csi handbook launch 2015 12-03

3 December 2015

Presented by: NICK ROCKEY, CATHY DUFF & ANTHONY PRANGLEY

2

Agenda

• Welcome Nick

Rockey

• CSI Handbook findings Cathy DuffBreakfast

• Strategic CSI Award Nick Rockey /

Anthony Prangley (GIBS)

• Closing Nick

Rockey

#CSI2015

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Trialogue innovates

• CSI Handbook innovations in 2015– CSI Handbook questionnaire could be completed electronically or face-to-face– Research respondents will each receive feedback on how their CSI practices

compare to those of the total sample– The 2015 CSI Handbook is available as an eBook on our website from today

• Launching first Trialogue Funders Guide today• Broadening focus on CSI communications across various

platforms in 2016• Expanding and enhancing the Trialogue CSI conference in

2016• Collaboration and partnerships

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Respondent corporate profile example

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Today marks the launch of the inaugural Trialogue Funders Guide

• Aims to simplify the funding process and make it more effective, by providing guidance and tips on good giving

• Provides an overview of NPOs in the country and listings of NPOs per development sector

• Recommendations on good giving practice by sector

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Expanding and enhancing the Trialogue CSI conference in 2016• Change in venue to allow broader access• Pre and or post conference events on specialist

topics• Central plenary sessions with break-outs• Increased collaboration

An example of collaboration – Bertha Center’s guidelines on impact bonds for corporates

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Em-ploy-ment34%

Criminal justice

11%

Social wel-fare47%

Education8%

GlobalTotal value: ~$267m Average value: ~$4.76m Average duration: 4.5 years

AfricaTotal value: ~$178m Average value: ~$25m Average duration: ~7 years

Impact Bonds are a way of paying for outcomes based contracts. They enable governments to better allocate resources in the face of austerity and poor social outcomes.

Early childhood developmentWorkforce development

Disease preventionJob creation

Teacher developmentEducation

Presented by: CATHY DUFF

Trialogue CSI Handbook 18th edition – Research findings

Funding flows

9

CSI expenditure in South Africa decreased to R8.1 billion in 2015

Source: Trialogue CSI Handbook 18th editionBase year: 2001

20012002

20032004

20052006

20072008

20092010

20112012

20132014

20150123456789

CSI e

xpen

ditu

re (R

bill

ion)

Nominal

Real (adjusted for inflation)

Base year: 2001

The top 100 companies accounted for two thirds of the total estimated CSI expenditure

10Source: Trialogue CSI Handbook 18th edition

# of top-100 companies

% expenditure (R5.4 billion)

1500%

48%1500%

20%

2800%

18%4200%

14%

100

0

Less than R25m per company

R25 - R50m per company

R50 - R100m per company

More than R100m per company

11

Mining, retail and financial services account for the majority of total CSI expenditure

Source: Trialogue CSI Handbook 18th edition

Other sectors

State-owned and public enterprises

Information technology and telecommunications

Financial services

Retail and Wholesale

Mining and quarrying

0% 10% 20% 30% 40% 50%20152014 % CSI expenditure

Non-cash giving stable at 10% of total CSI expenditure


2011 n=97 2012 n=83 2013 n=88 2014 n=88 2015 n=770

10

20

30

40

50

60

70

80

90

100

94 9588 88 90

6 512 12 10

non-cashcash

% to

tal e

xpen

ditu

re

Median CSI spend rose to R16.6 million from R14.4 million in 2014


Less than R1m

R1m - R5m R5m - 10m R10m - 30m R30m - R50m

R50m - R100m

More than R100m

0

5

10

15

20

25

30

35

6

12 12

33

15

11 11

3

8

21

31

14

1013

2014 n=98 2015 n=78

% co

rpor

ate

resp

onde

nts

Median: R16.6m

CSI expenditure is concentrated nationally and in Gauteng

14Source: Trialogue CSI Handbook 18th edition2015: n = 76, corporate support2015: n = 76, CSI expenditure

% corporate support % CSI expenditure

International

Northern Cape

Mpumalanga

Limpopo

North West

Free State

Eastern Cape

KwaZulu-Natal

Western Cape

Gauteng

National

80 70 60 50 40 30 20 10 0 10 20 30 40

Education continues to receive the most support

15Source: Trialogue CSI Handbook 18th editionn = 78, % corporate expendituren = 78, % corporate support


OtherSafety and security

Disaster reliefHousing and living conditions

Non-sector specific donations and grantsArts and culture

EnvironmentSports development

Entrepreneur and small business supportFood security and agriculture

HealthSocial and community development

Education

100 80 60 40 20 0 20 40 60

16

Most of the education spend is at school level (51%) and Maths and Science (35%)

Source: CSI Handbook 18th EditionOuter: 2015 n = 70Inner: 2010 n = 85

25

16

1514

20

3 7 24

24 18

11

10

4 3 6

Bursaries, schol-arships, university chairsInfrastructure, facil-ities and equipmentTeacher devel-opmentAdditional learner programmesCurriculum de-velopmentSchool governance and functionalitySpecial needs in-terventionsOther

% CSI education spend% CSI education spend

Type of intervention

16

28

29

243

19

26

25

27

3 Early childhood developmentGeneral edu-cationFurther education and trainingTertiary edu-cationAdult education

% CSI education spend

Level of education

34.7032967032967

12.2263736263736

11.6043956043956

9.78021978021978

8.77362637362637

22.9120879120879

35

15 13

11

8

8 10

Maths and science

Specialised sub-jects

Language and literacy

Life skills

Vocational and technical education

Information technology

Other

% CSI education spend

Subject area

Outer: 2015 n = 70Inner: 2010 n = 85

Outer: 2015 n = 68Inner: 2010 n = 85

Outer: 2015 n = 70Inner: 2014 n = 91

Almost all corporates fund NPOs, which receive 52% of total CSI expenditure

17Source: Trialogue CSI Handbook 18th edition2015: n = 79, corporate support; multiple responses2015: n = 79, CSI expenditure


Other

To community trusts

To political parties

To religious institutions

To industry initiatives

To government departments

To for-profit service providers

To government institutions

To non-profit organisations

100 80 60 40 20 0 20 40 60 80

76% of corporates funded more than 10 organisations in 2015


% corporate respondents % corporate respondents

No. of organisations supported No. of grants made

Don't know

More than 100

51 to 100

21 to 50

11 to 20

Six to ten

Less than five

40 30 20 10 0 10 20 30 40 2015 n=762015 n=75

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Companies prioritise strengthening grantee organisations and selecting the right partners

Source: Trialogue CSI Handbook 18th editionn = 75

Provide risk capital (i.e. fund unproven approaches or emerging organisations)

Fund projects where there is a government commitment to take on running costs after you exit

Co-ordinate our resources and actions with other companies or funders that are working on the same issue(s)

Fund projects that have an expressed aim of influencing government policy and practice

Fund projects that have a high probability of success

Provide support that will strengthen grantee organisations so that they can achieve greater impact

0 20 40 60 80 100

12

20

31

38

79

80

35

23

34

37

17

12

45

44

35

21

4

5

8

13

-

4

-

3

Very importantModerately importantNot importantDon’t know

% corporate respondents

Most corporates are willing to discuss expanding programmes, few are willing to discuss loans and reserves


% NPO response % corporate response

Paying off loans

We are not willing to engage in open dialogue with NPOs on any of these topics (one tick)

Reserves for other purposes

Developing reserves for long-term facility or fixed asset needs

Developing reserves for operating needs (money for a “rainy day”)

Flexible capital for organisational change/growth

Working capital (cash flow needs)

Acquiring or renovating a facility

General operating support

Multi-year funding

Expanding programmes

70 50

30 10

10 30

50 70

90 2015 n=80, multiple responses

2015 n=75, multiple responses

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The majority of non-profits reported increased income in 2015

Source: Trialogue CSI Handbook 18th edition2015: n = 1082014: n = 171

2014 20150

10

20

30

40

50

60

70

80

90

100

68 65

23 30

9 5

Stayed the sameDecreasedIncreased

% N

PO re

spon

dent

s

22

Government surpassed corporates as the largest source of NPO funding in 2015

Source: Trialogue CSI Handbook 18th edition2015: n = 93

Other

Debt

Investment income

Intermediary NPOs

The National Lotteries Board

Foreign state donors

Self-generated

Foreign independent donors

Private individuals

Trusts/foundations

Corporates

Government (South African)

80 70 60 50 40 30 20 10 0 10 20 30 2015 n=93

2015 n=93

% NPO response % NPO income



Governance, BBBEE, volunteering, M&E

Most companies house CSI internally, the remainder have separate legal structures

24Source: Trialogue CSI Handbook 18th editionGovernance structure: n = 79 Type of foundation: n = 27

611

2855

Governance structure of CSI function

Registered as non-profit company

CSI responsibility within another department of the company

Registered as a trust

CSI department within the company

19

55

19

7

Type of foundation

Predominantly endowed

Predominantly pass-through

Hybrid

Other

Most companies report no link between CSI and skills or enterprise and supplier development

Source: Trialogue CSI Handbook 18th editionn = 66, multiple responses 43

Other

Use the same service providers

Managed by the same people in the company

CSI projects feed into the programme

No linkage

0 10 20 30 40 50 60 70

Skills development Enterprise and supplier development

% corporate response

Most companies foresee no change to these relationships as a result of the revised BBBEE Codes

Source: Trialogue CSI Handbook 18th editionED: n = 54Skills development: n = 69

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Don’t know

Less integration between CSI and ED/skills development

Expenditure on ED/skills development through CSI will decrease

Expenditure on ED/skills development through CSI will increase

Greater integration between CSI and skills development

No change expected

0 10 20 30 40 50 60 70

Skills development

Enterprise development% corporate response

27

70% of companies have a formal employee volunteering programme

Source: Trialogue CSI Handbook 18th edition

2013 n=103 2014 n=99 2015 n=770

10

20

30

40

50

60

70

80

90

100

78 73 70

22 27 30

NoYes

% co

rpor

ate

resp

onde

nts

Company-organised and fundraising drives remain the most common volunteering activities

28Source: Trialogue CSI Handbook 18th edition2015: n = 53

% corporate respondents % employee participation

Other

Employee match funding

Pro bono

Give as you earn

Volunteering matched funding

Time off for individuals to volunteer

Fundraising and collection drives

Company volunteering initiatives

70 60 50 40 30 20 10 0 10 20

A high rate of corporates and NPOs measure all CSI projects and the trend continued in 2015

29Source: Trialogue CSI Handbook 18th editionCorporates: 75, multiple responsesNPOs: n = 98, multiple responses

Inputs

Activities

Outputs

Outcomes

Impacts

100 80 60 40 20 0 20 40 60 80 100

2015 n=982015 n=75

% NPO response % corporate response

Beyond communication, 72% of corporate respondents use the information to inform project design

30Source: Trialogue CSI Handbook 18th editionCorporates: n = 68

Data not used

Shared findings with other grantmakers

Attempted to influence public policy or government funding choices

Planned / revised strategies

Reported to grantees / stakeholders

Planned / revised programmes or projects

Reported to the board

0 20 40 60 80 100

% corporate respondents



Perceptions

Anglo American remains perceived by companies and NPOs as delivering the most developmental impact

Source: Trialogue CSI Handbook 18th edition 30

Corporates’ ranking of corporates

Company Number of mentions

1 Anglo American 8

2= VodacomNedbank

7

4 Old Mutual 6

5 MTN 5

6= TransnetSAB MillerFirst Rand

4

9= WoolworthsTelkomStandard BankMultichoiceEskom

3

NPOs' ranking of corporates

Company Number of mentions

1 Anglo American 24

2 Nedbank 16

3 Woolworths 12

4 ABSA 9

5= Old MutualSAB MillerStandard BankVodacom

7

9= Pick n PayRMB

6

A wide range of NPOs were mentioned with Gift of the Givers and Afrika Tikkun featuring in the corporate and NPO rankings

Source: Trialogue CSI Handbook 18th edition 30

NPOs' ranking of NPOs

NPO Number of mentions

1 Cancer Association of South Africa

7

2 Nelson Mandela Foundation 63 Equal Education

Liv VillageSOS Children's VillageWildlands Conservation Trust

5

7= Red CrossShine

4

9= Afrika TikkunGift of the GiversInyatheloNelson Mandela Children's FundWordworksZimeleZoe Life

3

Corporates' ranking of NPOs

NPO Number of mentions

1 Gift of the Givers 92 Afrika Tikkun 73 READ 4

4= Illifa LabatwanaMaths Centre MESNational EducationCollaboration TrustRed Cross

3

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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

– They support projects in four provinces and across 4.6 sectors on average– Most fund more than ten organisations, with 17% funding over 100

• 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

Presented by: NICK ROCKEY & ANTHONEY PRANGLEY

Trialogue Strategic CSI Award

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2014 winner – Necare

• Video example - Netcare's 2014 winning strategic CSI project

https://www.youtube.com/watch?v=j5ehnxiniRY



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Judges and process

Judges:• Anthony Prangley and Stan HardmanProcess:• Received 12 entries from 10 companies and corporate foundations• Entries were judged independently by each judge on the following:

1. Objectives were measured against how SMART they were2. Social benefit was measured against visible outputs, beneficial outcomes and impact3. Business benefit was measured against recognition of contribution, stakeholder

benefit and competitive benefit

• The two judges then conferred to determine the winner

Trialogue’s strategic CSI matrixSo

cial

ben

efit

Corporate benefit

Charitable grantmaking

Developmental CSI

Strategic CSI

Commercial grantmaking

No visible benefit

Recognition of

contribution

Stakeholder benefit

Competitivebenefit

Beneficial impact

Beneficial outcomes

Visible outputs

No visible benefit

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Upcoming Trialogue events

• Next Trialogue CSI Forum: 9 (Joburg), 10 (Durban), 11 (Cape Town) February 2016

• Next Trialogue CSI training: 15 & 16 March in Joburg • Trialogue CSI Conference and launch of 2016 strategic CSI

Award – 24 & 25 May 2016 at The Venue in Bryanston• Research for the 2016 Trialogue CSI Handbook will

commence in April 2016

Sponsorship options and bookings are now open for the CSI Forum, CSI Conference and the Trialogue Sustainability Review

(carried in the FM)

Thank you for your continued support