IVAN SWARTZ: In the social impact space, collaboration is key

In the past two years, the SA social impact space has experienced a shift towards more collaboration and partnerships in response to a pressing need for capital and innovative solutions.

With businesses decreasing their social investment spending, coupled with the rising socioeconomic needs during the pandemic, managing the generally limited funding in the market has required creative and inclusive strategies. As a result, many nonprofit organisations have had to find allies to help them reach common goals.

Trialogue research revealed a decline in corporate social investment (CSI) funding in SA, with the total estimated CSI expenditure in 2021 at R10.3bn, a 4% decrease from R10.7bn the year before, when the pandemic first tightened its grip on the economy.

The last estimated annual CSI expenditure before the pandemic was R10.2bn in 2019. This represented a 5% increase from the estimated R9.7bn spent in 2018. Prior to the pandemic CSI spend was increasing year on year. However, the pandemic has had a devastating effect. Over the past year or so as many as 25% of all SA organisations have been forced to close their doors, a situation described as a “crisis” by nonprofit trust Inyathelo.

On a more encouraging note, Nation Builder found that nonprofits, the private sector and the government have been collaborating more than ever, seeking innovative ways to achieve more with less. The collaboration has shifted from merely being a survival tactic to becoming a critical element to ensure sustainability and inclusiveness in the social impact space.

This trend is a result of an urgent need to capacitate the sector in its mandate to service communities; however, some of the strategies developed and allegiances made will benefit the sector going forward. There are many benefits for nonprofits that collaborate with other entities, such as capacity building, solving challenges in a more holistic way, resource sharing, horizontal learning opportunities, avoiding duplication of efforts and, of course, saving money.

Many social impact projects require substantial funding, but the issue with most of the funding models in the social investment space is that there aren’t many CSI budgets that can support a single capex project with millions of rand. As a result, it is conducive for social investors to be proactive and collaborate for the sake of their common goals.

During the last quarter of 2020 social impact leaders with a common vision decided to collaborate and launched a social impact co-working space named Vuka in Paarl in the Western Cape.

The space is currently shared between Valcare (social investment managers), Inceba Trust (Early Childhood Development organisation), Labit (a social entrepreneurship incubator) and Fleet (a local community-minded coffee brand), with more nonprofits booking the hot desks, boardroom and working spaces as and when they need to do so.

By sharing resources like the office space, a receptionist and collaborating towards funding other office expenses like printers, a cleaner, coffee and internet access, these nonprofits save well over R300,000 per year. Besides cost reductions, the nonprofits buy into the greater vision by sharing their philosophies, consulting where needed, assisting one another with problem-solving, and speaking at one another's skills development events.

Valcare’s collaborative efforts extend to over the 250 nonprofit organisations we facilitate as part of our membership network in the Cape winelands area. During the pandemic collaborative efforts played a vital role in supporting the wellbeing of pupils, as 45% of them receive their main meal from school feeding programmes. 

Multiple stories of change have come out of these initiatives since they were initiated. It is clear that collaboration is the only way forward for organisations in the nonprofit sector. When we work alone, the impact will be far less significant than if we work together. Now more than ever we need to move away from the concepts of ownership and protecting our own turf — and rather work together to bring about the change this country needs.

• Swartz is Valcare CEO.