Here is a recent article by Bobby Shriver which explains the BRILLIANCE of PRODUCT (RED).
On this World AIDS Day, it is a great article to read and remember the losses that we have suffered from AIDS - and also our achievements in our movement to make extreme poverty history.
http://blogs.guardian.co.uk/joepublic/2007/11/the_notforprofit_business.html
THE NOT-FOR-PROFIT BUSINESS
Bobby Shriver explains how his enterprise (RED) - which has generated $50m for the Global Fund for Aids - offers an alternative fundraising model.
November 29, 2007 9:00 AM
On this blog the other week there was further evidence of the growing disquiet as to the efficiency and effectiveness of the charity sector. Charities are coming under increasing pressure to be more open about how the money they raise is being spent and what percentage goes to target causes.
It's a difficult issue and one that any fundraising organisation has to be aware of as donors become more concerned about where their generous contributions go.
As co-founders of (RED), Bono and I had this very much in mind when we were considering what we could do to keep sustainable funds flowing into the Global Fund, a public-private partnership that was doing so much good to fight Aids but was finding it difficult to get private sector donations.
So we came up with a new plan - what if we could create a brand that meant the businesses became the fundraisers themselves? We announced the idea of (RED) just over 20 months ago at the World Economic Forum in Davos in 2006, and full lines of (RED) partner collections have been on sale for over a year.
Now we're announcing in time for the 20th World Aids Day on Saturday that (RED) consumer action has generated over $50m for the Global Fund to finance Aids treatment in Africa. This also coincides with the publishing of our first (RED) Report, a complete look at how (RED) money is generated, how our business model works, and where the (RED) money is spent.
That is why (RED) is unique. It is a not-for-profit business, not a charity, and the money provided to the Global Fund is completely accountable. It's a unique, but simple business model: our partners' products take on the (PRODUCT) RED mark and donate up to 50% of the profit from the sale of these products directly to the Global Fund.
When great partner companies create great products that appeal to consumers, they generate hard cash for the Global Fund and also for themselves. When this happens, companies carry on investing in these products, updating them and creating new ones to succeed them. In this way, the stream to the Global Fund need never stop, because a virtuous circle is established.
100% of (RED) profits that the Global Fund receives go to grants on the ground, in Rwanda, Swaziland and most recently Ghana. The Global Fund tracks the influx of (RED) money from our partner companies right through to its distribution to the different program activities in these countries, so we know exactly where each penny generated from (PRODUCT) RED is going.
So far, over $30m from (PRODUCT) RED sales from our current partners Gap, American Express, Emporio Armani, Motorola, Converse, Apple and Hallmark, have already been disbursed on the ground to grants in the three African countries.
Each country must submit a comprehensive proposal to the Global Fund as to how and where any allocated funds will be spent before any funds are granted, and only those that can demonstrate a rigorous and holistic approach are chosen as recipients. What is more, the ongoing continuation of their funding depends on their performance against targets.
Results in the three Global Fund grants where (RED) money has already flowed are impressive. In Rwanda 316,414 pregnant women have been reached with counselling and services to reduce the risk of mother to child transmission of HIV, as well as 212,000 people to completing the HIV testing and counselling process in Ghana. 156 midwives and doctors have been trained in the prevention of mother-to-child transmission of HIV in Swaziland, and 14,571 patients have been provided with antiretroviral therapy for HIV/Aids in Rwanda. These are just a few examples our report covers.
Our job is to grow (RED) and make it consistently attractive across more business categories in order to continue its sustainability. Our new report outlines what our partnerships have accomplished so far, and shows just what the power of consumer choice can yield.
Many individuals and organizations are working tirelessly in this field. Our business model offers an alternative, a complement to established fundraising- and perhaps even an introduction to some new donors. Shopping for benefit helps consumers, companies AND those in need. It's also a way to drive corporate social responsibility more deeply into an organization as a core operational initiative rather than simply a philanthropic add-on.
True accountability rests on authenticity of action and openness of purpose, as well as results. When the mass of discriminating consumers are also acting as donors by proxy, they'll demand to know where the money goes. And that's a powerful new tool of transparency.
· Bobby Shriver is chairman and co-founder of (RED)