"South Africa appears to be a nation of givers: over half of respondents (54%) gave money to charities or other causes, a third (31%) gave food or goods to charities or other causes, while slightly less than a fifth (17%) volunteered time for a charity or cause, in the month prior to being interviewed. In addition to giving to formalised institutions or causes, slightly less than half of respondents told us they gave money and/or goods (45% respectively) not to formal charities but directly to the poor – street children, people begging on the street and so on."

"The Giving USA 2019 report by the Giving USA Foundation and the University of Indiana Lilly Family School of Philanthropy has just come out. The good news? American individuals, bequests, foundations and corporations gave $427 billion to U.S. charities in 2018, according to Giving USA 2019: The Annual Report on Philanthropy for the Year 2018. We Americans are very generous to our churches and charities. In good times, we give a bit over 2 percent of our national GDP to charities. The bad news? 2018 was a down year. Adjusted for inflation, total giving declined 1.7 percent.

Frankly, we have been expecting this news ever since the U.S. tax overhaul went into effect in early 2018. All is not lost, though. At TechSoup, we of course follow technology closely, and we have some ideas on how you can use digital fundraising techniques and tools to thrive in recessionary philanthropic times.

Read more on TechSoup

Gill Bates, the chief executive of Charities Aid Foundation (CAF) Southern Africa, reports that the 2017 CAF World Giving Index shows that that in trying times, South Africans still tried to help where they could. “There is a new surge of energy on the continent and in South Africa, within the philanthropy, development and corporate social investment space, which is exciting to see,” says Bates.

The annual CAF World Giving Index looks at how and why people around the world give to charity. It’s compiled from data from 139 countries, representing 95% of the world’s population. The report includes questions about three different types of giving behaviour --  helping a stranger, donating money, volunteering time -- and ranks each country accordingly. 

The newly established Chair in African Philanthropy – a joint initiative between the University of Witwatersrand Business School (WBS) and the Southern Africa Trust aims to mainstream the narrative of African philanthropy and the practice of gifting through the promotion of pan-African research, teaching and dialogue. Prof Alan Fowler, visiting chair, speaks about the need for an enhanced discourse and deeper understanding of African philanthropy.

 

"Research shows that women, whether wealthy or not, outpace men at similar income levels when it comes to charitable giving. But female donors respond to different fundraising tactics than male givers do, and few nonprofits are actively working to attract and cultivate women supporters."

Read more in The Chronicle of Philanthropy

BBBEE status is an important factor for NPOs, particularly when engaging government or applying for public and/or private sector funding. Companies can earn BBBEE points by contributing to causes that promote enterprise and supplier development, skills development and socioeconomic development (SED). If a company contributes to these through an NPO, the company will only earn BBBEE points if the NPO complies with the requirements set out in the Codes.

NPOs are subject to the same BBBEE regulations and Codes as other entities in South Africa. As they have no beneficial ownership, they are considered ‘specialised enterprises’ and the ownership element of their BBBEE scorecard is adjusted to measure management control only.

Under the revised BBBEE Codes, which came into effect in 2015, entities with an annual turnover of less than R10 million are Exempted Micro-Enterprises (EME) and are deemed to have a Level 4 status. Most NPOs in South Africa fall into this category. An entity with a turnover of between R10 million and R50 million is a Qualifying Small Enterprise (QSE), which is also deemed Level 4, provided it meets certain measurement criteria set out in the Specialised Qualifying Small Enterprises scorecard.

If an EME or QSE has at least 75% black beneficiaries, it is elevated to Level 1 status, and to Level 2 if it has at least 51% black beneficiaries. A turnover or income of over R50 million excludes any exemptions and all targets set out in the Specialised Generic scorecard must be met.

NPOs most commonly sourced corporate funding from the SED element of the BBBEE Scorecard (57%), down from 79% in 2016. In contrast, the proportion of NPOs accessing skills development and enterprise and supplier development funds increased from 2016.

Overview NPO SA Pic6

 

Source: Trialogue Business in Society Handbook 2017

To increase the impact of philanthropy, we have to address its geographical, attitudinal, ethical and policy dimensions.

  • A new research report from the Centre for Giving and Philanthropy (CGAP) concludes that to increase the impact of philanthropy in our troubled times, we have to address its geographical, attitudinal, ethical and policy dimensions.
  • There is much more we could do to ensure that our philanthropy goes to the heart of social justice and need. We need to build new social norms around the importance of philanthropy. 
  • The traditional donor-recipient models should be broken down through building virtual communities which openly share ideas and expertise around their problems, and co-produce knowledge.Where markets fail, philanthropy needs to go beyond mere charitable hand-outs to mobilise the skills and expertise of successful entrepreneurs behind struggling communities.
  • As government grant support declines this transition is vital but risky

Read more in The Guardian

Source Details: www.theguardian.com, Monday 23 July 2012, w

 

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The value chain of the organisation and its operations needed to be clearly understood.

risk management case study

The value chain was then narrowed down to identify the most immediate risks to the organisation, which included:

  • The location: The warehouse was in a non-industrial area in the middle of an open field that was prone to natural fires.

  •  Temperature control: Supplies, including food, medicine and building material, can be temperature sensitive. Since supplies were not stored according to their temperature requirements, they were deemed unusable.

  • Fire hazards: Exposed wiring around cardboard boxes, as well as a lack of fire extinguishers, made the warehouse vulnerable to fire.

  • Incorrect storage: Supplies were stacked too high – making it hazardous to reach – and too tightly – making some supplies difficult to find when needed.
  • No disposal process: Due to inadequate storage, some supplies expired before they could be distributed. Once expired, there was no clear disposal process in place. This meant that expired supplies were taking up paid-for storage space and could incur an insurance premium, even though they were no longer assets.

If this were a commercial operation, the warehouse would not be allowed to operate in this manner. Guidelines were needed on location and building structure requirements, occupational health and safety standards, and an effective supply chain management process; all underpinned by a commercial insurance policy.

In this case the NPO may have considered itself as an aid organisation only, as opposed to acknowledging the needs of its core operating model as a warehousing and distribution organisation. Total losses could be calculated monetarily, as well as in social impact terms, since fewer people were served due to operational inefficiencies.

Once the organisation had reviewed its value chain and conducted a detailed risk assessment, it needed to interrogate how it could do things differently. The organisation also needed to be clear on the extent to which it would be able to absorb the potential fallout from the risks, if they occurred, and needed to engage the financial services sector to find the most appropriate vehicle for risk transfer.

 

Despite challenging economic circumstances, the South Africa Giving 2017 report reveals that individuals in South Africa – particularly the younger generation – continue to give of their time and money to assist individuals and communities in need.

Detailing the different ways that people in South Africa donate and volunteer, this report covers how much money on average is donated by individuals, which causes people give to, how people like to give, as well as what motivates people to give.

Thought Economics discusses the fundamental nature of charity and philanthropy with the directors and CEO's of some of the foremost Philanthropic organisations - looking at why these phenomena exist together with their role and impact on society. They also discuss their individual journeys in philanthropy, and how their organisations are aiming to tackle some of society’s greatest problems.

  • At every stage of our species’ development, ‘giving’ has been with us. Whether one sees this phenomena as evolutionary (manifest from pro-social behaviour) or spiritual (an urge from deep within our souls), the fact remains that giving- in all its forms- has been one of the greatest factors in the success of humanity and spans all the domains of ‘human’ assets.
  • In reality, there are few (if any) beings on our planet who have not been touched in some way by giving and few (if any) who could argue-away the profound legacies left by the outcomes of man’s urge to improve the present and future position of his society.
  • Without some form of giving, many of mankind’s greatest achievements simply would not have occurred
  • Giving is also one of the few activities mankind often undertakes without the geographic, cultural, social and political prejudices applied to other aspects of life.

Read the article and interviews in Thought Economics 

Source Details: https://thoughteconomics.com, Article & interviews by: Vikas shah (17th January 2016)

Donors pool philanthropic funds to gain collective impact through their giving and thus increase the total impact on the project. This type of collaboration allows for the Sharing of ideas, the joint planning of responses to issues of mutual concern, engagement with other donors that focus on related issues and the building of networks and alliances.

Organizations may have a programme or service that works but need investment from various donors to make the programme a reality. Donors thus have the opportunity to form strategic alliances which allow them to leverage their philanthropic giving while adding greater benefit to the project or programme.

Community philanthropy is an approach to development, based on the belief that community members often have the best understanding of what is needed to improve and aid their community. It is the process of gaining the support of community members, leveraging community resources and determining the local use of external resources in order to address challenges or improve the quality of life within that community. Trust is built through community collaboration and participation, as well as by providing some level of shared power in the decision-making process. It has been found that community members are more likely to commit to a project on a long-term basis if they have a level of ownership in the project.

Recommended Resources

Guidance for corporate community engagement professionals to steer their international strategies and navigate differences across regions.

Giving Around the Globe: 2017 Edition is a treasure chest of insights and best practices on how business can be a force for good.The four topics highlighted are:

  1. How technology can be used to improve employee engagement. 
  2. How businesses can use their advocacy power to uphold human rights and good ethics. 
  3. How the Sustainable Development Goals (SDGs) can be used as a road map for defining long-term business goals and recalibrating the positive contributions of business to society. 
  4. How businesses can deal with the rapid growth of voluntary disclosure and become a proactive force on critical issues. 

Adapted from the internationally acclaimed Dragons’ Den television series, Donors’ Den is an interactive session at The Trialogue Business in Society Conference that gives representatives from three carefully-selected non-profit organisations the unique opportunity to pitch a project to a panel of donors, and receive detailed feedback, empowering them with expert advice about how to hone their pitching and fundraising skills.

 

Tendani Nelwamondo, a senior socioeconomic development specialist at the Industrial Development Corporation, is involved in the establishment and management of community and employee trusts. The empowerment of broad-based entities aims to improve the socioeconomic livelihoods of the communities and employees. Nelwamondo discusses how these community trusts should be established and effectively run.

 

There are many high net worth individuals involved in philanthropy. According to the The Global Philanthropy Report, there are 15 million millionaires and close to 2,000 billionaires globally. Many of them have launched some form of philanthropic structure to enable them to make a financial investment, thereby improving society in one way or another.

Many high net worth philanthropists start a foundation - a non-governmental, non-profit organisation which makes donations, known as grants, to NPOs,  either to fund a specific programme or to contribute to general operating expenses.  A foundation can also be called an endowment or a charitable trust.

Recommended Resources

"For many, “philanthropy” — both the word and the field — conjures up images of elitism. Questions are proliferating about philanthropy’s power dynamics and whether billionaires benefit more than average citizens do: for example, Anand Giridharadas in Winners Take All, Rob Reich in Just Giving, and Edgar Villanueva in Decolonizing Wealth.

As good as those published works may be, the discussion about them reinforces the elitism that they decry. Even worse, while these book are often described as a new wave of criticism, that is hardly the case: There have long been valid critiques of philanthropy, especially from community organizers, grassroots nonprofits, and innovative social entrepreneurs."

Read more in The Chronicle of Philanthropy

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