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Social Entrepreneurship

This category includes articles about social entrepreneurs, typically about businesses with a for-profit model with a social mission embedded into the fabric of the business.

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Research Center Works To Prove And Improve Impact Of Social Entrepreneurs

This post was originally produced for Forbes.

You can download an audio podcast here or subscribe via iTunes.

The Abdul Latif Jameel Poverty Action Lab, commonly referred to as J-PAL, is based at MIT and seeks to reduce poverty by providing academic research on interventions by social entrepreneurs and others working in the space.

Quentin Palfrey, the executive director of J-PAL North America, worked for the Obama Administration before taking on the role at J-PAL. He notes that the center receives its funding from MIT and other philanthropic donors. The center has a staff of more than 30 full-time employees. He says, “J-PAL North America does not charge for services or generate sales revenue.”

J-PAL works on global poverty. J-PAL North America focuses on poverty in the United States.

A lawyer by training, Palfrey thinks about the work in terms of policy implications. The lessons from J-PAL may be more relevant to social entrepreneurs who may be betting more than some public funding on their ventures.

Quentin Palfrey, courtesy of J-PAL

“From low-income, first-time mothers in South Carolina; to teenagers living and attending school in the most dangerous neighborhoods of Chicago; to inmates struggling with substance use disorders in Kentucky, millions of people across the United States live in poverty and face incredible social challenges as a result,” Palfrey says.

The political climate demands evidence-based approaches to social problems, he says. “Increasingly, policymakers at the federal, state, and local levels are turning to rigorous evidence on what works and why to create policies designed to combat poverty, improve schools, promote health, and address other social issues.”

J-PAL’s primary tool is the randomized control trial or RCT, Palfrey says. “We catalyze and support randomized evaluations, communicate evidence to help translate research into action, and help policymakers build capacity to create and use rigorous evidence.”

Melissa Kearney, Professor of Economics at the University of Maryland and co-chair of the J-PAL State and Local Innovation Initiative, says that the goal is to understand how and why certain interventions are effective. “J-PAL is committed to replication, meaning if a research project demonstrates effectiveness of a particular intervention in one setting, that intervention should be implemented either the same way or with potential tweaks in another setting or with another population,” she says.

“This is a critical aspect to building evidence and to developing an understanding of how and under what circumstances a particular intervention delivers impact,” she adds.

Palfrey sees the pace of the work as its greatest challenge. “Policymakers often make crucial policy decisions based only on anecdote, status quo, or political belief. Replacing this process of creating policy with one based on scientific research can be slow. Moreover, policy priorities and approaches to governance can quickly shift with changes in administrations.”

Contentious politics make the J-PAL’s work more relevant than ever, he notes. “in today’s hyper-partisan political climate, evidence-based policymaking has garnered strong bipartisan support, and the movement for more efficient and effective governance continues to gain momentum.”

Palfrey notes that there are limitations to the center’s work as well. “The randomized controlled trial is an incredibly rigorous and powerful tool for evaluating whether social programs really work, but they are not always appropriate for every setting.”

He identified three specific limitations:

  1. In some cases, RCTs may not yield results as quickly as policymakers would like for decisions that require immediate evidence.
  2. It can be difficult to generalize results from one study to other contexts; for example, a summer jobs program that helps youth avoid violence in Chicago may not work in the same way in Philadelphia.
  3. In some cases, it might not be ethical to do a randomized controlled trial, for example when a program has the resources to serve everyone who is interested.

Kearney adds, “Too often the results of an evaluation are interpreted as a ‘verdict’ on an organization or a particular program. Instead, the social entrepreneurship community should recognize that this type of evidence building work is really an iterative process.”

She says sometimes social entrepreneurs just need to try again. “If a research project yields disappointing results about the impact of a particular program, depending on the circumstance, it might make sense to try to make incremental changes to the way that particular program is implemented and evaluate the revised implementation.”

Palfrey believes the work is a part of helping people out of poverty. “By transforming government and building a movement for evidence-based policy, we can help lift millions in the United States out of poverty. Committing to evidence-based policymaking will require innovating at every level of government and challenging the status quo. I’m confident that by doing so we can allocate our resources in a way that maximizes benefits for those who need it most.”

On Thursday, March 2, 2017 at 1:00 Eastern, Palfrey will join me here for a live discussion about J-PAL’s work and how it can be utilized by social entrepreneurs to increase their impact. Tune in here (at the top of this article) then to watch the interview live. Post questions in the comments below or tweet questions before the interview to @devindthorpe.

Entrepreneur Leverages Celebrities’ Influence For Charity

This post was originally produced for Forbes.

You can download an audio podcast here or subscribe via iTunes.

“If you do a gesture for charity, you should always make sure that it’s from not a press spin, but a natural, organic effort,” John Travolta said at the City Summit and Gala organized by social entrepreneur Ryan Long.

The City Gala held around the Grammys raised hundreds of thousands of dollars for charities, including Travolta’s own Jett Travolta Foundation, named for his son, who passed away in 2009.

Travolta said his interest in philanthropy began with Katrina. “It was organic. It really was. When Haiti happened, when Hurricane Katrina happened, I had a plane. Nobody was helping them. Why wouldn’t you do it?”

John Travolta with Philanthropist Dale Godboldo, courtesy of City Gala

He also made the case for transparency in charitable work, “Make clear where the money is going so no one ever questions it. You have to have an integrity because it is a known area that could be suspect. You have to have a lot of integrity about admitting and exposing how this gets displayed or distributed.”

Halle Berry, who delivered the keynote address at the Summit, said, “I’ve been an advocate of philanthropic efforts as long as I can remember—for most of my life.”

Berry offered advice for humanitarians, “My advice: take the media training that your team provides you! I recall so many times I’ve walked away from an interview and said to myself, ‘Now why did I say that?’ So prepare for your opportunities, but if you do that, the press can be a powerful way to share the programs you are passionate about.”

Halle Berry with Greg Reid on stage at the City Summit and Gala, courtesy of City Gala

Long has come a long way from his roots to be hobnobbing with the rich and famous.

The City Gala was first held in 2015 and this year expanded to include a full-day Summit. The 2017 event was held on February 11 and 12. This year Berry and Travolta delivered speeches. Quincy Jones was presented with an award. John Paul Dejoria, founder of Paul Mitchell and number 214 on the Forbes 400 list, also presented.

Long chose two charities as the primary beneficiaries of the Gala, “We are tremendously honored to present the 2017 program in support of the International Arts & Philanthropy Foundation (IAP), which provides funding in support of arts, education, early childhood development, as well as the Breed Life program which supports and facilitates the gift of life through live organ donation.”

Ryan Long, courtesy of City Gala

Jeff Timmons of the Grammy-nominated pop group 98 Degrees served as the emcee for the Gala.

City Gala is registered with the State of California Attorney General’s Registry of charitable trusts as a Commercial Fundraiser. Long says, “The entire mission and vision of the City Gala program is to bring business and entertainment heroes together united by their passion for overcoming hard obstacles and for supporting startup and not yet well-known philanthropic causes.”

The event included “a red carpet, silent auction, and a day-long set of presentations and panels by business luminaries from organizations such as NASA, Google, Virgin Galactic and many others,” Long says.

Long says the event was a big success, selling out and raising “hundreds of thousands” for charity. This despite the fact that the scheduled headline celebrity canceled in December due to a conflict, requiring Long and his team to scramble.

For 2018, the Grammys will be moving to New York City so the City Gala will move to Oscar weekend.

On Thursday, March 2, 2017 at noon Eastern, Long and Timmons will join me here for a live discussion about the event, its challenges and impact. Tune in here (at the top of this article) then to watch the interview live. Post questions in the comments below or tweet questions before the interview to @devindthorpe.

Update March 9, 2017: After posting the article and conducting the interview posted above, a reader wrote to Forbes suggesting that Long donates only 5 percent of revenue collected at his events to charity and that he “pays off celebs and the ones that participate have no idea what they are walking in to.” The reader directed us to Rip Off Report where a variety of related accusations were made. In a rebuttal, Long acknowledged that as of February 2015, he was behind on his taxes and had filed for bankruptcy in 2010 as a result of the 2008 recession. He also acknowledged several arrests and criminal convictions. He also defended the legitimacy and success of past events, saying that $350,000 was donated to charity after the 2014 event.

In an email response, Long noted that his accuser is known to him. With respect to the money for charity, he says, “I lost money personally/professionally again this year… but managed to raise hundreds of thousands of dollars for the charitable organizations. After years of trying/failing/trying failing, I have evolved and know that it’s simply a matter of time before visions/reality becomes true.”

Dale Godboldo, founder of International Arts and Philanthropy, said by email in response to an inquiry, “IAPF/Breed Life did receive funds from the event and according to our agreements.”

 

 

How Social Entrepreneurs Begin To Measure Impact

This post was originally produced for Forbes.

This is the first in a series of articles about impact measurement for social entrepreneurs.

There are two keys to becoming a good social entrepreneur. Intentionality, that is intending to have a positive social impact rather than merely delivering one incidentally, is how you become a social entrepreneur. Accountability, measuring the impact, is how you become an effective one.

Measurement, however, is not straightforward for most social entrepreneurs. To help guide startup social entrepreneurs on the measurement of impact, I’ve reached out to some of the leading practitioners and experts in the impact arena to comment.

“It may not be as difficult as it seems, at least for now,” says Stephanie Gripne, Founder and Director, Impact Finance Center & CO Impact Days and Initiative. “The majority of individuals and families [investing in social entrepreneurs] can still be satisfied with basic impact premises and themes, much as they’re satisfied with generalized results from gifts to charities. For now, the democratization of impact investing is being led by values and principles more than measurable outcomes.”

Stephanie Gripne, courtesy of the Impact Finance Center

“Even many institutional investors and advanced investors,” she continues, “are satisfied with ‘outputs – acres conserved, ex-offenders employed, fair-trade products sourced, etc. – as long as the units counted seem reasonable. A smaller percentage (but perhaps a more vocal and well-publicized percentage) are seeking real ‘outcomes’ – the types of harder, longer-term measures that drive Social Impact Bonds for example.”

Cathy Clark, Director, CASE i3 at Duke, highlights the importance of defining a “theory of change.” She says, “This is basically an ‘if-then’ statement that relates their activities to the change they seek. Every social entrepreneur needs to make this argument about their impact. Using that theory, they can they start to recognize assumptions in the theory and track measures that help test how well things are actually occurring.”

Cathy Clark, courtesy of CASE i3

Cecile Blilious, Founder, Managing Partner, Impact First Investments, echoes Clark. “Entrepreneurs should be able to describe their theory of change and work towards creating a social impact plan in parallel with their business plan.”

Cecile Blilious, courtesy of Impact First Investments

Similarly, Uma Sekar, Impact & ESG Manager, Capria Ventures, suggests starting with an impact thesis. “Entrepreneurs should start with an impact thesis or strategy, set goals that are achievable and align their core metrics. Some of the common metrics are lives impacted, job creation and geographic coverage. The more specific they are about the populations they are addressing–base of the pyramid, low income, minorities, women, refugees, etc.–the better. If it is an environment focused company – energy conservation, carbon footprint are common measures.

Lisa Curtis, founder & CEO, Kuli Kuli, suggests identifying a short list of key measures. “Social entrepreneurs should understand how their high-level vision translates down into 3-5 key metrics that are quantifiable. They should be able to articulate what success in 10 years would look like in terms of those metrics, whether it’s the number of trees planted, livelihoods created or investment made.”

Lisa Curtis, courtesy of Kuli Kuli

Focus on measuring the one thing you’re looking to do, says Nell Derick, Founder and CEO, Inspiring Capital. “A simple, customized, quantitative standard related to their self-proclaimed target impact. For example, we’ve been measuring our professionals’ and clients’ reaction to the question, ‘Do you better understand how to use your or your employees’ business skills (e.g. finance, strategy, marketing and operations) to advance social good?’ since our first programs in 2014. It’s not part of a public index or measure, but it tells US if we’re doing what we set out to do, and the very design (and ongoing choosing) of that question forces us to clarify the one thing we’re looking to do in the world.”

Nell Derick Debevois, courtesy of Inspiring Capital

Laurie Lane-Zucker, Founder & CEO, Impact Entrepreneur Center for Social and Environmental Innovation, suggests putting impact measures into a broader context. He says, “Global sustainability context is also important in this discussion of impact measures. Grounding social entrepreneurship in widely accepted contextual touchstones such as the United Nations’ Sustainable Development Goals helps: a) provide sustainability context for impact investors keen on seeing “the big picture,” b) facilitates comparisons between different investment opportunities addressing the same sector (i.e. water, climate, poverty, food), and c) helps ESG [environmental, social and corporate governance] reports using (hopefully) similar impact measurements be more comparable and transparently answerable to macro social and environmental needs.”

Laurie Lane Zucker, courtesy of Impact Entrepreneur Center for Social and Environmental Innovation

Matthew Weatherley-White, Co-Founder, Managing Director, The CAPROCK Group, cautions that no single set of metrics will work for all social ventures. “We believe that there are no universal impact key performance indicators. Instead, social entrepreneurs should be prepared to measure, on day one, whatever impact metrics are endogenous to the operations or mission of their enterprise. Far too often, social entrepreneurs believe that tracking and reporting on a host of socially-aware metrics will make their business ‘more’ impactful… when, in fact, doing so may be (at best) a distraction to operating the business or (at worst) a distorting force, putting at risk the survival of the enterprise.  Seen through this lens, impact measurement can be interpreted as answering the question of ‘materiality’: what impact measures are critical to the survival of the enterprise. That set of measures should be what the entrepreneur strives to report the day the doors open.

Matthew Weatherley-White, courtesy of Cap Rock.

Gary White, CEO & Co-founder, Water.org, also emphasizes the unique measurement challenges each social venture will face. “For enterprises like Water.org and WaterEquity, we are very much focused on delivering impact in the form of number of people reached with water and sanitation improvements.  For our WaterEquity initiative, we also look at IRIS metrics and commit to reporting within that framework.”

Gary White, couresty of Water.org

Matthew Davis, CEO, RENEW, an impact investing firm focusing on Ethiopia, notes that for some ventures impact measure is relatively simple. “In the part of the world where I invest (Africa), where job creation is desperately needed and starting and growing a business is very challenging, the best impact is a healthy growing business that is managed by ethical leaders. Therefore, growth and good governance must be a priority from day one.”

Matt Davis, courtesy of Renew LLC

Peter Fusaro, Chairman, Global Change Associates, agrees. “Hopefully, they should be focused on the ESG metrics of environmental benefits, job creation and be ethical vis a vis transparency.”

Bobby Turner, CEO, Turner Impact Capital, also recommends ESG metrics. “At Turner Impact Capital, our reports provide financial, social and environmental metrics for our investors to track. By doing so, one can then see the correlation and interdependency between profits and purpose, i.e. a reduction in carbon footprint leading to lower utility costs or a reduction in crime translating into lower insurance costs and thus higher profit margins.”

Bobby Turner, courtesy of Turner Impact Capital

Daniel Jean Louis, CEO, Bridge Capital, operating in Haiti, suggest even more basic measures, starting with “customer and employee satisfaction” because they are “much easier to track.”

Balance qualitative measures with quantitative measures, suggests Topher Wilkins, CEO and founder, Opportunity Collaboration and Conveners.org, respectively. “In general, it’s best to be able to justify both quantitative and qualitative impact, i.e. data-driven metrics (how many more children are now attending school, what percentage of women are now surviving childbirth, what’s the increase in average household income, etc.) alongside stories or testimonials from beneficiaries, e.g. ‘before X organization came to my village, it was very difficult to feed my entire family, but now I can provide at least two meals a day and no one is hungry anymore.’”

Expanding on this idea, Lisa Hagerman, Director of Programs, DBL Partners, says, impact measures should include narratives and quantitative measures about the programs and practices related to the target impact. These should include “narratives across: public policy, environmental stewardship, workforce development, community engagement, and, quantitative metrics across: job creation, quality of jobs & benefits offered (including wealth creating programs such as Employee Stock Ownership Plans), environmental metrics, supply chain accountability, among others.

Some investors do have more specific guidelines. Joel Solomon, Chair, Renewal Funds, says, “We are a B Corp Fund. We strongly encourage, but don’t require, portfolio companies to become B Corp. We use the B Corp questionnaire as part of our due diligence before final investment. We prioritize B Corp companies for our intake process.”

Joel Solomon, courtesy of Renewal Funds

Impact takes time so reporting on impact will improve over time, says, Laura Callanan, Founding Partner, Upstart Co-Lab. “If this is a new enterprise, there will be a trajectory to actually deliver impact just like there will be a trajectory to deliver financial return. Impact investors need to think like investors first and foremost and recognize it takes time to build a business and see results, all kinds of results.”

Lauryn Agnew, President, Seal Cove Financial and Founder, Bay Area Impact Investing Initiative, agrees. “We also need to measure both outputs and outcomes, which can take decades. Biotech investments seek the outcome that lives are saved over decades.”

Ultimately, measurement isn’t a panacea. Morgan Simon, Managing Director, Pi Investments, says, “At Pi Investments, we try to focus on impact management above and beyond measurement–ensuring both fund managers and entrepreneurs have a clear vision of how they will enhance the impact of their work over time.”

Morgan Simon, courtesy of PI Investments

Lane-Zucker, emphasizes the organization of the enterprise to minimize measurement challenges. “The more that entrepreneurs can bake double and triple bottom line values into their DNA (mission, legal structure, reporting, etc.) from the earliest stages of their project, the easier it will be to locate appropriate measures as the business begins to take shape and mature.”

Reverb Is Making The Live Music Industry Greener

Clean Energy Advisors is a sponsor.

You can download an audio podcast here or subscribe via iTunes.

Lauren Sullivan and her husband Adam Gardner, a touring musician, wanted to make the concert scene more environmentally friendly. They’ve created Reverb, a nonprofit, to help the industry get its green on.

Adam explains, “The live music industry has historically been highly disposable, creating large amounts of landfill, energy and water waste. Think of all the plastic cups on the ground at the end of a concert or a weekend long festival, for example. Tour busses and trucks guzzle fuel carrying large crews, and large amounts of equipment across long distances every day on a tour. Tens of thousands of fans commute to a venue typically located 40 miles outside of major city centers, contributing to over 80 percent of a concert’s carbon footprint.”

Adam recognized that other nonprofits face that Reverb could overcome. “Local and national enviro nonprofit organizations have had variable experiences ‘tabling’ at concerts because they aren’t directly connected to the band or they don’t have the capacity to compete against all the other attractions at a show to get concertgoers’ attention.”

Working directly with the bands, Adam says, they can make a big difference. “Because I’m a touring musician myself, I’m able to speak to artists and their managers directly about how we can help make their tours more green while mobilizing and inspiring their fans to take action that adds up to real change.”

As a musician, Adam has an advantage. “I understand the challenges and opportunities live music events and tours create. We make it easy for bands to bridge the gap between their intentions and actions, as we embed our staff into their tours as part of their touring crew to handle tour greening behind the scenes while setting up a fan-facing interactive Eco-Village.”

Reverb has a crew that works the concerts. “Just like they have staff to handle setting up their lights and sound, we provide expert staff to set up biodiesel fuelings for tour vehicles, local farm food for catering, compost and recycling, etc. Out front at the Eco-Village in the concourse of each venue, fans can connect with issues and organizations that are near and dear to their favorite musicians. We also incentivize fans to participate by offering them ticket upgrades, meet and greets with the band and prizes. We want to make this fun and meaningful for fans in a way that only enhances their concert experience,” Adam says.

It is still a hard sell at times, Adam says. “The challenge is sometimes a general resistance to change, and lack of prioritizing or recognizing the negative impacts of live music. I get it–it’s hard enough to pull off a major production every night in a different city–everyone out on the road has their plates full and don’t have the know-how or capacity to take on new territory.”

There are challenges in trying to scale, too, he says. “We try to ‘teach a band to fish’ as much as we can, but ultimately the best programs have our staff onsite handling them–so there’s a limitation as to how much we can do directly to green tours. That said, the biggest impacts are with the millions of fans these major musicians have and their actions adding up to something truly significant. Impacting fans to take action is getting more and more powerful as social media and large concert events grow.”

Chris Warren, CEO of Clean Energy Advisors, says, “The work Adam and his team do is awesome. They spend countless hours on tour with musicians and make a difference one recycled bottle or locally sourced dinner for the crew at a time. Everyone I have met at Reverb is committed to the mission. It’s thought leaders like Adam who see an opportunity to make a positive impact and do something about it that give us great hope for future generations. We’re proud to walk hand in hand with Reverb to spread the word about climate change and to take actions that make the world a better place.”

Adam’s vision to leverage the bands’ fans to make a real impact in the world.

He says, “We are called REVERB because the message of sustainability starts with the musicians and reverberates out to their fans, which then take that passion and inspiration home to their families, workplaces, schools, and communities. We’ve been able to make a pretty good dent in changing the public’s hearts, minds and actions through the incredible reach and connection of music. It has taken many forms–fans have volunteered thousands of hours, given thousands of dollars to causes, taken thousands of actions in their own lives as simple as ditching disposable water bottles and using reusable ones.”

On Tuesday, February 28, 2017 at noon Eastern, Adam will join me here for a live discussion about the work of Reverb, making the live music industry greener. Tune in here (at the top of this article) then to watch the interview live. Post questions in the comments below or tweet questions before the interview to @devindthorpe.

Adam Gardner, courtesy of Reverb

Adam Gardner, courtesy of Reverb

More about Reverb:

Twitter: @reverbrocks

REVERB is a community of music makers and lovers harnessing the power of live music to tackle today’s most urgent environmental issues. We partner with major musicians, festivals and venues to green live music events behind the scenes while mobilizing millions of concertgoers to take actions that add up to real change. Leading the music community since 2004, REVERB is a 501c3 environmental non-profit founded by activist Lauren Sullivan and her musician husband, Adam Gardner of Guster.

Adam’s bio:

Adam wears two “hats”— Guster frontman and Co-Director of REVERB, a non-profit environmental organization dedicated to educating and engaging musicians and their fans to take action toward a more sustainable future. Gardner co-founded REVERB with his environmentalist wife, Lauren Sullivan in 2004. Since then REVERB has greened over 200 major music tours and festivals and over 5,000 concert events, kept over 117,000 tons of CO2 from the air, fueled touring fleets with over 900,000 gallons of biodiesel, partnered with over 4,000 environmental groups and have reached over 27 million music fans.

The artists that have partnered with REVERB to help them go green and mobilize their fans include Dave Matthews Band, Maroon 5, Linkin Park, Jack Johnson, Drake, FUN., Sheryl Crow, Phish, Jason Mraz and many more. REVERB also works with the music industry to improve business practices including record labels, concert venues and radio stations. While Adam is often on tour with his own band playing to sold-out audiences from Radio City Music Hall in New York to the Warfield in San Francisco, he is busy work-ing for REVERB in the back of his biodiesel-powered tour bus. REVERB and Guster launched the annual Campus Consciousness Tour in 2006, bringing daytime environmental programming to students and a green concert event onto college campuses across the country. Past headliners include Grammy Award-winning artists, Ben Harper and FUN., hip-hop sensations, Drake and J. Cole, and indy rockers Passion Pit, Walk the Moon and X Ambassadors. Adam has had the honor of testifying to Congress twice: in 2010 about the benefits and need to support sustainably produced and community-based biodiesel and again in 2012 in support of keeping wood products such as musical instruments free of illegally sourced wood.

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Devin is a journalist, author and corporate social responsibility speaker who calls himself a champion of social good. With a goal to help solve some of the world’s biggest problems by 2045, he focuses on telling the stories of those who are leading the way! Learn more at DevinThorpe.com!

 

13 Social Ventures Woo Investors and Philanthropists in Nairobi

Today, 13 social enterprises from across Africa put their best feet forward in Nairobi, hoping to attract investor and donor money to help them scale their enterprises and their work in improving health outcomes for women and children.

The entrepreneurs presented at the GE healthymagination & Miller Center Mother and Child Program Investor Showcase. The program largely replicates the Miller Center’s Global Social Benefit Institute program, which it has been conducting in Silicon Valley for 15 years. GE provided funding to make the program possible in Kenya. It has been so successful that GE has committed to fund the program again.

The month’s long program features a focused curriculum to help the entrepreneurs generate more self-sustaining revenue sources and includes counsel from accomplished mentors. The program culminates in today’s investor presentations, with each entrepreneur getting six minutes on stage to hook the investors’ interest.

United Nations Coordinator for Kenya, Siddarth Chatterjee, spoke about collaboration between the public and private sectors to create a leapfrogging of maternal and child healthcare. Sid highlighted women’s issues, including female genital mutilation, child marriage and gender-based violence. He noted, “Kenya’s economy will grow when the woman is allowed to achieve her full potential and can plan her own family.” He congratulated the Miller Center and GE for assembling such an impressive cohort of entrepreneurs.

The following is a summary of each of the 14 social enterprises who pitched from the day’s program:

Access Afya, Melissa Menke, Founder and CEO:

Access Afya creates a model for comprehensive primary care in wellness in Nairobi’s informal settlements. Our tiered approach includes fixed community microclinics as anchors that have authentic medication, emergency response capacity point-of-care lab   capabilities, immunization family planning, and qualified clinicians with novel field programs that provide care through field-based programs to community institutions like schools, factories and churches.

Ayzh, Zubaida Bai, Founder and CEO:

Ayzh is transforming access to products through carefully designed kit-styled interventions around reproductive, maternal, pediatric, and adolescent health needs. These products help the care providers and beneficiaries with improved health outcomes.

Health Builders International, Tyler Nelson, Executive Director:

Health Builders (HB) is dedicated to addressing the fundamental challenges that prevent universal access to quality primary health care services in Rwanda: inefficient management systems, inadequate or nonexistent health infrastructure, and outdated technology. Through partnerships with local and national governments, HB mentors health care providers to build strong management systems; constructs comprehensive primary health centers where access is limited; and equips health centers system strengthening technology that supports efficient and sustainable operations. This approach results in health centers with the knowledge, resources, and capacity to thrive as independent enterprises, ensuring more people receive higher quality care in Rwanda.

Health-E-Net Limited, Pratap Kumar, CEO:

Health-E-Net is a social enterprise in Kenya providing innovative solutions to support healthcare delivery in low resource settings. PaperEMR is a unique system to generate electronic medical records directly from paper. It allows clinicians to document cases easily on paper, while interacting with the patient. Data entered on paper can be automatically extracted in digital form, analyzed, and used to improve quality of care. The Gabriel application is an innovative, low-cost tele-consultations platform that allows local healthcare providers to easily create and share digital medical information. Experts from a global volunteer network engage with local healthcare providers, supporting healthcare in the community and improving the efficiency of referral when needed.

Hewa Tele Ltd., Dr. Bernard Olayo, Executive Chairman:

Hewa Tele provides medical oxygen that is needed in medical and surgical situations. Medical oxygen has been listed as an essential drug for the last three decades by the World Health Organization. Unfortunately, many patients still do not receive this vital drug. Oxygen can reduce the chances of a child dying from pneumonia by at least 35 percent when given with antibiotics.

LifeNet International, Stefanie Weiland, Executive Director:

LifeNet International provides a bundle of services for primarily rural and faith-based health centers that improves the quality of clinical care and sustainability as businesses. This includes dedicated mentors to train all staff on-site in updated, life-saving techniques and efficient financial and operational management practices, door-to-door medicine delivery, and access to resources and equipment. In addition, LifeNet provides monitoring of health center performance with regular evaluation and quality assurance. By strengthening local capacity in every link of the healthcare delivery chain, LN is transforming primary care for Africa’s poor.

Lwala Community Alliance, Julius Mbeya, Managing Director:

Lwala Community Alliance is a community-led innovator, tackling the multidimensional drivers of poor health. Founded by Kenyans, Lwala ensures that beneficiaries plan, implement, and evaluate all programs. At the core of our model is a cadre of former traditional midwives whom we train, pay, and supervise to track, support, and refer every pregnant women and child under five. Simultaneously, Lwala works with primary care facilities and the communities they serve to provide quality, patient-centered care. Through bringing communities closer to health providers, Lwala has a driven a 97 percent facility delivery rate and 300 percent increase in contraceptive uptake.

Kids at play at Nurture Africa in Uganda

Kids at play at Nurture Africa in Uganda

Nurture Africa, Brian Iredale, Co-founder and CEO:

After 17 years of operation, our holistic and community-centered model, providing healthcare, vocational education, and sustainable livelihood loans has proven that offering these services under “one roof” successfully empowers vulnerable families to increase their standard of living. Our new enhanced model shifts from the   traditional philanthropic approach to a self-sustainable paradigm.  Accessing multiple community services locally benefits affluent   residents who will support and subsidize the operations to more vulnerable families.

Outreach Medical Services, Nigeria Ltd., Dr. Efunbo Dosekun, CEO:

Outreach Medical Services is a health service acute care provider for babies and children and professional development company, leapfrogging and leveraging on technology in clinical applications, training and health service operation management. Solutions provided are integrated, high impact and scalable, strengthening our acute care system horizontally and having its influence on saving lives of ill babies and children and preventing chronic disability together with increasing the human  capacity of healthcare workers in Nigeria. In our bid to deliver affordable, quality and safe care, there has been need for continuous refinement and modification in our product creation and service deliver responding to the multiple challenges in our internal and external environment in Nigeria.

PurpleSource Healthcare, Femi Sunmonu, Co-founder and CEO:

PurpleSource Healthcare strengthens clinical processes through   evidence-based approaches to care and provide quality certification in partnership with standard setting bodies. The enterprise aggregates its primary healthcare centers into one integrated network, centralize management functions and share scarce resources across the network. PurpleSource Healthcare leverages technology for healthcare analytics, population management and to aid responsive performance management of the network.

The Shanti Uganda Society, Natalie Angell-Besseling, Founder and Executive Director:

Shanti Uganda provides a unique model of care where skilled midwives incorporate traditional knowledge and modern best practices. Shanti Uganda’s Birth House is a collaborative-care maternity center staffed by Ugandan midwives and traditional birth attendants that provide mother-centered care throughout pregnancy, birth and the postnatal period. Shanti Uganda’s expansion plans include the development of a Midwifery Training School, which will offer a 2.5 year certification program to students throughout East Africa with both local & international faculty.

Telemed Medical Services/helloDoctor, Dr. Yohans Wodaje Emiru, Founder & CEO:

Telemed’s helloDoctor platform provides reliable and affordable access to health care. Through teleconsultations, we provide chronic disease follow-up and support to underserved people living in emerging markets by leveraging proven technologies and its unique partnerships.

Village HopeCore International, Dr. Kajira K. Mugambi, CEO and Founder:

Village HopeCore International (HopeCore) is dedicated to fostering integrated social and economic development in rural communities in Kenya and Africa. HopeCore enables and empowers members of rural Kenyan communities by providing health education and interventions, and microloans, business education and skills based training. We offer clinical curative services, preventative health information, and educational lectures to women and children to improve health outcomes in the community.

Jason Spindler, Managing Director of I-Dev International, an investment banking firm serving the developing world with an office in Nairobi, attended the event and reflected on what he saw. He said, “A majority [of the for-profit companies that presented] are ready for angel investment. Thirty to 50 percent are ready for later seed investment. Two or three could be acquisition targets.”

He noted that the capital markets in Africa are spotty, flush in some spots and thin in others. “Clean energy has a lot of capital going into it. Hundreds of millions more will be going in over the next few years.” On the other hand, tech ventures are struggling to access startup capital.

He is excited about Kenya’s prospects. “Nairobi is one of the best start up ecosystems in the world, including San Francisco. We’re building a car and you can’t drive it until you put the wheels on and the engine in. Kenya’s entrepreneurial ecosystem is ready to drive.”

This week, I’m traveling in Africa as a guest of Santa Clara University’s Miller Center for Social Entrepreneurship’s Executive Director Thane Kreiner and namesakes Karen and Jeff Miller. Read all my reports.

#17africa

When Free Maternity Care Isn’t Worth The Price

Shalom Mbungua Kang’ethe was born healthy on February 21, 2017 at 5:00 AM at Jacaranda Maternity Hospital in Nairobe. His mother, Lydia Wangui, paid about $100 to deliver her baby there; her first son was born at Mama Lucy Hospital, a public hospital where the delivery was free. Let’s find out why she didn’t want a free delivery for Shalom.

Lydia Wangui and her newborn son Shalom Mbungua Kang'ethe

Lydia Wangui and her newborn son Shalom Mbungua Kang’ethe

At the public hospital, women are expected to bring a birth kit. Of course, you say. Every woman in the world has a kit ready to go to the hospital when it is time to deliver. It isn’t that kind of kit. This kit would include the hospital essentials like rubber gloves for the nurse or midwife that delivers the baby, a string to tie off the umbilical cord, a razor blade to cut the umbilical cord, two sheets–one for the baby and one for the mother, and a maternity pad. If they want the bed sterilized following the preceding delivery, mothers are expected to bring bleach.

Oftentimes, however, the bleach is irrelevant. The hospitals are so overcrowded and understaffed that multiple women may be laboring in the same bed. One nurse described a scene with ten women laboring in one room with three beds.

Jacaranda Health was founded by Nick Pearson, who is from North Carolina. Nick came to Kenya several years ago while working for the Acumen Fund. He fell in love with Kenya and with an obstetrician here. He confessed that part of his motivation for leaving Acumen to start Jacaranda Health was to impress the woman who would become his wife.

Lydia seems to think that Nick and his team are doing a good job. Her first observation about the difference between delivering at Jacaranda compared with the public hospital was the nurses were nice. Seeking to understand more fully, I asked what the worst thing about the public hospital was and she reiterated that the nurses there were “not polite.”

She also liked the hot shower, clean facilities and good food.

Of course, these things don’t just happen in Kenya. It has taken Jacaranda five years to create a model maternity hospital that it hopes to replicate across the continent eventually.

Faith Muigai, Chief Medical Officer

Faith Muigai, Chief Medical Officer

Faith Muigai, the Chief Medical Officer, was trained as a nurse in the U.S. and worked at Johns Hopkins. She provided a guided tour of the facility to the visitors from Santa Clara University’s Miller Center for Social Entrepreneurship. Jacaranda participated in the school’s Global Social Benefit Institute program in 2014.She explained that the

She explained that Jacaranda initially opened a smaller facility that was intended to serve the same purpose. Staffed only with nurses and midwives and without an operating theater for performing C-sections, care could be provided even more affordably but even women who received their pre-natal care there chose not to deliver there. They made it clear that they wanted to deliver in a facility with a doctor and an operating room in case there were complications.

So, the new hospital was built. During the tour, the visitors saw a newborn that had been delivered via C-section only moments earlier. The fifth such delivery of the day.

Midwives use donated, modern ultrasound equipment from GE to spot complications as soon as women arrive.

Most of the women who deliver at the facility live in Nairobi’s slums. Urban poverty is different from rural poverty; people have money and incomes, but not enough. To help the women plan and prepare for the cost of delivering a baby, the prices for the services are posted on the wall on a giant sign. A normal delivery like Lydia’s costs about $100. A C-section costs about $350.

Posted prices at Jacaranda Maternity Hospital

Posted prices at Jacaranda Maternity Hospital

Women living in the slums don’t routinely have access to that much money. They are forced to save for the expense.

It isn’t just poor women that are delivering at Jacaranda. Faith admitted that she didn’t know what to think of it when women started showing up to the hospital in cars, “even a Range Rover.” The quality of care at Jacaranda now matches the most expensive private hospitals in the city, but at a fraction of the price.

Nick says the hospital recovers about 80 percent of its operating costs. Faith adds that they are exploring services they can offer at a premium, to improve profit margins for affluent patients.

As Lydia she was preparing to leave the hospital with Shalom, I asked her if it was worth paying so much. Without hesitating, she said, “Oh, yes.”

This week, I’m traveling in Africa as a guest of Santa Clara University’s Miller Center for Social Entrepreneurship’s Executive Director Thane Kreiner and namesakes Karen and Jeff Miller. Read all my reports.

#17africa

This Social Venture Helps Marginalized People Get A Leg Up

Walking through the dusty Nairobi slum called Kawangware, the general bustle of the place overwhelms the visitor. Grace Njeri lives in the neighborhood and she’s got work to do. She recently signed on as a sales rep for the social enterprise Livelyhoods and this is her third day on the job.

Yesterday, she had her first sale. She sold a clean cookstove and she’s carrying another one through the streets; she holds the stove in one hand and the empty box in the other. As she walks, she and her trainer Simon Mwenya spot a man in an informal hardware store looking at the stove. She decides to approach him.

With her winning smile and the knowledge that she has three children at home and no father to help carry the load, she quickly makes the sale. As Thane Kreiner, the Executive Director for the Miller Center for Social Entrepreneurship at Santa Clara University completes the receipt for her as part of his field work today, Grace learns that the buyer would like to become a distributor himself. He’s interested in buying 20 more stoves.

Thane Kreiner of the Miller Centeer completes the receipt for the customer

Thane Kreiner of the Miller Centeer completes the receipt for the customer

Grace was doing well before the possibility of selling 20 more stoves popped up. After selling two units in her first three days she is well on her way to her first month’s target of six stoves.

She takes the cash from the sale and walks across the street to an M-Pesa kiosk. The ubiquitous kiosks are so common in Nairobi that there are sometimes multiple competing shops on the same block. They are never far away. She hands the clerk the 3,490 shillings (about $35) she collected for the stove and the money is instantly applied to the account on her phone. Using her smartphone, she then transfers the entire amount to Livelyhoods. She’ll collect her commissions and any bonuses she may earn at the end of the month.

Grace Njeri, after making her first sale of the day

Grace Njeri, after making her first sale of the day

After completing the transaction, she cajoles a colleague into allowing her to take the electric kettle in hopes of finding a buyer. Around the corner, she spots the barber shop, a shop that isn’t 100 square feet in size, has two barbers and two customers in it. She recognizes that there are four prospects who can’t leave.

She enters and within five minutes she leaves having taken an order for a blender and another for an iron. Her day is getting better and it isn’t even noon.

Livelyhoods is intent on creating quality employment opportunities for some of Kenya’s least qualified. Sales reps last an average of only four months. A few won’t survive their first week. Some people aren’t cut out for sales.

At 44, Grace is old than the average of 24. The sales reps who attended the meeting this morning at 8:00 sharp–the trainer Lillian locks the door promptly at 8:00–were typically younger. Split almost perfectly between men and women, the crew included eight women and six men.

Most of the reps will move on to better jobs, the company says. The position is intended to be preparatory. Training is pretty intense.

The meeting began comfortably with introductions. Then Lillian offered an enthusiastic evangelical prayer. She then moved on to stretches with twenty people in a 200 square foot room. Despite the cramped quarters, the team seemed genuinely to enjoy the stretching as Lillian made it into a game of “Simon says.” I couldn’t help but wonder if the game was more or less amusing with two Simons in the room. No one seemed to notice.

With that complete, real sales training with goal setting and a review of the seven steps of a sale were presented, reviewed and practiced. Jeff Miller, the namesake for the Miller Center for Social Entrepreneurship who is visiting Nairobi, provided a group of reps with some personal sales training. Later, he would accompany some of the reps and help one close five sales in one hour.

Jeff Miller coaches a team of reps

Jeff Miller coaches a team of reps

Livelyhoods generated $440,000 in revenue in 2016, according to Claire Baker, the Director of Development. With growth beginning to ramp, in part due to a new layaway program for the $35 stoves, the company hopes to help more people in 2017.

The company’s founder, Tania Laden, participated in the Miller Center’s Global Social Benefit institute program in 2016. I reported on that here.

This week, I’m traveling in Africa as a guest of Santa Clara University’s Miller Center for Social Entrepreneurship’s Executive Director Thane Kreiner and namesakes Karen and Jeff Miller. Read all my reports.

#17africa

2,000 Women Rising From Poverty Celebrate The Social Venture That Helped

February 21, 2017 – The women mostly wearing beautiful, brightly colored traditional gowns were seated quietly beneath white event tents festooned in bright colors surrounding a small plaza that would serve as a stage. An empty tent on a platform was waiting for the VIP guests, including the executives of All Across Africa, the company the women credit with changing their lives.

All Across Africa sources handicrafts from here in Rwanda and also from Uganda and Burundi. The women weave baskets. This model would not distinguish All Across Africa from dozens or perhaps hundreds of other social enterprises that buy handicrafts from marginalized communities in emerging markets, but the story doesn’t end there.

CEO Greg Stone and COO Alicia Wallace have developed an impressive customer base for their products, including Pro Flowers and Costco. Their portfolio of buyers includes hundreds of independent retailers, allowing them to buy in volumes that are unusual.

All Across Africa’s secret sauce is creating contemporary designs that are appealing to Americans that the weavers in Rwanda can produce, rather than simply taking what the women were making and trying to sell it in the U.S.

When the company landed Costco in 2009, they had to grow their phalanx of weavers who supply their products from 60 women to over 1,000 in about 90 days. It has continued to grow ever since. Today, about 2,000 of the women were invited from this part of Rwanda to participate in the celebration. At least half showed up.

The weavers, primarily women but including a few men, held their annual celebration of the year spent working themselves out of poverty. The event is part annual meeting and includes some ceremony, but is primarily a party to celebrate their shared success.

Greg Stone, CEO, All Across Africa

Greg Stone, CEO, All Across Africa

At last year’s event, the weavers presented Greg with a spear and shield as symbols of his battle with their poverty. They recognized that they needed each other to make the climb from the lowest economic rungs to a lifestyle that would include adequate food, shelter and clothing—and dignity. In his remarks, Greg recommitted himself and the company to the fight.

All Across Africa exists to fulfill that mission. Selling baskets is simply the vehicle the company uses to achieve that objective. Organized originally as a nonprofit, the company now uses a hybrid model with a for-profit and a nonprofit entity. The for-profit business, All Across Africa, sources and sells baskets and other handicrafts. Opportunity Across Africa, the nonprofit, provides training.

The company participated in the Global Social Benefit Institute program at the Miller Center for Social Entrepreneurship at Santa Clara University in 2016. I wrote about the program here.

One of the weavers displays special baskets for Alicia Walker, COO

One of the weavers displays special baskets for Alicia Walker, COO

The company has helped the women form and manage co-ops. Technically, the company doesn’t buy products from the weavers; it buys from the co-ops. The co-ops are all independent. They can choose to sell products to other companies and there are several competing for the women’s handicrafts. But, the women say they earn twice as much selling to All Across Africa and so devote the majority of their time to its orders.

The income they make is life changing, they say. Typically, before joining the ranks of the All Across Africa weavers, they ate only two meals a day, including a bowl of porridge for breakfast that would have to last a full day of working outside on their farms. Now, they eat three meals a day, pay others to work on their farms and use their profits to acquire more land and animals. The women take pride in being fat, though few would qualify for that label in the U.S. None of the women appeared skinny or undernourished.

The income increases their status in the community and at home. The women not only earn greater respect from their neighbors but also from their husbands. They admitted that their husbands were dismissive of their work before All Across Africa but no longer. Many women earn more than their husbands and are now true partners in their marriages.

The income is also growing the local economy in unanticipated ways. In addition to using their new wealth to hire farm hands, they also buy sisal, the natural thread they use for weaving the baskets, rather than tediously harvest it themselves as they once did. Each week, the women gather for order days on Monday and Tuesday. A cottage industry of food purveyors has popped up so the woman don’t have to cook or bring lunch.

One of the weavers shows off some freshly harvested sisal.

One of the weavers shows off some freshly harvested sisal.

At today’s event, in a lengthy pageant-like sketch, the women portrayed the complete cycle of change that All Across Africa brings to their lives. They covered everything from how they were recruited and how skeptical they were about changing their lives by weaving to how to run a co-op, to avoid bad financial decisions—like spending their money on banana beer—and how to save for the future. The presentation ended with the women dancing and proudly holding up their bank books.

Irene Mujawayezu, one of the co-op leaders

Irene Mujawayezu, one of the co-op leaders

A local politician was invited to speak. His message, reminding the women to be thrifty and to buy health insurance was at least redundant and perhaps insulting. One of the women leaders, Irene Mujawayezu (her last name means servant of Jesus, one of the staff explained), took the microphone to explain in response that in her co-op, all of the women have their health insurance paid and to otherwise make clear that these women didn’t need a man to tell them how to spend their money.

Alicia Wallace, COO, All Across Africa

Alicia Wallace, COO, All Across Africa

In her remarks today, Alicia invoked a local blessing, “I wish you many cows and much success.” That was also redundant. The women do have many cows and plenty of success.

This week, I’m traveling in Africa as a guest of Santa Clara University’s Miller Center for Social Entrepreneurship’s Executive Director Thane Kreiner and namesakes Karen and Jeff Miller. Read all my reports.

#17africa

Despite Big Impact, This Nonprofit Faces Challenges

Potential Energy, a clean cookstove manufacturer based in Kampala, Uganda is facing challenges on several fronts. Despite having sold 45,000 high-efficiency cook stoves, the nonprofit venture is facing a host of troubles, including some existential threats.

Potential Energy sells the Berkeley-Darfur stove primarily to NGOs that give or sell them to refugees. The stove was developed with help from refugees in Darfur at Lawrence Berkeley National Labs. The wood-burning stove is a highly regarded “tier 4” stove that reduces wood consumption by more than 50 percent and reduces smoke and pollution even more.

The nonprofit notes on its website that the stoves have already impacted 270,000 people, mostly refugees.

But today, Potential Energy faces big challenges. It has paid to produce 5,000 stoves in India that sit there unassembled. According to CEO Jessica De Clerk, originally from Portland, Oregon, the company lacks the resources to bring the stoves to Uganda from India. Between shipping costs and duties, the cost to import them nearly matches the $10 per unit cost to build them in the first place.

Once they arrive, if they do, Potential Energy needs to assemble them and sell them–neither task will be free. While they have a number of small orders, the bulk of the stoves would not have an immediate home. Jessica says she hopes to sell the stoves for $20 each in bulk, meaning that Potential Energy will almost certainly lose money on bulk sales.

The challenges don’t end there. In an effort to broaden its product line and diversify its revenue sources, Potential Energy has begun selling several models of charcoal burning stoves to low-income people in urban Kampala. These stoves range from $6 to $50. The $50 stoves are sold on credit and come with contracts that require the customers to purchase more environmentally friendly charcoal briquettes.

These efforts don’t all sit well with donors, some of whom are focused on moving to the sale only of stoves that are deemed “tier 4” for both efficiency and emissions. Such stoves cost about $100 and require a fan to provide secondary air to enhance burning. Jessica, living and working in Kampala since she came here to support a project for a Portland Rotary Club, says the high prices make selling such stoves impossible. Without them, however, she faces a dearth of funding.

And there’s more. She took us to visit three customers who have purchased the $50 high-efficiency charcoal stoves.

Helen Okidi, Potential Energy customer

Helen Okidi, Potential Energy customer

Helen Okidi lives in a slum in Kampala about 15 minutes’ drive from the Potential Energy office. Helen is obviously proud of her stove and was thrilled to show it off to the international group of visitors from the Miller Center for Social Entrepreneurship at Santa Clara University. She wasn’t reluctant to bring out her old stove to show how much nicer the new one is.

Helen Okidi's two stoves

Helen Okidi’s two stoves

Notably, however, the new stove was clearly not being used regularly. The old stove was full of burning charcoal and she had clearly been cooking with it before we arrived. She had lit some charcoal in the new stove but admitted that she usually cooks with the old one, which consumes much more fuel and emits much more smoke.

Helen was getting virtually none of the benefits of the new stove because she continued to use the old one. She was also buying charcoal at the market rather than using and buying the briquettes that burn more efficiently and come from charcoal dust rather than from burning wood to create charcoal–using up 80 percent of the energy in the wood. So she was getting none of the financial, environmental or health benefits of her new stove.

CEO Jessica De Clerk with customer Betty Sabiti

CEO Jessica De Clerk with customer Betty Sabiti

That is not always the case. We visited both Betty Sabit and Elijah Kizza who have the same stove. Both are using theirs exclusively. Betty says she cooks two meals per day for two people and it works great. A 110-pound bag of the briquettes lasts her two months. Elijah shares the stoves with five roommates. They don’t cook as regularly, but also love the stove and the eco-friendly briquettes, which he says saves them money. Both Betty and Elijah seem to be getting all of the health, environmental and financial benefits of the stove.

CEO Jessica De Clerk with customer Elijah Kizza

CEO Jessica De Clerk with customer Elijah Kizza

Jeff Miller, the namesake for the Miller Center, offered Jessica some advice that she received well. He suggested she focus on the Berkeley-Darfur stove and jettison all of the other distractions so she can build that business to a volume where it can be self-sustaining for the organization.

Moving production to Uganda from India could significantly cut costs, eliminating most if not all importation costs, potentially cutting the landed cost of finished products almost in half.

Jessica is an impressive young CEO. She joined Potential Energy just one year ago precisely because she saw the value and the life-saving potential of the Berkeley-Darfur stove. In the year before joining Potential Energy, she developed a tier 4 stove for LivingGoods that can be produced for just $5. She is committed to the work, obviously bright and apparently hard-working, we left believing that she can find a path to greater sustainability and even more impact.

This week, I’m traveling in Africa as a guest of Santa Clara University’s Miller Center for Social Entrepreneurship’s Executive Director Thane Kreiner and namesakes Karen and Jeff Miller. Read all my reports.

#17africa

How This Collaboration Raised Over $1M For Charity

This post was originally produced for Forbes.

You can download an audio podcast here or subscribe via iTunes.

Collaboration is a word that gets thrown around a lot more than it actually happens. Pledgeling, a small social enterprise, proved the power of collaboration when it signed Evite as a customer and delivered over $1 million in donations in the first year.

Pledgeling is a mobile-centric donation processing company with fifteen employees. CEO James Citron says the company hopes to double the staff within 18 months.

He rattles off early milestones:

  • Powered over 30,000 fundraising campaigns
  • Raised $3 million in donations for 4,000 nonprofits
  • Had 10,000 nonprofits join their network
  • Sold 40 customers who license their software
  • Process “hundreds of thousands” of dollars of donations monthly

Pledgeling is not yet profitable but has 90 percent gross margins, giving it the potential to reach profitability as it scales.

Evite, the collaboration partner, provides digital party invitations. Lots of them. CEO Victor Cho says the company has sent over 2 billion event invitations. The company now sends about 20,000 invitations every hour and has over 100 million annual users. It is a subsidiary of Liberty Ventures Group (NASDAQ: LVNTA, LVNTB). Evite, Cho says, generates most of its revenue from advertising.

Jennifer Young, Global Director of Social Impact Programs, at Pearson, led the implementation of Pledgeling tools at Pearson. She explains why Pearson moved forward with the Pledgeling implementation. “Now more than ever, people are looking online for opportunities to contribute to good causes. That’s a major reason why as part of our campaign at Pearson to raise awareness and inspire action around the global illiteracy crisis, we have elevated online fundraising as our major call to action.”

Shifting demographics as well as technology influence consumer demand, Young says. “We know that Millennials, in particular, are more likely to promote causes across social media and so by integrating Pledgeling’s digital platform into our campaign, we have made it easy for younger advocates – no matter how small their giving potential – to join our movement and contribute in a concrete way.”

Evite was eager to collaborate with Pledgeling, Cho says. “Our users were asking for this functionality.”

Victor Cho, courtesy of Evite

Citron agrees, noting that consumers are more aware of brands’ social impact. “Consumers today increasingly expect brands to align with their purpose and use their business to make a positive impact on the world. Customers will switch to a competitor based on brand values – just look at the #deleteuber movement, which catapulted Lyft into a top 5 app within 48 hours because consumers make choices by their values.”

“In fact, 90% of consumers will choose a brand that gives back over one that doesn’t,” Citron adds.

Cho describes the how the collaboration works for the customer. “With Evite Donations Powered by Pledgeling, we are first and foremost making the process of giving easier–just a couple clicks. Also, importantly, we are offering this service in a way that does not charge a transaction fee.”

The Evite Donations allow Evite users to add a donation option to invites, Cho says. “Whether it is a child who wants to raise money for a charity instead of getting another pile of birthday gifts or a couple who would rather have friends support a favorite cause than bringing hostess gifts or wine, it’s in people’s nature to give. We are just making it simpler for them to do so as seamless part of the event process, and in a way that maximizes their gift.”

Young, who has followed the Pledgeling-Evite collaboration says, “I was really excited when I first learned of the Pledgeling and Evite partnership because of the potential it has to advance the reach of charitable giving through the simple act of connecting people to good causes through the major milestones in our lives – whether it’s a birthday, a wedding or an anniversary.”

Cho says the response to the new feature has been overwhelmingly positive but it hasn’t been without challenges. “Some hosts don’t want their guests to feel pressured or somehow expected to donate,” he says. “Some guests are still compelled to give physical gifts instead of donations.”

“At this point in time, we aren’t yet at a place as a society where giving a donation is widely accepted etiquette in lieu of gifts,” Cho notes.

Citron says that the Evite collaboration is a great example of the success their having, but notes that no single solution will work for customers of all sizes. “we are developing a variety of turnkey tools to roll out soon for smaller, mid-market businesses to make it easier to achieve their goals in ways that are different from our larger, enterprise business customers.”

Pearson’s Young believes the key to the Pledgeling’s success will be to leverage the growth of purpose-driven companies, helping them to frictionlessly connect their customers with causes they care about.

Cho is excited about where the Pledgeling-Evite collaboration will go in time. “We are helping people do good when they get together and the response from our users has been incredible. We’ve had a great start to this partnership and we expect to grow the amount of charitable donations raised exponentially in the coming years. Even the smallest donations can add up to make a tremendous positive impact on the world. It’s very exciting!”

Citron also has grand expectations. “Our vision for the future is that every business will fulfill its purpose through an authentic giving strategy that helps them grow, builds loyalty from their customers and employees, and makes a positive impact on the world.”

On Thursday, February 9, 2017 at noon Eastern, Citron and Cho will join me here for a live discussion about the collaboration’s success and its implications for the future. Tune in here (at the top of this article) then to watch the interview live. Post questions in the comments below or tweet questions before the interview to @devindthorpe.

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