Charity’s Dead- So What Next?

Charity, as we know it, is dead, but there’s a new alternative to solve the world’s problems. A blog by our CEO Bessi Graham that initially appeared in Probono in August 2016.

 

This is going to be a difficult pill to swallow for many, but it is time to accept that the charity and philanthropy models as we know them are unfortunately not going to solve the world’s problems.

If they were, then the range of complex social and environmental challenges we face would be solved by now.

The same goes for traditional aid and development approaches. Despite our very best efforts and intentions, the current approaches fail to deliver either the social outcomes we desire, or a sustainable method of funding that ensures the ongoing provision of products and services.

 

“It’s time for a new model. It’s time to shift our mindset to one that is built on a premise that might upset your worldview”.

 

You can do good and make money in the same business model. It’s called blended value – the delivery of both a social or environmental return and a financial return, without compromising on either.

For people operating in a world of black and white, where it’s either profit or Not for Profit, or doing good versus making money, this alternative worldview is a difficult one to accept. But accepting it is the critical first step we need to take to enable the design and delivery of business models that will change the world.

Once we’ve accepted this new worldview, it’s time for another (also hard) critical step – to stop thinking of social enterprise as a silver bullet.

Despite social enterprise being a buzzword, which can get as annoying as “innovation” and “disruption”, more often than not people simultaneously misunderstand and limit social enterprise.

Not for Profits and others in the social sector are excitedly discussing social enterprise, and how it will magically fill their funding gaps and save them from certain doom in a changing funding landscape. However, when you scratch beneath the surface many are using the term social enterprise to refer to a grant reliant Not for Profit that has “some kind of trading”. There’s nothing new, innovative or agile about that, and it’s certainly not sustainable.

 

“We’ve loved working with TDi so far, and there’s still plenty we can do together.”

– Peter Allen, CEO of Ethical Property Australia

 

At the same time as seeing social enterprise as the potential saviour of the Not for Profit sector you’ll hear comments like, “There’s no business model for doing good,” or, “We’re dealing with a segment of society that could never pay a commercial rate for our services so we will always need philanthropy.” However, instead of continuing to drain grant dollars out of a limited pool, social enterprises should focus on building a commercial model that will make them less grant reliant, thereby freeing up grants for fledgling enterprises who are in the grant reliant stage.

So why do we continue to believe that doing good and making money are mutually exclusive? Why are we so uncomfortable with integrated models that blur the lines and get us closer to cracking into new territory; on both our ability to make a dint on the social and environmental challenges we’re trying to address and on opening up new pools of capital that were previously unavailable to the social sector?

It takes a village to grow an inclusive sustainable business

TDi has been committed to inclusive sustainable businesses since the early days of the social enterprise movement in Australia.

Two Feet Accelerator: Where are they now? YEVU

This week we’ve been chatting with Anna Robertson from YEVU – a social enterprise clothing brand designed and manufactured in Ghana.

YuMi Tourism Partners (Alotau) – Milne Bay Organics

“Coconut has been incredibly embedded in the Milne Bay tradition – from the food consumption through to the traditional dancing.” Last year, the YuMi pilot program took us to Alotau in Papua New Guinea, where we worked with difference maker, Rhona.

Indigenous tourism is key to economic recovery

Long-time friend, and associate of TDi, Ash Bartley has just started a new role with Visit Victoria.  We caught up with her recently to celebrate her new role and ask about the opportunity for Indigenous tourism in Australia’s economic recovery.

YuMi Tourism Partners (Alotau) – VilLink Tours & Expeditions PNG

“With what I’m doing, I want to encourage the other young women out there, that they can also have the chance to make a difference.  Not only in earning money, but sharing what they know, and getting other communities involved.”

Flexible and responsive coaching is key to sustaining women’s economic empowerment during a crisis

While each business owner faces their own set of challenges in response to the uncertainty and upheaval of COVID-19, we are observing a series of consistent coaching requirements emerge.

When life gives you lemons… pivot your business model

Nemika Brunton is based in Alotau, Papua New Guinea.  We met her during the YuMi Tourism Partners Pilot program.  The program addressed starting small, testing and learning, and how to adapt and respond to market needs.  These lessons have certainly helped Nemika shift her business focus in response to COVID-19. Tourism is a key industry for the town and many of the local businesses were tourism based.  So, the impact of COVID-19 hit the town hard.  Many locals – including Nemika – have adapted quickly to totally new businesses and customers.

Supporting Social Enterprise during COVID-19

Following a tumultuous year of bushfires, COVID-19 and recent floods in Southern NSW, lots of small businesses and the families and communities they serve, are doing it tough.  One way we’ve seen people showing their support for these local businesses is through the #shoplocal #shopvictoria and #buyfromthebush movements.  We’ve been inspired by this and wanted to share a #shopsocialenterprise guide based on some of the businesses we’ve been working with over the last 18 months.

Resilience, at what cost?

Over the past six months we as a team have navigated our own business and helped hundreds of others to do the same. We went from having a clear business model and ready to write our best year ever to having nothing as certain and many parts of our own business model under threat.

Finding motivation to continue business during COVID-19

As the current economic climate evolves with COVID-19, we have been sharing some perspective from both our own work and the continual conversations and support we’re offering others. Initially, we shared a metaphor about what this first felt like – like our house was...