relative to ecoENERGY more finely granulated info, e.g., the different types of insulation, decision about ground source heat pump - lots of plug load stuff, water to be added 10. Energy Star for New Homes City Green got start up funds from NRCan to do new homes - competing w. homebuilders in BC - get smaller independent and ethnic builders fee for service sustains a couple of full time in house people plus independent contractors - $11K in April plus NRCan start-up funds ($40K) 11. home electricity audit Elora Environment Centre and REEP Waterloo developed residential electric audit hope will be married to ecoENERGY - looking for free marketing from utilities - external to OPA suite of programs - room by room report covers behaviour - phantom power - time of use is a big focus - price point - $275 three CEAs trained launching Wellington, Halton, Grey-Bruce - two days of training - tablet computers - excel based software - definitely interested in sharing once it is ready (Green$aver is doing an electric audit too) Ontario Power Authority is doing online self audit LDCs havent figured out how to calculate hard savings - so LDCs not willing to buy into - we have to justify hard savings 12. home energy installation business (retrofits) Green Venture (Hamilton) has blessing from its board - Trillium proposal to develop turn key energy audit/retrofit business includes financing - business planning this year Windfall considered but held off pending low-income program City Green decided not, because of liability, and fear of losing audit leads if in competition w. contractors 13. demonstration houses REEP House for Sustainable Living - super-insulated, water-wise, century brick education centre at 20 Mill Street, Kitchener. Tours, workshops and facility rentals available - still fledgling - new in community - trying to figure out how

Staying Strong Interim Report | Green Communities Canada (August 2011)

CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH to cover cost of bus tour or shop class - want a CEA for certain audiences - have charged $100/hour - covers advisors time, not much else HRAI covered one shop class sponsorship possibility? presented to geography teachers 14. demonstration gardens Peterborough Green Up has Ecology Park modest revenues from ongoing garden market and big plant sale not sure about potential to grow revenues - challenge is staff/greenhouse capacity - using greenhouse at Trent but losing it - a lot of volunteers involved Ecology Park bus visits - only charge for the bus - need to charge for students not getting anything from the school board - all of our programs are curriculum-based most instructors are certified teachers Ecology Park looking to develop Urban Ecology Centre in association with the park greenhouse workshop/meeting room - would address the rain issue for schools15. Green Home Services Green Calgary: Healthy Homes Calgary is a major focus in 09-10 had Environment Canada funding, since then pay what you can charging hasnt had any negative impact on sales did 350 a year for two funded years - first six months of user pay at 182 thinking of subbing energy audits instead of providing a list - could work for other services should be giving leads away for free suppliers donate free samples - or community natural foods - a significant partner - value of service is $600 - cost to us $250 i. three Healthy Homes Consultants ii. phenomenally successful program - participants adore it - very positive feedback - letters of praise - 90 per cent of new business is word of mouth iii. looking to market through commercial contacts - employee engagement - buy a bundle of x number of healthy homes - employee of week award - whatever - buy at say $300 iv. want to make available regardless of socio-economic status - partner up with social service agencies v. also - meeting w. Calgary Real Estate Board - can assemble a new home green gift basket - we sell it to realtors and green homebuilders - or purchase a healthy home consultation - gift to buyer St Johns - CCNL thinks this could sell in St Johns/Mount Pearl area niche GCC-supported process was under way to explore this concept, including review of existing similar services and outline of possible service models. Steering committee chaired by Susan Brandum, also comprising Pete Wobschall (Green Venture) and Jen Atkinson (Windfall), also Louise Cooper, (now gone from Hearthmakers.) Market research was conducted by REAL, EcoSuperior, and Green Venture. If there is sufficient interest, GCC support could be resumed.

Staying Strong Interim Report | Green Communities Canada (August 2011)

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16. Retrofit training/job creation Warm Up Winnipeg/Brandon neighbourhood renewal provide training mostly urban Aboriginals - and sells energy retrofit services - Winnipeg operation is doubling in next few months - 50 to 100 will provide increased assistance with job search (promoting grads to private sector) life skills, driver training, parenting, money management, etc. WUW is a 70 per cent social enterprise (sales to MB Housing and MB Hydro); 30 per cent subsidy (training) - which conforms to social enterprise model business strategy: contracts not grants; accessing a piece of existing money spent on utilities, social supports, etc. rather than new money sell services at market rates, with same level of quality - competitive advantage: WUW hires tenants 17. Manitoba Green Retrofits Inc. a. an offshoot of Warm Up Winnipeg - separate, arms length, own location, different board (WUW ED Shaun Loney is on the MGRI board) b. its a 100 per cent social enterprise can compete head to head with private contractors (no pushback) - 5 full time employees and about to grow (to 7?) and when they get a big job they hire people (e.g. 15) from WUW to help - got a piece of a bed bug remediation job - did well - hope to get more - also suite remediation for homeless suites in public housing 18. low income home energy Green Venture doing 88 homes this year for Enbridge with GCC - tight financially this year because have to meet targets - scale back auditor dollars Peterborough Green Up also doing for Enbridge City Green does a little outreach, D labels - but criteria for ECAP program are so strict few make it will be significant if numbers pick up since doing all the assessments others have installation contracts Green-Up has contract to deliver a electricity low-income retrofit program others may win these contracts RFPs currently being issued Green Communities Canada and Windfall bid for delivery of an electricity retrofit program to Ontario First Nations but the bid process put on hold 19. thermal imaging City Green - expensive to get into - havent made a huge amount but an enabler for MURBs and new homes (diagnostic tool, e.g., missing insulation, botched installation) 20. audits for Multi-unit buildings

Staying Strong Interim Report | Green Communities Canada (August 2011)

CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH City Green does this for buildings that arent eligible for EnerGuide MURB program - use RETscreen for these - larger than 20 units - did a big one for Vancouver Housing Corp - $32K report - doing MURBs to 100 unit - four storey

21. energy management planning for building stock City Green getting data on larger housing stock, BC Housing - 150K units combining utility data and building stock data - doing energy management plan - doing for coops this year - opportunities - have an engineer on staff - beat consulting firms on price can leverage dollars from other programs (in kind contribution) 22. heritage homes City Green doing lots thermal imaging can detect no insulation or sagged insulation - up to $300 to $700 just for thermal imaging - heritage buildings and traditionally constructed - 50s, 60s - pre WW2 protect architectural features 23. green business/workplace services City Green does an entry level green business assessment (not an audit) called Greenstart that includes energy - but also waste, transportation , etc Capital Regional District (Victoria) is going after waste - did pilot of 20 businesses had ecoACTION to get started - doing 30 this year less detailed than the Green Workplace service so not competing with them would be happy to share GreenStart with others challenge is how to keep cost down - GreenStart Business, partly user pay, $100 plus HST and make a commitment to set goals and take action by June 2011. In exchange, they receive a $1500 value of time, support and promotions available during the pilot. Region, Hydro, etc contribute. Collingwood has developed EcoEnterprise program to help local companies to integrate sustainability in a collaborative fashion tailored to your organizations needs will be fee for service but needs EcoAction funding to get going builds on Natural Step connection, including membership in their Sustainability Network, and years of TNS learning for Michele Rich kicked it off with a launch - Bob Willard - Chamber of Commerce - 175 attendees - about 10-12 interested in going further - did four hours to introduce - retail, professional, coffee grower Hamilton doing commercial-institutional resource assessments barriers include lack of time, poor understanding - e.g. company that could easily save $6K a year didnt have time churches difficult if no grants - Climate Change Champions (being revived with City dollars) is a door opener need a marketing plan - got ISO 150003 - energy - carbon scheme will come someday GV has everything in place to serve this market but need marketing energy water -

not sure what this means does GV have the ability to deliver this?

Staying Strong Interim Report | Green Communities Canada (August 2011)

CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH could look at fleets - could look at waste - but energy is the push, what gets you in the door target market: not sure want to survey to find out St. Johns/CCNL toyed w/ fee for service greener futures business program brought guy from Sudbury The Natural Step - tried to partner w. Dalhousie Centre but no demand Durham interested in replicating Partners in Project Green (Greater Toronto Airport Authority program) - would include: energy conservation assessments and advisory services, procurement assistance, and, Training and networking opportunities - partnership with Toronto Region Conservation Authority & Durham Region would need utility funding Green Action Centre (Winnipeg) doing limited workplace TDM - ten years ago thought they could market TDM to businesses - e.g., for $5K, but no market even if free, - learned a lot - tools and resources now doing employee commuting survey, GHG calculations - rolling out w. workplaces - some are interested in GHGs, but usually the hook is a sustainability plan - have been paid a fee in a few cases (including Transport Canada) - fee is not adequate to cover all costs - credit union Assiniboine twice a year survey - province asked to do TDM/survey in a couple of workplaces - exciting potential - starting as a grant - may have some rev. generating potential have considered partnership w. private sector firm to do this Green Action Centre has grant to develop greening the workplace - advice to small orgs - waste transportation energy cleaning targeting non-profits start with workshop (low investment) coaching is stage two - piloting this year Calgary has commercial environmental services as second big focus alongside Healthy Homes - primarily waste focused - Green Calgary history - ramping up more comprehensive suite of program-specific half-day seminars expanded menu? energy is a significant issue but we cant meet their sophisticated needs - so not going there - its a competitive market place EDs personal idea (not yet adopted by Board): Green Calgary form relationships with other service providers so it can provide a full suite of services - waste energy water transportation etc. reThink Sudbury developing business program - got fednor grant - met w. engineering firm - air quality monitoring - guidelines for procurement, employees, etc. - lunch and learn - policy development - Tamara took Natural Step training in june Peterborough Green-Up has Fostering Sustainable Business - Cathy Mitchell walk through assessment - charging service fee - have done a couple of pilot businesses not ready to pay - geared to small and medium - larger companies all have ISO Hearthmakers (Kingston) does commercial energy audits small office shifting to new OPA program once they get their act together - this will drum up business have an in w. Utilities Kingston we can do it cheaper than an

Staying Strong Interim Report | Green Communities Canada (August 2011)

CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH engineering firm - talking to Stephen Dixon Canada Institute of Engineering re training required by OPA - absolutely other members may be interested in this just filling out application is a service ... Hearthmakers doing small commercial direct install w. Finn Projects - miniproposal - looking into proper training and change to OPA certification standards - qualifications too limited - Doug Tripp would train would then train other Green Communities - hoping in the fall - industry CEA City Green has three contracts for BC hydro - lighting, lighting condo (walk through), and direct install - verify that lights installed

24. business to business Durham SustainAbility has EcoBusiness, a successful B2B program based on grant funding could be bigger - want it to be paid membership - we provide opportunities - trade shows want to take beyond Durham - (GET now Green Enterprise Ontario seems similar but no competition or cooperation yet) 25. faith building audits Hearthmakers doing with funding from OPA, but not easy - had to get an engineer through St Lawrence college - so much per file - loaned equipment totally different from what we used to do - blind in the forest REEP says: REEP started years ago engaging faith communities and doing audits, but now Faith and the Common Good has muscled in (CM: this is my interpretation) - created $500 church audit REEP supported trillium funding application - but then found out limited (no?) role for REEP (update?) ALSO, thrown up in air by OPA - they are putting dollars to commercial - needs to involve a P Eng Peterborough Green Up does coordination and outreach - but they arent paying for it (FCG is doing audits) 26. training/workshops Environment Network (Collingwood) sees workshops and training as priority: BOTTOM LINE: want to be an organization that delivers workshops and training - weve got all the pieces (and Micheles skills) - see market as more business sector than home companies want to save money - increase profits (avoid environmental branding a liability) Environment Network got paid to do EcoDriver training for Blue Mountain going to Calgary also Paul Barrett from Green Venture Windfall would like to get into fleet driver training Green Action Centre did master composter training charged municipalities to do that but small and none scheduled for this year Windfall has RePower green career counselling - orient, train, connects creating, inspiring personal engagement - Trillium grant is seeding an ongoing fee for service revenue generator one product now - looking for another for

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CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH First Nations and for corporations real live opportunity - a paid service (below cost) - plus sponsors funding scholarships for low income for youth, midcareer - helping people to get jobs - business model - mix of government and fees proposal to Ont. government with Skills for Change (New Canadians) would be a free program paid for by province potential for other GCC member organizations to participate in classroom component Windfall would be content provider, sales City Green (Victoria) says training is not a huge money maker but leads to other stuff includes thermal imaging, heritage homes (curriculum, training), education for realtors, energy advisor training (foundational) through Vancouver island university, blower door training for weatherization service, including Vancouver-based Embers (job training org) insulation contractors Greening Nipissing (North Bay) interested in potential to provide workshops on org capacity e.g., social networking volunteer workshop nobody else in North Bay does this

27. social enterprises - miscellaneous CCNL had promising experience with a project building raised beds for urban food gardening homeowner buys kits, youth assemble - potential? - food security a big issue (only 3-5 days of food on the island) but non profit partner pulled out of follow up due to inadequate funding ecoSource doing urban agriculture project that could morph into CSA project a social enterprise. focus on organics, possibly market gate egg sales, etc. Would be on city land. ecoSource and the All Ontario Granola Bar - developed it with Shandis Natural foods (Green Belt funding) - Shandis donates 10 cents per bar to ES. Waiting for a report on sales projections through Ontario Natural Foods Coop. Providing to schools at cost as fundraiser. May be opportunity for that in the future because new rules are that school fundraising snacks must be healthy, coming in as of September. Problem - cost of bars is high so margins will be small. We could sell ourselves but we dont have capacity for significant amounts of distribution. Cost of shipping is prohibitive. Dont want to become a granola bar distribution company. Environment Network would love to establish a restaurant - staffed by youth volunteers - like Blue Frog in Alliston a Mexican restaurant - a hangout for young people - one non youth staff person - rest are volunteer - social enterprise - all local food organic, etc so green Green Venture exploring various ideas: i. Bixi bikeshare doing $20K business plan to operate Bixi bike rental for Hamilton - $1.3 million investment ii. carshare collaboration business plan - Community Forward will give $20K to seek financing - user memberships - individual/corporate iii. organic lawn care service/draftproofing - thinking of teaming up with at risk youth to do these 11 Staying Strong Interim Report | Green Communities Canada (August 2011)

CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH REAL (Smiths Falls) has little notion - ashes from rural wood burners to displace road salt - ground up volcanic ash is imported from Hawaii Peterborough Green-Up exploring Carbon Offsets with Kawartha Heritage grant to research voluntary market - provide to businesses, individuals, etc. land use, energy efficiency, vegetation - buy a tree here, not Kenya two year program Green-Up interested in ecotourism concept: we could provide guided bicycle/canoe tours stay in b&bs another version Green Communities study tour visit some key sites ecoSuperior organizes renewable energy house tour - ten stops on this years tour participants pay $15 for a passport, self guided tour, volunteers at each stop. ecoSuperior operates soil testing drop - pick up/drop off point for Lakehead U. soil testing service. $4 for every soil sample - also available through garden centres. just started.

28. product sales Green Venture product sales from ecoHouse earning $10K a year since 2005 about break even including labour but nothing else - putting together a biz plan to use product sales as a revenue generator thinking - break even w/o effort, so should be able to do well we have a stranglehold on the worms market can grow your own - worm ranch Environment Network has the Shoppe - size of a larger health food store - 600700 square feet - main lines: personal care and cleaning, food storage (non plastic) - cosmetics also has EcoFundraiser that applies to all products in shop - supply catalogue to schools - families order - school - also with local churches - if people name their local church it gets 10 per cent of sale Peterborough Green Up has had store for a year and a half - trying to expand lots of contents on consignment - its slow - dont want to compete with private sector many products linked to programs revenues dont cover staff and rent - but there is a resource centre - its justified as community engagement Green Calgarys shop very scaled back victim of success - in early days the only place to get green product sold to early adopters - base grew - products grew - others decided to get into the market - mainstream people have their own product lines - we couldnt match price - market transformation has happened - products sales now provide limited revenues - direct tie in to programs more or less carrying itself - board decide to continue to provide co-benefits make it worthwhile provides front of house - Saturday office hours EcoSuperior says: when tenant is out of the house they own, there will be more room for more retail. Meanwhile organic seeds for vegetables, brings in $800 per year.

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CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH Green Gardeners Gift Basket outdoor water conservation devices provided by the city, plus other items and booklets weve produced. in a nice terra cotta planter pot Ecobeauty gift basket - products promoted in Chemicals and health, plus info and Instructions on how to make your own bath scrubby out of the netting that covers the basket. Promoted through PSAs and other free outreach. Sold 41 baskets for Mothers Day. Local foods gift basket. Approached country market vendors to purchase local products in volume, package them in gift baskets and sell for $35 each. Great at Christmas. Sling-it nets keep dogs and crows and seagulls out of garbage sell for $10 - producer makes $8, ES makes $2. USB rechargeable battery - AA battery with built in USB connector you can recharge in your laptop. blue bags for recycling (system uses one for containers one for fibre waste). We sell the blue bags. Ours are cheaper than grocery stores, Canadian Tire - two rolls of 25 for $10. $3-$5K revenue annually. A draw to store. 29. Rain barrels a. EcoSuperior now buying and selling rain barrels, provide $20 discount and City rebates to ES profit of $20/rain barrel, total of $18K last year. Havent done rain barrel workshops but will now with RAIN. Promotion was free advertising, and an event where auctioned off painted rain barrels decorated by local artists, tattoo artists, etc. That event in itself brought in about $4,000. Thinking now of getting into more art projects maybe continue decorated rain barrels, or pass leads to artists b. EcoSuperior sees market for rain barrel stand. In conversation with Community Living Thunder Bay about building these for us to sell. - Terrace Bay said no to rain barrel sales (Home Hardware carries them); Marathon said yes, trying to figure out how to get 50 rain barrels down the highway. - Price of barrels went up $5/barrel because of price of gas going up, so not making as much c. Go Green Together (Cobourg) rain barrels a revenue generator - advertise through utility - spring to end of September - advertise in flyer - they pay GGT to do flyer design d. Green Venture says rainbarrels.ca undercutting - City selling too - so GV sticks to premium niche 30. Re-use store 1. REAL Deal store the ideal definition of social enterprise hits the mission (waste reduction) and it generates revenue - and taps into marginalized people fourth year of actual operations (one year was lost to transition) - town owns building - rent free - Parks Canada owns land - town pays Parks Canada $1500

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Staying Strong Interim Report | Green Communities Canada (August 2011)

CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH year to rent the land REAL pays utilities, maintenance - had to put $30K into bringing - ten year lease town gave $13.5K for three years to Real Deal for diverting waste targeted funding ended by now gives $13.5K to whole of REAL get summer students, small $$ here and there volunteers are from Ontario Works - mandatory to seek a job or improving education or volunteering supposedly six month placements (skills development) but no one worries about that - 5-7 on a regular basis is core, four have passed one year anniversary some volunteers are high maintenance but also some with skills, e.g., one was full time cashier - good customer relations went through two managers to get a keeper Sally Ann, Big Sisters have clothing REAL doesnt do clothing - do housewares, furniture, reno materials - etc. so dont compete - hardware, smalls, customers say: REAL is the most attractive - good presentation, etc. visibility and recognition - prior low recognition, no physical presence - offices there too - (so store pays for whole building) revenue - about 30 per cent overall - a stable share of salary helps to build better partnerships w. municipalities - contribution from them = e.g., 500, 1000. foot in door source of volunteers for other things space for workshops, community garden raised beds (cedar rail fence) - a 3 acre site - plans for a whole environment centre -

31. community energy/sustainability planning Windfall offering this as a service, including municipalities and First Nations education, awareness, - menu of action items identify fit of opportunities to local needs - sticking to community ownership models, equity participation narrows the field - promoting community-wide retrofits Windfall has broken through big consulting firm stranglehold but sometimes frustrated by focus on planning rather than doing - want to get things going - product is action and want to be involved in implementation Windfall is pre-qualified for water strategy (York Region?) - looking to us on implementation side - integrated water system (treated, storm, waste) Elora Centre has got Trillium grant for community energy plan for Centre Wellington - by year three roll out see potential to develop as consultants EcoSuperior participating in city-led sustainability planning - hired to do a few things as a result of those working groups. Net Zero guides for business, homeowners. Information brochures on green building practices, for renovators and new homes Conservation Council NL interested in integrated community sustainability planning (gas tax link?), but no market for various reasons - lack of municipal expertise and capacity, other priorities (boil water orders), province hired big

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CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH consulting firm to talk to everyone - culture of province doing everything - not an open market 32. Consulting for municipalities Durham SustainAbility In 2010, 50% of Durham SustainAbilitys income was through fee for service, consulting for municipalities. Contract has been for $50K/year with Pickering for the last several years, however, it has dropped to $25K in 2011. See www.sustainablepickering.com work with the City of Pickering for several years with community sustainability planning help Pickering achieve Milestones 1-3 of the Partners for Climate Protection program, currently assisting with Milestones 4 & 5 including public engagement, Staff orientation, Community consultation / Town Hall meetings, Marketing, Benchmarking / Measuring Sustainability, Workshops, Sustainability Survey, Corporate GHG Emission Action Plan Implementation, Corporate Engagement in Sustainability, Community Engagement in Sustainability, Sustainable Placemaking Research in Living and Working in a Sustainable City o North Durham - Integrated Community Sustainability Plan (ICSP), included PCP, collaborative effort with Uxbridge, Brock and Scugog o In 2009 contracted by Region to do the Detailed Application for FCMs Green Municipal Fund - successful - hired to do the North Durham Integrated Community Sustainability Plan completed see: http://www.sustainability.ca/ecomunicipalities-programs.php o $130K to DSA - some external consultants o next phase (2011) facilitate the community engagement to make plan happen Approximately $24K for phase two o Throughout 2009/10, DSA worked with all of the municipalities in Durham Region with the exception of Whitby on at least PCP milestone 1 o A couple of the municipalities (Oshawa, Ajax) were looking at doing either an ICSP or PCP Milestone 3 or both and wanted to contract the work out to DSA the sticky part is $$ - Oshawa fell through as they wanted the work to be done in house and Ajax has to put an RFP out o Last year DSA tried, unsuccessfully, to bid for work (with other partners in some cases) for Peel, Oakville and Port Hope o bid for Durham Regions Phase One of their Local Action Plan for PCP however lost the bid to Stantec - devastating 33. municipal/water utility programs/outreach municipality of Callwood contract with City Green to promote solar thermal, heat pumps - Solar Callwood Paula Steele seconded by them

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CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH municipality of Saanich hired City Green to provide green building consultation to building permit applicants - dont make a lot of money $100 - sometimes get ERS EcoSuperior manages toilet rebates for City, also waste management programming Green Venture got small contract from Hamilton to educate public on benefits of urban intensification smart growth toolkit (reThink Green has also got a smart growth educational program) Go green Together does small water conservation program for Lakefront Utilities; also gets paid by utilities to help with low-flow toilet program utilities have bought hundreds of Niagara flapperless - people come to Go Green (we get $20/hour for explanation and paper work) - also cover admin of installation earns $400-$500/month - only cover cost exclusive of staff City Green distributes low flow showerhead and fixtures in Saanich - drop off would like to do BC wide - a million dollar program - charge per installation Severn Sound provides consulting services to municipalities/resident associations they are a substitute for Conservation Authority, everything but flood plains e.g., contract with Georgian Bay Forever (cottagers) to do water testing, monitoring - hired as fee for service, opinion, report source water protection is biggest project for Severn Sound - stewardship funding second phase - Michelle Hudolin is project manager- send out letters to residents - septic/well decommissioning - residential and P2 - commercial large and small as well - manufacturing -

34. stormwater source reduction Kitchener gave money to REEP to do public engagement on stormwater source reduction Kitchener/Waterloo REEP and GCC pursuing funding to develop a more aggressive stormwater program, including home visit business model: municipalities form stormwater utilities with a source reduction element/credits/incentives engagement with property owners is part of the model 35. Visit programs well aware looking to diversify revenue starting with participant donations also pursuing community/neighbourhood level approach do education in group meetings with shorter visits this is more about cost reduction than revenues Green Up does shoreline visits but free of charge septic tank education possible opportunity in Ontario - mandatory reinspection every five years - coming in 2013 but no incentive program a big need Well Aware is looking into this

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CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH 36. Day camps Environment Network has Explorations Green Day Camp charge fees - below commercial rates but pays for itself - a little bit for overhead no funding support - except summer employment/student placements subsidy - about 200 plus different campers over summer - 40/week t shirts this summer to promote Environment Network bike riding all over community - empower singing - ages expanded from 6-10 to 4-14 (three levels) - 11-14 age group is leadership focused Peterborough Green Up has ecoDiscovery day camp partnership of Camp Kawartha - and Ecology Park fee helps to defray only incremental direct costs not overhead ... 37. fairs/trade shows Peterborough Green Up took over local Green Expo for first time this year has potential to make money thinking of moving from spring to fall (too much competition in Spring and nice weather reduces attendance) Windfall has annual Ecology Fair pays for itself not considered a potential net revenue generator (?) Sudbury does Earth Day fair annually - made about $10K net, but probably used more of that in her staff time - revenues of $24K - expenses of $12, even w. free staff person (Employment Ontario) 38. Events organizing, consulting e. EcoSuperior interested in doing event organizing - e.g., LEAF contracted ES to do green infrastructure workshops. Stormwater and low impact development training for municipal people, engineering firms, government agencies. - MOE paid for that. 95 people there. f. reThink Sudbury interested in consulting to green events - awaiting grant to develop not for profits dont have money to pay for it - need corporate clients to make it pay 39. solar PV sales Windfall says: coming alive - really liking this business - $300K deals in pipeline - another $100K needed to meet October target - PV - microFIT and FIT dependent (Ontarios Feed In Tariff program) - big roof with Catholic district school board - can be competitive but like our story: mission driven, in it for a decade offer choice of two suppliers includes installation Windfalls end is sales, marketing, general contractors - only way to make business - brokers is tough row to how ... Green Venture in business of solar assessments, sales and installation PV - got $65K small business loan, playing prime plus 2.5% interest barriers include project approval - push to get applications before election - risk current employing 1.5 to 1.75 equivalent - target 22 systems, 10kW (6 less than 10kW) $1.1 million revenues, $150 in common services - have yet to sign a contract 17 Staying Strong Interim Report | Green Communities Canada (August 2011)

CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH but getting close - will still be demand if microFIT disappears well survive a small but sustainable business - a little piece of a diversified revenue stream REEP Green Solutions has developed Solar Potential Assessment - On-site property assessment of solar options including photovoltaic and water heating modest uptake - back burner while ecoENERGY - havent found the right way to market REEP pursuing solar brokering approach - commission - on sales REEP presents quotes - terms are part of participating contractors list - small percentage of sale - PV./solar assessment - $245 for assessment - additional $250 microfit/LDC - then for $1000 deposit - go to sellers bring three quotes - then cheque for half cost of system - take it back - based on US model - pitching to solar contractors - what is the commission - hope for 1 per cent of sale - up to 3-4 per cent for whole broker insurance non prohibitive insurance industry regulated (solar not) - were checking BBB, customer references - no idea if this will fly - put a lot of work into it about to find out what contractors are willing to pay for the REEP name ... Green Up having limited success with its solar audit - PV/thermal -

40. power generation Windfall has Pukwis wind farm - a major revenue generator ($300K p.a.) will create a bit of an endowment but a one-off Windfall gets management fees and eventually minor equity share others participating in or supporting coops, buying clubs no real revenue potential GCC tried to develop a microFIT project abandoned for lack of a site 41. Smart Commute Durham Sustain Ability has commission-based agreement with the Region of Durham with an upset limit of $40,000 the task is to recruit new members compensation based on number of employees: $2,000 for 50-499, $4,000 500999, $6,000 > 1000 50% payment after Employee Commuting Survey, 50% after employer signs agreement with Metrolinx

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CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH

APPENDIX:Generalreflections
Reflections of a general nature are based on interviews with members organizations and personal observations of project staff: (comments welcome) 1. Almost all members are interested in the potential for increasing revenues from social enterprise with most in the moderately interested to highly interested range. A number have already initiated formal processes at the local board level to explore this topic. The Staying Strong project feeds into these processes by stimulating ideas and sharing developmental work and successes. 2. There is particular urgency to the need for increased sales revenues as grant sources are affected by both politics (reduced support for the environment at the federal level) and tight revenues for all levels of government. 3. Further, sales revenues have the virtue of being unencumbered, while grants are increasingly mired in red tape, reporting requirements, and strict spending controls. Grants rarely cover true overhead costs, and definitely do not provide revenues for new program research and development. Or to maintain reserves. Hence part of the attraction of social enterprise. 4. Some funders like to see evidence of efforts to diversify revenues and reduce grant dependence. (On the other hand, some may not like us to sell services they are helping to pay for. And others may have unrealistic expectations that sales revenues can entirely replace grants.) 5. Few if any GCC members would describe themselves as social enterprises, if the implication is that most of their revenues are from sales. However, sales are clearly an important element in a mixed revenue model, as much as a third to a half for many members. (Warm Up Winnipeg is relatively bullish, with a target of 70 per cent revenues from sales mostly to public housing providers and 30 per cent over revenues from subsidies to cover the training and support services they provide to their trainees. This conforms with a 30:70 rule they say applies to social enterprise). 6. Culturally, most GCC members are enterprising relative to the standard among nonprofits; nevertheless, our members remain primarily focused on traditional grant revenues rather than sales. Members think of themselves as fairly traditional nonprofits and/or community organizations, rather than businesses with a social purpose. There is some interest in cultural shift toward business models, but incremental rather than radical. Sales are seen pragmatically as one source of revenues, along with donations. Green Communities have not drunk the social enterprise Kool-Aid. Our interest is in diversification. 7. Members are more focussed on selling services to partner organizations like municipalities and utilities than on retail sales to end use customers like homeowners and businesses. Retail services are generally provided free of charge, the exception being EGH/ecoENERGY, where the market has been driven by incentives. Where charges are being introduced, the objective is to generate a significant share of revenues from sales, rather than full cost recovery or even market rates (costs plus profits). 19 Staying Strong Interim Report | Green Communities Canada (August 2011)

CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH 8. One member prefers the term earned revenues to fee for service. 9. Replication of social ventures in various ways including social franchising - is an emerging theme in the social enterprise world. Green Communities have pioneered a powerful replication model, our joint programs. However, we have learned that having a joint program isnt the same as being in business together. Our model may need to evolve from joint program to joint venture. Barriers Green Communities face a number of barriers to increased revenues from sales: 1. Mission and values come first. This constrains what goods and services we sell, where they come from (e.g., local) and how we sell them. In some cases, it could even constrain who we hire (e.g., hard to employ trainees) and how much we pay. Having social and environmental values is sometimes a competitive advantage, but it can also put us at a disadvantage in the marketplace because it drives up costs and creates logistical barriers. 2. We dont want to compete. Green Communities need to avoid being seen to compete with local businesses by selling goods and services they are trying to sell (e.g., rain barrels, solar panels). As one member said: We have to defend ourselves by not being active in the marketplace. Our objective is to work with private businesses and other non-profits, help them, and help to transform the marketplace, which cant happen if they are alienated from us. At worst they may complain to our funders about unfair competition, threatening our support. In at least one case, a funder refused to support a project due to a (misplaced) concern about competition with the private sector. In practice, the competition issue means we sometimes develop the market for a good or service, but are forced to stop selling it once a market is developed and others enter it. The good news in this case is that weve been successful at market transformation; the bad news is that we lose a revenue stream that we helped to create. One member asked: How to do social enterprise in a way that doesnt compete but actually supports local businesses? 3. People arent used to paying for what we do. People dont hesitate to spend $500 to keep their car on the road, but balk at $100 for a Guided Self-Assessment for their well that will help protect the health of their family and could save them thousands of dollars. Go figure. Even though environment scores as a high priority in opinion polling occasionally topping the list the actual public and private resources dedicated to greening are infinitesimal relative to health, transportation, education, and energy supply. There is a disconnect between what people say they care about and what they are willing to spend. (A question of values?) In cases where there is a history of providing free services and goods (e.g., booklets), we may experience resistance to introducing a user pay model (we are testing that now). If participation falls off as a result of charging, the effectiveness of our programs is reduced. We dont want that which makes us hesitant about charging.

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CONFIDENTIAL DO NOT DISTRIBUTE OR PUBLISH 4. We dont want to exclude people who cant pay. We dont to exclude lower-income populations for whom even a modest charge might be a serious barrier to participation. This can be solved (special exemptions/discounts), but it is an extra complication. 5. We are small-scale. We are small-ish mom and pop operations, in niche markets. We cant achieve the massive economies of scale that characterize modern retail. We often have to charge premium prices ... selling is a sideline for us, not a mainline. Because we are community based we often have a small population base, e.g., for home energy audits, faith building audits ... And we lack the large scale infrastructure needed to compete in certain markets e.g., consulting. 6. We are balkanized. We are an association of independent community-based organizations. This gives us strength in leveraging community reputation, profile, and partnerships. But it also can put us at a disadvantage relative to a unitary provincewide competitor (for profit or non profit) because it takes us longer to make a decision and address an opportunity; we can be divided, e.g., some members buy in to a business opportunity, others dont, or have a weaker commitment; we arent in all communities, so there are important holes in the map. 7. We are charities/non profits. In some circles this undermines our credibility. People may not understand that a non-profit can operate in a business-like fashion and provide a professional service. Further, we may face legal/tax barriers to revenue generation from sales. (To be determined. Nobody has run into a problem so far, though one member is currently being audited.) 8. We are risk averse. Although we are relatively enterprising, we are generally unwilling to risk our limited capital on a business gamble (stick out our necks). In some cases, boards may explicitly indicate their low risk tolerance, and their focus on enabling others to be in business rather than being in business ourselves ... 9. We lack focus. Diversification of revenue streams and activities is part of our strategy for survival through the ebb and flow. In general it has served us well as a survival strategy but it may undermine our success in particular business lines (e.g., home energy audits, low income retrofits) because we are unwilling to put all our eggs in one basket and we are distracted, or spread too thinly.

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