Redefining charity: the case for sustainable, locally owned social enterprises

Recently, a group of international visitors came to tour Musana and learn about our model.

We spent the morning guiding them through our various projects in Iganga, Eastern Uganda, including our schools, hospital, women’s empowerment centre, guesthouse and restaurant. We answered their questions and explained that all our initiatives are locally owned and sustainable social enterprises, with profits reinvested into the community through scholarships and health outreaches.

During lunch at Sol View, our restaurant, I found myself sitting across from one of the older men in the group. He had spent 40 years working in missions with ministries that provided handouts and free services to low-income communities. With his heavy Southern American accent, he said, “I see how impressive your work is and have no question about the quality and effectiveness of what you are doing. But how do you justify charging people for education and healthcare? I understand the guesthouse and restaurant generating income, but I have a problem with you profiting from your schools and hospitals. This doesn’t seem right to me.”

This was a familiar question, often posed by those who have only seen missions and development through traditional approaches. In essence, this is what I told him:

“First, let me clarify that we are not profiting in the conventional sense. Any revenue generated by our schools and hospitals is reinvested locally. We believe in a sustainable model where the community supports itself rather than relying on external aid indefinitely. This model instils a sense of ownership and dignity.

“Charging affordable fees for education and healthcare ensures that we can provide high-quality services. It also instils a sense of value and accountability among the people receiving these services. When families invest in their children’s education, even at a minimal cost, they are more likely to be engaged in their children’s learning and to prioritise it. Similarly, affordable healthcare means that the services are valued, and used responsibly.

“This approach also prevents dependency on foreign aid. Reliance on donations and handouts can create a cycle of dependency, where communities are always waiting for the next round of aid. This dependency can lead to a power dynamic between the donor and the beneficiary which prevents real ownership from within. By creating self-sustaining enterprises, we break this cycle, promoting economic stability and resilience. The funds we generate are used to provide scholarships for those who genuinely cannot afford the fees and to run health outreach programmes that benefit the wider area.

“Moreover, this model helps prevent corruption and stops local staff from misusing resources because they know they must generate the resources themselves. There is also greater accountability from parents and community members regarding the services provided, as they are paying for them. This dynamic ensures that the quality of services remains high and that everyone involved remains committed to the success of the initiatives.

“Because we do not need donations for our operations, we can use them to replicate our model in more locations, creating an even greater impact. By demonstrating that it’s possible to run successful, self-sustaining social enterprises, we hope to inspire others to adopt similar approaches. This, we believe, is a more dignified and effective way to support development.

“Our mission is about equipping people, not just helping them. We want to provide the tools and resources necessary to thrive independently. This sustainable approach ensures that the impact of our work is long-lasting and that the community continues to grow and develop even without continuous external support.”

The man listened intently. “I never thought about it that way,” he admitted. “It’s a refreshing approach, and it makes a lot of sense. Thank you for explaining it to me.”

If you find yourself caught in the traditional charity mindset, I hope this broadens your perspective on why a new approach is not only possible but necessary for creating a world free from dependency and full of dignity.