NESsT Investors Circle Breakfast “Market and Philanthropy: Investing in Sustainable Social Impact”

NESsT Círculo de Inversionistas Desayuno “Mercado y Filantropía: invirtiendo en impacto social sostenible”

Gathered for a unique agenda, an alliance of over 50 corporate and nonprofit leaders met at the British Chamber of Commerce for the first ever Chilean Investors Circle on September 14th. Three of Chile ’s leading nonprofits, rather than requesting the more common donation or sponsorship from the business community, presented their organizations’ business plans to the group; while the 25 private sector representatives, hailing from such companies as Deutsche Bank, IB Partners, JP Morgan, Phelps Dodge, Socovesa, and Transoceanica, learned of the detailed enterprise ideas in which they might invest. 

Chris Brown of Intergenesis, Agustín Edwards of Diario El Mercurio, and Sharon Matthews of JPMorgan Chase

Convened by Santiago nonprofit NESsT, and hosted by Felipe Medina, Regional Director for Goldman Sachs Latin America Investment Management Division, the breakfast “Market and Philanthropy: Investing in Sustainable Social Impact” was billed as an opportunity to learn about the new face of philanthropy in Chile . NESsT is a nonprofit dedicated to strengthening the financial sustainability and social impact of civil society organizations through the use of self-financing and social enterprise. NESsT defines social enterprise as the sale of products or services that generates new revenues and innovative solutions for achieving the organization’s mission. Through a venture philanthropic approach, NESsT combines the tools and strategies of business entrepreneurship with mission and values of nonprofit entrepreneurship.  By so doing, NESsT helps break dependency on grants and charity-based models and create new channels for the flow of sustainable resources into organizations. Because of this unique approach, Mr. Medina calls NESsT “the best-kept secret in Chile.”

The three members of the NESsT Venture Fund, a philanthropic investment fund providing financial and capacity-building support to a select portfolio of social enterprises owned and operated by CSOs in Central Europe and Latin America . All three, Los tres, Cordes, Domos, y Parques para Chile , have worked with the NESsT team during the past 15 months. Along with the assistance from the Business Advisory Network (among them representatives from Explorador Capital Management, Falcon Management, Feedback, Forum Empresa, Intergenesis y Masisa), they developed pre-feasibility studies examining their initial ideas, financial analysis, a feasibility study including in-depth market research and financial analysis, and finally a business plan.  Mariana Fagalde of Cordes emphasized that her planned social enterprise to sell integrated rehabilitation services to people with schizophrenia “is a project that absolutely strengthens our mission…giving us economic independence from government funds, generating resources to invest in organizational development, and generating resources that the government cannot guarantee to support innovative rehabilitation strategies.”

Gonzalo San Martín, NESsT Enterprise Development Manager

The event urged participants to take on a new role within the practices of philanthropy. The nonprofits have applied the best practices of the corporate world with the ultimate goal of becoming financially self-sustainable. The interaction provides the nonprofits with the skills of presentation in a ‘professional’ environment. Jennifer Rix, an independent consultant for the wine industry and a participant at the event noted, “I have worked in or been affiliated with non-profit organizations over the last 7 or 8 years, and I have to admit that I have never before seen the display of professionalism presented by NESsT and your portfolio.”  The representatives of business sector were not asked for a project-based donation, but rather the investment capital for a start-up business with social rather than financial returns. NESsT IBAN member Mr. Medina added, “my work at Goldman Sachs is about helping my clients get the best return on their investments; I became interested in NESsT during my search for ways to help my clients also achieve a better social return on their philanthropic donations.”

Highlights of the organizations’ missions and social enterprises outlined in their business plans follows:

Cordes offers psycho-social rehabilitation to those affected by schizophrenia; their social enterprise is a rehabilitation and social reintegration center for those with severe mental disturbances from middle- and upper-class economic groups

Domos promotes gender equity and human rights in Chile . Their social enterprise offers c ourses on healthy family relationships and child abuse prevention for the public and private sectors.

Parques para Chile supports private environmental conservation initiatives and promotes community participation. Their social enterprise provides design, planning, and management services to owners of private, protected areas with conservation value.