Corporate Social Responsibility
Profit, People & Planet
accofina.com and Axel Tracy fundamentally believe in strong corporate citizenship and that the private sector in a capitalist system is just as capable as improving society and the environment as any government. As a result, we have implemented a Triple Bottom Line approach: "Profit, People & Planet".
While a profit motive is assumed, see below for our efforts to benefit People & Planet from our enterprise.
CSR Program 2015-16
10% of Revenue
is deposited into
a Charitable Endowment Fund
Within the Charitable Endowment Fund
(which will be managed by Axel Tracy):
• 75% of its investment income is donated to various non-profit organisations
• The remaining 25% will be added to the principal base.
Donation Recipient list:
Australian Indigenous Education Foundation (aief.com.au)
Received donations: September 2013 - April 2015
About: “AIEF provides scholarships which enable Indigenous students to attend some of Australia’s leading schools and universities, as well as mentoring and career support to ensure students make a successful transition from school to further studies or employment, productive careers and fulfilling lives.”
Received donations: September 2013 - June 2014
About: “Our mission is to stop the degradation of the planet's natural environment and to build a future in which humans live in harmony with nature, by: conserving the world’s biological diversity, ensuring that the use of renewable natural resources is sustainable & promoting the reduction of pollution and wasteful consumption.”
Received donations: September 2014 - April 2015
About: “the International Fund for Animal Welfare saves individual animals, animal populations and habitats all over the world. With projects in more than 40 countries, IFAW provides hands-on assistance to animals in need, whether it's dogs and cats, wildlife and livestock, or rescuing animals in the wake of disasters. We also advocate saving populations from cruelty and depletion”
Received donations: September 2013 - April 2015
About: “MyBnk is an award-winning UK charity that teaches young people how to manage their money and set up their own enterprise. We design and deliver programmes for 11-25 year olds in schools and youth organisations.”
Made Kiva microfinance loans: September 2013 - April 2015
About: “We are a non-profit organization with a mission to connect people through lending to alleviate poverty. Leveraging the internet and a worldwide network of microfinance institutions, Kiva lets individuals lend as little as $25 to help create opportunity around the world.”
Mind Equilibrium Foundation (mindequilibrium.org)
Received donations: September 2013 – October 2015
About: A foundation with the mission “ to alleviate the suffering from mental health disorders and work towards a world without mental health disease. This mission will be delivered through funding: Research, Scholarships and Other Targeted Programs to assist both mental health specialists as well as sufferers.”
Program Changes & Abnormal Events:
As of the 1st November, 2015, all charitable contributions will be deposited into the Charitable Endowment Fund.
Prior to this in 2015, 8% of revenue was deposited to the charitable endowment fund and 2% of revenue (making up the 10%) was donated to the Mind Equilibrium Foundation.
The reason for this change was the decision that being able to manage (and grow) three entities (accofina, the Charitable Endowment Fund & the Mind Equilibrium Foundation) was probably stretching myself and financial resources too thin. It is believed that a focus on two entities is a more efficient use of resources and can lead to greater impact. Further, managing a non-profit organisation (the Mind Equilibrium Foundation) and all that entails is not my speciality. Thus it would be better leaving those activities to the experts, with my role being only the contribution of funds through the Charitable Endowment Fund.
The Mind Equilibrium Foundation is being wound up and all funds are being transferred to the Charitable Endowment Fund.
Program Reasoning & Further Detail:
Previous CSR Program (from Sep-13 to Mar-15)
From the launch of accofina in September 2013 there has always been a CSR Program in place.
From launch till March 2015 the one program was in place. This involved donating 10% of revenues to charitable causes (similar to the new, current program) as well as actions outside of financial donations that involved behaviours within the accofina office (such as waste management and electricity use).
Further, each quarter I would provide CSR Reports on the previous quarters activities as well as other CSR performance measures.
Why accofina changed to the Current 2015 CSR Program
There are a number of reasons why a new program was needed going forward from July 2015.
Firstly, since the initial CSR Program I have begun living with a friend. Considering that accofina is a micro-business based in a home office, the new living arrangements added a great of complexity to the measures I was using with the old program. For example, in the past I was measuring how much electricity I was using in the ‘office’, yet when I began sharing accommodation, the household electricity use increased dramatically with no real change in accofina behaviour. This situation repeated itself with many of the old, previous measures.
As for the quarterly reporting obligations, this became quite burdensome in relation to their apparent benefit or use by those outside of myself. While they may have provided ongoing transparency and other benefits, in all the time I prepared them I, as accofina manager, was never once contacted or had them referred to in any of my business dealings. All in all, keeping track of all the respective measures, preparing reports and then uploading them the website was a time-consuming and cumbersome task with little apparent benefit. As a result, and with running accofina more efficiently as a goal, I have decided to halt the standard quarterly reports and instead simply post this given program to the website and report on activities ad-hoc, or when they change.
If you were aware of the previous program and compared it to the current program you may notice that some activities have been dropped and there is more of an emphasis of donations; this is no accident. While accofina will always try and remain an upstanding corporate citizen, in somewhat similar argument to Adam Smith’s ‘division of labour’ theory, I believe that accofina can best serve global causes by doing what it does best (making money) and then allocating a portion of these revenues to those who do what they do best (operating non-profits for global charitable impact).
Why does the Mind Equilibrium Foundation receive accofina donations directly and not from the Charitable Endowment Fund? This is because the Mind Equilibrium Foundation is in itself a charitable endowment fund in its own right. That is, that organisation operates as a foundation where only investment income (on top of a principal base) is spent on charitable programs. It is my belief that the Mind Equilibrium Foundation’s program capability would be severely hampered if it had to wait for two tiers of investment income payouts. That is, program funding would (1) wait for a payout from the charitable endowment fund to go to the foundation’s principal. And then (2) wait for the foundation itself to then generated enough investment income to fund programs.
Why keep 25% of investment income from the Charitable Endowment Fund within the fund itself? This is simply because I do not want the ongoing capability of the fund to be based on accofina’s success alone. accofina is a micro-business with only me, myself & I driving its earning capacity. Ideally, the Charitable Endowment Fund will last, survive & thrive long after I am around to drive accofina revenue. By retaining 25% of investment income in the fund this should ensure that, in the long term, the fund can continue to survive and grow in size even without my own input.
CSR Reporting Going Forward
Being a micro, private company the desire for efficiency and privacy leads to limited external reporting going forward, however there will continue to be a number of internal management accounting reports used within accofina in relation to it’s CSR activities.
We will report which organisations receive donations from accofina directly and/or the Charitable Endowment Fund. We will also report what periods they received donations.
We will also report any abnormal events, in regards to our CSR Program, or any changes to the program.
Note: both these reports are above.
Thanks for your time in reading and considering this CSR Program information.