Charity is seen as a virtue by humanists and all major religions. But it has also been polarising. Some people believe strongly in it and feel that it reflects the inner heart of humanity, while others believe that it cultivates weakness and dependency amongst the underserving. Even the ancients grappled with the very practical implications of charity.

Nowadays, the news is full of stories of philanthropists who have given their fortunes away to help others and for the betterment of society.

This article explores the concepts of charity and philanthropy, the similarities and differences, and when each is appropriate. It is not a deep dive into these topics, but rather a high-level review.

This has been one of the hardest articles for me to write. I’ve thrown out two earlier versions, started from scratch and done more research and thinking. Even though I’ve been in this field for 22 years, I’ve realized how my passion for social entrepreneurship had obscured my appreciation of charity. I’ve also learned when charity is the only moral and appropriate response to a situation.

In the effort to be a good custodian of their philanthropic funds, some donors impose a cap on overhead expenditure (i.e. indirect costs). This amount is typically somewhere between 10%-20% of total grant value.

These organizations, and much of the public, believe that by limiting such expenditure, they will be getting more value-for-money; that the endeavour will be more moral. This belief is based on a superficial view of how non-profit organizations achieve impact.

While there may be contexts when this rule is appropriate, its blind application can easily harm good organizations.

Justifiably, this method of funding is frequently referred to as the “starvation cycle”.

This article will explain what is meant by the 10% overhead cap, how it can easily do more harm than good, and how donors can use much better measures to judge the merit of their philanthropic investments.

I strongly believe that non-profit organizations should strive to cultivate additional income streams, including earning revenue from social enterprise activities. This helps to fund operations, build reserves and manage risk.

Some non-profit organizations choose to earn revenue from a “side business” – an undertaking which is distinct from their core offering.

While I support this sentiment, I believe that organizations tend to make two mistakes in how they implement these ideas. The first mistake is to underestimate the complexity, time and costs to achieve this. The second mistake is for organizations to embark on such a venture before they have strengthened their operations and improved their thinking. The third mistake is to neglect opportunities to earn an income which are more readily available.

This article discusses this second and third mistake. It suggests that the establishment of a side business should be the result of a journey and not the first step. It encourages organizations to improve their functioning and attend to weak areas, before they start looking outside of themselves for solutions. It also reminds organizations to thoroughly investigate opportunities to earn an income that may be closer in reach.

Those organizations that market themselves well have a distinct advantage over those that don’t.

Marketing and public relations (PR) helps to amplify an organization’s brand. It helps them to command an adequate “share of voice” and stand out amidst all the other organizations that are competing for our attention.

I believe that fundraising needs to align with marketing and PR, and form part of a concerted strategy. This will make it much easier for a social enterprise or non-profit organization to raise funds or win customers.

This article will explore some of my thoughts about the importance of marketing and PR, and tactics that organizations should consider in each of these areas. It will also touch on how these organizations should navigate the online world.

This article will share some of my thoughts about value of branding for social enterprises and non-profit organizations, and how a good brand exerts a magnetic force around them.

Those organizations that have stronger brands are more likely to attract good funding, business opportunities and partnerships. This is a simple truth I’ve come to realize in my 20+ years of consulting.

I’ve also recently worked with a brand designer and public relations specialist on some projects and have gained recent insights into the value of this discipline. Here is some of what I’ve learnt.

When was the last time you had a conversation about your organization’s strategy? A deep conversation about what it must do to fulfil its destiny? These conversations are priceless. Many social entrepreneurs find them more useful than conventional strategic-planning sessions.

This article discusses the value of the strategic conversation. It also provides some suggestions for how to cultivate this good habit with your leadership team.

This 1-page Strategy Brief illustrates the Journey to Social Enterprise, which I’ve unpacked in detail in a previous presentation.

I believe that social enterprise is more of a direction than an end state. In South Africa, thousands of organizations are heading in this direction. Social enterprise is still in its infancy. This brief provides a simple overview of the journey and the transition points that need to managed.

This 1-page Strategy Brief shares 8 strategies that businesses can use to integrate elements of a social enterprise into their thinking and operations. This also shows how it is possible to adapt one’s legal form to introduce social enterprise elements.

Like most commercial organizations, non-profit organizations and social enterprises should strive to keep their fixed costs as lean as possible. Those that do this properly will be more likely to survive financial shocks and stresses, and create dynamic and sustainable organizations.

While many of these organizations have already achieved this state, this article targets those social entrepreneurs who believe their organizations have become too expensive to maintain on an ongoing basis, or are about to enter a risky and uncertain financial territory.

This article shares some important lessons I’ve learned through assisting these organizations to develop budgets, build financial models and review their financial structure.

This one-page Strategy Brief identifies 10 characteristics of successful social enterprises, and demonstrates how all non-profit organizations and businesses can learn how to behave and think in this way. This brief also differentiates between the mindset and business model of a social enterprise.