B-BBEE & non-profits’ fundraising efforts

Tuesday 30 June 2020
With fewer companies reported increased corporate social investment (CSI) expenditure in 2019, charity organisations are forced to think about various ways of tapping into different expenditure lines of corporations in order to sustain their projects.
It is evident now more than ever that CSI spend is not enough to fill the gaps that currently exists in our society. While government and business have taken significant strides to create an enabling environment to facilitate philanthropy; leverage CSI and B-BBEE; and direct a South African-centric development agenda, it is equally important for charities to develop commercial approaches to fundraising that considers funding throughout the lifetime of the organisation, rather than only on a project-by-project basis. 
For example, let us take B-BEEE - there is an opportunity to leverage the codes in a way that fairs out commercially favourable for both corporations and charities, should we expand motivations of moral imperative and reputation from business expenditure to business ownership.
Non-profit organisations are owned by its beneficiaries, why not have a tiny portion of a business owned by non-profits.
There is an opportunity for charities to establish a trust (a separate legal entity) with the sole mandate of acquiring investment share portfolios including B-BBEE shares in companies. 
We live in a time where being good is good for business. Having a tiny piece of the business owned by a charity which is ultimately owned by its beneficiaries will not only keep the business’ employees engaged and highly motivated – the business would also endear itself to its external stakeholder’s such as the business’ customers and suppliers. Cascading a business’ moral values by encouraging charities to be involved in its ownership structures makes the business personal for everyone and accountable to the communities in which the charities operate in.
B-BBEE must be implemented in an effective and sustainable manner in order to unleash and harness the full potential of black people – B-BBEE affords charities to financially investment in schemes that empower its beneficiaries over a life-time, to think beyond social enterprise development (SED) points and ultimately effect change in our communities. Therefore, it is our moral imperative too, as non-profits organisations, to think commercially to solve the issue of financial sustainability of non-profits in South Africa.
Since 2013, Save the Children South Africa (SCSA) has been working with community based organisations throughout its programmes. We understand that impact cannot be achieved without empowering the vulnerable and using their voices to effect change. SCSA’s partnerships team not only believes that every child deserves a future, it also believes that it has an equal role to play in setting the development agenda in South Africa by effectively facilitating corporate social investment opportunities, philanthropy support of charitable foundations and leveraging B-BBEE to achieve sustainable partnerships.
By Atlegang Matlala, Head of Partnerships at Save the Children South Africa

About: Save the Children believes every child deserves a future. In South Africa and around the world, we give children a healthy start in life, the opportunity to learn and protection from harm. We do whatever it takes for children – every day and in times of crisis – transforming their lives and the future we share.
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