Ford & Thaipat Institute Sets Example In Philanthropic Investments
Dailycsr.com – 18 July 2015 – The Nation reports that the model of “philanthropic Investments” has been “embraced” by the Institute of Thaipat. It is going to be a “win-win situations”, although the efforts made towards “sustainable corporate social responsibility” seem to be an alternative of the normal practice. Philanthropic investments will allow any organisation to extend their contributions and while doing so it will not lose on its “start-up” fund which was initially dedicated on “CSR mission”. Moreover, till the CSR projects come to complete fruition, the recipients will be able to “enjoy adequate resources”, informs the Nation,
Prior to the philanthropic investment pattern, CSR activities conducted through social funds were realised on a grant basis. Even though, the grant based liquid assets along with other of its kind would prove the building blocks upon which organisations could easily set either “target communities” or short-term stakeholders. However, when it came to conceiving “a long-term approach” which would be backed by “unlimited budgets”, it invariable failed.
The initial period of such grant based projects may go smoothly with the “start-up fund” at hand; though the subsequent period wherein the “delivery of aid runs out”, the community or the organisation shouldering the responsibility have to “struggle” to accumulate fund in order to run the respective project. Consequently, the ultimate success or even the completion status of such project is dependent on the efforts of the organisers to raise sufficient fund to run the programme.
Contrarily, philanthropic investments eliminated such fund crisis and in turn promises “to generate returns” which can fund other philanthropic projects. Therefore, under the philanthropic investment scheme there can be a constant flow of fund for a long time and in some cases even till the completion of the “project’s goals”. In fact, the director of Thaipat Institute explains that:
Prior to the philanthropic investment pattern, CSR activities conducted through social funds were realised on a grant basis. Even though, the grant based liquid assets along with other of its kind would prove the building blocks upon which organisations could easily set either “target communities” or short-term stakeholders. However, when it came to conceiving “a long-term approach” which would be backed by “unlimited budgets”, it invariable failed.
The initial period of such grant based projects may go smoothly with the “start-up fund” at hand; though the subsequent period wherein the “delivery of aid runs out”, the community or the organisation shouldering the responsibility have to “struggle” to accumulate fund in order to run the respective project. Consequently, the ultimate success or even the completion status of such project is dependent on the efforts of the organisers to raise sufficient fund to run the programme.
Contrarily, philanthropic investments eliminated such fund crisis and in turn promises “to generate returns” which can fund other philanthropic projects. Therefore, under the philanthropic investment scheme there can be a constant flow of fund for a long time and in some cases even till the completion of the “project’s goals”. In fact, the director of Thaipat Institute explains that:
"Philanthropic investments are about investing money or assets for the purpose of generating returns that can be used to help society in the areas of education, public health, occupational development, environmental conservation and more. Through such investments, the start-up funds or assets remain intact. So they are different from direct philanthropy or traditional donations of money and supplies to society”.
Ford Foundation has been a pioneering example on this field who initiated a similar “programme-related investments”, whereby the company of Ford funded low-cost loans for PRI’s use besides providing “loan guarantees and equity investments”. The investments were implied in a “strategic way” which has strengthened “the work of its grantees” besides providing money for “cutting-edge initiatives. The philanthropic investment pattern can prove to be a “long-term financial stability”, especially for projects “addressing critical social needs”.
Furthermore, the Nation reports that:
“It is believed that philanthropic Investments will become more widespread in the future as an extension to responsible investments. A number of asset owners and investors, after all, are interested in using their investments not just to generate financial returns but also to tackle social or environmental issues.”
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