THAIPAT unveils CSR opportunities built on Philanthropic Investments
• New CSR approach for Thai society
18 June 2015 – Thaipat Institute unveils the concept of “Philanthropic Investments”, an alternative approach to sustain CSR efforts and gain the win-win situations. Through such investments, organizations can extend contribution without losing the start-up fund for their CSR mission and their recipients can enjoy adequate resources until the goals of CSR projects are achieved.
At present, social contribution through CSR activities have usually been done in the form of givings or grants in term of corporate philanthropy. While such giving of money or supply paves way for organizations to engage target communities or stakeholders in the short-run or certain period of time, it cannot be long-term approach with no budget limit.
After the start-up fund for the delivery of help runs out, communities or civil organizations that run the projects have to struggle on their own to find additional resources. If their effort fails, projects that were kicked-off may succumb before they really fulfill their goals.
Thaipat Institute’s director Dr. Pipat Yodprudtikan says “Philanthropic Investments” can remove or at least ease such problem as these investments promise to generate returns that can be used to fund philanthropic projects. This means communities or civil organizations can receive constant funding in the long run or at least till the projects’ goals are achieved.
“Philanthropic investments are about investing money or assets for the purpose of generating returns that can be used to help the society in the areas of education, public health, occupational development, environmental conservation and more. Through such investments, the start-up fund or assets shall remain intact. So, they are different from direct philanthropy or traditional donations of money and supply to the society,” he explains.
In the United States and around the world, the Ford Foundation pioneered use of a similar tool known as Program-Related Investments (PRIs). Ford-funded PRIs use low-cost loans, loan guarantees and equity investments in a strategic way to strengthen the work of its grantees and to provide risk-capital for cutting-edge initiatives. To date, the foundation has committed $560 million for program-related investments, and sets aside annually an average $25 million for new investments.
Philanthropic Investments are good alternatives to the traditional grant in the philanthropic sector. They provide a tool that can help bring long-term financial stability to organizations that are addressing critical social needs.
Through the change in approach, their start-up funds for the delivery of help will remain intact but generate returns that can be used to finance public-benefit activities. With Philanthropic Investments, the flow of support resources will go on till philanthropic initiatives achieve their goals or till better changes materialize.
It is believed that Philanthropic Investments will become more widespread in the future as an extension to the Responsible Investments. A number of asset owners and investors, after all, are interested in using their investments to not just generate financial returns but also to tackle social/ environmental issues.
Organizations in the private and civil sectors that wish to upgrade their Philanthropy activities to Philanthropic Investments can contact Thaipat Institute for advice. Additional information is also available via http://thaipat.org.
For more information, please contact
Khun Veraya Preeyapan
Telephone: 02-930-5227 Facsimile: 02-930-5228
Email: info@thaipat.org
[Press Release]
At present, social contribution through CSR activities have usually been done in the form of givings or grants in term of corporate philanthropy. While such giving of money or supply paves way for organizations to engage target communities or stakeholders in the short-run or certain period of time, it cannot be long-term approach with no budget limit.
After the start-up fund for the delivery of help runs out, communities or civil organizations that run the projects have to struggle on their own to find additional resources. If their effort fails, projects that were kicked-off may succumb before they really fulfill their goals.
Thaipat Institute’s director Dr. Pipat Yodprudtikan says “Philanthropic Investments” can remove or at least ease such problem as these investments promise to generate returns that can be used to fund philanthropic projects. This means communities or civil organizations can receive constant funding in the long run or at least till the projects’ goals are achieved.
“Philanthropic investments are about investing money or assets for the purpose of generating returns that can be used to help the society in the areas of education, public health, occupational development, environmental conservation and more. Through such investments, the start-up fund or assets shall remain intact. So, they are different from direct philanthropy or traditional donations of money and supply to the society,” he explains.
In the United States and around the world, the Ford Foundation pioneered use of a similar tool known as Program-Related Investments (PRIs). Ford-funded PRIs use low-cost loans, loan guarantees and equity investments in a strategic way to strengthen the work of its grantees and to provide risk-capital for cutting-edge initiatives. To date, the foundation has committed $560 million for program-related investments, and sets aside annually an average $25 million for new investments.
Philanthropic Investments are good alternatives to the traditional grant in the philanthropic sector. They provide a tool that can help bring long-term financial stability to organizations that are addressing critical social needs.
Through the change in approach, their start-up funds for the delivery of help will remain intact but generate returns that can be used to finance public-benefit activities. With Philanthropic Investments, the flow of support resources will go on till philanthropic initiatives achieve their goals or till better changes materialize.
It is believed that Philanthropic Investments will become more widespread in the future as an extension to the Responsible Investments. A number of asset owners and investors, after all, are interested in using their investments to not just generate financial returns but also to tackle social/ environmental issues.
Organizations in the private and civil sectors that wish to upgrade their Philanthropy activities to Philanthropic Investments can contact Thaipat Institute for advice. Additional information is also available via http://thaipat.org.
For more information, please contact
Khun Veraya Preeyapan
Telephone: 02-930-5227 Facsimile: 02-930-5228
Email: info@thaipat.org
[Press Release]
