Organizations from across Africa met in Accra, Ghana for an insightful meeting to deliberate on alternative funding models for civil society organizations. The four-day meeting was organized by the Change the Game Academy partner in Ghana, West Africa Civil Society Institute (WACSI), together with Innovation for Change (i4C)- Hub Afrique.
Organizations from across Africa met in Accra, Ghana for an insightful meeting to deliberate on alternative funding models for civil society organizations. The four-day meeting was organized by the Change the Game Academy partner in Ghana, West Africa Civil Society Institute (WACSI), together with Innovation for Change (i4C)- Hub Afrique.
The meeting offered a space for civil society organizations (CSOs) to learn other innovative ways of raising funds for their work in an increasingly competitive environment where funding for projects has continued to diminish. The organisations that were present were able to talk about how they mobilise resources to sustain themselves especially through non-traditional approaches and how others could learn from them.
“There has been immense pressure for CSOs to operate, survive and thrive in an increasingly competitive sector, while maintaining independence and influence,” said Charles Vandyck, head of Capacity Development at WACSI.
Many organizations shared about the predicaments they have been faced with including the threat of closing down their operations and laying off staff after their donors pulled out. This is because they did not have a sustainability plan in place.
The big question in the room was what African CSOs should do to become financially stable without necessarily depending on donors.
Re-orienting mindsets
For a long time organisations have depended on one source of income and if this is to change then its staff and board members have to re-orient their minds towards other sustainable forms of funding. This would involve developing new skill sets and cultivating a culture of innovation. It should be a plan for every organisation to have sustainability as a core strategic objective. This helps in looking beyond donor aid. It is also about thinking strategically about the financial models that can be adopted and aligning them with strategies that will help the organisation maintain its independence while being sustainable at the same time.
Social Enterprise
It became evident that organisations are increasingly finding ways and means at which they can become sustainable. Due to the decline in donor funding and an increase in non-profit operating costs as well as an increase in competition in the sector, CSOs have looked at social enterprises to fund their work. Social enterprises are unique in that they have both business and social goals. They promote social well-being in financial, social and environmental sectors. Some not for profit organisations now rely on profits from their social change operations. “Social enterprises enable CSOs to make money and do good at the same time. This changes how we do business,” said Juan Lozano from Innpactia, an organisation based in Colombia.
Apart from the social enterprising model, there are various new mechanisms of funding including social/green bonds, social impact bonds, impact investment in social businesses which all contributed to a blended financing approach.
What strongly emerged from the forum is that there are great opportunities for CSOs as more progressive legal frameworks emerge. The growing private sector, a fast growing economy and a community oriented society are all prospects for CSOs to tap into and help realise their mission.
This was a great opportunity for the Change the Game Academy partners in Africa to attend and learn more about Local Fundraising. In addition, they got lessons on how to ensure sustainability in their organisations and pass on the knowledge and skills to the grassroots organisations they train in the Local Fundraising and Mobilising Support course.