The Semilla Project is on a mission to equip BIPOC communities with the tools to lead on climate justice and racial equity. Known for their hands-on approach and commitment to real-world solutions, they're taking their work to new heights with a project that ties together agriculture and community-building.
Overview
The Semilla Project developed an innovative strategy to increase unrestricted revenue by creating an LLC to purchase land for their programs. This approach addresses the challenge of financial sustainability while expanding their mission-aligned programming.
By acquiring land that would be leased back to the nonprofit and used for agricultural business and a retreat center, The Semilla Project is building a foundation for financial independence while strengthening their movement-building capacity.
Key Strategies & Tactics
- Financial Infrastructure Development: Working with financial managers to strengthen fiscal operations and position themselves better with banks for future land acquisition.
- Professional Expertise: Hiring specialized consultants to support financial transitions, reconcile funds, and provide templates for financial reporting to grantors and funders.
- Investment Strategy: Engaging wealth management advisors to develop a blended investment approach for their yield award, balancing risk and return to generate additional financial resources.
- Real Estate Planning: Working with real estate professionals to identify land that meets their specific acreage and use requirements for both programmatic and revenue-generating activities.
- Governance Alignment: Educating their board about resource oversight and risk management related to their reserve fund and land acquisition strategy.
Lessons Learned
- Integrate Mission and Revenue: Land acquisition strategies are most effective when they directly advance programmatic goals while creating financial sustainability.
- Build Financial Expertise: Investing in financial management capacity is essential for implementing complex revenue generation strategies.
- Engage Board Leadership: Educating board members about resource oversight and risk management is crucial for innovative financial approaches.
- Create Flexible Structures: Using an LLC structure provides both legal protection and financial flexibility for nonprofit organizations.
- Leverage Existing Assets: Building upon current business models and organizational strengths creates more sustainable revenue opportunities.
- Explore Blended Financing: Investigating various financial instruments and public/private partnerships can support ambitious capital projects.
By The Numbers
$61,200 projected first-year return on investment strategy
$66,096 projected second-year return on investment strategy
40/40/20 investment allocation across low, moderate, and high-risk investments
Impact
The Semilla Project's strategy demonstrates how land-based organizations can leverage their core assets to generate unrestricted revenue that reduces dependence on traditional funding sources.
The agricultural business and retreat center will create multiple touchpoints for community engagement, expanding their base while providing essential services.
This approach not only secures their financial future but enhances their ability to deliver on their mission of preparing BIPOC leaders through land-based education and leadership development.