by James Gitoho

I joined Triad Architects, an architectural firm in Kenya in 1981 after graduating from the University of Nairobi, and obtained my professional registration two years later. Triad Architects is amongst the top three architectural practices in the country. It was established in 1963, the same year Kenya got her independence from the British, and is one of the oldest architectural firms in the country. In 1991, I was invited by the Provost of the Anglican Cathedral to advise them on repairs and renewals the cathedral needed. It was during my volunteer service at the church that I began to question my purpose and what might God be asking of me. This culminated in my accepting Jesus Christ as Lord in 1992. I kept it quiet from my senior partners in the office, but my work and commitment to church was evident to all. My attitudes and opinions on project types and clientele was evidently guided by my newfound faith.

As the architectural advisor to the Church Commissioners for Kenya (CCK), the registered trustees and investment arm of the Anglican Church in Kenya, my interest grew in investing in the work of God. Our investments at CCK involve investing mainly in real estate to secure future incomes, to meet clergy and church workers’ pensions, and to give subventions to the diocese. It also involves working with parishes and dioceses in an advisory capacity in their direct investments for sustainability. It is through these experiences that clarity and purpose of my profession began to form. Many a time I would say “whilst I was repairing the roofs of the cathedral, the Provost was repairing my heart.” I knew without a doubt that I was where God wanted me to be. Triad is well-respected and known for its work in the kingdom. Our integrity in a perverse and corrupt society is unquestionable.

Fast forward to 2013 when Triad celebrated its 50th year in practice and we found ourselves questioning the legacy of Triad, why we exist, and what we are known for. It was during this time and through prayer and meditation that the thought of formalizing and bringing focus on our philanthropic and pro bono work resulted in the creation of TRIAD FOUNDATION. The foundation exists to empower people and transform communities through the employment of our skills and talents and in collaboration with engineers and contractors in the building environment.

It is worthy to note that 50 years after independence most African countries, Kenya included, have not seen the fulfilment of promises by the leaders at independence. We are still struggling with provision of affordable housing, quality education, good health care, poverty, and food security.

Triad Foundation’s primary focus is in health, education, and environment to the underprivileged communities in Nairobi. We believe that a child attending school must be provided with a good learning environment, have access to clean water and have one decent meal.

The words of 2 Kings 4:1-7:

The wife of a man from the company of the prophets cried out to Elisha, “Your servant my husband is dead, and you know that he revered the Lord. But now his creditor is coming to take my two boys as his slaves.”  Elisha replied to her, “How can I help you? Tell me, what do you have in your house?” “Your servant has nothing there at all,” she said, “except a small jar of olive oil.” Elisha said, “Go around and ask all your neighbors for empty jars. Don’t ask for just a few. Then go inside and shut the door behind you and your sons. Pour oil into all the jars, and as each is filled, put it to one side.” She left him and shut the door behind her and her sons. They brought the jars to her and she kept pouring. When all the jars were full, she said to her son, “Bring me another one.” But he replied, “There is not a jar left.” Then the oil stopped flowing. She went and told the man of God, and he said, “Go, sell the oil and pay your debts. You and your sons can live on what is left.”

We use what we what we have in terms of skills, talents and we ask our neighbours (engineers and contractors) to join us in our efforts.

Triad Foundation initiatives raise funds through an annual golf tournament and makes grants and philanthropic investments into projects that have clearly defined impact in education, health, or improved environment. The funds raised during the golf tournament is in the form of a catalytic fund like the little oil referred to in verse 2. By faith we have seen God take the little initiative of the golf tournament fundraising and multiply to levels we never thought or imagined.

In 2016, through Triad Foundation, Triad Architects aided in the completion of a stalled classroom block at the Church Army Academy along Jogoo Road, Nairobi. In 2017 and 2018 fundraising initiatives, we raised an equivalent of USD 30,000 and through the sacrifices and volunteering of consultant contractors and suppliers, we were able to complete the construction of eight classrooms for the Church Army Africa at a cost of USD 170,000.

The pictures show before Triad Foundation and after Triad Foundation. Triad Foundation helps in uplifting communities through architecture.

Using a similar strategy in 2019, we raised a total of USD 55,000 and have designed and are building a primary school (Genesis Joy School) in the slums of Mathare in Nairobi for 300 children. This will provide decent classrooms, toilets, and clean water at a cost of USD 350,000.  The building will also be available for hire by the local community for meetings and other functions.

In 2013 we renovated a disused theatre in a children’s hospital in our neighbourhood to be a place of worship. Similarly, we renovated girls’ and boys’ toilets in a public school nearby where majority of the students are from a neighbouring slum. The essence of this was to bring dignity to the girl child.

We believe through these efforts we shall transform the lives of these children and the community around them. The vision of Triad Foundation is to bring hope and dignity and to see people restored by God using our talents and giftings.

We are encouraged by the words in Matthew 25: 35-40 (NIV)

“For I was hungry and you gave me something to eat, I was a stranger and you invited me in, I needed clothes and you clothed me, I was sick and you looked after me, I was in prison and you came to visit me.” Then the righteous will answer him, “Lord, when did we see you hungry and feed you, or thirsty and give you something to drink? When did we see you a stranger and invite you in, or needing clothes and clothe you? When did we see you sick or in prison and go to visit you?” The King will reply, ‘Truly I tell you, whatever you did for one of the least of these brothers and sisters of mine, you did for me.”

The successful completion of the three projects above is proof of concept for us and we will now launch into sustainable invests in projects that transform communities in the informal sectors of our society. These investments will be in real estate and the creation of a catalytic fund.

We shall continue encouraging our colleagues in the construction industry to volunteer their time, resources, and skills on the projects we shall undertake. We are encouraged by the work organisations such as Engineering Ministry International (EMI) do in Africa.

by Jessica Schroeder

Can you name at least one company in your 401K?

If you can name several, are there any that support the production, marketing, or distribution of tobacco products? Support the provision of abortions? Do any exploit the most vulnerable in some way?

In addition to those that are not contributing to such things, are there any companies that are doing what you might call particularly “good” work (e.g., actively working toward positive change)?

As a Christian, what would it mean to steward your finances by considering the impact that your 401K investments have on the economy, on the social sphere, on the world at large?

As much as I do want to encourage you to know what your 401K investment is supporting, this is mostly to get the mind’s wheels turning. As far as stewardship and generosity go, we have much more to consider.

Beyond the 10%

Ten percent is the amount that tends to come to mind when Christians talk about “giving” or “tithing.” But whatever percentage we decide to give—whether to our local church, to parachurch or nonprofit organizations, and/or individuals and families who live off of support-raising—what becomes of the rest?

This concerns investing, for sure, but it also has to do with our everyday habits and, like our 401K, the things we are part of that we often don’t consider or make daily choices about. For instance, where do you shop? When you eat out or need transportation, how do you decide where you eat, what services you’ll use, and how you support them (e.g., do you tip? If so, how much)?

Of course, it goes without saying, not all companies are equal. But do our financial decisions demonstrate that we know this? Actions that line up with our beliefs can look like purchasing groceries that have been sustainably grown and harvested, and whose laborers have been treated fairly—creation care and worker’s rights. It can also look like abstaining from supporting companies that donate to and actively support policies contrary to Kingdom values—“voting” with your dollars.

Where are you laying up your treasures? Surely Jesus was referring to his followers’ lives holistically when he spoke to them about money on the Mount (Matt. 6:19-21, 24). Until we consider our investments and our purchases, in addition to our giving, our financial impact will be cut off from the rest of our Kingdom efforts as we seek to live more like Christ in the world.

But where to begin? Most changes cannot take place overnight, but you can likely get started today.

Investing for Good

At Denver Institute for Faith & Work’s 2020 event “Business for the Common Good,” three financial professionals spoke on the topic of faith-driven investing. Hannah Cumming from Eventide hit on three essential steps for those desiring more intentionally to make a Kingdom impact with their finances. These same principles apply to general purchases and budgetary costs.

Where to begin, and what to aim for:

1. Avoid doing harm. Do your homework. Find out what companies, practices, and values your financial decisions are supporting. To the greatest extent possible, avoid supporting those that do harm to others or to God’s good creation.

2. Embrace doing good. Go beyond avoiding the bad. What companies are actively seeking to further good practices in their work, products, and services? Support these companies.

3. Engage to capitalize on impact. Seek positive development for the long-haul. Communicate, invest relationally, and get involved in making decisions. Participate in advocacy and dialogue. Help those already doing good to reach their full potential.

Another thing that Cumming highlighted was the importance of caring for all stakeholders, not just the shareholders. Stakeholders we may overlook include customers, suppliers, employees, communities, and the environment. Not only is caring for stakeholders the right thing to do, Cumming stresses that it is the “smart thing to do.” In seeking to do maximum good for all involved, we will begin to see the cycle of how positive return and impact circles back to the company. (Win-win!)

Generosity is much more than something we consider on Sunday mornings or at (fiscal) year’s end. Financial generosity is intrinsically tied to any and all decisions we make concerning our finances, and our choices have great power to shape the world around us. What impact are yours making?

Editor’s Note: This article is adapted from The Chase Podcast with Chris McAlpine. The listen to the originally podcast episode visit: Sound Financial Strategies Group

by Chris McAlpine

This year has been one of those years that God has really demonstrated that He’s still in control, that He is almighty and that He is good. And so what I’m really hoping is that you look at Christmas this year, no matter how hard this year has been, and take some time and celebrate the birth of Jesus Christ. You know, that is what Christmas is from, right?!

Enjoy your family. At my house it’s family parties, pecan pie and with a wife and three daughters it’s a lot of Hallmark movies. Have fun, rest, celebrate Jesus and, you know, a part of Christmas is gift-giving and especially again with a wife and three daughters we give a lot of gifts in our life and that’s what I want to talk about today, is just the story behind Christmas.

But I think that our society pushes the materialism side so much, the gift-giving so much, that I think it’s important that we look at the story behind the gift-giving as well. I think that when we look at commercials, we see the brand-new cars with a bow on it every year. We see the trendy commercials (I kind of like the Coca-Cola commercials and the polar bears) and it shapes how we think about the holiday season. And if we’re not careful, it’s going to shape it in the wrong direction and it’s going to shape it in a direction that leaves us empty and we won’t know why.

First off, let me just be honest when I say gift-giving early in my marriage with my wife was hard for me, not because I begrudged giving the gifts, but it was because I had such a scarcity mentality. So for me, looking at this story helped me understand the source, the background of where the tradition started, and it’s actually such a really cool story. So let’s unpack the Christmas story for just a minute and I always want to get Charlie Brown from Peanuts to read Luke 2 because that’s how I always remember it when I think of Luke 2.

Luke is an excellent historian (this is Luke in the Bible, by the way, that wrote Luke and Acts) and he really unpacks the Christmas story in Luke 2. We see that Mary and Joseph have left Nazareth and the Galilee area and traveled down to Bethlehem because of a census during that time. They’re stuck in a barn, they’re stuck in a manger. We never really think about it, but the God of heaven came to earth to be born in a barn, a feeding trough for sheep and cows. You know, that’s a whole other story for another day.

And shepherds, the workmen of the Jewish society were summoned by angels to go and see this new baby that’s been born and angels showed up in an empty field and they said “Glory to God in the highest.” “They said a Savior is born to the world to bring peace and salvation”. And these shepherds go and visit Him.

But now we get to the point in the story where Matthew picks it up. The Magi from the east, the three wise men have traveled and we all know the story because we see it replayed every year. But have you ever stopped and really taken a step back and said, OK, who were these Magi and what were they doing?

They were most possibly of the academic lineage of Daniel from the ancient country of Babylon and they would have been scientists, would have been academicians that would have studied the stars. They would have studied the physical world around them and they’re seeing the star in the east. They also would have known with extreme historical accuracy, that a Messiah, a Saviour was prophesied from the Jewish scriptures, what we call the Old Testament. They would have traveled this long, hard, dangerous road looking for that Messiah.

So we pick up the story here and we think about this, this is in Luke 2. They’ve arrived in Jerusalem and they’re seeing the Jewish king Herod, and they ask him, we’ve seen a star, we’re looking for a king and where do the scriptures say that the Messiah is going to be born? And written hundreds of years earlier by Micah, this is what was said. “And you, Bethlehem, Land of Judah are by no means least among the leaders of Judah. For out of you shall come forth a ruler who will shepherd my people, Israel.” So it’s very clearly saying go to Bethlehem because that’s where the Messiah is going to be born. Herod secretly tells them, listen, go to Bethlehem, do what you came here to do, come back and tell me where he is. That will be important in just a minute.

So the wise men as we call them, the Magi is often written, they take their gifts, gold, frankincense and myrrh (these were gifts for a king) to a poor boy born in a barn. Even the gifts had meaning. Gold represented Jesus’ kingship. The frankincense was a symbol of His deity, and the myrrh was used as anointing oil. In those days, a king would be anointed when they were anointed king.

And so these men came with the specific intent to honor the God-King that had come to Earth. Now when we say it like that in our day and age, especially full of the cynicism that we have, we think “Yeah right, God-King, that kind of sounds like a myth or a legend, right?” But that’s exactly what they came to do. And the interesting thing is that history supports it. All of history pivots on this event. Our calendar pivots on this event. When you’re looking at today’s date, it pivots on this event. And these men came to worship God that had come to Earth.

So we continue on, these men have worshipped they’ve spent time with Mary, Joseph and the baby Jesus and an angel came to them and warned them that Herod is threatened by Jesus. Leave another way, sneak out and be gone. Don’t go back to Herod and tell him where baby Jesus is. This is where the story gets interesting and we talk less about this section of the story. Because Herod discovers that he’s been tricked, or he feels tricked, and he decides he’s going to go slaughter every child under the age of two in Bethlehem.

An angel visits Joseph in a dream and says, take the child, take his mother and run away. So think about this a minute, we got a poor man and we know they’re poor because of the way they were treated when they had no room in a hotel for him, they had no room in the inn. We also know that they’re poor because we see in Luke 2 that when they worshipped or sacrificed at the temple, they gave two doves…two pigeons – the gift or sacrifice prescribed for the poor of the society.

So how does this man take his family and run from the king? How does he sneak them out of the country when soldiers are chasing them? This is where it gets so cool! You need some wisdom, you need some street sense, right? And money helps, but where does a poor man that’s far away from his network in support get money? Gold, frankincense and myrrh.

How cool is God that these gifts that were given to worship baby Jesus as God-King Jesus are now very practical for Joseph to take care of his family and get them out of the country and keep them safe in Egypt? And that’s exactly what he does. They run to Egypt and he’s a carpenter but it’s not like he has his network around him. He didn’t immediately get work, but he has money. He has goods that can be traded for food and for care. He runs and God looks after them.

We see the practicality of the gifts that both worshipped King-Jesus, but they also saved baby Jesus. I’ve always loved that aspect of the story of God looking after every need for this family. Which in turn looked after every need that we need today.

So how does this shape our thinking about gifts?

Some People Say I Love You Through Giving Gifts

First, as I said a second ago, we should recognize that some people give gifts because that’s their love language.

My wife says ‘I love you’ by giving gifts and we first got married all I saw was this money that I had worked so hard on (because I had defined my success and who I was) going out of the door to buy some trinket that I didn’t want or need. And yet my wife is screaming, I love you.

We need to take a step back and if you have somebody in your life that is just pouring gifts on you, say thank you, say I love you back, tell them you love them in the same language. And if you can’t afford the gifts, say honey, let’s do this a certain way, let’s work together so we don’t spend too much money to buy stuff we don’t need or want. And even if you can afford to give, you have plenty of money, maybe you should say that anyway. Say hey, I’m glad we say I love you this way. Let’s not temper how we say I love you, let’s temper how much we buy or spend on trinkets and materialism. So that’s number one, know that some people just say I love you by buying gifts and they hear I love you but getting gifts.

Don’t Try to Keep Up with Your Neighbors

Number two, don’t wreck the holidays trying to keep up with somebody. Do not rank your gifts. Don’t try to keep up with your neighbors. Don’t try to keep up with your friends. Don’t try to keep up with some stranger on Facebook. Enjoy the time and the genuine meaning of what’s going on and be generous. Listen, our country is in a terrible recession. At the recording of this, there’s over 10 million people unemployed. That means there’s millions of people there, they’re not worried about gifts, they’re worried about food and worried about paying bills, and you could go help them.

You know, you may not be able to help a whole neighborhood, a whole society but you can go help a person; go help a few people. Be generous, please be generous! You have excess, give some away to somebody and in that, tell them this story. Tell them why, tell them that God loves them, that you love them, and know that God loves you as well.

Celebrate What Matters

Remember, as you’re celebrating this, to celebrate what matters. We get to have a lot of parties this time of year, we get to have a lot of fun, a lot of time off. There’s a lot of excess, there’s a lot of over the top partying that goes on, all right? This is the God-King Jesus’s birthday – celebrate what matters.

But you know what I really want you to walk away with is this – the wise men were chasing something that counted, chasing something that was authentic. Yes, they took a long, hard road to get there. And, yes, they took a risk. We don’t know their story, but can you imagine them telling their friends:

“I’m gonna go follow this star.”

“You’re going to do what? We study the stars. We don’t go follow them, OK?”

“Yeah, no, we’re going to get on our camels and we’re going to travel across the desert to see where this star is.”

“All right man, good luck. Have fun!”

They traveled a long, hard road to find something real. I encourage you to do the same as you’re traveling your road in life, as you’re traveling your road of ambitions, as you’re traveling your road to success, as you travel on your road to do something cool or great, big, meaningful, excellent.

Be careful that you don’t get enslaved to the road. Be careful that you don’t get locked up like some chain gang and you’re just stuck on that road for life. We have nicknames for that, like the rat race and it sucks, doesn’t it? And be careful that what you’re chasing matters. As you’re going after this know that God is chasing you with something better.

Later in Jesus’s life he says, “I’ve come so that you may have life and have it more abundantly”. He’s saying I was born, I lived, I died, I came back to life so that you can have a joyful, purposeful, strong, excellent life. I’m giving that to you. That’s what God’s chasing you with it.

So as we look at wealth, as we look at success, as we look at innovation, know that He created those ideas first. Those originated with Him and He is saying, I am chasing you with goodness and mercy and a status or position in my house and in my kingdom. How cool is that?

So you sit back at Christmas, you realize that we’re celebrating the birth of this. We’re celebrating the birth of our salvation. How awesome is that?

Merry Christmas!

About the author

Chris McAlpin | Managing Partner and CEO

With over a decade and a half of helping clients manage their finances and move from a life of work to retirement, Chris has helped his clients align their purpose with their profit in their financial plans. Chris has a Master of Business Administration from Mississippi College and a Bachelor of Accountancy degree from the University of Mississippi.

WHERE WILL THE NEXT GENERATION OF CHRISTIAN LEADERS COME FROM – IN MINISTRY AND IN THE MARKETPLACE

by Greg Barnes

We are in an increasingly challenging culture, where great leaders are hard to find. McKinsey & Company coined the phrase “war for talent” in 1997. Now, more than 20 years later we know that talent chooses you as much as you choose talent. And if you’re searching for great leaders of Christian faith who have executive-level talent, your pool gets even smaller. As Baby Boomers retire and a new wave of leadership is needed, where will we find the next generation of leadership for our ministries, churches, and faith-aligned businesses?

Christian leaders are urgently needed for faith-motivated leadership in the marketplace and in nonprofit ministry positions. There are nonprofits and Christian-led organizations seeking executive talent every day. But there is a disconnect.

The other side of the coin is this: Executive leaders often speak a different language while trying to find roles that align with both their talents and passions, while Kingdom-impact companies struggle to find people of faith to serve in their top leadership roles.

Barriers to Permeability

During my career in executive search, and now focusing on faith-based ministries and faith-motivated companies, I have gotten to know countless individuals in a deeply personal way as they approached mid-life and/or career re-assessment. There is a pervading desire for more meaningful and eternally significant work. Many feel the calling to transition from a significant season in the marketplace to a new season in the nonprofit world, but they often don’t know how. The permeability of marketplace and ministry is still very complicated. It is difficult to move from one to the other and back again.

As if looking through a window to what’s outside, executives have dimly lit insight into what’s outside the corporate world. However, there are barriers that keep them from easily passing beyond. The most obvious barrier is typically having to compromise on income, which can be a hit to their family life. Beyond that, there can also be a fear that their talents and skills will not be adequately utilized outside of the marketplace. Also underlying a move from marketplace to ministry is the question, “Would I be able to move back into the for-profit world afterward?”

On the other hand, ministry organizations are struggling to find high-quality talent willing to move into the nonprofit realm. They are searching for executives who can lead and run businesses, but they do not know where to reach for that kind of talent. For faith-based organizations, an added barrier is finding leaders who are aligned spiritually with their mission.

Yet, as many of us know well, ministry is not only found in the nonprofit sector.

Another Side of the Same Coin

What about for-profit companies that have been founded or are run by Christian leaders? Many of these companies have built a culture and a mission that goes beyond the products and services they bring to the marketplace. The ethos of the organization has been heavily influenced by the faith and faith-in-action mindset of the leadership. What happens when these leaders retire or want to scale back and the organization needs a new wave of leadership?

These leaders struggle tremendously to find executive-level talent (whether that is replacing founding leaders or adding to executive staff) that share the same alignment of values and beliefs. When you’ve built a successful for-profit company, infused with an ethos that is centered around servant-hearted leadership, Christian values, and kingdom impact, you want to preserve and enhance that culture. But how do you scrutinize for marketplace talent that shares those values without being accused of discrimination?

At the same time, there are seasoned leaders currently working in traditional marketplace roles who would love to join Business As Mission (BAM) leadership teams or lead a business founded by a faith-filled leader. Many believers employed in a corporate job would consider it an upgrade to do the same kind of work in a company that has a missional focus. How do they find such companies? In the marketplace, it is not as apparent from the outside which companies have such a focus – another barrier to permeability.

Creating a Pathway

When we founded FaithSearch Partners, our goal was to create a pathway between experienced business leaders and faith-based nonprofits that desperately need their talent but don’t know how to access it. We’ve built a network across both marketplace and ministry segments that makes more permeability possible.

Yet during our many years of working with nonprofits, we discovered something else: the same network that produces great marketplace leaders for the nonprofit ministry sector is also a reliable network that can produce faith-filled leaders for Business As Mission (BAM) companies in the for-profit sector. We recognized, however, that there may be a hesitancy – even in a company run by a Christian leader – to bring on a firm with such a faith-forward name as “FaithSearch”. Their boards might discourage the connection. Yet we knew we could solve a big need for these businesses with our network.

So, we decided to go out on a limb and try something new. We began a separate entity, FSP Leaders, a distinct brand run by our same team and network. At FSP Leaders, we serve for-profit businesses run by faith-aligned leaders. We help these businesses find executives that share their same faith-in-action values and leadership culture.

FaithSearch Partners and FSP Leaders are serving two sides of the same coin. In both brands, we are helping faith-filled executives move through mid-career transitions in a way that is aligned with who they are and what brings them joy and purpose, and simultaneously helping organizations find top-tier talent aligned with their mission and culture.

Executive leaders are no longer sitting inside their context, unclear of how to reach a world beyond their barriers. We are acting as that screen that allows the breeze in. Our hope is that the permeability in marketplace and ministry for candidates (and organizations) will begin to increase and we’ll be able to make an impact in getting talented Christian leaders into positions that leverage their gifts and align with their callings.

Setting Up the Next Generation for Success

So, what has this looked like, practically speaking? One such organization that is working to continue Christian leadership in their next stage is Office Pride, a commercial maintenance services company with 135 franchises nationwide. FSP Leaders assisted in finding a faith-aligned CFO for this franchise company. Office Pride wants to ensure their core values and cultural DNA remain the same as they bring in new leadership. FSP Leaders was tasked with finding a marketplace leader of faith who can continue the legacy and vision the organization was founded upon.

Morning Star Transformational Tours has found itself in a similar situation. Founded by two very strong leaders of faith, MSTT is a for-profit company that organizes tours and events for global nonprofit ministries, seminaries and churches. Having leadership grounded in a Christian perspective is vital as Morning Star’s founders transition. FSP Leaders is searching for new leadership for MSTT that matches the vision and faith of their founding principles and core Christian clientele.

Both companies are looking toward their future. They have developed and thrived from their Christian-centered roots, and their leaders are taking proactive steps to prepare for their next phase of growth. Selecting executives who share their ethos equips the companies to continue on their legacy and sustain their ministries in the marketplace.

Ministry in the Workplace

Are you a marketplace leader looking to transition into a new role that uses your talents and passions to glorify God through your work but scared to take the plunge?

Are you a Business As Mission (BAM) company struggling in your search for an executive who will continue the same faith-based DNA and culture of your organization?

Or perhaps you’re a part of a Christian ministry or church desiring more marketplace expertise in your next leadership hire but feeling discouraged?

Take heart. Know that the barriers between marketplace and ministry are being permeated, and God is using executives in both the nonprofit and for-profit sectors to advance His kingdom.

No matter your path, “Let the favor of the Lord our God be upon us, and establish the work of our hands upon us; Yes, establish the work of our hands!” (Psalm 90:17).

At FaithSearch Partners and FSP Leaders, we pray this over all who put their faith in the Lord— that He may guide us all to use our hands to do His great work.

This is one of the 2020 CEF Whitepapers. For more information on the Christian Economic Forum, please visit their website here.

[ Photo by Mateusz Dach from Pexels ]

by Johan du Preez

Written with the support of Gavin van den Berg and Sam Vos.

Background

At the Tree of Life Foundation, regarding the allocation of capital with a Kingdom agenda, we feel strongly that:

• Collective effort enables bigger strategic projects / higher level of economic influence in the target geographical area

• Local participation and investment management is crucial to avoid pitfalls due to cultural differences, lack of oversight, etc.

With this in mind, we have done the following in South Africa:

• Set up actively managed unitized private equity and other investment portfolios on the Donor-advised Fund (DAF) platform we offer (tol.org.za/donor-advised-fund/).

• Set up private equity vehicles for those wishing to invest with private money rather than DAF money (not further discussed in this White Paper).

• Facilitated local investment participation (currently the bulk of capital we manage is from South African investors) and active investment oversight via a South African registered Financial Services Provider (FSP).

Whereas we have covered our views on Collective Christian Capital and the continuum of investment approaches in previous CEF White Papers,1 this paper focuses on Impact Investment (i.e., an “Impact First” as opposed to a “Return First” investment in the referenced paper) and a specific example of investment in a social enterprise where a lack of capital was the bottleneck to growth for an otherwise extremely scalable and impactful business model.

Overview of Impact Investing and Social Enterprises

A commercial enterprise has the sole purpose of maximizing profit and shareholder return. Transcending this traditional purpose of business, a social enterprise is (broadly) defined as an entity with specific social objectives, aiming to maximize both social and economic returns. Social returns include benefits to societal welfare, environmental sustainability, and—as Kingdom-oriented investors—the advancement of the Gospel.

Social enterprises have an important role to play in bringing healing and restoration to a broken world. Having a mandate to focus on social and environmental upliftment allows social enterprises to bring about change, where normal businesses are constrained.

A growing trend of identifying the need to improve social and environmental issues is being driven globally by secular institutions. In line with the United Nation’s Sustainable Development Goals, this trend has been driven from the top-down by means of an increased awareness of ESG factors taken into consideration when allocating capital.

Impact investing is the art of allocating capital with specific social and environmental objectives in mind. It is worth noting that not all impact investments require investment into social enterprises, but these concepts are deeply intertwined.

Current Limitations of Impact Investing

Noting the benefits of social enterprises, why are there not more? As is the case in traditional business, capital is at the heart of developing a sustainable economic entity. Unfortunately, social enterprises face barriers to attracting much needed capital.2 These barriers to capital include:

• The difficulty of social impact measurement. Converting subjective matter into a quantitative, nominal figure is further complicated by contrasting views on what constitutes impact.

• The balancing of financial and social returns. While these two types of returns are not mutually exclusive, investors’ propensity to concede financial return for social return is further complicated by the difficulty to quantitatively measure social returns.

• An underdeveloped impact-investment market. A shortage of scale, quality impact-investment opportunities backed up by an established track record, limits investment opportunities. As a result, limited intermediaries (brokers, consultants, fund managers, etc.) exist. This in turn creates liquidity concerns, high transaction costs, and a skew toward higher-risk investment opportunities.

As a result, attracting sufficient funding for social enterprises with the potential to bring forward substantial change is often challenging.

Our observation in the Christian investment ecosystem is that there is a high presence of social impact opportunities in Third World countries but, at the same time, a lack of capital. Furthermore, the mere addition of capital to many of these opportunities does not guarantee success—more often than not, the management needs advice in refining and focusing on the core strategy, how to successfully scale (systems & people), corporate governance, measuring and reporting capability, etc.

In the First World on the other hand, there is often significant capital available that is earmarked for impact by the owners thereof, but they often face obstacles in sourcing suitable investment opportunities, thoroughly investigating them (due diligence), as well as implementing post-investment oversight. Sadly, this often gives rise to indiscriminate impact investing with the best of intentions but disappointing results (similar to how foreign aid in the form of grants/donations often do not affect the change initially hoped for).

Impact Investment Case Study: U-Turn Retail

U-turn (www.homeless.org.za ), today a registered Public Benefit Organization / charity in South Africa, was founded in 1997 by Colleen Lewis to focus on the care of homeless people in her area of Cape Town. Colleen initially operated from her home (providing food and Bible studies), but due to the growing need and concerns from neighbors, operations moved to the St Stephens church hall in Cape Town.

In 2006, Colleen stepped aside and handed the management over to a management team led by Sam Vos. Programs included feeding programs, Bible studies, an accommodation centre where homeless people were housed, and ad hoc service delivery to address whatever the needs were of a homeless person showing up for help.

Sam, being a qualified Industrial Engineer, saw the need for a more structured process through which U-turn could help people moving off the street. Due to lack of resources, this could not be done overnight (the 2006 turnover was a mere ZAR 500k, or $35k USD at current exchange rates), but they kept gradually chipping away at it until the process of “occupational therapy combined with work opportunities” settled in 2009.

I first learned about U-turn when Sam and Jonathan Hopkins attended Triga Ventures (a cutting-edge South African Organization similar to Praxis in the U.S.) in 2019, where I have the privilege to serve (www.trigaventures.org).

U-turn follows a holistic approach to homelessness as can be seen from Figure 1 below and is acknowledged as a thought leader with regards to this social dilemma in the local community. They recently published a well-researched paper on The Cost of Homelessness due to the combination of Humanitarian, Developmental, Reactive, and Punitive measures associated with it.3

From the above, it is evident that the provision of work and associated skills training form an important part of the overarching process that U-Turn follows. During the initial years, the government provided funding and work opportunities (e.g., cleaning up graffiti), but due to the unpredictability of these government programs, U-Turn established its first charity store in 2012. The benefit of the charity store as the employment and training component of U-turn’s program was that U-turn could be in control of their own funding as well as the length of period someone needed to be employed before moving on.

Today, they have 7 physical stores, one e-commerce store, and one laundry sorting facility—9 significant operations. Having developed and refined the IP to run these stores over a number of years, there is ample room to scale this. As part of the bigger employment ecosystem, they see the current retail operations as “but one stream of work,” and (besides significantly scaling retail operations), they have ambition to set up other things like a textile recycling plant, a recycling plant for household goods, etc.

U-Turn Retail’s shops operate like thrift shops (with the normal impact benefits of recycling secondhand goods rather than for it to end up in landfills) but with a further social and spiritual impact twist. The shops play an essential role in equipping participants, as they gain real-world work experience while earning a stipend. Ultimately, it is envisioned that participants secure an independent job in the open labor market, become active members of society, and stay off the streets. Currently, 83% of the individuals who graduate from the program remain productive members of society. (See https://youtu.be/SNW6F2061QQ and https://youtu.be/H31xUAJsmek as examples of individual testimonies).

The retail business sources second-hand goods (mainly clothes) via donations. It then sorts, cleans, and transports the goods to the retail outlets. Each of the 7 retail stores has a store manager, which oversees between 3 and 4 participants. The retail business has recently made business improvements to reinforce sustainability while employing a sub-optimal number of employees, as job-creation is their core purpose.

Currently, U-Turn Retail has the capacity for 40 rehabilitants to gain work experience. Operating in a city estimated to have 14,300 people living on the streets,3 the supply and demand relationship is sorely one-sided. To expand the rehabilitation intake, more jobs are needed. To create more jobs, growing the store network is key. While the retail business has the proven ability to sustain itself economically, its cash-flow generation is not sufficient to finance the accelerated retail expansion required to satisfy the current employment need. It is for this reason that TOL, as capital provider via our Impact First Portfolio, decided to partner with U-Turn to provide a capital solution where ordinary “Return First “capital may struggle.

To set-up a new store requires a capital expenditure of ZAR 260,000 (roughly $17k USD), with each new store creating employment for an additional store manager and 4 rehabilitants. The average monthly new store EBITDA is estimated to be roughly ZAR 8,700. To fund this expansion with external capital, a 5-year loan carrying 10% interest will require an approximate ZAR 5,700 repayment per month. The low level of cover underscores the risk associated with this investment. Investors not willing to forego the financial return adequate to compensate for the high level of risk would struggle to commit capital to U-Turn.

A ball-park interest rate figure for a justifiable risk-reward payoff in South Africa would likely be closer to 20%. For the committed impact investor, the 10% financial return differential can be justified by the creation of additional job opportunities with every store that is opened.

Since TOL provides more than capital, however, and gets actively involved in the investments we make, our expectation will be that the financial outcome at the stores may improve further. In recognition of that, we have agreed that U-Turn will pay a turnover linked fee of 7.5% to TOL but only on the turnover in the new stores and then only on the component of the turnover in excess of U-Turn’s current projections (it was furthermore agreed to cap the turnover linked fee at a 30% outperformance of turnover targets).

U-Turn Retail falls into an “Impact-First” investment bucket, with the added benefit of having a high missional rating. The business is owned by a Christian charity, run by Christian businessmen, and embedded with Christian values throughout their rehabilitation process. While subjective, TOL deems the sustainable impact opportunity a worthwhile trade-off and is willing to curtail the high return that would be required to justify the investment’s risk profile.

Our total initial investment amounts to a ZAR 1,600,000 ($107,000 USD) investment in the form of a loan to fund the setup of 6 additional retail outlets over the coming months. Our intention is that this forms the initial step in a partnership that will ultimately lead to an equity investment enabling an even more aggressive expansion of the retail platform as well as the addition of other types of businesses that can fulfill the same role.

Benefits

Investing DAF money via the Tree of Life Foundation’s (TOL) Impact Portfolio places us in the wonderful position to support sustainable businesses with explicit impact but without the level of pure financial returns that will be required for a typical private equity investment.

As mentioned, TOL offers various investment portfolios on our DAF platform. We typically seed fund these portfolios with our own balance sheet TOL funds when they are launched. Likewise, the Impact Portfolio is currently significantly funded by TOL that will dilute over time as DAF clients buy units in the Impact Portfolio, thereby also creating capacity for future transactions. Running a unitized portfolio under a DAF platform has various advantages:

• Since there are specific portfolios with specific focus areas and benchmarks, DAF clients are clear what they are investing into and will also receive quarterly statements showing the latest value of their holding (the unit cost in each portfolio is reported quarterly).

• It facilitates the raising of like-minded capital and the availability of capital when opportunities arise (rather than to raise funds on a transaction-by-transaction basis).

• It facilitates transactions that are bigger than individual investors may have appetite for.

• Each of the underlying investments is actively managed by TOL.

• Clients spread risk across various investments in the portfolio.

• Liquidity is possible as new DAF clients buy units in the portfolio (allowing DAF clients wishing to exit the opportunity to sell their units).

• US investors can enjoy significant tax benefits from investing via a DAF (cross border equivalency to ensure tax benefits, although the money sits in a DAF in South Africa, facilitated by Trustbridge – trustbridgeglobal.com).

The Impact Portfolio is a relatively new addition to our value proposition (the first investment was made two years ago) but has massive potential given the abundance of such opportunities in South Africa and the growing awareness of impact investing as an alternative to grantmaking. It also complements our existing “Return First” private equity portfolio that has established a solid track record since it was launched on the DAF platform in 2016.

 ——

[1] Du Preez, J: Balancing Financial Returns and Impact in Private Equity Investments, CEF 2018; https://drive.google.com/file/d/1RGtgeiKdoXbGZX9PHTlqsKkBH_6tHAy6/view?usp=sharing

[2] McCallum, S.R: Private sector impact investment in water purification infrastructure in South Africa, 2018

[3] Hopkins, J, Reaper, J, Vos, S, & Brough, G: Cost of Homelessness, Cape Town, 2020.

Article originally hosted and shared with permission by The Christian Economic Forum, a global network of leaders who join together to collaborate and introduce strategic ideas for the spread of God’s economic principles and the goodness of Jesus Christ. This article was from a collection of White Papers compiled for attendees of the CEF’s Global Event.

We’re deeply grateful to Mike for sharing this timely piece with us! This article was originally published here on the author’s personal blog.

by Mike Asem

Last week I felt called to put my heart on digital paper in what became a post called “Racism won’t die in 2020”, and thanks to the encouragement and support of trusted friends and loved ones – I found the courage to publish it and be overwhelmed by the resounding response from thousands of people who took the time to read it and take it to heart. Those that know me know I’m also a man of faith, and it’s been put on my heart to step forward in faith again and share my thoughts with those willing and open to read… seeking to understand.

It is because I am a man of faith, that I have included both scripture and history of Christianity in this piece.  I fully acknowledge that my faith has shaped the way that I process what is happening in the world.  And, while written from this viewpoint, I want to clearly and emphatically say I truly believe there’s real meat in this message for all who simply self-identify as good people. For good people reading this who are not Christians, I hope you can continue on and enjoy what I believe to be words of wisdom that also happen to be based in the Bible.

For far too long, good people just haven’t been good enough. While this is arguably already a “trending idea” in the public sphere, please indulge me just for a bit and walk down some of my own thought trails with me on the subject.

Open your mouth for those who cannot speak, and for the rights of those who are left without help. Open your mouth. Be right and fair in what you decide. Stand up for the rights of those who are suffering and in need. (Proverbs 31:8-9)

Years ago a man shared with me something I thought was phenomenally interesting about Christians in the earliest days of Christ’s movement. As he put it – original Christians were… savages. Not just good people… not just kind to others… not just thoughts and prayers… Christians were selfless savages for Christ, and therefore savage champions for justice and truth. These women and men ran straight into seemingly sure death by means of lion den, fiery furnace, and crucifixion for their beliefs. These aren’t just Bible tales. These are historically accurate events. Thousands of Christians died for their cause, and in the 300 years post-Christ’s crucifixion Roman emperors initiated no more than four general persecutions of Christians. “Mission work” wasn’t just a fun name people made up for philanthropically themed mini-vacations… these people went out to die for a message they believed in.

Christian or not, as good people – who are we kidding when we quietly shrug and convince ourselves that just being a good person and not actively moving against evil is enough? To my fellow Christians out there yelling “All Lives Matter”… yes… they do. Sure… you can get extra credit for answering a question not on the test if you really want… but what do you think Proverbs 31 is saying about what we’re called to do when we’re in a better position to influence change than those being crushed by the knees of their oppressors?

I’m an American, and proudly so. Christian, Muslim, Atheist or otherwise, many of you reading this can likely say the same. While I firmly stand behind and believe one of the most powerful tenants on which this nation is built on is religious freedom – I am a Christian. And, seemingly fortunate for me, for the entire history of this nation we’ve been predominantly Christian as well. Christian or not, though, I think all Americans can unanimously agree that we’re proud of our American values… which basically say we’re predominantly good people (please correct me if I’m wrong on that one).

That being said… let’s talk brass tacks…

How is it that people have been marginalized, oppressed, and made to brutally suffer at the hands of others, en masse, in a nation where we’re predominantly… good? I’m not talking about one bully here or there, or a bad apple once in a blue moon.

I’m talking about… slavery. Rapes. Murders. Beatings. Lynchings. Hundreds of years. Thousands, and thousands, and thousands of people.

Ironically enough, roughly 200 years and a month ago (really), founding father and 3rd President of the United States, Thomas Jefferson, said it best in one of his letters to John Holmes on the topic of the emancipation of slaves…

“We have the wolf by the ear, and we can neither hold him, nor safely let him go. 

Justice is in one scale, and self-preservation in the other.”

.

..

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Good people.

Don’t miss this.

“Justice… is in one scale, and self-preservation… is in the other.”

Self-preservation.

Growing up in Indiana, my school and community was predominantly white. As I mentioned in my last post, I have the honor and pleasure of calling many white people friends and loved ones… brothers and sisters. It used to come up all the time, whenever there was some new topical injustice against black people, how not all white people owned slaves. Not all white people were / are racist. “My ancestors never had a plantation or anything…” But as we hear the shouts of the anti-racist movement today, I want to call out here that… the fact alone that your ancestors didn’t own slaves, or weren’t actively racist, never. actually. helped. black. people.

Here’s the deal.

The reason all these terrible things happen against minorities is that most Christians, most Americans, most good people have historically tipped their scales to self-preservation, over justice.

Today, all we can speak to and be responsible for is… well, us. And, what I think is fascinating to play with, is that self-preservation as an American is honestly kind of a ridiculous idea. Nearly all Americans fall in the top 10% of the world from a wealth perspective. On a global perspective, nearly 30% of the world’s wealth is held by Americans. When polled, most Americans thought the average annual earnings outside the U.S. were about $20,000… but in reality it’s more like $2,100. No worries, we’re just off by one zero.

So… when do you start asking yourself, just as one person in all this, “When do I hold myself to a standard of actively supporting, promoting, and voting for justice over self-preservation?”

Blessed are those who hunger and thirst for righteousness,

for they will be filled…

Blessed are the merciful,

for they will be shown mercy…

Blessed are the pure in heart,

for they will see God…

Blessed are the peacemakers,

for they will be called children of God…

Blessed are those who are persecuted because of righteousness,

for theirs is the kingdom of heaven. (Matthew 5:6-10)

Good people, defaulting to apathy, passiveness, self-preservation… isn’t good enough.

In closing – I’d like to briefly address what I know is a key discussion in today’s argument about justice.

Our police.

I want to stand firmly here and declare that we should be forever grateful for the women and men who’ve made it their life’s work to uphold the law and serve and protect us lawfully and fairly. I want to continue by acknowledging that it is true that a few bad cops don’t make all cops bad, in the same way a few black criminals don’t make all black people criminals. I want to make a clear distinction here, though, for those of us that think this is actually a fair comparison.

No one hires us to be black.

No one fills out an application to get to be black.

No one goes through government approved training to be black.

No one sets standards, upholds them, and holds us accountable in order to continue to be black.

You can’t fire someone from being black.

Police on the other hand must apply, go through training that is deemed sufficient by those responsible for maintaining justice, must be held to a standard of excellence to continue to wear the badge, and when they’re behavior is unacceptable – should be given consequences just like (if not more than) any other person.

You can’t compare “a few bad cops” to “a few bad black people.”

And, just like good yet passive people aren’t good enough, good yet passive police officers – who can’t be counted on to hold their brothers and sisters in uniform accountable – aren’t good enough.

Do not conform to the pattern of this world, but be transformed by the renewing of your mind… (Romans 12:2)

We don’t need good people, we need champions for justice.

We don’t need good people, we need protectors of the oppressed.

We don’t need good police officers, we need accountability among our police.

Whether you’re white or black… police or bystander… history tells us there is no debate here. If you want to play a role in the end of systemic racism in America, just being a good person, isn’t good enough.

Stand for justice.

Speak for justice.

Vote for justice.

Maybe let self-preservation sit this one out…