Feasibility Study on Creation of a Full Social Enterprise or Hybrid Social Enterprise Model, Operating in the Child Rights and Bussiness Space

1. About Terre des hommes

Terre des hommes-Lausanne Foundation (Tdh) is the leading Swiss-based international non-governmental organization working, since its creation in 1960, on the promotion and realization of children’s and youth’s rights. With its headquarters in Lausanne, Tdh operates in 27 countries across five main geographical areas in the world: Europe, West Africa, North Africa, the Middle East, and Asia, while it supports programs in other countries through local partnerships. To make the difference we implement innovative programmes designed to have both short- and long-term impacts focused on health, migration and access to justice combined with a strong expertise in child protection (CP) and water, hygiene and sanitation (WASH). See our annual report : Terre des hommes 2025 Annual Report Tdh’s thematic expertise in Child Protection includes case management (CM), mental health and psycho-social support (MHPSS), children, youth and community participation and empowerment, safeguarding and child rights and business (CRB). In the field of Child Rights and Business Tdh collaborates with private sector companies to ensure the protection of children’s rights.

2. Context

In its Strategy 2025-2028, Tdh reaffirmed its commitments to defend children’s rights within value chains and being a strategic partner of choice in the field of Child Rights and Business (CRB). Recognizing companies as essential ecosystem actors, Tdh is committed to empowering businesses to be positive drivers for societal well-being in the countries and communities in which their supply chains start. Tdh thereby supports companies in developing child protection strategies, policies, tools, building staff capacity, designing and implementing human rights due diligence systems and community development interventions onTdh collaborates with the private sector through various public and private partnerships. While Tdh’s CRB work is primarily focused on agricultural value chains, particularly in the coffee and cocoa sectors, its experience spans over a decade in the cotton, artisan gold mining, leather, and adult entertainment sectors. In 2025, Tdh commissioned a CRB Mapping and Assessment Study to inform the development of a multi-year strategy and business plan for scaling up its work and strategic positioning in the field of Child Rights and Business. The study analyzed the regulatory environment, key stakeholders and landscape dynamics. Based on this analysis, the study provided amongst others, recommendations about the future positioning and organization of CRB within Tdh. The study recommended Tdh to set-up its CRB unit as a hybrid social enterprise model as a direct subsidiary of Tdh allowing it to charge for specialized corporate consulting services while mitigating some of the risk identified in this type of work.Therefore, Tdh is launching this consultancy assignment, to request the professional services of expert(s) specialized in non-profit restructuring, social enterprise design, and legal/tax advisory to analyse the potential benefits and risks of a full social enterprise or hybrid model under which Tdh can provide its advisory services on CRB.

3. Objective of the Assignment

Tdh is seeking to contract a consultancy firm or consultant with the required qualifications to conduct a Feasibility Study on the possibility of creating a Full Enterprise or Hybrid Enterprise model, to deliver its Child Rights and Business Advisory Services. This assignment aims to determine whether the establishment of a full social enterprise or hybrid social enterprise represents a strategically, legally, operationally, financially and fiscally viable mechanism for delivering Tdh's Child Rights and Business Advisory Services while preserving Tdh's mission, values, tax-exempt status and reputation. Specific Objectives More specifically this assignment aims to provide a factual analysis of:

1. Legal, Governance and Operational Feasibility

- A benchmark analysis of social enterprises or similar models established by peer NGOs to draw lessons and best practices from. - The legal and administrative requirements for establishing a full Social Enterprise model, and a Hybrid model. - An objective analysis of the risks and benefits of each option. - A pathway for legal set-up of the recommended legal entity and the proposed governance structure, with robust risk and safeguard controls in line with Tdh’s legal status, its current organizational structure and its vision, mission and values. - An analysis of the compatibility with Tdh’s registration status in Switzerland, its mission and activities and the implications of establishing such enterprises.The tax regime for a potential enterprise organization, and the implications for Tdh’s current legal status as a tax-exempt entity. - A comprehensive risk assessment covering organizational, financial, legal, operational, reputational, strategic, safeguarding, cybersecurity and compliance risks, with proposed mitigation measures. - A list of the minimum documentation, policies and procedures that should be put in place for ensuring effective management with results and accountability of such entity. - An analysis of the potential implications if not moving CRB advisory services under a social enterprise model while continuing to conduct corporate consulting services under Tdh.

2. Strategic Fit and Organizational Impact

- An assessment of the strategic implications for Tdh, including reputational considerations, donor perceptions, potential mission drift risks and organizational change requirements o Impact on reputation o Impact on fundraising o Donor perceptions o Potential conflicts between commercial and humanitarian activities o Internal organizational implications o Clear considerations around client selection and exclusion criteria

3. Business Model and Financial Sustainability

- A cost–benefit analysis, including an estimate of the budget and initial investment required to establish ea