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Csi in sa   handbook launch - dec 2011

Csi in sa handbook launch - dec 2011



A presentation of research

A presentation of research



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  • If CSI had grown at the inflation rate over the past ten years, it would amount to 3.6 billion – which equates to real growth of 6% per annum.
  • The amount R4.3 billion allocated via CSI budgets is approximately 70% of the R6.2 billionAbout 60% (57% to be precise) of the CSI funds are spent via NPOs.
  • 2nd heading based on company decision / board approval4th based on existing expenditure
  • Corporates account for less than 20% of NPO income. A wild extrapolation – NPO income from corporates about R2.5 bl – at about 20% of income – imply the NPO sector in the region of R12 – R13 bl.
  • Highlight growth in reliance on self-generated income
  • Shows NPOs making an effort and are positive about self-generated income opportunities.
  • - Education has received between 30 and 40% of CSI budgets for the past ten years. The three sectors, education, social development health account for about two thirds of CSI spend Social development and health are inter-related – not always easy to differentiate
  • CSI spend tends to mirror corporate footprints
  • To highlight not just what sectors and regions are supported – but non-project based support opportunities that can be effective in leveraging the impact of CSI.
  • Costs also incurred by NPOs – to be considered in understanding total cost of administration
  • Difficult for NGO to distinguish between project and salary costs – often the same – but in any event better to look at total agreement and outcomes required from funding than to dissect and get particularly about cost line items.
  • Collaboration and establishment of partnerships put forward as leading practice.Significant level of partnerships – either formal or loose – being formed. Room for further development of such relationships.
  • A stronger focus on outputs is desired/ results of impact assessments would be evident in leading programmes.
  • The need to track outcome based indicators depends on the style of programme – not always suitable for small donations.

Csi in sa   handbook launch - dec 2011 Csi in sa handbook launch - dec 2011 Presentation Transcript

  • Corporate Social Investment in South Africa Launch of the CSI Handbook December 2011
  • Background to the launch of the CSIHandbook• The CSI Handbook has now turned 14• Each year we put in considerable effort to understand the dynamics of the CSI sector and explore trends, primarily through: – Research of leading corporate CSI programmes and NGOs – Review of published CSI information – Case studies and other consulting based interaction with companies• The CSI Handbook is used to disseminate our findings (along with the conference and training) and intended to transfer knowledge and improve practices within the sector• The launch serves to acknowledge the support of companies and highlight some of the findings contained in the book 2
  • The results presented are based largely onthe primary structured research• Corporates – 99 face to face interviews – Targeting largest companies – Approximately 1 hour long with follow up as needed• NGO interviews – 148 respondents – Self completion, internet-based – Spanning development sectors, size and region – Approximately 15 minutes long 3
  • CSI spend in 2010/11
  • CSI expenditure has grown at 6% per annum above inflation over the past ten years Total CSI expenditure 7 estimated at R6.2 bn 6 5 R billion 4 Real growth of 6% per annum 3 2 1 0 Nom Growth Real GrowthSource: CSI Handbook 14th EditionEstimation based on analysis of published and research CSI 5expenditure figures
  • Less than half of this funding is allocated to NPOsSource: CSI Handbook 14th EditionEstimation based on analysis of published and research CSI 6expenditure figures
  • Ten large ‘published’ spenders Company Spend (Rm) Anglo American SA 512 Woolworths 314 Kumba Iron Ore 134 Standard Bank Group 132 Anglo Platinum 119 Truworths 105 Impala Platinum 88 Transnet Foundation 85 Absa 83 Harmony 82Source: Published annual and social reports 7
  • The method of determining CSI budgets has shifted towards a percent of NPAT Percentage of net profit after tax Based on company decision/board approval Percentage of pre-tax profit Budget based on existing expenditure Fixed budget with variable % increase p.a. Fixed budget with fixed % increase p.a. Percentage of dividends Percentage of payroll 0 10 20 30 40 50 60 2003 2011 % of respondents 8Source: CSI Handbook 14th Edition
  • Corporates account for less than 20% of NPO income Trusts/foundations Corporates Foreign donors Government Self generated Private individuals Other Intermediary NGOs 0% 5% 10% 15% 20% % of respondents 9Source: CSI Handbook 14th Edition
  • Self-generated income has been the largest source of growth for NPOs Self-generated Corporates Private individuals Trusts/foundations Government Foreign donors Intermediary NGOs 15 10 5 0 5 10 15 20 % of respondents Sources of growth Sources of decline 10Source: CSI Handbook 14th Edition
  • NPOs expect self-generated income to make up a significant portion of their income by 2016 45% 41% 40% 35% % of respondents 30% 25% 25% 20% 16% 15% 11% 10% 7% 5% 0% 0% - 10% 11% - 30% 31% - 50% 51% - 70% 71% - 100% % of self-generated income in 5 years 11Source: CSI Handbook 14th Edition
  • Allocation of CSI funds
  • Education is supported by most corporates and receives the largest share of spend Education Social /community dev. Health Environment Food security / agric Enterprise development Arts and culture Sports development Housing /living conditions Safety and security Non-specific donations 40 20 0 20 40 60 80 100 Share of spend % supportSource: CSI Handbook 14th Edition 13n = 97
  • CSI expenditure tends to mirror corporate geographical footprints Gauteng KwaZulu-Natal National Western Cape Eastern Cape Free State Limpopo Mpumalanga North West Province Northern Cape 60 40 20 0 20 40 60 80 % of respondents % of CSI spendSource: CSI Handbook 14th Edition 14n = 97
  • Over 40% of corporates will not sponsor research, advocacy or co-ordination Co-ordinating or linkage programmes Developmental research Advocacy programmes 80 60 40 20 0 20 40 60 % of respondents Policy of not supporting Currently supporting 15Source: CSI Handbook 14th Edition
  • Funding of CSI programme activities
  • Only 23% of companies included staff costs in their CSI budget CSI governance Project M&E Volunteering/staff Marketing and communication CSI staff costs CSI administrative costs Employee match funding Research Membership fees 0 5 10 15 20 25 30 35 40 45 % of corporate response 17Source: CSI Handbook 14th Edition
  • The largest cost incurred by CSI programmes is direct project expenditure Direct project expenditure 81% CSI staff costs Employee volunteering and staff events Monitoring and evaluation of projects CSI marketing and communication costs CSI administrative costs Research Employee match funding Membership-based organisation fees CSI governance costs 0 2 4 6 8 10 12 14 16 18 20 % of CSI budget 18Source: CSI Handbook 14th Edition
  • The average number of people employed in CSI departments was 7.5 Project staff Management Administrative Employee involvement Monitoring and evaluation Secretarial Marketing and communications Other 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Average number of staff employed 19Source: CSI Handbook 14th Edition
  • Project costs (35%) and staff salaries (33%) were the largest NPO expenditure areas Project costs Salaries (core staff) Office overheads Other Marketing and communication Project monitoring and evaluation Advocacy 0% 5% 10% 15% 20% 25% 30% 35% 40% % of costs 20Source: CSI Handbook 14th Edition
  • Partnerships
  • Corporate partnerships are increasingly formalised NGO service providers / community-based… Formal contract with National / provincial MOU government departments Loose affiliation Local government Corporates in own No involvement industry sector beyond funding Corporates in other N/A / Dont Know industry sectors 0% 20% 40% 60% 80% 100% % of respondents 22Source: CSI Handbook 14th Edition
  • Communicating CSI
  • 81% of corporates report on CSI in their annual reports Annual report Staff magazines Intranet Company website Sustainability report Website Newsletter Brochures Posters in workplace Social report 0 10 20 30 40 50 60 70 80 90 % corporate response 24Source: CSI Handbook 14th Edition
  • Most companies describe their CSI focus areas and projects in their communications Description of CSI projects CSI focus areas Project performance and outputs Project objectives and inputs Breakdown of CSI expenditure Formal project impact assessment 0 20 40 60 80 100 % of respondents 25Source: CSI Handbook 14th Edition
  • The most common NPO communication channel is feedback reports Feedback reports Networking Direct Mail Online advertising PR Conferences Non-profit directors Print media advertising Radio advertising Intermediaries Television advertising None of the above 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 26Source: CSI Handbook 14th Edition
  • Monitoring and evaluation
  • Most companies check that funds are spent as intended, conduct site visits and track beneficiaries Funds spent as intended Site visits Number beneficiaries Beneficiary improvement Tracking activities Outcome indicators External project evaluations Baseline / longitudinal studies 0% 20% 40% 60% 80% 100% % of respondents All projects Some projects No projects Dont know 28Source: CSI Handbook 14th Edition
  • Likewise, the vast majority of NPOs track beneficiary numbers Beneficiary numbers Tracking activitiies Evidence on improvement Outcome indicators External evaluations Baseline/ longitudinal studies 0% 20% 40% 60% 80% 100% % of respondents All projects Some projects No projects Dont know 29Source: CSI Handbook 14th Edition
  • Concluding points• CSI continues to show strong apparent growth, driven by more inclusive accounting of community contributions• Companies are a key source of support for NPOs, although other funding sources and self-generated funding are also being prioritised• Fund allocation directed mostly to: – National programmes and urban centres – Education, health and social development type initiatives• Many of the practices appear consistent with previous years, although there is evidence of growing professionalism, for example: – Establishment of partnerships, with government and other companies – M&E with some attention to outcomes – Multiple channels and methods of communication 30
  • Thank you