RITE AND REASON:Clann Credo finances schemes that bring social as well as economic benefits to communities, writes PAUL O'SULLIVAN
IT WAS appropriate that the Irish social finance and philanthropy sectors chose 2010 as the year to combine forces to establish an innovative new scheme. This is, after all, the European Year for Combating Poverty and Social Exclusion.
The recently launched Ray Murphy Memorial Bursary is organised jointly by Clann Credo – a provider of social finance – and Philanthropy Ireland, with support from Atlantic Philanthropies. This generous initiative is worth €10,000 to the successful applicant, and will help with postgraduate studies in social finance, philanthropy, social enterprise, charity regulation and other relevant topics.
The bursary was established in honour of Ray Murphy, who died in 2007. He was a pioneer in the development of philanthropic activities and social finance in Ireland.
His focus was on developing study programmes in these areas, so the bursary is a way of carrying on his work. It is of particular significance for Clann Credo, as Murphy was a former chairman of the organisation and contributed immensely to its evolution.
The bursary, by facilitating academic research, will assist in the development of social finance and philanthropy in Ireland, in terms of capacity and expertise. These are underdeveloped fields of study here.
The social finance model differs in one crucial respect from conventional finance, which only assesses the monetary return on investments.
Social finance demands both a social and a financial dividend. So a loan to develop a service or facility in a given area must show that it will deliver a benefit to that community – such as jobs or better services – along with a return on the investment.
Consequently, social finance is more willing to lend to the sort of projects that conventional finance excludes.
Clann Credo’s capital is raised from private, non-statutory sources. Ireland’s first social finance provider, it was established in 1996 by Sr Magdalen Fogarty and the Presentation Sisters. The aim was to put capital to work to achieve social justice. More than 20 religious charities have joined the organisation.
In 2009, Clann Credo approved more than €10 million in loan finance for social enterprises, charities and community organisations in Ireland as well as in eastern Europe and Africa.
This represents tangible investment in people and communities and translates into real improvements in their quality of life.
Last February Clann Credo was invited to make a presentation on its work at the UN headquarters in New York. This followed praise for its promotion of social inclusion and integration by the UN’s NGO Committee for Social Development.
For more information on the Ray Murphy Memorial Bursary see www.raymurphybursary.org. The closing date is May 28th.
Paul O’Sullivan is chief executive of Clann Credo