Business model New initiatives in 2020 were supposed to diversify the foundation's sources of income and help consolidate its business model. By November, however, Lencero projected that annual revenue would fall 15% compared to 2019, putting it below 2018 levels. Of this revenue, 35% came from corporate sponsorship of acceleration programs, 43% from foundation grants, and 20% from the previous year's reserves. '3 The Edmond de Rothschild Foundation continued to provide support, as it had done every year since UnLimited Spain' s founding. In terms of expenses, salaries accounted for approximately 60% of the budget. Other signith line items included direct project expenses, communications, professional services, and overhead expenses like ofce rent, IT, and network membership fees. Looking forward, Lencero wanted to develop revenue streams the foundation could rely on year aer year. \"Courting donors and sponsors every year consumes much of the team's energy. I want us to focus more of this energy directly on our missionon executing our programsand to be able to dedicate time to innovating new things,\" he thought. Some members of the board thought UnLimited Spain should take an equity stake in the startups it accelerated. However, Lencero thought this could put the long-term success of the young startups at risk and ultimately work against the foundation's mission. He thought about bringing the foundation and Transcendent under the ownership of a common organization. Transcendent was created as a separate entity to preserve the purity of the foundation's mission, but in practice the two organizations shared a common purpose, and their activities involved similar partners, brand messages, and talent. Lencero knew the idea could have various potential benets and risks. It could provide a stable source of income for the foundation, with some of Transcendent's prot reinvested into the foundation. Since Unlimited Spain needed non-prot status to receive foundation grants, however, Lencero thought about joining the two under a sort of holding company rather than merging them. Linking Transcendent's and UnLimited Spain's brands would likely increase the former's appeal to customers but could decrease the latter's legitimacy in the eyes of its stakeholders. It might be possible to integrate operations in some way to take advantage of potential synergies, but they would need to address differences in organizational culture. Lencero originally hoped Mumtree would also provide nancial support to the foundation, but he had doubts about its future. Fundraising had proven difficult during the pandemic, and other impact investment funds, led by teams of experienced nancial professionals, were already lling the gap that he and Bonet had aspired to help ll with Mumtree. [encero also thought about the possibility of bringing on a Managing Director who could provide greater support to ongoing operations and work to secure the nancial sustainability of existing programs, so that he could continue to split his time between the different organizations and focus on innovation. Lencero believed rmly in the value of each of UnLimited Spain's initiatives and in the need to fund ongoing innovation. However, to ensure efcient use of the organization' s current resources and to make a case for funding innovation, he wanted to pause and review the organization's strategy in terms of what activities might create the most change in the system. I. - 1- n . - nu