Volume 1, Issue 13
Creating Shared Value
The evolving relationship between the for-profit and nonprofit sectors
by John Holm
For those not familiar with the rapidly evolving business strategy concept of Creating Shared Value, it can be best defined as an approach by which an organization creates economic returns by developing solutions to solve social problems. Multinationals (MNCs) such as Coca-Cola, Nestle, Intel, Intercontinental Hotels Group & Nova Nordisk are embedding shared value into their global business platforms and demonstrating measured impact both to the bottom line and community. Meanwhile, proactive nonprofits are quickly identifying new impact measurements and funding opportunities to evolve with the change.
To provide context, over the past decade I have had the fortunate opportunity to work with several MNCs (Starbucks, IKEA, Subway, & Libri) and nonprofits (The Little People Association & Casa Ioana) on their expansion into the emerging markets of Central and Eastern Europe. Consisting of several countries with vastly different cultures, histories and business practices, recent history has shown that more organizations failed than succeeded in their market entry primarily due to a lack of understanding the unique attributes that each culture represents.
For the organizations that prospered, there were two core elements to their success. First was the innate ability to customize a business model/social mission to the local market in each specific country. Second was the development of a truly empathetic approach to each sector’s respective counterpart. For example, a Romanian nonprofit increased year- to-year funding by 38% due to the identification of three additional social issues which had a measurable impact in alignment with targeted for-profits. Another example is the Hungarian-based Libri Book Chain which increased its year-to-year profit by 47.6% in Romania by expanding its business model to include a focus on the social issues of literacy and transparency. As both of these instances show, this nuanced interplay is rapidly evolving to a tipping point stage that can add value add to both sectors.
In the coming months, CAF America will be providing shared value case studies from around the globe, giving you an inside perspective on how rapidly the nonprofit and for-profit relationship is evolving. In the meantime, please click here for an article in The Guardian discussing how shared value is changing the landscape of how nonprofits interact with businesses.
Welcome New Staff Members
John D. Holm: Senior Director of Business Development, Marketing & Communication
John brings to CAF America over a decade of international work experience, having served as a consultant to international retailers and leading nonprofits, advising on strategy development, international expansion, partnership building, fiscal management, social impact assessment, consensus building, and shared value creation. Most recently, John consulted with Romania’s largest NGO focused on children’s cancer, resulting in its expansion into three new domestic markets and internationally.
In 2012, John founded and served as Director of the Center for Shared Value and Social Impact in Bucharest, Romania. In the same year, he initiated and authored the Shared Value Action Learning Project at Maastricht School of Management in both The Netherlands and Romania, where he also serves as a Senior Adjunct Lecturer.
John served as a U.S. Peace Corps Volunteer in Romania, focusing on community economic development. He received an MBA with distinction from Central European University and holds a B.A. in Business Administration from the University of Montana.
John believes in making a positive impact with his experience and knowledge.
Racquel Frost: Senior Director of Operations & Human Resources/ Chief of Staff
Racquel brings to CAF America strong management and administrative support skills from her background of over five years working with professional teams, college athletic departments, state and national sport governing organizations, and public and private recreational activities. In addition, she has a passion for community service and volunteers with Big Brothers Big Sisters. Racquel is a graduate of High Point University in North Carolina, where she received a B.S. in Management.
Kerry Fore, Grants Officer
What inspires me to do what I do
Although I may not have the means to directly aid the problems and challenges facing people all over the world, my job allows me to be indirectly involved in the support that others can provide. I like to think of my role as a sort of modified Robin Hood. I get to act as the intermediary between donors with the means and desire to give and the charitable organizations that are working to improve the lives of the disadvantaged.
Something someone would be surprised to know about me
I firmly believe that, if given the opportunity and the necessary equipment, I would be a really good drummer.
Slogans for life
I really like this quote from Bertrand Russell – “The habit of looking to the future and thinking that the whole meaning of the present lies in what it will bring forth is a pernicious one. There can be no value in the whole unless there is value in the parts.”
I love candy corn. I always feel sick after, but that never stops me.
I can relate any real life situation to a storyline from Seinfeld. Some may say it’s less special than obnoxious.
Thing that really baffles me
People who dress up pets like humans.
A person I’d love to meet
I think spending a day with Louis C.K. would be a lot of fun.
Anything I don’t have to cook.
Stories of Philanthropy
Grantee reports submitted to CAF America show how our donor advised grants are making a positive impact in the world.
Bundesvereinigung Lebenshilfe fur Menschen mit geistiger Behinderung e.V.: Germany – 2012
Changing public notions of people with intellectual disabilities.
– Funds helped to employ people with intellectual disabilities to work with the elderly, showing that they are active members of society who have the ability to help and contribute. As alltagsbegleiters (“assistants for everyday life”), they played games, sang, fed, and shopped with the elderly.
Goldber Service Organization: Nepal – 2011
Providing help to the abandoned and neglected children of Nepal.
– Goldber was able to unite several young children that were servants in the city with their families in addition to providing opportunities for several children to attend school.
Habitat for Humanity Ireland: Zambia – 2011
Creating opportunities for all people to live in decent, durable shelter by helping to build, renovate or preserve homes, and by partnering with others to accelerate and broaden access to affordable housing as a foundation for breaking the cycle of poverty.
– Through its partnership with Habitat Zambia, Habitat Ireland was able to build a home for Tibakombole Ngulube’s family, which she now calls her “mansion.” Tibakombole is now literally able to put a roof over her children’s heads and feel a sense of security.
Mogodiri Intermediate School: South Africa – 2012
An intermediate school located in Ventersdorp.
– Funds enabled the school to purchase 235 new chairs, 65 new tables, and 12 new cupboards, creating a better learning environment; there had been many class fights over the too-few chairs, and these fights stopped with the addition of new chairs.
Environment Trust for Richmond upon Thames: United Kingdom – 2012
Identifying and running carefully selected and pragmatic projects that improve, preserve, and protect: historic buildings, ancient monuments, conservation areas, historic gardens, open spaces, waterways, plants, animals, and habitats.
– Funds supported community activities with volunteers.
Fundacion Red de Sobrevivientes de Violencia Domestica: Guatemala – 2012
Providing human and professional services to women victims of violence.
– In its grant report to CAF America, this organization provided three case studies of women and their families who succeeded in escaping and surviving domestic/sexual violence, opportunities made possible by funds supporting the organization.
Big Brothers Big Sisters of Toronto: Canada – 2012
Promoting healthy, active living as a means of empowerment and live improvement through two different programs: Go Girls! and Game On!
– Served a total of 425 youth in 23 schools across Toronto, surpassing a projected goal of 400.
Newly Eligible Organizations
Recommended by donors; Vetted and approved by CAF America.
Interested in donating to one of these or any other organization? Go to our Give Now page and select “Give a Single Gift” or if you’re a current Fundholder, contribute from your Fund.
Arts & Culture
>> The Brooklyn Music School (NY, USA): The Brooklyn Music School (BMS) is a 100-year-old community performing arts nonprofit organization that teaches music and dance through a variety of programming formats to students regardless of their income, age, previous experience, or professional aspirations.
>> Fundacion La Candelaria (Paraguay): This is a nonprofit organization that is dedicated to developing activities that promote social, cultural and economic well being for the Paraguayan people.
Child & Youth Development
>> Christina Noble Children’s Foundation Ireland Limited (Ireland): The Foundation is an international partnership of people dedicated to serving children in need of emergency and long-term medical care, nutritional rehabilitation, educational opportunities, vocational training and job placement, as well as children at risk of sexual and economic exploitation.
>> Motivate Canada (Canada): Motivate Canada is an organization that specializes in improving the lives of young people by fostering civic engagement, social entrepreneurship, social inclusion, and leadership among youth through the use of techniques from sport, physical education, and community driven development.
>> Akshaya Patra Foundation (India): The Akshaya Patra program strives to reduce extreme poverty and hunger and promotes universalization of primary education which are the principal Millennium Development Goals.
>> Bannabikira Daughters of Mary (Uganda): Its members order their whole life to the spreading of the Kingdom of God and the salvation of souls. The special purpose of the Institute is self dedication with maternal love to the practice of Zeal and Charity.
>> Down Syndrome Ireland (Ireland): This organization is dedicated to being the primary source of information and support to people with Down syndrome, their families and the professional community, working towards an improved quality of life for its members along with a respect and acceptance of people with Down syndrome as valued members of Irish society.
>> Hindu Seva Pratisthana (India): This organization strives to create a self-reliant society where people have a sense of service and can take care of social issues locally.
>> Let Us Change Ethiopië (Belgium): Its primary purpose is to provide street-living Ethiopian children and adults with better opportunities in life.
>> Lummi Nation Service Organization (Washington, USA): LNSO is an organization of invested community members working to increase community assets and build self-sufficiency. It does this by taking a holistic approach to empowering people with positive opportunity, being inclusive of all the Lummi community, and cultivating philanthropic resources as tools to strengthen the Lummi Nation.
>> Maharogi Sewa Samiti, Warora (India): Its purpose is to uplift the downtrodden in society and bring them into the mainstream.
>> Saskatoon Food Bank, Inc. (Canada): Provides emergency food supplies, clothing, household items and learning opportunities.
>> Waves of Hope Development Organization- Nicaragua (Canada): This is a nonprofit organization working in northern Nicaragua to help alleviate poverty and create a better future for all; its mission is to improve the quality of life of the local community through education, infrastructure projects, and volunteer efforts.
>> Brunel University (UK): This is a a public research university located in London.
>> het Gilde van Vrijwillige Molenaars (Netherlands): The primary purpose is to educate people to become a voluntary miller. The voluntary miller is responsible for working on a save way with a Dutch windmill.
>> Menominee Indian Tribe of Wisconsin (Wisconsin, USA): Its primary purpose is to teach respect for diversity; promote opportunities for academic success; foster life-long learners; incorporate 21st Century skills; integrate Menominee language and culture; and form school, family, and community partnerships.
>> Prairie Rose School Division (Canada): Its focus is the administration of nine community public schools and 16 colony schools, Grades K-12
>> Reading Girls’ School (UK): The school provides comprehensive secondary education for students aged 11-16 and vocational education for students over 16.
>> Queen’s University at Kingston (Canada): Its primary purpose is to operate a post-secondary educational institution in Canada with a strong focus in research and providing scholarships, bursaries, and awards to students enrolled at the university.
>> University of Waikato Foundation (New Zealand): The University is committed to providing its students with world-class, research-driven teaching, in a dynamic learning environment with excellent facilities.
>> Suited to Success Inc. (Australia): This is an organization that was established for public charitable purposes of helping long-term unemployed and disadvantaged individuals in the community to obtain work and maintain employment by providing: interview/work outfits; one-on-one interview coaching; coaching in resume writing and job search skills; personal presentation and grooming; self-esteem; mentoring; provision of ongoing support networks.
>> The Fort Whyte Foundation, Inc. (Canada): This organization is dedicated to providing programming, natural settings, and facilities for environmental education, outdoor recreation, and social enterprise. In doing so, it promotes awareness and understanding of the natural world and actions leading to sustainable living.
Food & Agriculture
>> Sussex Sharing Club (Canada): This is a food bank serving over 100 families each month with a seven-day supply of food, with a hot lunch program for elementary school children as well as an orange juice program for children.
Medicine, Disesases & Disorders
>> Duchess of Kent House Charity (UK): Its purpose is to provide funding for palliative (hospice) care, as well as associated services and facilities for the relief of patients of West and Central Berkshire.
>> East Anglia’s Children’s Hospices (UK): Its mission is to care for children, young people, and their families, suffering from terminal or chronic sickness or disability.
>> Jesse’s Journey (Canada): Jesse’s Journey is a partnership of science and families dedicated to the discovery or treatment and cure of Duchenne muscular dystrophy.
>> Prostate Cancer Foundation of Australia (Australia): This organization is dedicated to reducing the impact of prostate cancer on Australian men, their partners, families and the wider community.
>> Watoto Child Care Ministries (UK): Its purpose is to raise funds for the holistic care of widows and orphans in Uganda and other parts of Africa as the charity deems appropriate.
Recreation & Sports
>> Notah Begay III Foundation (New Mexico, USA): The mission of the NB3 Foundation is to reduce the incidences of childhood obesity and type 2 diabetes while promoting the leadership development of Native American children through youth sports programming and nutrition education.
The Latest Numbers
$204,695 in support of a German hospice organization ensuring that terminally ill people can die with dignity and without pain.
$100,000 to support the development of the individual and the social integration of the most vulnerable individuals/groups through education, improving employability, strengthening social networks, analysis, and innovation.
$96,350 to provide support and housing in Toronto for women and their children who are homeless or at-risk of being homeless.
$40,000 to support a Canadian charitable organization that specializes in improving the lives of young people by fostering civic engagement, social entrepreneurship, social inclusion and leadership among youth through the use of techniques from sport, physical education and community driven development.
$40,000 to support a UK-based organization focused on conserving local wildlife and inspiring others to take action for wildlife.
$20,000 to help equip villages and implement local infrastructure in Cameroon.
$12,357 to an organization working with London boroughs to provide outstanding progression and development opportunities to children and young people who demonstrate musical talent and commitment to learning an instrument.
$11,500 for Canadian children’s charity that funds equipment purchases, improvement of patient care, and research into kids’ diseases and chronic illnesses.
$5,000 to promote physical activity and to provide access to sport for Native American and Aboriginal youth in the US and Canada.
$1,104 to support advocacy on behalf of children in Ireland and to provide a range of independent unique services which are preventative and empowering in nature.