Lunga Schoeman | Corporate Social Investment Programmes Manager, Development Bank of Southern Africa 

In today’s evolving Corporate Social Investment (CSI) landscape, companies are realigning their strategies to integrate broader business goals and societal impacts.

For nonprofit organisations (NPOs), understanding these shifts is crucial to securing and sustaining corporate support. As management consultant Peter Drucker once said, “The best way to predict the future is to create it.” Embracing the changing landscape and adapting strategies accordingly can help NPOs forge stronger partnerships and achieve greater impact.

Current CSI trends to take cognisance of include the following:

Expanding funding focus

Corporates are increasingly looking beyond traditional programmatic interventions to support projects
that drive policy reform and public benefit. This shift underscores the importance for NPOs to present initiatives that not only address immediate needs, but also contribute to systemic change. As companies seek to enhance their social impact, those that align their projects with these broader goals will have a competitive edge.

Emphasis on environmental and climate change efforts

Environmental sustainability and climate change are becoming central to corporate investment decisions. Companies are integrating environmental concerns into their business strategies and are eager to support initiatives that address climate change and promote sustainability.

NPOs that can demonstrate how their missions and projects contribute to environmental goals will attract more corporate interest. Projects that offer both social and environmental benefits are particularly appealing to corporate partners.

Collaborative models

The trend towards collaborative CSI models is gaining momentum. Corporates are now more interested in co-creating and sharing resources with NPOs. This collaborative approach allows for shared expertise and enhanced project outcomes. NPOs should be open to these partnerships, which can lead to more impactful and innovative solutions.

Innovation for impact

Corporates are attracted to innovative solutions that address social issues in novel ways. NPOs that offer creative approaches and new methods for tackling challenges are likely to stand out. Emphasising the uniqueness of your solutions can capture the interest of potential corporate partners and secure funding.

The rise of co-funding and strategic partnerships

Co-funding and strategic partnerships are becoming more prevalent in the CSI sector. This trend mirrors the collaborative spirit of initiatives like South Africa’s Government of National Unity, which emphasises joint efforts and shared resources. Similarly, corporate funders are increasingly open to co-funding opportunities, pooling resources, and bringing diverse perspectives to projects. NPOs should proactively seek these opportunities and demonstrate how multiple sources of support can enhance project effectiveness and reach.

Re-evaluating disaster relief and climate change resilience

As climate change intensifies, companies are re- evaluating their approaches to disaster relief and climate resilience. Recent severe weather events have highlighted the urgent need for effective strategies in these areas. NPOs should present compelling programmes that address disaster relief and climate resilience, aligning these efforts with corporate CSI strategies. Emphasising the urgency and potential impact of corporate support in these areas can attract vital funding.

Tapping into the new political environment

John Kingdon’s theory on policy agendas highlights the concept of “windows of opportunity,” where
a combination of recognised problems, available solutions, and a conducive political climate align to drive substantial policy change. With the recent shifts in South Africa’s political landscape, there is a unique opportunity for NPOs and corporates to leverage the current focus on pressing issues.

For instance, the new administration has prioritised addressing the problem of pit toilets, with Ministers of Basic Education and Public Works leading significant initiatives to eradicate this issue. Organisations like Breadline Africa, which have been actively investing in solutions for pit toilets, are positioned to make a substantial impact. Institutions working in this space, such as the Development Bank of Southern Africa, have a once-in-a-lifetime opportunity to engage with key stakeholders and drive meaningful change.

NPOs and corporate partners should seize this moment to amplify their efforts and align with the government’s agenda. By tuning into the current political priorities and leveraging the momentum, they can significantly advance their causes and achieve greater societal impact.

Strategic insights for retaining and attracting corporate funding include the following:

•  Demonstrate innovation: Many challenges we
  face are not new, but the approaches we take can be. Organisations that continuously innovate and think deeply about their missions are more likely to attract attention. Showcase how your methods are novel and effective in addressing issues.
•  Be transparent: Be open about both your successes and challenges. This transparency is appealing to CSI managers who are deeply invested in long-term issues. Sharing your learnings and growth builds credibility and trust.
•  Build relationships: Strong relationships with corporate partners are essential. Invest time in networking and maintaining personal connections. Demonstrate strong governance and leadership, and ensure regular, clear communication.

By focusing on these strategic insights, NPOs can effectively navigate the shifting CSI landscape, build strong partnerships, and secure ongoing support. Adapting to new trends, embracing collaboration, and leveraging current opportunities will enhance their impact and ensure sustained success in driving meaningful change.

In conclusion, as the CSI landscape evolves, NPOs face both challenges and opportunities in securing and sustaining corporate support. Understanding and adapting to current trends – such as expanding funding foci, emphasising environmental and climate change efforts, and embracing collaborative models – will position NPOs for greater impact.

Strategic approaches like demonstrating innovation, being transparent about successes and challenges, and building strong relationships with corporate partners are essential. Furthermore, seizing the moment to align with new political priorities can amplify efforts and drive meaningful change.

However, it is crucial for NPOs to assert their role as equal partners in addressing societal issues, rather than merely serving the needs of the corporate sector. The traditional, paternalistic behaviours of some corporations have often led to NPOs being viewed as service providers rather than collaborators. This dynamic can disrupt the effectiveness of NPOs and divert focus from broader societal goals.

The sector must collectively work towards a more equitable partnership model, where NPOs and corporates are seen as co-invested in tackling the problems at hand. By fostering genuine collaboration and mutual respect, we can ensure that our collective efforts are more impactful and aligned with the real needs of the communities we aim to support.
As we move forward, it’s imperative to create a CSI landscape where all partners are valued equally, and where the focus remains on achieving meaningful and lasting change together.

This article was first published in the 2024 Inyathelo Annual Report.