Corporate governance is an essential factor for the structuring of organizations, ensuring transparency, efficiency and greater social impact. In the case of Grantmakers , who act as strategic social project financiers, a well -structured governance also enhances the effectiveness of investments and strengthens the philanthropy ecosystem.
In Brazil, the donation culture still faces challenges, especially with regard to the safety and predictability of social investments. Therefore, for investors, allocating resources to an organization with structured governance can be more efficient and strategic than directly finance organizations with limited administration capacity or without well -defined accountability and monitoring processes.
Corporate governance in the third sector
According to the Brazilian Institute of Corporate Governance , corporate governance is a set of processes, policies and practices that regulate the administration of an organization , ensuring that their decisions are made ethically and transparently. In the third sector, governance goes beyond regulatory compliance: reduces risks, reinforces credibility and ensures the sustainability of social organizations.
More than that, the adoption of good governance practices enables greater predictability and security in the management of social investments, improving accountability and decision making. This is what the GIFE best practices guide (2014) says. This structure allows funders and supported organizations to be strategically aligned, avoiding conflicts of interest and ensuring that resources are applied more efficiently.
The risks of investing in organizations without structured governance
The absence of structured processes can compromise transparency, efficiency in the application of resources and the very sustainability of the initiative. Without robust accountability and strategic management mechanisms, organizations face difficulties in investing allocation, becoming more vulnerable to operational failures and waste .
Another significant impact on the lack of governance is the difficulty in capturing new financial contributions . Organizations that do not have solid structures find more barriers to establish partnerships and gain the confidence of funders and society. In addition, the lack of governance can result in misaligned decisions with institutional objectives, in order to reduce the impact of actions and make it difficult to capture new financial contributions, limiting their long -term growth and maintenance potential.
For social investors seeking measurable and sustainable impact , ensuring that resources are intended for well -defined organizations is an essential criterion.
The role of Grantmakers in the qualification of social investment
Grantmakers are organizations that direct resources to projects and institutions that work at the tip . Instead of creating their own initiatives, they strengthen existing actions, expand the capillarity of philanthropy and promote the institutional development of supported organizations. This model favors small and medium organizations that have great impact potential, but face difficulties in fundraising and structuring their administrative processes.
The much larger movement is an example of GrantMaker that strengthens its performance with well -structured governance. Based on transparency and resource allocation efficiency, it supports various civil society organizations, strengthening its impact and promoting practices that increase the sustainability of the sector. In addition to financing, it invests in the institutional development of social organizations and fosters collaboration networks.
A concrete reference of this approach is the very larger future , a program focused on strengthening community organizations throughout Brazil . The initiative supports OSCs that act directly on the peripheries and vulnerable territories, offering not only financing, but also training, connection networks and strategic support to expand their impact and sustainability.
The program starts from the premise that investment in organizations that act directly in communities is essential for the effectiveness of social actions. Especially in regions and with less access to financing, these organizations have in -depth knowledge of local demands and establish direct interlocution with the audiences met, ensuring that the resources applied comes more efficiently to those who really need it.
In addition, the Much Greater Movement today has a process of governance and mature governance secretariat , with annual audit of its DFs, administrative bodies with clear functions, recurring meetings, monitoring and registration of understandings and deliberations through minutes and advertising of agreements affecting third parties.
Thus, the Much Greater Movement offers a safe structure that guarantees good governance, transparency and strategic management of resources, while acting as a qualified intermediary , connecting social investors to organizations. By contributing resources through MBM, investors ensure that resources are distributed efficiently, accompanied by technical support and aligned with a long -term strategic vision, strengthening the sustainability and effectiveness of supported actions.
Corporate governance as a strategic criterion for social investors
Corporate governance represents a competitive differential for Grantmakers who seek to expand their performance and impact. For social investors who wish to maximize the return of their philanthropic contributions, allocating resources to organizations with solid governance proves to be a strategic step. These organizations offer greater resource management security, prevent operational risks, and ensure that investments are made based on well -defined strategies.
The strengthening of Grantmakers governance also contributes to the professionalization of the third sector . By adopting robust management practices and accountability processes, these organizations create a safer environment for social investment, encouraging new contributions and expanding the culture of strategic philanthropy.
If you are an investor who wants to contribute to significant social changes, support Grantmakers who have structured processes, transparency in management and commitment to resource transfer efficiency. This model not only strengthens the social sector, but also ensures that each investment generates concrete results, boosting a fairer and more equitable Brazil.
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This post was written by:
Natalia Cordeiro, Lawyer for Movimento Bem Maior
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