Simon Griffiths, the social entrepreneur behind Shebeen and Who Gives A Crap. Credit:Starpix Photography These facts would have probably remained unreported if not for last week's announcement of the venue's closure by co-founder Simon Griffiths, the social entrepreneur also behind the Who Gives A Crap toilet paper company, which donates 50 per cent of its profits to WaterAid. The companies behind Shebeen Bar and Who Gives A Crap are not registered in Victoria as fundraisers, and Consumer Affairs Victoria says this is required of organisations that solicit money not solely for their own profit or commercial benefit, with some exemptions such as public schools. A Consumer Affairs spokeswoman said penalties for unregistered fundraising include fines of up to $36,400 for a corporation or $18,200 and up to a year of imprisonment for an individual. In a statement, Mr Griffiths said the company behind Shebeen Bar was "from our understanding" not required to be registered as a fundraiser. He refused to answer questions on Who Gives A Crap, saying it was a "separate business unrelated to Shebeen".

Seven charities are advertised on Shebeen's website as the beneficiaries of the venue's profits such as Room to Read, which funds libraries in poor communities. The website claims that "every drink" of South African wines and Savannah Cider "puts a couple of books in the hands of children in the developing world". Asked if such statements were misleading, Mr Griffiths replied: "Shebeen's position as a not-for-profit business, if and to the extent the company turned a profit, those profits were applied to donations and that's how we represented ourselves to the public". In the early months of Shebeen in 2013, Mr Griffiths forecast the business was on track to make up to a $200,000 profit in the first year, almost recouping the initial $250,000 investment from loans and corporate sponsors. But despite "the best of intentions", Shebeen has never lived up to this potential. "One of the things that caught us by surprise was people generally assume that a hospitality business like ours performs better in the summer months. [But then] the exact opposite happened," he said. Shebeen's staff were paid and Mr Griffiths said he also drew total wage payments $26,264 for about two years, but has been ultimately left tens of thousands of dollars out of pocket due to loans he made to the business since 2015.

Yet while Shebeen has floundered, Mr Griffith's other key venture appears to be taking flight. Fairfax Media was unable to obtain financial records of Who Gives A Crap, but WaterAid, which is the recipient of 50 per cent of the company's profit, said donations "have steadily increased from a low base and are now substantial". WaterAid Australia chief executive Paul Nichols said the charity viewed Who Gives A Crap's financial statements each year to ensure the profits were donated. "A contract was put in place at the beginning of the partnership and all the terms of that contract are still being honoured," he said. Do you know more about the issues raised in this story? Email aisha.dow@theage.com.au Despite Shebeen's ongoing financial woes, Mr Griffiths believes the bar would still be trading into the future if it had not faced "significant regulatory challenges" that began when it was discovered the bar's band room shared a wall with the sleeping quarters of the Melbourne East Police Station.

Mr Griffiths said he was committed to learning from the Shebeen experience. "We have also received countless emails from people who have been inspired to start their own social enterprises. This is an impact we couldn't have anticipated," he said. "So Shebeen didn't have the financial impact we hoped it would, but would I do it again? Definitely, yes. Was it worth it? Yes." Shebeen closes its doors on June 25.