Financial instability is a frequent complication for NGOs. International cooperation, grant makers, government grants and social corporate responsibility are great income sources to kick off social projects, but, unfortunately, they’re not sustainable over time.
We have seen lots of social projects develop a high dependance on these non autonomous income models, falling apart after they stop receiving funding.
As an additional setback for NGOs, social impact investors won’t fund social projects unless they come in the shape of B-Corps.
We’d like to introduce a new generation of social tech NGOs: A-NGOs.
Just like B-Corps, these five star NGOs are professional, efficient, innovative and impactful, and they too can generate both social impact and an economic ROI.
And how do they make this happen? Thanks to their solid income sources: individual donor strategies or alternative sustainability models such as the supply of products or services. The audience backing these income sources up is what allows for the financial predictability the social tech sector needs.
At Civic House, we have come up with the Circular Funding concept, thanks to which A-NGOs can get the investment they need while the entire civic tech ecosystem is strengthened in a continuous reinvestment cycle.
How does it work? If A-NGOs get proper investment, after a couple of years, they will be able to deliver an economic ROI, conforming a Circular Fund, which will be reinvested in other A-NGOs that will eventually generate an economic ROI that will keep the investment cycle running.