The Social Enterprise Craze: CSO Financial Sustainability in Ghana

Posted on January 29, 2024 by Noemí Oeding

Students gather to sing and share a meal in the courtyard at B.A.S.I.C.S. International prior to receiving afterschool tutoring. B.A.S.I.C.S. International, a nonprofit organization located in Accra, Ghana, graciously hosted students from Auburn University as they conducted field research in October 2019. — Students gather to sing and share a meal in the courtyard at B.A.S.I.C.S. International.

Known for its long-lasting, mostly stable democracy, Ghana has long been considered a “donor darling” in sub-Saharan Africa. Since the mid-1980s, international donors and foreign governments have generously supported civil society organizations (CSOs) in the country. This has led to a robust civil society sector with a large number of organizations focused on everything from direct service provision to advocacy. For example, between 2012 and 2020, the number of registered CSOs nearly doubled from approximately 5,700 to 10,030 (USAID). However, the sector is also heavily reliant on foreign funders, with approximately 70 to 90 percent of Ghanaian CSO funding from international sources.

This heavy investment from international donors was upended in 2010 when the World Bank re-classified Ghana as a lower-middle income country. In response, several international funders indicated that they would reduce financial outlays in Ghana in order to divert those funds to countries with greater need. Indeed, Official Development Assistance (ODA) to Ghana fell from approximately $1.8 billion in 2011 to approximately $900 million in 2019. While there was a surge of aid in 2020 in response to the COVID-19 pandemic, the increase was temporary. By 2021, aid was once again on the decline, nearing 2018 levels at about $1.2 billion.

Several government proclamations have further complicated the funding environment. The most recent of these, “Ghana Beyond Aid” (released April 2019) declared Ghana’s intention to be “aid-free” sometime in the near future. Although the charter is ostensibly designed to motivate the Ghanaian government to provide for its needs with minimal support from external sources, the document has caused confusion among international donors and CSOs operating in Ghana. Our research found that many CSO leaders viewed “Ghana Beyond Aid” as political propaganda, but were still concerned that these types of aspirational proclamations would cause foreign donors to further reduce aid—aid that the government does not have the capacity to replace.

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Giving as Doing and Being: A Ugandan Perspective

Posted on January 18, 2024 by Dennis Kilama

Tombs of Buganda Kings at Kasubi (Uganda). © CRA-terre. Author: Sébastien Moriset.

By: Dennis Kilama

After 15 years of active involvement in the nonprofit sector in Uganda, I joined the Ph.D. program at the IU Lilly Family School of Philanthropy to integrate research with practice in the Ugandan nonprofit sector. At the same time, I am keen to bring a Ugandan perspective to understanding the broader concept of philanthropy. Overall, my research interests intersect with financial sustainability, nonprofit organizations, and traditional African giving practices. In this blog post, I draw from giving practices in Uganda, a country in East Africa, to reflect on the broader concept of philanthropy.

Giving in Uganda is expressed as “doing good actions.” People give to specific causes. For example, people give to others during important life milestones, such as birth, weddings, and funerals.[i] Traditionally, it is expected for family members and friends to give gifts when a child is born; this is at the point you see the child for the first time. Giving at weddings is also a common practice, with special wedding committees established and wedding fundraising meetings arranged where gifts are auctioned, compelling people to give towards the items that would make the typically large traditional and religious wedding successful. Giving is also practiced during moments of death to ensure that the grieving family is supported with things during the season of mourning.

In addition to actions, giving in Uganda is also about “being present.”[ii] If someone dies in a village, the village people are expected to support the bereaved family and be physically present at the funeral. If an individual only sends a financial contribution and instead attends to their farm and not the funeral, that individual is considered a social misfit. The gift is despised because the giver is assumed to value themselves and their gift more than the recipient. The impression that you value material things over people socially disconnects you from others. To opt for financial contributions only instead of physical presence at a funeral is thus a cultural insult. While people may reciprocate and provide a financial or in-kind donation, giving as action and presence in essential life milestones is very important and more culturally respectful. Thus, philanthropy in Uganda is about giving gifts in cash or in-kind and being present to experience joy or trial with others. In this case, philanthropy is collective and a cause and effect of social connectivity.

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All Hands on Deck: Philanthropy’s Role in Achieving the SDGs

Posted on August 30, 2023 by Gilbert Flores

By Hannah Kristine Vos (She/Her/Hers)

This article originally appeared on Alliance Magazine on Thursday, August 24^th.

Set forward by the United Nations (UN) in 2015, the Sustainable Development Goals (SDG) are a collection of 17 global goals aimed at improving the planet and the quality of human life around the world by the year 2030. — 17 global goals aimed at improving the planet and the quality of human life around the world by the year 2030.

On September 18^th and 19^th leaders from around the world will participate in the SDG Summit which will be ‘critical in setting the tone’ for the remainder of the 78^th session of the United Nations General Assembly (UNGA). Unfortunately, we are ‘far off track’ from achieving the UN Sustainable Development Goals (SDGs) by 2030. The urgency for action is further supported by the breaking news last month that our planet experienced four of the hottest days ever recorded, a sign of how far we have to go before achieving SDG 13: Climate Action. As the Global Sustainable Development Report 2023 states, ‘Civil society organizations (CSOs), Non-governmental organizations (NGOs), think tanks and other institutions can be powerful advocates for change, and can promote accountability.’ In this article, I rely on data from the 2023 Global Philanthropy Tracker to discuss the existing relationship between philanthropy and the SDGs, the need for increased data availability, and the importance of engaging with diaspora communities in the move toward localization.

The 2023 Global Philanthropy Tracker (2023 GPT), written and published by the Indiana University Lilly Family School of Philanthropy, tracks cross-border philanthropic outflows from 47 countries around the world and places them into the larger context of three externally tracked cross-border flows: remittances, official development assistance (ODA), and private capital investment. The 2023 GPT found that in 2020 (the year for which data was available for most countries) these countries sent $70 billion in cross-border philanthropy.

The SDGs & Philanthropy

The SDG Foundation Giving Estimates Paper opined that a total of $651 billion from philanthropic foundations alone could be unlocked between 2016–2030 for the SDGs. Research from Candid of primarily US-based foundations shows that between 2016–2020 funding focused on the SDGs totaled $217 billion. This may appear to be a drop in the bucket of the estimated $3.9 trillion annual funding gap in developing countries, but experts have highlighted that focusing only on the dollar amount misses the philanthropic sector’s role. The philanthropic sector can react more quickly to changing needs and technology and help catalyze innovation.

Some philanthropic organizations already utilize the valuable common vocabulary and framework that the SDGs provide. From the European Community Foundation Initiative to the Arab Foundations and the East Africa Philanthropy Network, the 2023 GPT highlights how regional member organizations around the world integrate the language and framework of the SDGs into their everyday work.

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Unveiling The Patterson Foundation’s Newest Fellows

Posted on March 10, 2023 by Gilbert Flores

Written by The Patterson Foundation

From left to right: Avery Crews Prado de Lima, Andrew Spector, and Alexa Carr.

The Patterson Foundation is excited to welcome Alexa Carr, Avery Crews Prado de Lima and Andrew Spector of the Indiana University Lilly Family School of Philanthropy at IUPUI as the newest members of its Fellows Program. The incoming fifth cohort of TPF Fellows will apply their learnings from the school’s Master of Arts in Philanthropic Studies degree program during a year-long engagement designed to connect aspiring philanthropic leaders with opportunities to gain experience and learn innovative philanthropic principles while contributing to initiatives strengthening people, organizations and communities.

The Patterson Foundation, a fully endowed charitable entity in Sarasota, Florida, created the Fellows Program in partnership with the Lilly Family School of Philanthropy — the world’s first school dedicated solely to the study and teaching of philanthropy. Through the Fellows Program, graduates of the school’s master’s degree program can apply to work with The Patterson Foundation across several diverse initiatives while gaining the knowledge and insights that will help mold the next generation of community, corporate and private foundation leaders. Previous Fellows have launched careers with charitable foundations and nonprofit networks nationwide in leadership roles following their time with The Patterson Foundation.

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India and China see growth in online giving

Posted on March 6, 2023 by Gilbert Flores

Findings from the Digital for Good: A Global Study on Emerging Ways of Giving research series

By Kinga Horvath

China and India account for more than a third of the global population and are still growing, accompanied by a strong digital climb and a dynamically growing middle class. Both China and India are among the top 10 countries that have seen the biggest overall increase in giving activity in the last five years, according to Charities Aid Foundation’s CAF World Giving Index 2021.

This giving trend and the fact that both countries have a long tradition of philanthropy strongly embedded in their cultures have generated several opportunities for future growth in their philanthropic sectors. The Digital for Good country reports – as well as the 2022 Global Philanthropy Environment Index – found that the use of online giving and crowdfunding are increasing in both countries; while informal philanthropy is flourishing, current regulations are likely to create a more cumbersome environment for formal philanthropy.

Findings from the 2022 Global Philanthropy Environment Index (GPEI) show that both China (with an overall score of 2.96)[1] and India (with an overall score of 3.28)[2] have a less favorable philanthropic environment due to restrictive regulations on philanthropy. The 2016 Charity Law and its amendments have made both local and cross-border philanthropic operations difficult in China[3]. Simultaneously, the moderate philanthropic environment in India is also threatened by strict regulations that affect both domestic and cross-border giving, such as the Foreign Contribution Regulation Act (FCRA) and its recent amendments[4].

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