YCAB Foundation: Sustainability as Social Enterprise
- Hiroki Matsumoto
- Yuki Sato
- Yolanda Marta Kartika
- Got a chance to visit YCAB headquarter, Sulistyaning Palupijati or well known as Palupi welcomed as well and got nice time to interview her about YCAB. Palupi is one of YCAB’s staffs. She handles HOPE Project of YCAB, spesifically Assitant to Program Director to HOPE Project. Her job descriptions are to coordinate and supervise all division under HOPE Project doing well, to prepare budget regarding to all projects under HOPE, to create and maintain relationship with external parties, and to create technical strategy and long term strategy for HOPE.
YCAB Foundation was established in 1999, and had been a non-profit. However, YCAB Foundation faced financial challenges to continue their activities as other NGOs, NPOs, or volunteer groups do. Especially about the educational issues YCAB Foundation attacking to, it is very difficult to attack to with continuing to make social impact and also financial sustainability. Almost all organizations which are attacking to educational issues are non-profit depending on donation.
“Education” is like investing to the children’s future. Even if they invest human and monetary resources to one educational project, they can’t get visual outcome like money or product soon. Investing to children’s educational project, it might be 10 years later that one can get visual outcome, for instances, when children who received the educational project graduate school, and they get upper or better job. The educational project should be evaluated in long term. YCAB Foundation also found it difficult to continue expanding their educational program, “HELP”, “HOLD”, and “HOPE” only depending on donation with “Impact Only”. It is hard to attack to social theme like education which needs continuous resources only depending external donations. After that, YCAB Foundation changed there policy from “Impact Only” to “Impact First”, and they continue various projects as a Social Enterprise not Non-profit.
Sustainability as Social Enterprise
YCAB Foundation was previously a non-profit. With a policy “Impact Only, they mainly focused on how they can create good impact, not how they can get sustainable resources. However, as mentioned in Introduction, they transformed from non-profit to Social Enterprise with a new policy “Impact First”.
Now YCAB Foundation is ran with mainly internal resources and external resources. Internal resources include revenue of Business Unit, YCAB Cooperative, and YCAB Foundation. External resources mainly include revenue of Partnership and Corporate. This time, I would like to explain Business Units and YCAB Cooperative which are internal resources.
These Business Units and YCAB Cooperative are units which create financial resources to support YCAB Foundation. With these units which are separated from YCAB Foundation create financial resources, they can support YCAB Foundation’s main educational project sustainably.
Now I would like to explain each Business Units and YCAB Cooperative. First, Business Units was founded with singular purpose to support YCAB Foundation. They run enterprise outlet in department store or beauty clinics, for instance. These commercial enterprises create financial resources to support YCAB Foundation, so surplus from Business Unit will be shared with YCAB Foundation. In adding to earning money, Business Units take Rumah Belajar graduates as employee.
YCAB Cooperative carries out Micro-finance to mothers. This is a conditional Micro-finance, so mothers who receive Micro-finance must send their child or children to school. By doing so, mothers can improve their family’s life, and also their child or children can go to school. However, this is a loan not donation, so mothers have to return all money they received and interests. The surplus from YCAB Cooperative will be also shared with YCAB Foundation.
This time, I mentioned only Business Units and YCAB Cooperative which are internal resources. YCAB Foundation can continue their educational projects with various resources not only depending on donations.
- YCAB Foundation