1. Analyze the strengths and weaknesses of the Belle Meade strategy and implementation of its nonprofit winery.
2. Given the success of the current Belle Meade Winery, how can Belle Meade effectively address the challenges facing the winery for future growth?
3. Understanding the success of the Belle Meade Winery, what could other nonprofit organizations learn to create social entrepreneurship ventures to sustain their operations?

Belle Mead Plantation, over 200 years old, is using social entrepreneurship to preserve the history of the nineteenth century. In 1807 John Harding founded the Belle Meade Plantation in Nashville, Tennessee. The plantation would become known for breeding some of the best-known thoroughbred horses in U.S. history. By the time of the U.S. Civil War, the Plantation had become famous as a 5,400-acre stud farm that was producing some of the best racehorses in the United States. Following the Civil War, much of the thoroughbred industry moved to the Lexington, Kentucky area. Kentucky remained in the Union and had the advantage during reconstruction. However, Belle Meade recovered, and various family members managed a successful thoroughbred breeding plantation that was among the best in the nation. After the plantation was sold early in the twentieth century, the grounds of Belle Meade Plantation were eventually converted into a museum focusing on its history. Today Belle Meade Plantation operates as a nonprofit to preserve its history and provide an opportunity to experience life in the nineteenth century. The plantation gives families the chance to have an educational experience. Guests can visit the plantation and tour the mansion, stables, and other buildings to experience “stepping back in time.”

This case focuses on the challenges in 2004 when Alton Kelley, executive director of Belle Meade Plantation, and his wife, Sheree, were both facing the monumental task of securing adequate, long-term funding to maintain Belle Meade Plantation. At the time, the existing sources of funding for the operations of Belle Meade Plantation were (in descending revenue order):

(1) Ticket sales from visiting tourists,

(2) Hosting special events,

(3) Corporate and private donations, and

(4) Sales of items from the gift shop, including a line of private-labeled products, such as cheese, country ham, grits, and a variety of souvenirs.

For the fifth consecutive year, donations from corporations and individuals had declined to the lowest levels in memory, and the couple believed they had little choice but to look for solutions that were well outside of the proverbial box. The organization and its board of directors could no longer rely solely on corporate donations for the ongoing operations of the Belle Meade Plantation.

After evaluating and discarding a variety of other alternatives, the Kelleys set about pursuing an ambitious plan to use social entrepreneurship to generate revenue for maintaining the nonprofit. Their solution was to build and operate a nonprofit winery on the historic site to help sustain current and future long-term financing needs. The idea was bold, given that there were no other known nonprofit wineries in the United States. However, the Kelleys believed that if they could successfully navigate through the numerous legal and market-based challenges, this social enterprise would provide the necessary funding required for supporting the property’s ongoing operations.

The first step was in 2009, when The Harding House Restaurant opened on the grounds, immediately adjacent to the mansion, to replace the popular “Martha’s at the Plantation.” The restaurant is an independent operation and pays rent to Belle Meade Plantation with all profits remaining in the restaurant.