I find this article very inspiring! I’ve always thought that nonprofits should be able to generate their own profits, instead of asking for money through fundraising. I never knew how. Now, I have an excellent model through BRAC. I can see it takes business management skills, a broad vision and mission to lift people out of poverty, and a very long-term commitment. I salute Fazle Abed’s heartfelt commitment, vision, and business acuity! We need to hear more about BRAC and how we can appy these methods to the poor in America.
It’s strange that so many have come to associate “nonprofit” with “no profit”. I agree with the above poster that it behooves us to learn how to apply BRAC’s successful strategy to poverty in the US. Unfortunately, America’s poor are much more dispersed, diverse, divided, and dysfunctional than the poor in Bangladesh. I use the term “dysfunctional” to refer to the stratospheric level of rational thought impairment induced by rampant substance abuse, mind-numbing video distraction, corporate-marketed malnutrition, and widespread chronic illness, among other evils. The sheer extent of this debilitating syndrome among the poor (actually, most Americans) requires a massive investment of social capital simply to bring those experiencing poverty to a functional level of cognitive and physical health. This essential investment in wellness restoration has to be the backbone, if not the prerequisite, of any concerted strategy to promote sustainable economic uplift.
If you listen very carefully, we are all saying the same thing - it has been done before, it is being done now, and with all of us united, we will be the global eradicators of inequality while promoting the betterment of the earth as a whole, and not individual countries, even. Please do share ideas, comments, criticism, and volunteer to make BRAC the global leader of local development. - Ishraq Dhaly, Global Brand Manager, BRAC
The case study incorrectly states that two former prime ministers of Bangladesh are in jail on charges of corruption. In fact, both were recently released and neither has been convicted of any corruption charges.
And , in fact, Sheikh Hasina has been re-elected as prime minister, as the result of her party’s (the Awami League’s) victory in the December 2008 Parliamentary Elections.
The figures are from BRAC’s published annual report. You do the maths:
(The numbers below are in billion taka)
INCOME EXPENDITURE SURPLUS
Social Enterprises (A)
Income Generating Projects 6.13 5.22 0.91
Programme Support Enterprises 3.07 2.76 0.31
Microfinance 11.82 10.08 1.74
TOTAL (A) 21.02 18.06 2.96
=======
Social DevelopmentProgrammes (B)
Education Programme 3.64
Health Programme 2.34
Ultra Poor Programme 3.64
Other Development Projects 0.33
TOTAL (B) 9.95
Donor Funding 9.79
% of Donor Funding for (B) 98%
========
BRAC’s total yearly income including Donor Funding 32.55
BRAC’s total yearly expend including development program and social enterprises 28.39
BRAC’s total surplus before tax 4.16
Taxation 0.21
BRAC’s net surplus after tax 3.95
“So BRAC set about building businesses that would not only help its clients become self-sufficient, but also keep the organisation and its numerous programs afloat”.
Look at (A) above and then look at (B) from Brac’s own published accounts.
Doesn’t go to substantiate “In the Black with Brac” at all !!
In (A), the total revenue from Income Generating Social Enterprises was Tk. 21.02 billion and expenditure Tk. 18.06 billion, and a surplus of only Tk. 2.96 billion.
In (B), the total expenditure of Brac’s Social Development Programmes was Tk. 9.95 billion (obviously no revenue), which was almost entirely donor funded (98%).
These are 2013 figures, much after 2009 when this article was written. The figures have not become progressively any better.
This article is to right on the money with all the catastrophe going on throughout the world. He has his mind in the right place when it comes to not using only nonprofit organization and donation. Good job
In my opinion, BRAC is an excellent example of what constitutes effective aid to poor countries. I think charity in its pure form will never bring progress to society while involving those in need in education, vocational training, the labor market - creates a solid base on which to build a prosperous country.
The kind of innovative solutions BRAC and Sir Abed delivered is unparalleled. The institutions he has created would continue to serve millions in years to come, keeping the only motivation of humanity of serving people. Salute to you, Sir Abed.
BRAC has done a good job in Uganda and has been making profits that surpass those of a number of commercial Banks in Uganda.Recently it was granted a license to operate as a bank in Uganda under tier two.
A charity given to poor cripples him if it is an aid to feed. But if he is given a micro-finance to start some sort of business, then he will be on stronger feet. BRAC has chosen schemes to lift the poor - cattle project and milk purchase with chilling plants, re-hydration, and unique to give grants to women to make them later borrowers. It is something many poor countries need, but entrepreneurs with management and financial skill like F Abed are scarce.
BRAC’s programs haave been tremendiously effective in lifting the poor out of poverty and providing requsite training developement to become self reliant. A tremendous success and worth adoption by developing countries.
COMMENTS
BY Joyce Kawsaki
ON December 4, 2008 03:30 PM
I find this article very inspiring! I’ve always thought that nonprofits should be able to generate their own profits, instead of asking for money through fundraising. I never knew how. Now, I have an excellent model through BRAC. I can see it takes business management skills, a broad vision and mission to lift people out of poverty, and a very long-term commitment. I salute Fazle Abed’s heartfelt commitment, vision, and business acuity! We need to hear more about BRAC and how we can appy these methods to the poor in America.
BY Keith Vann
ON December 5, 2008 05:35 AM
It’s strange that so many have come to associate “nonprofit” with “no profit”. I agree with the above poster that it behooves us to learn how to apply BRAC’s successful strategy to poverty in the US. Unfortunately, America’s poor are much more dispersed, diverse, divided, and dysfunctional than the poor in Bangladesh. I use the term “dysfunctional” to refer to the stratospheric level of rational thought impairment induced by rampant substance abuse, mind-numbing video distraction, corporate-marketed malnutrition, and widespread chronic illness, among other evils. The sheer extent of this debilitating syndrome among the poor (actually, most Americans) requires a massive investment of social capital simply to bring those experiencing poverty to a functional level of cognitive and physical health. This essential investment in wellness restoration has to be the backbone, if not the prerequisite, of any concerted strategy to promote sustainable economic uplift.
BY Ishraq Dhaly
ON December 8, 2008 12:54 PM
If you listen very carefully, we are all saying the same thing - it has been done before, it is being done now, and with all of us united, we will be the global eradicators of inequality while promoting the betterment of the earth as a whole, and not individual countries, even. Please do share ideas, comments, criticism, and volunteer to make BRAC the global leader of local development. - Ishraq Dhaly, Global Brand Manager, BRAC
BY Kim Jonker
ON December 16, 2008 08:20 AM
The case study incorrectly states that two former prime ministers of Bangladesh are in jail on charges of corruption. In fact, both were recently released and neither has been convicted of any corruption charges.
BY PAUL VENTURA, Marylhurst University
ON January 30, 2009 08:08 PM
And , in fact, Sheikh Hasina has been re-elected as prime minister, as the result of her party’s (the Awami League’s) victory in the December 2008 Parliamentary Elections.
BY Jumbo Juice
ON February 12, 2009 09:25 AM
This article does not provide any criticisms of BRAC’s work.
BY fmahmud
ON January 15, 2013 10:31 PM
The figures are from BRAC’s published annual report. You do the maths:
(The numbers below are in billion taka)
INCOME EXPENDITURE SURPLUS
Social Enterprises (A)
Income Generating Projects 6.13 5.22 0.91
Programme Support Enterprises 3.07 2.76 0.31
Microfinance 11.82 10.08 1.74
TOTAL (A) 21.02 18.06 2.96
=======
Social DevelopmentProgrammes (B)
Education Programme 3.64
Health Programme 2.34
Ultra Poor Programme 3.64
Other Development Projects 0.33
TOTAL (B) 9.95
Donor Funding 9.79
% of Donor Funding for (B) 98%
========
BRAC’s total yearly income including Donor Funding 32.55
BRAC’s total yearly expend including development program and social enterprises 28.39
BRAC’s total surplus before tax 4.16
Taxation 0.21
BRAC’s net surplus after tax 3.95
BY fmahmud
ON May 20, 2016 11:18 PM
“So BRAC set about building businesses that would not only help its clients become self-sufficient, but also keep the organisation and its numerous programs afloat”.
Look at (A) above and then look at (B) from Brac’s own published accounts.
Doesn’t go to substantiate “In the Black with Brac” at all !!
In (A), the total revenue from Income Generating Social Enterprises was Tk. 21.02 billion and expenditure Tk. 18.06 billion, and a surplus of only Tk. 2.96 billion.
In (B), the total expenditure of Brac’s Social Development Programmes was Tk. 9.95 billion (obviously no revenue), which was almost entirely donor funded (98%).
These are 2013 figures, much after 2009 when this article was written. The figures have not become progressively any better.
So why are we propagating the myth ?
BY Judy
ON September 8, 2017 02:23 PM
This article is to right on the money with all the catastrophe going on throughout the world. He has his mind in the right place when it comes to not using only nonprofit organization and donation. Good job
BY Valeriia Povergo
ON June 4, 2019 12:11 AM
In my opinion, BRAC is an excellent example of what constitutes effective aid to poor countries. I think charity in its pure form will never bring progress to society while involving those in need in education, vocational training, the labor market - creates a solid base on which to build a prosperous country.
BY Md Shaheen Iqbal
ON May 30, 2020 07:21 AM
The kind of innovative solutions BRAC and Sir Abed delivered is unparalleled. The institutions he has created would continue to serve millions in years to come, keeping the only motivation of humanity of serving people. Salute to you, Sir Abed.
BY KAKUMBA GEOFFERY OWEN PAXTON
ON June 18, 2020 02:29 PM
BRAC has done a good job in Uganda and has been making profits that surpass those of a number of commercial Banks in Uganda.Recently it was granted a license to operate as a bank in Uganda under tier two.
BY Bodh Nath Prasad
ON June 27, 2020 05:14 AM
A charity given to poor cripples him if it is an aid to feed. But if he is given a micro-finance to start some sort of business, then he will be on stronger feet. BRAC has chosen schemes to lift the poor - cattle project and milk purchase with chilling plants, re-hydration, and unique to give grants to women to make them later borrowers. It is something many poor countries need, but entrepreneurs with management and financial skill like F Abed are scarce.
BY Victor Fernandes
ON June 29, 2020 08:17 PM
BRAC’s programs haave been tremendiously effective in lifting the poor out of poverty and providing requsite training developement to become self reliant. A tremendous success and worth adoption by developing countries.