When we think of sustainability, we immediately imagine environmental issues. But in the world of finance, the term goes much further. It is the case of financial sustainability, the conscious use of money in the present to achieve results in the future. That doesn't just mean ?saving money?, but using it safely, avoiding unnecessary expenses and investing it in investments, thinking about the long term.
This term is very important when we talk about personal finances, but it also needs to be considered in the plans for causes and projects. In the social organizations (NGOs), for example, it is very important to have an efficient management of resources, so that the action of the cause is perennial and with satisfactory results. This continuity can be obtained through a Equity Fund (Endowment). Check throughout the text how this is possible.
Our study, "The importance of the Third Sector for GDP in Brazil?, shows that the Third Sector, that is, non-profit organizations, are responsible for more than 4% of the country's GDP. In addition to all the impact on health, education and culture, for example, the sector makes an important contribution to the Brazilian economy, with the creation of jobs and the generation of economic value.
And the work of NGOs in the country continues to grow, today there are more than 800 thousand, covering several areas. In order to maintain the growth and strengthening of its operations, it is very important to consider the financial sustainability of each project. With efficient management, cost control and planning, NGOs can go even further. To implement financial sustainability in your organization, establishing an Endowment is one mechanism. The Fund receives donations destined to support specific causes or organizations, supporting them through the income (above inflation) of the resources invested.
An Endowment is what your organization needs but don't know where to start? We do it for you! To guarantee the continuity of its cause, the Sitawi, in partnership with the Endowments of Brazil, the Endowment Fund Management Organization (OGFP), has developed an innovative common infrastructure approach in the country, which allows for the establishment of Funds that benefit multiple causes or organizations. This approach can support your NGO to achieve continuity quickly and affordably, with considerably lower costs, since, as in a coworking space, OGFP houses different Funds in a shared infrastructure.
With our recognized credibility and transparency, OGFP manages your organization's resource allocation in search of solid long-term financial return. The disbursements of this income go towards supporting the organization in the implementation of its projects with a positive socio-environmental impact.
Want to know more about Endowment Funds and how to implement it in your cause? Contact us! Click here and learn more.