The concept of a non profit organisation is a familiar one which has been widely used for many years, and is useful in highlighting the fact that a Non Profit Organisation (or NPO) registered in South Africa does not make financial profits for distribution to shareholders, rather using any income purely to carry out work in support of its social mission. But when you stop and think about it, "non profit" is a pretty negative term.

 

A new way of thinking about the work done by such organisations is to focus not on what they do not aim to achieve (a financial profit), but rather on what they do aim to achieve – a "social profit", or benefit to a community or communities, to the environment or to animals, or to society as a whole.

 

In this way of thinking, a social profit organisation (or SPO!) is one whose work has a directly measurable outcome in changing our world and all that is in it for the better. At the level of our country, helping impoverished communities to become stronger and more prosperous should be seen as a social profit for our society as a whole, and an investment in its future. In this light, people who start social profit organisations can be seen as social entrepreneurs.

 

With the launch of the South African Social Investment Exchange (SASIX) the GreaterGood South Africa Trust has shifted beyond the idea of social responsibility as our way of "paying something back", to a 21st century idea of deliberate and thoughtful social investment in accountable development projects with measurable social returns or achievements. These projects produce a demonstrated social profit that does change lives for the better.

 

SASIX is committed to driving transparency and performance in the social development sector. Through the exchange, social investors can contribute towards projects which are well planned, by organisations with a good track record of performance and the necessary capacity to carry them out effectively. Investors have peace of mind knowing the money will be used for a sound project by a reputable organisation, and will receive regular updates on how the money is being spent and what kind of social impact it is having.

 

The concept of social profit will also go a long way towards raising the bar for accountability and performance – demanding, as it does, a clear demonstration by organisations seeking funding of the expected social impact of their planned work.

 

In this way, as with the financial stock exchange, both investors and social profit organisations will come to regard their work – and its value – in a different light, and demand greater demonstration of the social profit impact and motive. Indeed, we hope that this begins to raise the sense of esteem and worth within social profit organisations by highlighting the huge value and enormous profit that they do contribute to our society.

 

We would like to see the term "social profit organisation" gaining broad currency, and being used to reflect the critically important, positive and valuable contribution which these organisations make in our society. To find out about the South African Social Investment Exchange (SASIX) visit www.sasix.co.za

Inyathelo - The South African Institute for Advancement (SAIA) held its first Matric Giving Initiative workshop on 28 March 2006 in Green Point. This initiative is part of a pilot programme called YIPPSA (Youth in Philanthropy Programme South Africa), and is fully funded by Inyathelo - The South African Institute for Advancement.

By Barry Smith, Regional Director, Southern Africa of The Synergos Institute
July 2006

 

To many, the term philanthropy connotes” charity" or vertical giving from rich to poor to alleviate the symptoms of poverty and inequality, rather than to change the structural, systemic marginalisation of the majority. Barry Smith points to the emerging practice of social justice philanthropy and suggests that we need multi-sectoral collaboration – and a cohesive social giving sector – to overcome South Africa's massive social deficits.This article was prepared for the 2006 edition of The CSI (Corporate Social Investment) Handbook produced by Trialogue.

Research the causes or issues important to you.

Look for a group that works with issues about which you feel strongly. You might already be giving money to one of these organizations, and that might be a good place to begin your volunteer experience. If you can't find such an organization, here's a challenging and intriguing thought: why not start one yourself? You can rally your neighbours to clean up that vacant plot on the corner, patrol the neighbourhood, paint an elderly neighbour's house, take turns keeping an eye on the ailing person down the street, or form a group to advocate for a remedy to that dangerous intersection in your neighborhood. There is no end to the creative avenues for volunteering, just as there is no end to the need for volunteers.