Overview of the state of CSI in South Africa 24 May 2016 Presented by: NICK ROCKEY
Agenda Research highlights Conference panel perspectives on CSI Trialogue initiatives 2
RESEARCH HIGHLIGHTS 3
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 CSI expenditure (R billion) CSI expenditure in South Africa decreased to R8.1 billion in 2015 9 8 7 6 5 4 3 2 1 0 Nominal Real (adjusted for inflation) Base year: 2001 Source: Trialogue CSI Handbook 18 th edition Base year: 2001 4
The top 100 companies accounted for two thirds of the total estimated CSI expenditure 100 14% Less than R25m per company 42 18% R25 - R50m per company 20% R50 - R100m per company 28 15 48% More than R100m per company 15 0 # of top-100 companies % expenditure (R5.4 billion) Source: Trialogue CSI Handbook 18 th edition 5
CSI expenditure is concentrated nationally and in Gauteng National Gauteng Western Cape KwaZulu-Natal Eastern Cape Free State North West Limpopo Mpumalanga Northern Cape International 80 70 60 50 40 30 20 10 0 10 20 30 40 % corporate support % CSI expenditure Source: Trialogue CSI Handbook 18 th edition 2015: n = 76, corporate support 2015: n = 76, CSI expenditure 6
Education continues to receive the most support Education Social and community development Health Food security and agriculture Entrepreneur and small business support Sports development Environment Arts and culture Non-sector specific donations and grants Housing and living conditions Disaster relief Safety and security Other 100 80 60 40 20 0 20 40 60 % corporate support % CSI expenditure Source: Trialogue CSI Handbook 18 th edition n = 78, % corporate expenditure n = 78, % corporate support 7
NPOs receive 52% of total CSI expenditure To non-profit organisations To government institutions To for-profit service providers To government departments To industry initiatives To religious institutions To political parties To community trusts Other 100 80 60 40 20 0 20 40 60 80 % corporate support % CSI expenditure Source: Trialogue CSI Handbook 18 th edition 2015: n = 79, corporate support; multiple responses 2015: n = 79, CSI expenditure 8
Governments, not corporates, were the largest source of NPO funding in 2015 Government (South African) Corporates Trusts/foundations Private individuals Foreign independent donors Self-generated Foreign state donors The National Lotteries Board Intermediary NPOs Investment income Debt Other 2015 n=93 2015 n=93 80 70 60 50 40 30 20 10 0 10 20 30 % NPO response % NPO income Source: Trialogue CSI Handbook 18 th edition 2015: n = 93 9
% NPO respondents The majority of non-profits reported increased income in 2015 100 90 9 5 80 70 23 30 60 50 40 30 20 10 0 68 65 2014 2015 Stayed the same Decreased Increased Source: Trialogue CSI Handbook 18 th edition 2015: n = 108 2014: n = 171 10
76% of corporates funded more than 10 organisations in 2015 Number of organisations supported Less than five Six to ten 11 to 20 21 to 50 51 to 100 More than 100 2015 n=76 0 5 10 15 20 25 30 % corporate respondents Source: Trialogue CSI Handbook 18 th edition 11
% total expenditure Non-cash giving stable at 10% of total CSI expenditure 100 90 80 6 5 12 12 10 70 60 50 40 94 95 88 88 90 non-cash cash 30 20 10 0 2011 n=97 2012 n=83 2013 n=88 2014 n=88 2015 n=77 Source: Trialogue CSI Handbook 18 th edition 12
Most corporates are willing to discuss expanding programmes, few are willing to discuss loans and reserves Expanding programmes Multi-year funding General operating support Acquiring or renovating a facility Working capital (cash flow needs) Flexible capital for change/growth Reserves for operating needs Reserves for long-term facility/fixed assets Reserves for other purposes Not willing to engage on any of these topics 2015 n=80, multiple responses 2015 n=75, multiple responses Paying off loans 70 60 50 40 30 20 10 0 10 20 30 40 50 60 70 80 90 % NPO response % corporate response Source: Trialogue CSI Handbook 18 th edition 13
Most companies report no link between CSI and skills or enterprise development No linkage CSI projects feed into the programme Managed by the same people in the company Use the same service providers Other 0 10 20 30 40 50 60 70 % corporate response Skills development Enterprise and supplier development Source: Trialogue CSI Handbook 18 th edition n = 66, multiple responses 43
A high rate of corporates and NPOs reportedly measure all CSI projects Impacts Outcomes Outputs 2015 n=98 2015 n=75 Activities Inputs 100 80 60 40 20 0 20 40 60 80 100 % NPO response % corporate response Source: Trialogue CSI Handbook 18 th edition Corporates: 75, multiple responses NPOs: n = 98, multiple responses 15
Concluding remarks Growth in total CSI expenditure is slowing National projects and those in Gauteng continue to receive the largest share of CSI budgets Education continues to receive the most spend, and this is focused at school-level and maths and science Large companies are still not particularly focused Giving is still largely traditional to projects run by NPOs with few considering new structures or finance mechanisms Companies and NPOs increasingly claim to conduct M&E and measure outcomes of all projects 16
CONFERENCE PANEL PERSPECTIVES ON CSI 17
Funding innovations BBBEE Social enterprise Enterprise development SOCIO-ECONOMIC DEVELOPMENT FUNDS Impact Bonds Crowd funding Skills training Non-cash contributions 18
Monitoring and evaluation 19
Collaboration in education 20
Skill development and employability 21
CSI in Africa 22
ICT in education 23
Conscious giving 24
TRIALOGUE INITIATIVES 25
Trialogue initiatives 26