Page 19 - Social_Philanthropy

19

Then we can find the Social Purpose Organisations. These are NGOs, charities, enterprises focused on
social issues. They can be non-profit organisation or make revenue but usually they need external resourc-
es such as donations. Finally, there are the final beneficiaries. The belong to part of the society and face
challenges such as poverty, disability, migration and of course, environmental issues (EVPA, 2019).

Source: The Sector – The Impact Ecosystem (EVPA, 2019)

Investors apply different practices to support the Social Purpose Organisations. These practices are:

- Tailored Financing

Tailored financing consists of selecting the best financial tools to support a Social Purpose Organisation.
These tools can be, for example, a grant, a loan, an equity etc. There are several factors that can influence
this choice, such as interests, risks and possible revenue.

- Non-financial support

This has to do with improving and increasing the social impact of an organisation. Although financing is
important for VP, it is equally important to plan the impact objectives of the organisation, what is exactly the
social change that it wants to achieve, what are the needs of the specific social or environmental issue and
what are the non-financial resources available and the support available.

- Measuring and monitoring management

The next practice has to do with the measurement and the monitoring of the management of the
organisation. It is essential to measure the results and revise if the expected outcomes have been reached. It
is advisable to count with counselling and coaching services and establish the best team with a great leader
to execute the agreed plan.