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Context comments
A combination of a charity and a social enterprise – the organisational and business model of SOS Children’s Villages Finland SOS Children’s Villages in Finland consists of a foundation and a registered association. The foundation is responsible for the actual provision of services in Finland and selected partner countries. The registered association represents civil society and supports the foundation in its work. SOS Children’s Villages has been working in Finland since 1962 and is a member of SOS Children’s Villages International, which is active in more than 130 countries. Headquartered in Helsinki, the foundation has more than 200 employees. The majority of employees work locally supporting children, youth and their families.
Growth as strategic goal needs funding In order to grow their business and thus social impact, SOS Children’s Villages are dependent on new funding. The social enterprise operates in a field where cutting expenses is very difficult: the impact of their work is tied to the professional and careful work of the employees. In Finland human resources are expensive and form the biggest item of expense for nearly all companies and public actors working in the field of health and social services. Other large item of expense are facilities (SOS villages, family centres etc.) and in order to grow their business activities, SOS Children’s Villages would also need to invest in new facilities. Also, the further development of core services requires additional funding.
The business activities consist mainly of selling of services to public actors, mainly local municipalities.
SIBs could be an increasing, important new channel of funding also to SOS Children’s Villages. More about SIBs in pages 30-31.
Main client and target groups
A closer look – Fundraising
Main clients
Target groups
Local municipalieties
Families in need of support Children and youth in need of foster care Youth in need of extended care Underaged refugees entering the country by themselves
The strategic goal is to cover 1/3 of investments through fundraising. The goal is extremely challenging. Compared with, for example, the United States or the United Kingdom, Finland does not have a strong culture of private citizens or companies donating large sums to philanthropy. Finns tend to think that in the welfare state that the country is, it is the state’s responsibility to take care of people in vulnerable situations. Nevertheless, private citizens and companies do make some donations. Below is an example of a successful communications and fundraising partnership.
Funding of activities Current funding sources grants sales of services other (2017) - Sales of services 68% - Fundraising 19% - Grants 2% - Investments 9% - Other sources of revenue 2%
