Kickstart your fundraising John Baguley CEO International Fundraising Consultancy
Where to begin Fundraising often begins with a personal encounter….
The ask… 1.Research the source: family, friends, funders 2. Meet their needs 3. Prepare your case for support well 4. Present your case with confidence 5. Thank appropriately 6. Keep them informed of progress 7. Ask again Asking for advice opens doors…
Social Enterprise and Charity income generation is different Social Enterprise A convincing commercial business for social good… … the business plan is key to investment. Charity An organisation for social good dependent on gifts and grants… … the ‘case for support’ is key to fundraising.
McKinsey Social Enterprises have great innovation capabilities, responding swiftly to the demand of consumers. Their superior value proposition can drive change across the industry and bring traditional enterprises along. With their self-sufficient economic model, Social Enterprises provide sustainable solutions to social issues. We are convinced that an attractive economic model can go hand in hand with delivering social impact. First of all, the company can capture part of the social value created by charging a price premium to consumers. Secondly, there is a cost benefit from reducing raw material waste. And thirdly, its inspirational ambitions will be so appealing to superior talent from all disciplines, that they may well be satisfied with moderate wages.
Social Enterprises finance their activities with different types of capital. In addition to own capital, subsidies and donations are important especially for start-ups. Loans and equity investments are more demanding forms of funding since investors require returns on their capital. The majority of Health & Wellbeing and Cleantech companies (75% respectively 67%) rely on subsidies, but many entrepreneurs expect these subsidies to decline. Loans are most common in Cleantech and Biosystems, which could be explained by the capital intensive nature of their activities. The lack of collateral in Economic Development makes it harder for entrepreneurs in that sector to secure loans. Entrepreneurs in all sectors expect the amount of equity investments to rise in the years to come.McKinsey
A logical framework The needYour input The outcome Monitor & evaluate indices of change
Case for Support Intellectually satisfying and emotionally compelling…
Sources of Funds Governments Foundations Major donors Equity investment Friends Trading (goods & services) Events Legacies Internet
If no one has heard of you..
Matching funders objectives Every funder has their reasons for giving…
Long-term income strategy No funder wants to give for ever…
Leadership Enter the leaders and experts…
Sustainable strategies Foundations Friends Tourists Government etc Strategy
Internal - Overseas matrix Foundations Government Major donors etc Friends Major donors Government Foundations etc Tourism Exhibitions Books etc Rent Shop Café etc Internal earned Overseas earned Overseas donations Internal donations
Our research shows that 42% of Social Enterprises is not profitable, 27% not even after five years. However, this need not deter Social Enterprises in the Netherlands, because the biggest and most successful Social Enterprise to date, the Grameen Bank, took almost 10 years to reach profitability in micro-finance. The third main challenge in the professionalizing phase is the transition from relatively abundant and not very sophisticated seed capital (<250k) to scarce and more demanding venture capital. McKinsey
Research is crucial
Major donors
Friends are important…
Trusts & Foundations
How to apply for funding 1.Research and visit website. 2.What are their objectives? 3.Two page letter – logframe format & emotion. 4.Phone up and chat – create a relationship. 5.Do your contacts know their trustees. 6.Build in overheads and contingency. 7.For large applications hire an expert. 8.Fulfil your promises but let them know as soon as things go wrong. 9.Invite to events. 10. Keep applying…
Government “Hello, I am from the government and I am here to help you!” Subsidy-independent Social Enterprises have higher turnover and are often more profitable than subsidy-dependent Social Enterprises. McKinsey.
Other fundraising Events Legacies Internet
Internet & fundraising WebsiteSocial media / etcResearchCrowd funding
Best practice in fundraising Benchmarking Testing Monitor & evaluate Expert advice
Although social impact is what it is about for Social Enterprises, almost half of the Social Enterprises that responded to the survey do not measure their social impact (figure 4). Those Social Enterprises that do measure social impact mostly use specific impact indicators and/or use the reach of their organization as a proxy for social impact. A typical indicator of reach is the number of people supported. Typical ways to measure social impact are number of people employed (in case of labor participation) or amount of CO2 reduction (mostly applicable in Cleantech). Only a small share of respondents used advanced methodologies such as Social Return on Investment (SROI). McKinsey
Questions?
THANK YOU! John Baguley CEO International Fundraising Consultancy
A few crowd fundraising sites And there are a lot more out there… for charity loans that change lives. for creatives… for charity hyper local fundrasing A Swarm of Angels (ASOA) is an open source film project GoFundMe for personal finance. With more than $12,000,000 already committed in their beta, WeFunder might just take the lead and win hands down. A Crowdfunding Website for Social Entrepreneurs and others.