As a charity your models have been built on a foundation that people who want to support doing good will do so by giving you money. The binary approach we all grew up with in our culture is:
In other words, people will give you some of their profits out of their excess: the success of their companies or investments, to support your good works.
The philanthropic sector is often based on a scarcity mindset. It relies on generosity from those with the ability to give, also usually involving a power imbalance, resulting in a “Please, sir, I want some more”, approach, like in Oliver Twist.
I’m pleased to say that an important paradigm shift in this thinking is here, though it is like an incoming tide or a sprouting seed. Both take time for change to be seen, but can deliver better outcomes for everyone.
The ingredients for a different recipe are worth considering and ask yourself this: how might this new way of thinking change your approach to funding your next blue skies project?
The end result could be positive in one of two different ways:
- First, as an organisation you create a structure that others can invest in; or
- Second, you invest some of your funds in a venture that aligns with your mission.
Impact investments can be through debt (loans) or equity (shares). So, what are the ingredients?
By Steven Moe
Head of Impact Team at Parry Field Lawyers
stevenmoe@parryfield.com 021 761 292
