I Got 99 Problems - So Give Me Funds!

When it comes to social enterprises, fundraising is always given immense importance. However, in this race to generate capital for social ventures, the aspect of efficient utilization of resources often tends to take a back seat. A social enterprise that raises a significant amount of dollars automatically tends to view and use that number as a metric of success. I believe that acquiring/raising monetary capacity is undoubtedly a necessary step towards achieving a firm’s goals, it is definitely not a sufficient one.

As stated by Professor Zak two weeks ago, Bill Gates also came to the realization that despite having a bulk load of money to dedicate to social enterprises, he could not solve problems as quickly as he had initially anticipated. It takes a nuanced approach dedicated to problem-solving that results in successful social ventures.

Similarly, it is common practice for developed countries to feed a chunk of their money into developing countries in the name of progress. However, the actual goal gets lost in translation if the emphasis is just on the transfer of funds and not on implementation. A pertinent and recent example of such practices comes from my home country, Pakistan. In October 2015, Michelle Obama announced that Pakistan will receive $70 million as part of her education venture ‘Let Girls Learn’ (USAID Press Office). On paper, this collaboration between USAID, UNDP, UNICEF and the government of Pakistan sounds promising. However, due to low accountability, this money has not been used to its full potential. Having personally talked to several teachers of public schools that were supposed to be impacted by this program, I have heard personal accounts of how government officials painted schools, provided new furniture, took pictures and did not focus on improving the standards of education. The biggest blame of this half-hearted implementation undoubtedly lies on the rampant corruption at various governmental levels in the country. But can the USAID or the UN do a better job of measuring impact and increasing accountability of such ventures? I think yes.

Having worked in Pakistan’s non-profit sector in collaboration with the government, I can claim with certainty that lack of financial resources is not the most pressing problem of the country. Every year, millions of dollars are injected into the country with good intentions, but good intentions are not enough to create impact. A government setup that is inherently corrupt will always find ways to ‘inflate’ costs and get away with doing less for more money. This structure is nowhere near realizing the complete potential huge amounts of aid can have in the country – or any other country for that matter. As pointed out in the reading ‘Why We Are Not Getting The Full Benefit of Social Innovation’ the USA also faces this problem: “As for resources, while there certainly are constraints, our core problem is not the amount of money per se but its allocation.  Simply put, too many funders – including government agencies and foundations – are not maximizing the benefits of their spending, because they do not base major funding decisions on disciplined assessments of a program’s likely impact on people’s lives.”

Work Cited

USAID Press Office. "White House Announces $70 Million for Girls Education in
            Pakistan." U.S.Agency for International Development. N.p., 22 Oct. 2015. Web. 04
            Oct. 2016.