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Transcript of Trends analysis
Recessions = less public funds for aid and the social sector
Directing resources from international support to national response (Sweden: from 10% in 2012 to 20% in 2015)
is redefining participation
Giving/pledge, social media sharing, volunteering have replaced the old membership cards
Younger generations prone to engage with activities around single issues or causes (
A network may form and dissolve around an issue/cause as an online/offline stand-alone activity
To a certain degree, tech has made in-person meetings redundant to form any kind of network or activity
What does this mean for CRD as an expert organization?
Technology allows for alternative social engagements
A community organizer became US president in 2008 was partly a non-profit sector vindication. Heavy support from networks
In Sweden last year, 77% of the population had a positive attitude towards non-profits
Fewer people seek traditional membership in organizations compared to 10 years ago (compounded by tech/social media)
Sector boundaries blurred
"Make changes today to prepare for tomorrow"
In the past decades, the convergence of these trends have created a new social sector.
Ignoring changes, or not being prepared to a changing and developing social sector landscape, inevitably leads to irrelevance or failure in the future.
A changing landscape is an opportunity for both growth and increased influence over issues that are a part of our Vision & Mission. In addition:
TRENDS AFFECTING THE SOCIAL SECTOR
Funding, Demographics, Networks, Sector boundaries
2008 Financial crisis:
All aspects of globalization are affected, including migration, ethnic conflicts, human rights, and democracy.
After 2008, an estimated more than 100 000 NGOs disappeared only in the US. No NGO is too big to fail!
Federal Employment & Guidance Service in the US:
Closed in 2015 after 80 years
A $250 million operation
Employing 1,900 employees
Subject to over $47 million in loans/liabilities/debts
All 1,900 employees lost their jobs
Over 120,000 households and individuals that relied on FEGS’ services were affected
Swedish ODA in times of crisis
Went from 1% (1970s) to 0,7% (1990s) of GNI
Swedish public opinion at an inflection point after its financial crisis in early 90s, i.e. more people where negative to international aid than positive.
After global financial crisis in 2008, support to ODA went to its lowest point since 1997 (37% pos. vs. 28% neg.)
(Source: America's Non-Profits)
(Source: Swedish SOM-institute)
Crisis leading to increased inequalities
Countries adopted protectionist measures, many turning their attention inward to focus on problems caused by the financial crisis.
Consumers reduced spending
Global trade diminished
(Source: OHCHR, et al.
"Austerity measures that affect spending on social welfare programmes and public services disproportionately impact the disadvantaged such as the poor, women, children, persons with disabilities, older persons, people with HIV/AIDS, indigenous peoples, ethnic minorities, migrants and refugees" (OHCHR)
Public funds are earmarked and restricted. Consequences?
Public demand on the use of taxes coupled by a simplistic view on the use of overheads
We want unrestricted fund ("free"):
Lowest possible degree of earmarking (usage)
No time restrictions in spending
Attached to central and mandatory reporting we generate as part of the core business (e.g. Annual Reports, etc.)
come with restrictions unlike most funds raised through the private sector, which have minimal or no restrictions.
We will continue to invest in our ability to raise PSF,
streamline the way we raise public resources and how we report, and minimize the earmarking.
As of 2018, what is the average age of the collective of CRD partners?
Younger generations have a different world view than many of us. They choose to engage and interact with politics and social issues differently. What does it mean for CRD?
Millenials are the next generations of leaders (1981-1999) and in the west, they are becoming increasingly diverse in terms of ethnicity and less interested in geographic boundaries.
Younger generations are becoming an increasing part of the global work force; they are assuming leading roles with power and responsibilities that influence CRDs spheres of interests
Our strategies need to include ways to inspire, teach and attract the next generations of leaders, influencers, donors and decision makers.
Swedish citizens ages 65‒79 yrs and 80 yrs+. 1960-2016 and projection for 2017‒2030
Swedish "baby boomers" are leaving their jobs at a higher rate.
CRD is a rights-based NGO -- not a charity but...
(Source: FRII, La Piana, et. al.)
Q: Anti-racist demonstration in Kärrtorp, (Sweden) 2013. Who organized?
A: Nätverket Linje 17
(Sources: CompassPoint, The Bridgespan Group)
"CSR" or "Sustainability"
Public sector engagement
The Microsoft founder has so far donated +$28 bn
Scale of new actors have made UN, World Bank, other multilaterals review strategy a) as donors b) for programme delivery c) and relationships with implementing partners
Are we aware and adapting?
Business seeking opportunities to fuel their brands
Sustainability, CSR or charity (i.e. "hållbarhet" eller "välgörenhet")
Business is investing heavily - in what and why?
Consequences for Human Rights?
Swedish government business portfolio is valued at SEK570 bn spread over 47 companies
Telia, Swedavia: profiling on social issues through colabs and marketing on terms similar
Public/private initiatives, "platforms"
14 Charities connected to the Swedish Royal family. Treated favorably by government and business, not because of social impact delivery or how they perform, but the brand they represent (had 4 bn i the bank five years ago)
With the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs) the social sector was no longer exclusive to governments and nonprofits. Business entered.
By virtue of these set of goals, boundaries between companies and NGOs, as well as regulators, became blurred.
US traditionally has
with 501(c)(3) status
New structures for corporations have emerged, e.g.:
- Low-profit Limited Liability Company, is a variant of and runs like a Limited Liability Company (LLC), but with a return of social benefit.
- in addition to profit they have social/environmental positive impact as its legally defined goals.
The H&M Foundation is a non-profit global foundation, privately funded by the Stefan Persson family, founders and main owners of H&M. It’s an independent legal entity operating beyond the company’s value chain with its own staff, strategy and board.
" (H&M web)
Founded by a young entrepreneur and Kinnevik Investment AB, who control the Board
Can lead to
Social sector engagement
FOUR TRENDS CONVERGING
"NO NGO IS TOO BIG TO FAIL..."
There are trends in Human Rights that affect CRD as an organization.