GreaterGood South Africa

Lessons well-learned
Thursday, November 5th 2009

CSI managers are well positioned to distil the lessons learnt by corporates investing in socio-economic causes. In this article, we look at reflections from the funding community on how to improve its own practice.

There has been rapid growth in the scale of CSI spend in South Africa over the past decade (The CSI Handbook: 11th edition, Trialogue, October 2008: pg 4). At the same time, non profits in South Africa have increasingly sought partnership with corporates to access resources. Any company holding the purse strings of a CSI fund is under pressure to show good performance and a worthwhile contribution to development.

Below are some of the key learnings of funders - across foundations, international development agencies, governments and corporates about how best to work with those you fund.

Good practice

• Be clear about what you will fund - and understand the implications. CSI funds should be managed according to very clear written criteria. It is equally important to make sure that criteria state exactly what will not be funded, and why these exclusions exist. Understand what difference your fund seeks to make - and be willing to explain this.
• Consider your funding timeframe. It's worth considering investing in the same organisations over a number of years, thereby allowing them to grow and develop without the constant worry of how to fund the coming year. This also allows for projects to determine timeframes that are realistic and achievable, leading to better results and impact.
• Understand your sector. There is a plentitude of material providing research and analysis on the development sector in South Africa. Stay abreast of new developments and trends. Look at how government policy, budget allocations and provincial implementation are opening up opportunities or shifting the focus in specific sectors. Understand the opportunities for sustainability and the limits that the sector faces. Be realistic about how possible it is for projects you fund to develop sustainable practices.
• Set up a discretionary fund for cutting edge project ideas. There will always be exciting projects that don't fit your overall criteria but which present the opportunity for innovative work in their sector. Consider putting in place a discretionary fund - with its own set of criteria - to allow your CSI fund to participate in growing the body of knowledge around new methodologies and approaches that will contribute to future best practice. Discretionary funds could even be used to earmark resources specifically for investment in future sustainability. Allow for some failure -but be sure to record what did not work and to feed this into learning forums.
• Keep it simple. Funder supported projects commonly complain that every funder has a different application and screening process. Applications often require a high level of detailed scrutiny. Reporting requirements can also be onerous and extremely resource intensive for funded partners. The key here is to know exactly what information is critical for your CSI decision making process. This is the data that needs to be gathered and reported upon. Design a good assessment process at the start; and your CSI programme will be able to extract quality results without having to wade through mounds of superfluous data.

Feeling stuck in the mud?

David Carrington has the following useful advice to funders about how to avoid getting stuck:

• Remain curious about the context
• Keep looking for ways to work better (both as a funder and within the sector/s you support)
• Create spaces to talk about what has worked and what hasn't
• Join forces with others where it makes good sense
• Go beyond your safety zone. Risk a little.
• Show your willingness to account for your work in the public sphere.

Perhaps the most resounding message of Carrington's paper is that funders need to consider whether they are practising what they preach. For instance, if you expect beneficiary organisations to be transparent in showing their results each year in the public domain, are you willing to do the same on your CSI activities?

Continuously seeking the answers to this and other difficult questions will help to build openness, flexibility and responsiveness in the fast-changing terrain of social investment.

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