Sowers Exchange assesses Social Purpose Organisations (“SPO”) for partnership. We have a two-fold approach to this is desktop and on-site due diligence. Our partners must be able to demonstrate ‘best practices’ and offer sufficient and reliable information about their organization. We focus on six critical areas:
1. Public Benefit Goals
2. Experience and Capabilities
3. Governance and Accountability
4. Financial Reporting and Responsibility
5. Measurement of Effectiveness
6. Strategy and Future Plans
1. Public Benefit Goals
a. The SPO must have a clear and consistent mission.
b. These goals must be compatible with Sowers Exchange’s mission, vision and values.
2. Experience and Capabilities
a. The SPO must have a social development plan that reflects its mission statement.
b. The SPO must have a successful track record of implementing change.
c. The SPO should have a clear impact measurement model of previous projects.
d. The SPO should provide adequate training/briefing prior to employees and volunteers.
3. Governance and Accountability
a. The Board of Directors should have a minimum of four members or more.
b. The SPO must have at least half of the Board of Directors as independent and should not receive compensation.
c. Sowers Exchange will conduct on-site due diligence either at the inception of the assessment or through the course of the partnership.
4. Financial Reporting and Responsibility
a. The SPO must provide audited financial statements from its most recent fiscal years.
b. The SPO must furnish a copy of its business or charitable organization registration.
c. The SPO must furnish a copy of its budget for relevant projects to Sowers Exchange.
d. The SPO must update Sowers Exchange on a regular basis on the status of each project in which Sowers Exchange’s clients are involved.
e. For social enterprises a part of your profits should be invested back into the community in accordance to your mission statement.
5. Measurement of Effectiveness
a. The SPO should have relevant and measurable impact metrics to analyze the performance and effectiveness of its projects.
b. The SPO should furnish records of impact assessment and progress reports to its donors and corporate partners.
c. The SPO should have a feedback mechanism and continue to adjust its project details in response to such assessments.
6. Strategy and Future Plans
a. The SPO should have a clear strategy to achieve their mid-term and long-term plans (e.g. areas of focus, challenges, sustainability).
b. The SPO should have a clear strategy to identify potential risks and have steps to mitigate them.