essentials for developing a fundraising strategy

Essentials To Developing a Fundraising Strategy

Dionne Nelson 24 November 2010

Intention of this session …Is to provide:

• A clear understanding of the essentials for developing a fundraising strategy

• An opportunity to think creatively about a broader service

• An opportunity to use appropriate business tools to support strategy development

• A framework to develop plans

…on

• Defining purpose shaping the plan • Tactical tools to develop an effective

fundraising strategy• Diversification Options; Joint venture and

trade• Managing risk, change and measuring

results• Planning to Act

This session will focus

Essentials My top ten

• Purpose; know what I’m working towards• Content; breaks down the big picture • Consensus; involve others in design, test idea/price• Values; align thinking towards a) primary purpose b) ethics • Direction; recognise the activities I wish to undertake • Assets; understand what I need/have (finance, knowledge,

equipment) • Planning; line up thought with action • Milestones; achieve goals in bite size chunks

• Monitoring; I’m I on track to achieve, have I deviated from the plan

• Review; check back and link forward – continuous developments

…why might we need a plan ….

• Consistent approach for the organisation

• Increase chances of success• Encourage diversification and

inventive culture • Spot potential links across the

business

Defining Purpose, Shaping the Plan

Defining purpose, Shaping our plan

Possible drivers….

• Retain existing projects• Expand service into new areas of work• Develop independent income streams• Decrease dependency• Reduce risk; over reliance on single revenue source • Develop sustainable business model • Build reserves

The approach

widely used content headings used to shape the plan

• Current position• Future plans• Retaining existing income• Option appraisal• Actions • Resources• Targets

Tactical tools…..

…….to help develop the strategy

• Current & Future model analysis• Option appraisal; income • Option Appraisal; New ideas (field forces) • Product-Market Matrix (Ansoff)• Stakeholder Influence

Tactical tool

Current & Future Model analysis (aimed to help you

discuss, question and consider current and future situation) Sample

Scope

•geographic service area •clients served

•Projects or services offered

•Funding sources

Includes

•borough

•pre -start up, start ups, •special interest groups •charities•community groups•advice and guidance mental health •Young people and Children•Volunteering

•future souces of funding and why we will pursue these sources;

•intend to seek more foundation funding and earned income

• we intent to seek Partnership funding through competitive tender contracts

Does not include

•region

•medium to large TSO •mutuals/providence societies

• business development• local authority engagement•econonmic development •corporate engagement

•Funding sources we will not seek

Tactical Tools

options appraisal; income

Tactical Tools

Option Appraisal; income

Tactical Tools

Option Appraisal; service/new activity

Diversification Options

Service delivery & development options

• Joint venture/Consortia

• Trade/Enterprise

Diversification Option Joint Venture/Consortia Option • The straightforward structure of a formal consortium (special purpose vehicle) of this nature is based upon a “hub and spokes” model. The hub is the

central management unit that carriers out certain executive functions on behalf of the partnership or membership network and also provides certain support and development services for the member organisations. The hub is described as a “Support Unit”. The “spoke” on the other hand are the various member organisations.

• A formal consortium involves providers coming together to establish a partnership that is then formally constituted as an independent legal entity (usually as a company limited by guarantee, and possibly with charitable status). The partner organisations become formal members of the consortium, creating a single point of contracting.

Charity or Business

Social benefit

enterprise

Social purpose business

Socially responsible

business

Commercial enterprise

Charity with fundraised/

grant income

Charity with ‘on mission’

trading/ contracting

Business generating profits for charitable

spend

Grey area in which organisations are often loosely referred to as social enterprises

Appraisal Options

Five forces

Risks, Change & Measuring

• Risk; identify and mitigate

• Change; manage key functions

• Measuring; what does success look like to us, to customers/sponsors

Risks

•

Change

McKinsey

Shared vision

MeasuringSuccess criteria for example:

Performance; most lucrative income stream People; types of clients/sponsors, client satisfaction, Potential;

number of fundraising ideas, number of ideas adopted

Plan 2 Act

suggested planning frameworks:

• Ports; Planning Pro Forma

• Next Steps Work Plan

End

You have the essentials to develop a fundraising strategy

Now the real work begins

Contact

Dionne Nelson

Head of Income Generation DL: 020 7280 4935BB: 07500 780 987

E: dionne.nelson@acevo.org.uk