EMEX explains

EMEX must feel very strongly about my comments on their sustainability certificate because not only have they emailed me, but they have posted this explanation as a comment.

THE EMEX NPO SUSTAINABILITY CERTIFICATE -A JOINT VENTURE BETWEEN EMEX TRUST AND VODACOM

Dear Paul, with reference to previous correspondence herein kindly herewith some more information to the Emex NPO Sustainability Certificate.

Background: In 2009 the Vodacom Foundation embarked on a journey to develop a Non-Profit Organisation (NPO) accreditation measurement. Eight accreditation weighted elements were identified and operationally defined. As there was no known precedence in South Africa or elsewhere in the world and Vodacom could not be seen as both a player and a referee, Emex Trust, as an independent role player and SANAS accredited B-BBEE Verification Agency, was brought on board in 2010 to help concretise the NPO assessment process. This led to what is now known as the NPO Sustainability Certificate. The NPO Sustainability Certificate may be issued to any NPO subject to the verification process which more fully explained hereunder.

Is it a B-BBEE Certificate?

The NPO Sustainability Certificate is not a B-BBEE certificate and is not marketed as such. It is a certificate aimed at showing the sustainability status in a particular NPO based on the criteria set out below.

Elements Measured:

The following 8 (eight) elements are measured in terms of the NPO Sustainability Certificate:

1. Sustainability - This element measures the NPO's operational capacity and whether the NPO would be able to continue its activities in the future;
2. Experience - This element looks at the number of years the NPO has been in existence and measures the field and extent of knowledge the NPO has acquired over its years in existence;
3. Governance - This element measures in which way the NPO is effectively governed by a board of directors and/or trustees and/or a management committee;
4. Expertise - This element measures in which way the NPO's staff acquired specialised skills or knowledge, whether through professional training or through practical experience;
5. Credibility - This element measures the NPO's image, reputation, truthfulness and reliability by engaging the community(s) within which the NPO operates and obtaining testimony from such community(s);
6. Staff Compliment (sic) - This element measures the number of staff associated with the NPO and looks to provide assurance that the NPO has enough resources to accomplish the objectives of the project(s) it is engaged in;
7. Reach - This element looks at the geographical area in which the NPO operates and looks at the extent of the NPO's project(s)/activities in the different provinces of South Africa;
8. NPO Registration - This element measures whether or not the NPO followed the formal requirements to be registered as an NPO.

Regulation of the Emex NPO Sustainability Certificate:

The NPO Sustainability Certificate is not regulated by statute. It is a privately developed product - developed jointly between Emex Trust and Vodacom. As such Emex Trust and Vodacom entered into a joint venture agreement which regulates their relationship with respect to this product. The intellectual property behind this product is also held jointly by Emex Trust and Vodacom.

Conclusion:

This product was developed to assist any person or entity wishing to make contributions towards an NPO as to the viability of such an NPO.

I note this and to a large extent it's laudable – but it doesn't detract from the unnecessariness of this certificate. What purpose does it serve? And why should any NPO make use of it. Yes it tells a whole lot about a non-profit organisation but these entities exist to serve a cause/community or the like. Does this certificate then make a cause more worthy than any other?

I think there is a moral issue at play here – EMEX and its partner are effectively profiteering off NPOs who could be using the money to benefit their cause/community.

I tell you what I would like to see – Vodacom sponsoring each NPO in getting this certificate. Go on Vodacom,  I dare you.

Comments

[Richard Ferrer]

Without seeing the detail of what is measured in the 8 elements is difficult to make an assessment of how useful this certficate might be to potential donors. For instance with respect to sustainability most NPO's in this country are dependant upon their donors continuing to make donations year in and year out. If the donors stop they go insolvent. Very few are sustained by social enterprise (owning a business where the profits are used for charitable purposes) or their own Foundation (income from dividends and interest on their investments sustaining charitable purposes)
To what extent is this known and supported by the large CSI donors and the more sophisticated NPO's? With operating expenses of about R 35 million, and excluding the donors funds they administer, Tshikululu is possibly the largest NPO in this country. They are constantly evaluating NPO's - do they use or support this NPO Sustainability Certificate?