Rosemary Macdonald CEO, Wiltshire CF Making Ends Meet Rosemary Macdonald CEO, Wiltshire CF

Background Members survey 2016 Sustainability Task Force Year of reflection CASS Masters Shadowing exercise Meeting other foundations Canadian CF Conference European perspective

There is no silver bullet!

Weathering the Storm

Key challenges?

Three Strands Financial Management Sanity Maximising assets Income generation

Financial Management Processes and procedures Relationships Internal External Understanding costs Control of costs Cash flow Understanding income Timings/ origins Modelling Forecasting Pipeline Protecting income Smoothing reducing impact of market fluctuations Protecting income Averaging the value of the endowment over three years and taking a core fee based on the average Take a standard amount from fund managers divided by 12 to avoid investment income dropping in August and September for grants

Income Generation/Working Together Fund development Endowment Revenue Core Contract delivery Consultancy Fundraising events Appeals Co-investment Outsourcing grant assessments/finance etc. Sharing back office Sharing training Peer support

Maximising Assets Investment Ted talk – Dan Pallotta, the way we think about charities is dead wrong https://www.ted.com/talks/dan_pallotta_the_way_we_think_about_charity_is_dead_wrong#t-1104984 “Confusing morality with frugality” Separate rule book that puts charities at a disadvantage Invest in the capacity and skills of staff and trustees Separate rule book that puts charities at a disadvantage Compensation Advertising and marketing Taking a risk to generate new revenue Having the time to build scale Having the ability to attract investors to enable growth

The wrong type of money? Are your assumptions right? How restricted are your funds? What do your objects say? Are you making life difficult for yourself? Could you give yourself a grant? Could you come up with incentives to attract donors?

Discussion

Wiltshire CF Strategy Development

Strategy 2008 Governance Build endowment to £7.5m by 2011 Review investment management Partnership for grants

Strategy 2010-2013 Community impact Knowledge management Funder (£12m by 2014) set in 2010 Convenor Leader Knowledge management Professionalising donor services Organisational development Financial sustainability

Strategy 2013-2016 Leadership More grants, better grants Give away £1m a year More money, better money Build endowment to £32 by 2021 Best CF in the country

Theory of change

Working with the Board

The Axes of Uncertainty Feast Long term funding, core costs covered   Active Society wants to get involved in voluntary action Integrated Society and providers of services focussed on maximising diversity and inclusion, working together Famine Piecemeal short term funding, not covering core costs   Passive Society doesn’t care, no volunteers, no trustees… Polarised Society (including providers of services) polarised into warring factions/competition Caroline Copeman - Cass CCE 2016

Board Risk Tolerance Risk appetite Reputation < > Compliance 1 2 3 4 5 6   Reputation < > Compliance Financial Research Education and Student experience Knowledge Exchange Major Change People and Culture

Board Focus Seven Questions 1. Is it big? 2. Is it about the future? 3. Is it core to the mission? 4. Is it a high-level decision need to resolve a situation? 5. Is a red flag flying? 6. Is a watchdog watching? 7. Does the CEO need the Board’s support? Chait, Ryan and Taylor ‘Governance as Leadership’ 2004

Discussion

Learning Observations from Toronto CF/Hamilton CF Leadership Academy Regional approach for co-operation Peer support

Rosemary Macdonald CEO, Wiltshire CF Making Ends Meet Rosemary Macdonald CEO, Wiltshire CF