HIV / AIDS charity ratings

1 June 2007

Cape Town | Whythawk initiative in collaboration with Investec Investment Bank sponsored-project, The Business Place

The community benefit organisation (CBO) sector is by far the largest and most diverse in South Africa. It makes up 8% of GDP and is able to command the expenditure of R13 billion per year with a staff 650,000 employees and volunteers. Mining, the next biggest sector, is only 6% of the economy. Yet, despite this volume and capital, the CBO sector is relatively unknown in terms of their impact and alignment with community needs. There is very little that you can buy in the commercial sector (from hair-care products, to clothes, to specialised hydraulic equipment) that isn't somewhere rated in comparison to peer offerings and the needs of the consumer. CBOs are not.

HIV / AIDS charity ratings

Our solution

Whythawk formed an experienced strategic analysis team to address these problems by developing systems and metrics to isolate and quantify unmet social demand and, thereafter, using formalised ratings, rank a representative range of CBOs operating on public money and donations in terms of accountability and effectiveness.

  • Establishing internationally acceptable standards/levels of incidence
  • Establishing regional demand relative to the international ‘zero’ curve
  • Aggregate regional supply
  • Extract a topographical analysis of supply excess/shortfall (unmet social demand by region)

Thereafter, using formalised ratings, we ranked a representative range of CBOs operating on public money and donations in terms of accountability and effectiveness, and present the CBOs’ specific future funding requirements.

Ratings components included:

  • A management and accountability scorecard and rating
  • An effectiveness of service delivery scorecard and rating
  • A strategic planning and execution scorecard and rating
  • An overall rating
  • A Rand value statement of funding requirements

We felt that, with limited resources and unlimited demand from impoverished communities rapidly losing patience, it was essential that social spend not only be spent but that it br done on appropriate projects conducted by the best organisations.

We developed ratings systems to target to development sectors:

  • Small business development
  • HIV / AIDS charities supporting neonatal orphans

Combined, the end result will give government, sponsors and other stakeholders transparent information that highlights specific regional causes; makes possible the meaningful comparison of the CBOs’ effectiveness and their abilities to utilise additional funding; and suggests an appropriate level of funding for each CBO.

We received funding support from Investec. Professor Lawrence Schlemmer – our lead consultant – was then executive co-director of MarkData (Pty) Ltd, a consumer and strategic research company, senior consultant for the Centre for Development and Enterprise, and vice president of the South African Institute of Race Relations.

Outcomes

Over the two years the project ran, we rated every small business development organisation in South Africa, and all HIV / AIDS orphanages in the Western Cape. We uncovered financial fraud in both sectors, and systemic child neglect at an orphanage. While the project was incredibly successful at its initial aims, we did not receive financial support from the stakeholders we had assumed would be most interested: funders.

Photo by NIH NIAID, via Wikimedia Commons

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