Interim Portfolio results 2010/11

As of the third quarter of our 2010/11 financial year, Impetus portfolio charities have successfully increased their income and the number of people helped in comparison to the same period the previous year. Interim results show an average increase in the number of people helped of 24% and an average income increase of 11%.

At a time when many voluntary organisations are anxious about income shortfall, the fact that the majority of our charities have reported an increase in income is, at least in part, a reflection of the investment Impetus has made in strengthening their income generation strategies, and shows that the financial and business expertise we and our pro bono experts provide is the kind of support that charities and social enterprises need at times like this.

Notes: ‘Income’ and ‘People helped’ percentages obtained by comparing results to December 2010 against an equivalent period in 2009 (with the exception of COUI – Teens & Toddlers, which is measured to February 2011). The period measured is the charities’ Q1 – Q3 for all charities except Camfed, Fairtrade, Leap and COUI – Teens & Toddlers, which are Q1 – Q4 due to these charities having a different year end.

Individual charity income results: St Giles Trust 91%; beat 105%; Leap 82%; Naz Project London 86%; Keyfund 154%; Camfed 107%; Fairtrade 118%; IntoUniversity 116%; Street League 130%; Blue Sky 130% and COUI – Teens & Toddlers 102%.

Individual charity people helped results: St Giles Trust 85%; beat 88%; Leap 110%; Keyfund 120%; Camfed: 112%; Fairtrade 113%; IntoUniversity 136%; Street League 110%; Blue Sky 264% and COUI – Teens & Toddlers 102%. Speaking Up (now called VoiceAbility) has been excluded from the results as it graduated from the portfolio more than two years ago. Since 2009 Naz Project London has changed the basis of outcome measurement, so comparable data is not available.

Impetus Portfolio Mid-Year Snapshot 2010/11 Impetus Trust © 2011 | Registered charity 1094681

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Impetus charities grew number of people helped by an average of 24%

Impetus charities grew income by an average of 11%

Dear Impetus supporter,

The old saying, “when the going gets tough, the tough get going” certainly holds true these days for organisations that have made it their business to change people’s lives for good. It is indeed testing times in the social sector. Voluntary sector organisations were surveyed earlier this year and 89% anticipated their overall funding would be reduced, with smaller organisations the worst hit.

So it is with great pride that we are able to report that as of the third quarter of our 2010/11 fiscal year, our portfolio charities have continued to increase their income and the number of people they have been able to help, over the same period last year. These results are testimony to our charities’ resilience, especially against a backdrop of unquestionably difficult economic times.

In our ongoing efforts to safeguard the sustainability of our portfolio charities, we recently undertook a vulnerability analysis of each of them. This work can be viewed as a “risk management tool” of sorts, helping the organisations in our portfolio (and their Boards) to think ahead and consider pre-emptive action to respond to our rapidly changing economic and political environment without jeopardising their mission.

If necessity is the mother of invention, it follows that in circumstances like these, innovation can and must flourish. This is where our venture philanthropy model plays a key role: by instilling the best business practices into our charities and social enterprises, and supporting them in monitoring and evaluating their impact, we are also helping them to be able to benefit from new opportunities and financial instruments that are being introduced.

Innovation is also at the heart of our exciting joint initiative with The Sutton Trust, managing the government’s £125m Education Endowment Fund (EEF). Created to help disadvantaged children in the poorest performing schools in the UK, the Fund will be disseminated as grants to groups with bold and innovative proposals for improving the attainment of disadvantaged pupils in underperforming schools. Work continues apace with the four new organisations in the Impetus for Reducing Reoffending Initiative, and due diligence is well underway on several charities in our Early Years Initiative. We would like to be able to make further investments in each of these Initiatives, so if you’d like to get more involved, please let us know.

As always, thank you for your continuing interest and support.

Daniela Barone Soares, Chief Executive, Impetus Trust

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CVC Capital Partners offers a wide range of support to Impetus portfolio charities

We are delighted that our work continues with leading global private equity and investment advisory firm CVC Capital Partners, which is backing us with both financial and non-financial support.

Since our partnership was launched in September 2010, CVC has been involved in several projects supporting various Impetus charities. For example, one of CVC’s managing partners actively contributed to a review of current strategic plans for a number of charities in our portfolio and has helped them think about their impact measurement in the longer term. Another senior management executive contributes invaluable professional expertise through his membership on our Finance & Audit Committee. On another project CVC’s IT Director supported Keyfund Federation in developing its IT priorities plan. CVC also hosted a workshop last year to help our portfolio CEOs deliver more effective fundraising presentations.

Impetus Trust has measurable success across the charitable sector, and its venture philanthropy business model is complementary with our private asset management business. A number of their investees support disadvantaged youth, which is our philanthropic focus, so it is an ideal partnership.

Marc Boughton, Managing Partner, CVC

Our charities receive first-class financial advice from PricewaterhouseCoopers (PwC)

Global professional services firm PwC is a key Impetus corporate partner, providing us and our portfolio charities with pro bono support. Over the last 12 months, PwC conducted financial due diligence on our five most recent investments and subsequently supported the charities in the implementation of recommendations that arose from the due diligence work.

These third-party financial reviews have been enormously valuable in helping us to identify key risks, and the charities themselves have found the subsequent PwC advice around reporting, budgeting, controls and systems extremely helpful.

PwC has also advised Street League on an upgrade to its finance systems, NPL on cashflow assessment and forecasting, and co-hosted a session with Debevoise LLP for our portfolio charities on managing in a downturn.

Increasing demand for pro bono support

We are very proud to be able to draw from a pool of highly skilled and experienced professionals willing to offer their expertise to our charities. Given the continual expansion of our portfolio, we are experiencing a demand for pro bono support in all areas, but especially the following:

• business model review and business planning• strategic review• business development/fundraising• marketing/communications strategy and PR.

Please email Sarah Young on sarah@impetus.org.uk if you are interested in becoming an Impetus pro bono expert.

Spotlight on our corporate partners

Charity spotlight: Resurgo Trust – SpearLaying the foundation for expansion

Resurgo Trust – Spear provides a highly interactive personal development and employment preparation programme for young people not in education, employment or training (NEETs). The course addresses the most common causes of underachievement and is complemented by ongoing one-to-one coaching and work placement for graduates.

Recent government data suggesting youth unemployment has reached a record high provides a stark reminder of the impact the economy is having on young people. Impetus invested in Resurgo Trust – Spear in 2010 based on its strong track record in tackling this devastating social problem (more than 75% of Spear graduates have remained in work or education a year after completing the programme) coupled with the charity’s potential for growth.

Since its inception in 2004, recently renamed Resurgo Trust has grown from its base in Hammersmith to run four centres, with two of them opened in this year alone. This recent expansion has doubled the number of Spear programme places Resurgo is able to offer to young people. At the end of 2010, Resurgo set up Spearhead, a youth employment agency aiming to improve the employment prospects of Spear graduates. To support Resurgo’s ambitious growth plans over the next few years, Impetus is working with the charity to help it develop more robust financial systems and processes, reinforce its communications and fundraising activities, and refine its delivery model. This work will feed into a detailed medium-term business plan that Impetus will consider backing in a second phase of investment.

Resurgo Trust - Spear: snapshot of income and number of young people helped

The chart above provides baseline figures for Resurgo Trust - Spear, as we begin our work together.

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ImagecourtesyofD'ArcyNorman-CreativeCommons

Charity spotlight: Camfed InternationalMaximising its impact

Camfed International aims to eradicate poverty in Sub-Saharan Africa through the education of girls and the empowerment of young women. Camfed’s work helps the young women raise their social and economic status and be better equipped to support their families and communities over time.

Since joining our portfolio in 2006 Camfed has seen its delivery model recognised as a gold standard for breaking the cycle of poverty in Sub-Saharan Africa, and has helped influence government policy on female education in a number countries on the continent. During this period Camfed has increased by nearly eight-fold the number of young women supported through education and has increased its annual revenue from £2m to £10m.

Our work together in recent months has focused on developing a talent management programme for the charity. The new system, combining 360 degree feedback with a “balanced scorecard”, was rolled out globally in 2010 and has resulted in the development of leadership and other critical skills for Camfed’s staff as well as more focus on teamwork as they grow their organisation.

Also in 2010, 293 young women from Zambia and Zimbabwe graduated from the Goldman Sachs 10,000 Women programme, developed and delivered in partnership with Camfed, to become social entrepreneurs and lead sustainable and long-term change in their communities. By the end of 2010 nearly 1.3 million children have benefited, directly or indirectly, from Camfed’s intervention.

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Impetus for Reducing Reoffending Initiative (IRR Initiative)

The objective of our work with the IRR Initiative is to help reduce the national reoffending rate by injecting strategic funding and capacity-building support into this very challenging sector. We envisage that by backing high-potential charities and helping them to scale their impact, as well as encouraging new partnerships and advocating for best practice, our work will help shape the sector more widely.

In September last year, we invested in the first four charities within this £1.7m Initiative: Kainos Community, Prisoners’ Education Trust, Prison Radio Association and Shannon Trust. With Blue Sky and St Giles Trust already part of our portfolio, this brings to six the number of Impetus investments in this sector. Our Investment Executives, with the support of our pro bono experts, are now focused on developing business plans for the new investees, with an emphasis on income model analysis.

Since the launch of the Initiative, Impetus has promoted cross-collaboration among the investee organisations, convening meetings between the CEOs and Chairs. An output of this is that Prison Radio Association is launching a campaign to help Shannon Trust recruit new learners and mentors for its “Toe by Toe” literacy programme. Likewise, Prisoners’ Education Trust is supporting the training of Shannon Trust’s peer mentors. Earlier this year, we hosted the first meeting of the IRR Initiative Advisory Group, focusing on helping our investees address key strategic questions alongside senior players in the sector. Issues discussed included the role of learning within the “working prison” regime and how the move to payment by results could impact smaller charities.

The Impetus-Sutton Early Years Initiative Impetus, in partnership with The Sutton Trust, launched in November 2010 the Early Years Initiative to identify and build the capacity of charities that work with disadvantaged children aged 0 – 5 and their parents. The aim is to improve their emotional, physical and mental wellbeing and hence close the gap in school readiness for those children.

The launch of this Initiative is in response to a study commissioned by The Sutton Trust, which highlighted that children from poorer backgrounds are more likely to have behavioural problems than their better-off peers, even before they start school. It is clear that intervening at an early age in the life of those children is the most cost-effective and impactful way to ensure that they are ready for school and don’t lag behind later in life.

During the first phase of the Initiative’s work, charities with innovative approaches to this issue were invited to apply for funding. A total of 116 charities applied, 26 of which were shortlisted after a rigorous screening process. Due diligence is underway and partners in the Initiative hope to make the first three investments later in the year.

Since its launch, the Initiative has secured £1.5m of funding and efforts continue to reach the £3m target. Please let us know if you would like to contribute financially to this Initiative and help us support many more disadvantaged children, by contacting Elly De Decker on elly@impetus.org.uk.

Impetus specialist initiatives: tackling the cycle of disadvantage head-on