Agenda
• Evolution of social development and Trialogue
• State of CSI in South Africa
• Forecasting trends
• Fundraising implications
2
10 years of social development in South Africa
2007: finalised BEE Codes of Good Practice gazetted
2012: National Development Plan approved
2015: SDGs ratified
2016: Revised BBBEE Codes of Good Practice gazetted
3
2016: Draft NPO Bill released
2009: King III published
2016: King IV published
2016: #Fees must fall protests2015: JSE SRI Index
replaced with the FTSE/JSE Responsible Investment Index Series
Ten years of Trialogue and our CSI conference
2007: First ‘Making CSI Matter’ conference at Indaba hotel 2009: Launch of the
Social Map
2014: Strategic CSI award launched
2017: 10th conference renamed ‘Business in Society’ conference
2017: Launch of the Trialogue Knowledge hub
4
2017: 20th CSI Handbook renamed ‘Business in Society’ handbook
• Over 70 blue-chip South African corporates supported with their CSI strategies, implementation, measurement and reporting.• Over 200 CSI practitioners trained by Trialogue
• Over 3 000 delegates at our conferences
2016: Southern Africa partner of CECP’s Global Exchange
2016: Trialogue becomes 51% black-owned
2012: Trialogue Level 1 BEE score
2015: Funders Guide launched
2013: Trialogue launches CSI forums
2006: CIDA becomes shareholder of Trialogue
2016: Partner with CLEAR-AA on African research
6
• Corporate Responsibility (CR)
• Corporate Social Investment (CSI)
• Sustainable Business • Sustainability• Corporate citizenship• Triple-bottom-line • Corporate Responsibility (CR)
• Socio-economic development (SED)• (Strategic) philanthropy• Corporate community involvement
(CCI)
Terminology
Defining CSI
• A social intervention with a developmental intent
• External to core business function
• Not in direct pursuit of revenue or profit, but can cater to the interest of business
7
CSI expenditure in South Africa is estimated to be R8.6 billion in 2016
8Source: Trialogue CSI Handbook 19th editionBase year: 2001
0
1
2
3
4
5
6
7
8
9
CSI
exp
en
dit
ure
(R
bill
ion
)
Nominal versus real growth in CSI expenditure
Nominal
Real (adjusted for inflation)
Base year: 2001
A third of companies report non-cash giving, which constitutes 13% of total CSI expenditure
9Source: Trialogue CSI Handbook 19th edition
94 9588 88 90 87
6 512 12 10 13
0
10
20
30
40
50
60
70
80
90
100
2011 n=97 2012 n=83 2013 n=88 2014 n=88 2015 n=77 2016 n=82
% t
ota
l exp
en
dit
ure
non-cash
cash
Like last year, 70% of companies have a formal employee volunteering programme
10Source: Trialogue CSI Handbook 19th edition
78 73 70 70
22 27 30 30
0
10
20
30
40
50
60
70
80
90
100
2013 n=103 2014 n=99 2015 n=77 2016 n=64
% c
orp
ora
te r
esp
on
de
nts
No
Yes
CSI expenditure continues to be concentrated nationally and in Gauteng
11Source: Trialogue CSI Handbook 19th edition2016: n = 82, corporate support2016: n = 82, CSI expenditure
70 60 50 40 30 20 10 0 10 20 30 40
International
Northern Cape
Mpumalanga
Limpopo
North West
Free State
Eastern Cape
KwaZulu-Natal
Western Cape
Gauteng
National
% corporate support % CSI expenditure
Education continues to receive the most support
12Source: Trialogue CSI Handbook 19th edition2016: n = 81, % corporate expenditure; multiple responses2016: n = 81, % corporate support
100 80 60 40 20 0 20 40 60
Other
Safety and security
Disaster relief
Housing and living conditions
Non-sector specific donations and grants
Arts and culture
Environment
Sports development
Entrepreneur and small business support
Food security and agriculture
Health
Social and community development
Education
% Corporate support % CSI expenditure
Half of education expenditure goes to school-level education and 29% to tertiary
Source: CSI Handbook 19th Edition2016 n = 71 13
17
22
28
29
3
Early childhood development
General education
Further education and training
Tertiary education
Adult education
% CSI education spend
Teacher development receives 11% of the education funds
Source: CSI Handbook 19th Edition2016 n = 73
14
27
25
11
16
6
3
3
9Bursaries, scholarships, universitychairs
Infrastructure, facilities andequipment
Teacher development
Additional learner programmes
Curriculum development
School governance and functionality
Special needs interventions
Other
% CSI education spend
Over 80% of corporates fund NPOs, which received 45% of total CSI expenditure
15Source: Trialogue CSI Handbook 19th edition2016: n = 79, corporate support; multiple responses2016: n = 79, CSI expenditure
100 80 60 40 20 0 20 40 60
Other
To political parties
To religious institutions
To community trusts
To government departments
To industry initiatives
To for-profit service providers
To government institutions
To non-profit organisations
% Corporate support % CSI expenditure
Corporates surpassed government as the largest source of NPO funding in 2016
16Source: Trialogue CSI Handbook 19th edition2016: n = 145
% NPO response % NPO income
80 70 60 50 40 30 20 10 0 10 20
Investment Income
Debt
Intermediary NPOs
Other
The National Lotteries Board
Trusts/foundations
Self generated
Foreign state donors
Private individuals
Government (South African)
Foreign independent donors
Corporates
Over half of the NPOs (56%) increased their self-generated income
17Source: Trialogue CSI Handbook 19th edition2016: n =
13
16
25
31
38
40
43
45
47
47
49
56
62
45
40
53
38
26
31
34
33
30
32
20
25
39
35
16
24
34
26
21
20
23
19
24
- 50 100
Debt
Intermediary NPOs
The National Lotteries Board
Foreign state donors
Other
Corporates
Government (South African)
Private individuals
Trusts/foundations
Investment income
Foreign independent donors
Self-generated
% NPO response
Increased
Stayed the same
Decreased
n = 8-119 depending on category
Documents required by corporates before funding NPOs
0 10 20 30 40 50 60 70 80 90
Other
Letters of reference
BBBEE status
Latest annual report
Copy of founding document
Financial statements
Proof of PBO registration
Proof of Section 18A status
% corporate response
Source: CSI Handbook 15th Edition
N = 104 18
Anglo American and Nedbank were perceived by companies and NPOs as delivering the most impact
19Source: Trialogue CSI Handbook 18th editionCompanies’ ranking: n = 75NPO’s rankings : n = 131
Corporates’ ranking of corporates
Company Number of mentions
1 Anglo American 18
2 Nedbank 16
3 Woolworths 15
4 MTN 11
5=* Old Mutual 10
7 SAB Miller 9
8=* First RandFNB
6
10=* MultichoiceTelkomTransnet
5
NPOs' ranking of corporates
Company Number of mentions
1 Nedbank 27
2 Anglo American 23
3 Old Mutual 18
4 ABSA 13
5= FNBInvestecVodacom
11
8=* Standard BankWoolworths
10
10=* DiscoveryPick n Pay
8
Africa Tikkun was perceived by companies and NPOs as delivering the most impact
Source: Trialogue CSI Handbook 18th edition 30
Corporates' ranking of NPOs
Company Number of mentions
1 Afrika Tikkun 8
2 Gift of the Givers 6
3=* Smile FoundationStop Hunger Now
4
5=* CANCA,Doctors without borders, NECTPROTEC, Tshikululu
3
10=* Buffelshoek TrustENACTUSIlifa LabantwanaInyatheloLove to GiveMESNelson Mandela Childrens FundSparrow SchoolsSPCATime for ChangeWESSA
2
NPOs' ranking of NPOs
Company Number of mentions
1 Afrika Tikkun 8
2 Inyathelo 6
3=* Gift of the Givers, Reach for a Dream
5
5=* BRIDGECHOCGreater Good South Africa,Ikamva YouthIlifa LabantwanaJAMLIV VillageSmile Foundation
4
CSI is becoming more strategicSo
cial
be
nef
it
Corporate benefit
Charitable
grantmaking
Developmental
CSI
Strategic
CSI
Commercial
grantmaking
No
visible
benefit
Recognition
of
contribution
Stakeholder
benefit
Competitive
benefit
Beneficial
impact
Beneficial
outcomes
Visible
outputs
No visible
benefit
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More focused CSI
"That's been one of my mantras—focus and simplicity. Simple can be harder than
complex: You have to work hard to get your thinking clean to make it simple. But it's worth it in the end because once you
get there, you can move mountains.”
Steve Jobs
"If you chase two rabbits, both will escape"
Unknown
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Involvement in advocacy work
“Most of the important things in the world have been accomplished by
people who have kept on trying when there seemed to be no help at all.”
Dale Carnegie
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Greater employee engagement
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"In my view the successful companies of the future will be
those that integrate business and employees' personal values. The best people want to do work that
contributes to society with a company whose values they share, where their actions count and their
views matter ."Jeroen van der Veer, Committee of
Managing Directors (Shell)
More consumer buy-in
"People are going to want, and be able, to find out about the citizenship of a
brand, whether it is doing the right things socially, economically and
environmentally."Mike Clasper President of Business Development, Proctor and Gamble
(Europe)
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Increasing collaboration
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“There is great value in diversity when solving complex problems"
Barbara Dale-Jones
BRIDGE
“Alone we can do so little; together we can do so much”
Helen Keller
More innovative financing
“The Social Impact Bond shines a spotlight on what works.”
George Overholser
Investor and Social Entrepreneur
“A crowdfunding platform broadens the funding market and
allows investors to finance the project irrespective of location.”
Prisiliya Madan, Cyclists for Change
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Rise of technology and data
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“Without big data, you are blind and deaf and in the middle of a freeway.”
Geoffrey Moore, author
“Hiding within those mounds of data is knowledge that could change the life of
a patient, or change the world.”Atul Butte, Stanford University
Target your approach to companies whose work is aligned to what you do
• Seek a variety of funding sources to address different operational requirements i.e. not only corporates
• Understand strategic CSI positioning of company (including business strategy and how CSI supports it)
• Target fewer, more relevant CSI budgets i.e. those where your offering is aligned to the CSI strategy and the company’s business
• Strive to engage at a direct and senior level (rather than submitting unsolicited proposals)
• Involve your leadership in process to secure funding and agree terms
• Ensure the ‘compliance’ boxes are ticked
• Be proactive in suggesting win-win solutions
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Work with companies as partners
• Identify financial and non-financial needs suited to company
• Strengthen relationship through volunteerism offering
• Consider if/how a company’s consumers or other stakeholders can be involved in the work you do or in raising funds
• Adopt a partner mindset
• Support company brand where appropriate, including with the use of social media
• Build in monitoring (and evaluation if possible) as part of the deal and consider how technology can by used to support this
• Be transparent in reporting of performance and financials (challenges to be shared and confronted, not hidden)
• Review and consider how you could be involved in sector-wide collaborative initiatives
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