By: Keyron Smith
Philanthropy in The Bahamas has long been defined by generosity and goodwill, with individuals, businesses, and foundations stepping up to address our country’s pressing social challenges. Many people and organizations continue to support worthy causes aligned with their passions to help build local communities and enhance our society. In some instances, models of giving have focused on short-term relief. Still, for the sake of ongoing national development achieved through the sector’s work, we must evolve toward more empowering, consistent approaches that build long-term sustainability, resilience, and self-sufficiency.
Given the current economic shifts, climate challenges, increasing social needs, and changing donor expectations, the nonprofit sector must redefine how we structure and operate our organizations if we are to future-proof philanthropy and giving in The Bahamas and the region.
This means embracing new strategies but also leaning into the wisdom and practices that laid the very foundation for community-based philanthropy. This approach is what Dr. Kim Williams-Pulfer terms “philanthropy from below”—where communities play a leading role in shaping their own futures and find ways to give that may not have been recognized in traditional philanthropy.
Empowerment Through Social Enterprise
In various parts of the world, a crucial shift in modern philanthropy is moving from reliance solely on donations to self-sustaining models like social enterprises. A social enterprise is a business that operates with a social or environmental mission, reinvesting profits back into the community instead of distributing them to shareholders. Unlike traditional nonprofits that depend solely on external funding, social enterprises generate their own revenue, providing some financial sustainability while solving real-world problems or meeting community needs.
At the Centre for Training and Innovation (CTI) powered by One Eleuthera Foundation (OEF), we have implemented social enterprise models that drive both economic and social impact. Our farm-to-table restaurant, eco-tourism initiatives, and training-focused businesses not only provide job opportunities and skill development but also generate income to support our broader mission.
These ventures help future-proof philanthropy by reducing its sole reliance on donor funding, allowing organizations like ours to remain adaptable and resilient in uncertain times. More than just receiving aid, Bahamians are given opportunities to develop and thrive, reinforcing the idea that philanthropy should empower, not just assist.
The Social Good Accelerator Program
Recognizing that our nonprofits are also critical drivers of national development in the country, we are developing a Social Good Accelerator to support nonprofit capacity building for increased resilience and long-term sustainability.
The Social Good Accelerator will:
·Equip nonprofits with tools, training, and mentorship to strengthen leadership, governance, and strategic planning.
· Help organizations build financial sustainability through fundraising innovation, social enterprise development, and impact investing.
· Create a collaborative ecosystem where nonprofits, donors, businesses, and policymakers work together to maximize social impact.
· Drive national development by ensuring that Bahamian nonprofits have the capacity to address challenges in education, economic empowerment, environmental conservation, and more.
This initiative is about moving beyond traditional charity models and positioning nonprofits as key players in national resilience and economic growth. By strengthening the nonprofit sector, we ensure long-term impact and a more sustainable philanthropic ecosystem in The Bahamas.
Ways that Governments Can Strengthen Philanthropy
As the sector continues to contribute to national development across the country, governments can play a crucial role in fostering a culture of giving and ensuring that philanthropy plays its part in national development. Here are some key measures that can be considered:
1. Tax Incentives for Charitable Giving
While The Bahamas does not have a personal income tax system, the government should consider corporate tax deductions for businesses that donate to registered charities and social enterprises. One of the approaches that has been taken is to offer import duty and VAT exemptions on goods and equipment purchased for charitable initiatives; however, creating policies that can help standardize the process for nonprofits, so it is easier to utilize and increases efficiency.
2. Matching Grant Programs
While this is very common in philanthropy, governments could consider matching donations to community-led projects, incentivizing the private sector and individuals to contribute more. This stands on the current principles of public-private partnerships and can be particularly useful for youth empowerment, food security, and entrepreneurship initiatives.
3. Public-Private Partnerships for Philanthropy
The government can actively partner with the private sector to co-invest in national development initiatives with nonprofits. Businesses could adopt schools, clinics, or community centers, receiving government recognition and incentives. Philanthropic contributions could be integrated into national economic development strategies, ensuring that donations align with long-term national goals. However, this requires a bipartisan approach to drive the process.
4. Encouraging Corporate Social Responsibility (CSR)
Another consideration can be the introduction of voluntary CSR guidelines or incentives for businesses that support community development. This could include CSR tax benefits for companies that allocate a percentage of profits to social impact. It may even include preferential consideration on government contracts for businesses demonstrating strong CSR engagement and investments.
From the perspective of local nonprofit stakeholders, here are some considerations that we have to start thinking about:
· We must continue diversifying our revenue streams because relying on donations alone is risky. Social enterprises, impact investing, and hybrid funding models ensure that philanthropic efforts remain financially sustainable.
· We also have to look at digital platforms. Crowdfunding and blockchain technology can make giving more accessible, transparent, and scalable across the global economy.
· We must strengthen local organizations, leadership, and infrastructure to ensure that philanthropy continues to be effective long after donors step away.
· Given our vulnerability to climate change, philanthropy must prioritize environmental sustainability, disaster preparedness, and resilient infrastructure.
· Embedding philanthropy in education, business, and national policy can ensure that future generations understand the history and value of collective impact.
The future of philanthropy in The Bahamas cannot rely on traditional charity alone. We must embrace empowering models like social enterprise, invest in community-led solutions, and create an environment where giving is incentivized, recognized, and sustainable.
Through the Social Good Accelerator, we are taking bold and deliberate steps to strengthen the nonprofit sector and drive national development. Additionally, the government, private sector, and civil society must work together to build a robust, more resilient philanthropic ecosystem that empowers communities and fosters sustainable impact. The time to act is now if we want to steer the sector and build capacity for greater impact today and for future generations.
