Why a social exchange?

Mindshift: The concept of a social investment "stock exchange" represents a shift in thinking that moves beyond the idea of corporate social responsibility as business's way of "paying something back" - to a 21st century idea of social investment in accountable development projects with measurable achievements, specifically with a "social profit" that they can deliver to change lives for the better. In future, therefore, organisations currently referred to as "non profits" would be better described as social profit organisations.

This simple change will also go a long way towards raising the bar for accountability and performance - demanding, as it does, a clear demonstration of the motive for, and impact of an investment - the ability to deliver on a social mission. In this way, as with the financial stock exchange, both investors and social profit organisations will come to regard their work - and its value - in a different light, and demand greater demonstration of the social profit impact and motive.

Performance: SASIX is committed to driving transparency and performance in the social development sector. Through the exchange, social investors can contribute towards projects which are well planned, by organisations with a good track record of performance and the necessary capacity to carry them out effectively. Investors have peace of mind knowing the money will be used for a sound project by a reputable organisation, and will receive regular updates on how the money is being spent and what kind of social impact it is having.

Good practice: In this first prospectus, the recommended projects fall into one of four initially identified fields of investment - Early Childhood Development, Orphans and Vulnerable Children, Food Security and Enterprise Development. In each field, GreaterGood SA selects projects that reflect our understanding of current "best" practice, based on research and consultation with various sector experts in these fields.

Sustainability: SASIX places an emphasis on programmes that truly empower individuals and community groups so that they can build self-sufficiency and sustainability in the long term, while also including some projects that contribute to the safety net of welfare to ensure that we are a nation that takes proper care of our most weak and vulnerable citizens.

Innovation: An additional aim of SASIX is to help level the non profit playing field by attracting resources to smaller or newer organisations, especially those in under-resourced rural areas and townships that do not have the visibility of established larger development organisations, but which are undertaking good quality work and generating creative solutions to local problems. SASIX is committed to driving innovation in the South African social capital market. Key to this is supporting and promoting venture philanthropy. Often, start-up projects in the most remote places are those that yield the most stunning returns and are an ideal match for those adventurous corporates that appreciate the high returns yielded by higher risk initiatives.

Collaboration: In addition to offering low to high-risk social investment opportunities that meet companies' corporate social investment (CSI) objectives and reflect their core business objectives, SASIX provides ways for businesses and individuals to invest their social and human capital, knowledge, expertise and energy to substantially develop capacity in the non profit sector. This could involve exchanges that enable opportunities for collaboration and capacity-building. GreaterGood SA also offers comprehensive consultation services for CSI programmes, providing research, management, administrative support, monitoring and reporting services - including functions such as redistributing surplus goods and managing staff-matching and employee-volunteer programmes.

How the exchange works

Once all the shares for a particular project have been sold, GreaterGood South Africa Trust facilitates the transfer of funds through a transparent and accountable process and the project makes way for a new listing on the exchange. Projects have to be carried out within a specified time period, with reports provided to investors at regular intervals. At the conclusion of each investment cycle, GreaterGood SA provides an evaluated Project Performance Report that includes an analysis of the project outcomes versus the forecast, as well as an assessment of the lessons learned.