Critical Trends That are Shaping the Role and Relevance of NGOs

The Future of Social Impact (by Megan Soffer)

At this year’s InterAction Forum, we heard from a group of panelists as they explored the major trends shaping the future and relevance of NGOs with a particular focus on innovative financing, social enterprises and digital trends. The panelists focused on how these key trends have influenced their organizations as well as their responses in order to remain relevant and impactful — not just within the sector, but during real times of need (e.g. natural disasters). Moderating the panel was Ryan Johnson of Accenture Development Partnerships, a global service company that collaborates with organizations working in the international development sector by delivering innovative solutions that change the way people work and live.

So, what are the key trends that are shaping the role and relevance of NGOs?

• The rise and increase of involvement in the private sector
• Increased opportunities as well as challenges with using technology
• Digital technology, social enterprise, and impact investing

What do these trends mean for your nonprofit’s strategy, footprint, funding, and capital development?

• We live in an increasingly autonomous world — more and more people have the capacity and ability to make their own decisions, manage their own outcomes, and be independent of other people
• Services are providing convenience and meeting demand for instant reward.
• When we resist change, we ignore opportunities to provide value.
• Proximity, protection and currency:

Proximity — the scale and pace of humanitarian crisis make it difficult to be everywhere for everyone. For example, theAmerican Red Cross has to think about: what is possible given a security situation. hat is ethical given the business model (transactional)? What is sensitive given that red cross is an outside? What is truly essential given proximity? What tools good help provide proximity without physical presence?

- Remote sensors used to monitor environmental data for early detection

- Social media and SMS to send alerts about early detection

- Robots used to diagnose, detect and treat diseases

- Smart transportation to help with evacuations and the delivery of supplies

Protection — use experience to help organizations who are collecting data to process it and make meaning out of it; not to exploit it or cause more vulnerability because of it. Take data sets from multiple collectors and make sense of it all as conveners, and leverage data sets to make conclusions.

Currency — people don’t solely rely on a specific type of money to extract value. We need to think about currency as more than money; it could be data, value, natural resources, or trust. Leveraging intangible assets as INGOs can help provide real value for communities

- INGOs need to identify, digitize and monetize their assets.

- Business aspect and social aspect should be co-equals. Corporate structure plays a critical role in reaching this goal

• Impact investing is where the money is, and it has a different model than the aid model.
• Believing and investing in local startups that are meeting the direct needs of people; red cross invests because they want these startups to continue to be strong enough to meet these needs.
• Incubating ideas and investing in tools can help unlock business opportunities (like social enterprises).
• An “impact business” should really have ONE thing that it does to make the world better.
• Remember, don’t get too lost in chasing numbers that you forget what your organisation’s focus actually is.
• Whole economies are being lifted out of poverty because of business; social purpose can be included in the business strategy to improve the world.

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