essentials for developing a fundraising strategy
TRANSCRIPT
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