NPO Leadership Imbizo 28 October 2014 - Varkey George
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Transcript of NPO Leadership Imbizo 28 October 2014 - Varkey George
Varkey George Director: MIGS Consulting, Country Director: Gateway College; Africa Director: AGES; Director: Vigour Charitable Trust
Multiple Income Generating Strategies for Social
Enterprises
This talk
• Why
• What
• opportunities
• How
• What are my strengths in contributing to it
An organism keeps repeating tried and tested
responses to environmental impulses.
Environments are dynamic and if the
responses don’t change… the organism dies. 3
Population dynamics Adults Fertile Children Total
1 billion 2 billion 4 billion = 7 billion
2 billion 4 billion 4 billion 10 billion
Why should a Social Entrepreneur take up for-profit activities?
• Dependency on subsidies from government • Government dependent on tax revenue • The more the tax, the less there is to re-invest • The more social spending… more the tax
• Dependency on philanthropy • Surpluses generated by enterprises / individual
donations • Legislated in South Africa
• Both income streams are under threat
Childline nearly closed… partnership with Peermont
(gaming and hospitality company) R 1
contribution from guests
Badisa 48 old age homes, decentralised. Each
one looks after itself…struggling… social services rescued
NICRO Centralised, let go off 100 of 300 staff; downsizing further,
forecasting a huge deficit.
SHAWCO: Retrenching
LOTTO 2 billion budget; 40 billion worth of requests.
South Africa: 100 000 non profits
Some examples in South Africa
South Africa
• GDP growth slowed to 1.2 %
• Government debt - 2008/09: 27.3 % of GDP
• 2012/13- 41.8%
• Interest cost of state debt: 100 billion • slower economic growth — delivered in part by the
continuing difficult global environment, but also as South
Africa struggles for competitiveness — cast a shadow
over public finances, employment and equality.
Source: http://www.fin24.com/Economy/SA-investment-rating-safe-
analysts-20130111
Current CSR in practice
marketing window dressing mindset change core competency BBBEE Compliance
Ford, Carnegie, Vanderbilt, TATA, Warren Buffet, Bill Gates, Patrice Motsepe
Social entrepreneurship in non-profits.
• The art of simultaneously pursuing both a financial and a social return on investments (the double bottom line)
What
Vehicles available and the possible maneuverability
For profit non profit social business social . ente rprise
Social Enterprise are nimble
Social Innovation
Opportunity: The new BBBEE weighting
ELEMENT WEIGHTING
Enterprise Development and procurement
40 points (3% NPAT)
Socio-Economic Development 5 Points (1% NPAT)
Ownership 25 Points (25% +1)
Management Control 15 Points (40 to 50%)
Skills Development 20 points (3 % of payroll)
Total 105 points
Source:http://www.getonskillsdevelopment.co.za/bee/socio-economic-
development.html
Opportunity is being lost
• 3% of NPAT on ED
• 3% of payroll on skills development
• 1% of NPAT socio economic development
Culture, Board, CEO, Staff, stake holders, knowledge,
Consistent quality and reporting
Marketing, clear
quantifiable goals
• International
• Fees from satruday school
• RAG
• Transport
• Rags2riches
• House
• Renting of spare space
• Education
• Health
• Enterprise
• Arts
• Sports
• Senior Clubs
Unreasonable people: social entrepreneurs
• They want to change the system
• Insanely ambitious
• Propelled by emotion
• Think they know the future
• They ignore the evidence
• They are just…well… unreasonable
• Don’t give a man fish… teach him how to fish… SE will try to revolutionize the whole fishing industry.
Failing gracefully
• Reject rejection
• Failing is temporary
• Keep expectations realistic
• Focus on strengths
• Bounce back: keep moving- rat research
Every genius could have been a failure
• Isaac Newton: Born in 1642
• Mother left him at 4 yrs
• 17 yrs: farming… failed miserably
• Trinity college: closed due to plague
• Went home and found the law of gravity and light
What is your strength
• Innovator----- constant innovation of the new
• Entrepreneur---- constant efficiency and improvement
• Manager ----- stability and consistency