The SA Social Investment Exchange (SASIX) lists carefully selected development projects for the public to invest in. Each project is researched, evaluated and monitored using specially designed assessment tools so that investors can track their impact on people and communities.

In business, companies measure their success by tracking financial performance. There are a standard set of indicators that all companies use so investors can compare companies’ performance no matter what they sell or do. But how do you compare the success of an organisation that provides books and support to pre-school children with a project that builds homes for low-income families? The aims of each are completely different and the people who are benefiting have vastly differing needs.

Real returns

The innovation of SASIX has been to develop indicators that measure the social impact of listed projects so that investors can see a real return on their investment. The return is social, rather than financial, but is nonetheless vital for development in South Africa.

If we can’t adequately assess what we are doing, how will we know if our investments are making any difference to the problems South Africa faces?

SASIX applies the same sort of assessment and due diligence to social investments (or donations) as is given to more traditional financial investments. Although SASIX projects range from helping communities to care for AIDS orphans in Gauteng to business skills training for crafters on the fringes of the Kruger National Park, investors are able to monitor the ‘social profit’ that their investment is generating, quickly and easily online.

Criteria

To qualify for SASIX funding, projects must:

• Be specific, time-bound development interventions which address an identified need within a community.
• Be run by South African registered non-profit organisations.
• Have definable and measurable outcomes that have a clear impact on the lives of disadvantaged people.

The SASIX assessment process ensures that listed projects meet a set of criteria, including the ability to deliver measurable returns. We look for evidence of direct life change in potential SASIX projects and determine the beneficiary to budget ratio – or the estimated direct life change cost. This helps us make sure that resources reach those who can make the very best use of them.

SASIX investment cycle

Each listed SASIX project goes through an intensive three-stage assessment, monitoring and evaluation process:

STAGE 1: Selection

• Identifying the need
• Projects sourced
• Proposal development
• Proposal review
• Research
• First peer review
• Site visit
• Organisational evaluation
• Risk assessment
• Interim contract
• Listed on www.sasix.co.za

STAGE 2: Investment

• Investment
• Grant agreement
• Payment in tranches

STAGE 3: Reporting

• Progress reports
• Final site visit and evaluation
• Final peer review
• Final report

Evaluating risk

SASIX also evaluates each project's risk, developing an overall risk rating which is displayed as a graph when the project is listed. Here, we look at:

Concept – the project's approach to addressing an identified need
Design – the use of effective and proven methods
Capability – the organisation's leadership depth and expertise
Control – transparency, governance and financial management
Sustainability – lasting impact
External – factors outside of the organisation's control

Raising the bar

Although the process may seem long and detailed, the aim is to raise the bar for public and corporate participation in social development in South Africa and build a culture of accountability for social performance amongst beneficiary organisations.

And judging by SASIX’s enormous success – R8.9 million invested in 42 social development projects in just two years – it is a process that is clearly working.

Find out more about the SASIX investment cycle