Social enterpRISING: using mutual benefit to drive change
Every organisation, whether it be a business or Not-For-Profit (NFP), faces the same challenge:
How do we get people to give us money?
NFPs in particular have had to get creative when answering that question. After all, our brains are used to a very particular pattern (and we all know brains LOVE a good pattern):
NFPs break this money pattern by removing step two. Donors DO receive intangible value by knowing that they’ve done something good for the world. However, it’s undeniably a harder sell for fundraisers - getting donors to part with their hard-earned cash in return for an altruistic feeling.
But what if people could receive something more tangible that they need in return for supporting social change?
Enter: The Social Enterprise
The idea of social enterprise isn’t new. In fact, it dates back as far as the 1300s, when Mansa Musa, ruler of Mali, used his own trading revenue to reinvest in his community. However, in recent years the business/NFP hybrid system has gained traction and popularity in Australia. With 12,000+ social enterprises contributing $21.3 billion to the Australian economy each year, this sector is growing fast. In fact, 1 in every 60 Australians works in a social enterprise - nearly the same as the mining industry. The industry shows so much potential for powerful change and business success that the Victorian Government even launched Australia’s first Social Enterprise Strategy in 2017.
So - it’s clear that the concept of social enterprise has some kick behind it - not least because it reverts back to that familiar pattern we talked about earlier.
The business model challenges the status quo for both NFPs and businesses:
Instead of pitching to their audiences to ask for donations, these enterprises offer them a way to ‘do good’ through purchasing goods or services they actually need or want. And unlike other retail businesses, their trade or product is a means to serve the mission - instead of the mission existing to sell more products.
However, as we see more and more of these social enterprises operating in the same spheres and working on the same issues as traditional NFPs, many might ask:
Is it ok for people to get something in return for supporting a social cause?
Does this change what it means to ‘give back’?
For us, the answer depends on the goal in question.
Benevolence VS Change
Traditionally, charities and NFPs have been driven by altruism - and the idea that giving could be motivated by mutual benefit instead can feel challenging for some. After all, shouldn’t we want to give for the sake of giving? If your goal is encouraging benevolence alone, then sure. In an ideal world, people wouldn't need a benefit at all to give to social causes. But the reality is, even donors to traditional NFP organisations are seeking some sort of personal benefit - whether that be asserting their values, gaining a tax deduction, or leaving their mark on the world around them.
Relying and focusing on benevolence alone simply isn’t going to get the job done.
With this in mind - shouldn’t the goal be finding as many tactics as possible for shifting the dial on the issues that matter? If we question whether supporting social enterprises is really as ‘good’ as donating to receive nothing in return - are we focusing too much on measuring levels of altruism, and not enough on making a difference?
From delicious street food to bike repairs, Australian social enterprises have found ways to use mutual benefit as a powerful tool for social change. In some cases, you might argue that these organisations are actually more effective at creating change than some of their NFP comparators. After all, the benefit received by the consumer can also be used as a force for good.
For example, not only does Who Gives A Crap’s toilet paper build sanitation systems in developing nations - it’s also made from recycled paper, reducing the environmental impact of the product itself.
Or, take Good Cycles. They not only use their business to train at-risk youth in valuable trade skills, but also get more bikes and less cars on the road to lessen carbon emissions.
This layering of impact and tangible and intangible value also means social enterprises are able to reach more people than a traditional charity model might, such as:
People who might not usually donate to charity
People who might not have donated to the cause in question
People who simply like or need the product/service
While not all of these audiences will tick the box of an ‘ideal’ altruistic donor - they can all contribute to social change through supporting social enterprises. So, if change above all else is the goal: mutual benefit could be even more effective than altruism alone.
What we can learn from social enterprises
We need to allow ourselves to admit that it’s natural to look for benefits when making any decision. It doesn’t make us less ‘good’ or committed to social change - it makes us human.
Of course, not every NFP can offer products or services in return for donations - and nor should they. But in the pursuit of rapid action on the social issues that matter most, we need to consider how we can make life better for our supporters as well as the beneficiaries of our organisations.
Just like a retail business, NFPs need to ask:
What can I offer this person that others can’t, and how do I make it easier for them to get it?
Let’s get comfortable with mutual benefit - and celebrate the ways it can help us change society for the better.
If you need help activating your donor journey and discovering your organisation’s audience benefits, let’s chat.
From Very Sick Kids to Drummond Street Services and more, we’ve worked with charities of all types to create distinctive, authentic and compelling brand strategy, donor messaging and campaigns.
Read our case studies to find out more, or let’s get started planning your project now!
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