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Funding Conference 2015

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The presentation was part of the Funding Conference in London on Monday 23 February 2015.

These presentations were part of the main plenary. Slides include Peter Lewis, Andrew Morris and Craig Dearden-Phillips MBE presentations.

Find out more about the Funding Conference from NCVO: https://www.ncvo.org.uk/training-and-events/funding-conference/workshops

The presentation was part of the Funding Conference in London on Monday 23 February 2015.

These presentations were part of the main plenary. Slides include Peter Lewis, Andrew Morris and Craig Dearden-Phillips MBE presentations.

Find out more about the Funding Conference from NCVO: https://www.ncvo.org.uk/training-and-events/funding-conference/workshops

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Funding Conference 2015

  1. 1. NCVO Funding Conference 2015 Money follows mission – creating a financially stable organisation
  2. 2. Welcome Diane Lightfoot, Director of communications and fundraising, United Response
  3. 3. State of the sector Peter Lewis, Chief Executive, Institute of Fundraising @piterk68
  4. 4. Excellent fundraising for a better world About the IoF • The professional membership body for UK fundraising • 5,500 Individual members • 420 Organisational members • Training, events, professional development, conferences, networking, policy, research, standards
  5. 5. Excellent fundraising for a better world Voluntary groups • National, Regional and Special Interest Groups • Range of support and services across the UK • 350 regular volunteers over 200 events across the UK
  6. 6. Excellent fundraising for a better world High standards and effective self-regulation Code of Fundraising Practice • Legal, Open, Honest, Respectful • Guidance MUST = a legal requirement OUGHT = a standard set by IoF http://www.institute-of-fundraising.org.uk/guidance/code-of-fundraising- practice/
  7. 7. Excellent fundraising for a better world Donors in vulnerable circumstances Guidance for fundraisers: Responding to the needs of people in vulnerable circumstances and helping donors make informed decisions www.institute-of-fundraising.org.uk/treatingdonorsfairly
  8. 8. Excellent fundraising for a better world The big funding challenge • Demand on charity services continues to rise • Charities want to do more • All political parties want charities to do more • Public funding cuts will continue • More volunteers; redesign of services; better commissioning; social investment can’t deliver everything
  9. 9. Excellent fundraising for a better world Managing in the new normal 2014 (IoF with PWC and CFG) • 70% of fundraisers were optimistic about the next 12 months • 68% believed that fundraising had got tougher • 38% plan to increase training for fundraisers • 55% plan to diversify their income in the next 12 months
  10. 10. Excellent fundraising for a better world
  11. 11. Excellent fundraising for a better world
  12. 12. Excellent fundraising for a better world Fundraised income on the rise • Charity Commission data shows fundraised income rising • Civil Society :fundraised income of the top 100 fundraising charities grew by £348m in the last two years • Fundraised income brings in over £20 billion pounds each year (ncvo almanac £12.5bn comes from individuals • £12.5bn comes from individuals • Income from individuals is the main source of income for all bands of organisations (micro – major), but is a greater proportion for smaller organisations
  13. 13. Excellent fundraising for a better world 2014 had some fantastic successes • No make-up selfie – over £4 million • Stephen Sutton’s JustGiving page - £4.5 million
  14. 14. Excellent fundraising for a better world Trends... • Major Donors • Digital Giving • Reform of Payroll Giving • Improvements to Gift Aid • Expansion of Legacy Giving • Corporate partnerships
  15. 15. Excellent fundraising for a better world Online giving
  16. 16. Excellent fundraising for a better world Are you nudging effectively? • 74% population give to charity • 7% leave a gift in their will – £2 billion pa (13% of all donations). • If could raise by 4% to 11% would be an extra £1 billion for charities So: Partnership study between IoF’s project Remember a Charity, Co-op Legal Services and the Behavioural Insights Team • No ask – 5% left a gift • You could leave a gift – 10% left a gift • Social norm ask - 15% left a gift! • Just through the trial an additional £1 million was left to charity • If fully implemented – potential extra £4 billion! http://www.institute-of-fundraising.org.uk/library/applying-behavioural-insights-to- charitable-giving
  17. 17. Excellent fundraising for a better world Data driving success Macmillan Coffee Mornings: • The worlds biggest coffee morning - this event has raised over £95m since the first coffee morning in 1991 • 2011 – 50,000 hosts, £10m; 2012 – 115,00 hosts, £15m; 2013 154k hosts, £20 m Dryathlon: • CRUK launched first Dryathlon in January this year, raising £4.2m • 35,000 people signed up online • Specifically and successfully targeted young men • Link between activity and fundraising
  18. 18. Excellent fundraising for a better world Great fundraising is happening! #nomakeupselfie: • Organic social media campaign • Raised over £8 million for CRUK in just six days Stephen Sutton: • Stephen's Story went viral and captured the public's imagination in an overwhelming way • Raised £4.2 million for Teenage Cancer Trust #Ice Bucket Challenge:
  19. 19. Excellent fundraising for a better world Our manifesto for fundraising 1) Creating the best environment for fundraising 2) Building the capacity of charities to fundraise 3) Develop the tax system to best encourage giving and support fundraising
  20. 20. Excellent fundraising for a better world More information • Introductory videos http://www.institute-of- fundraising.org.uk/guidance/five-minute-fundraiser/ • Code of Practice http://www.institute-of- fundraising.org.uk/guidance/code-of-fundraising-practice/ • Frequently asked questions http://www.institute-of- fundraising.org.uk/guidance/frequently-asked-fundraising- questions/
  21. 21. WHAT’S IT ALL ABOUT?
  22. 22. “Promoting social inclusion and combating poverty” (TO 9) “Bring real improvements to communities and lives of people most in need” Big Lottery and ESIF have similar aims
  23. 23. Aims of Building Better Opportunities Make more of an impact than either funder can alone Increase opportunities for the VCSE sector to access European funding
  24. 24. Working locally with local enterprise partnerships (LEPs) 36 out of 39 LEPs considering working with the Big Lottery Fund Total investment about £550 million
  25. 25. WHAT WE’VE ALREADY DONE
  26. 26. 36 grants worth £915,000 Announced 23 October Projects underway now Purpose is to raise awareness in your area about opportunities Programme Development Funding
  27. 27. WHAT MIGHT WE FUND?
  28. 28. Emerging themes • Employment1 • Support for social enterprise2 • Financial inclusion3 • Digital inclusion4 • Skill and volunteering5
  29. 29. HOW THE FUND MIGHT WORK
  30. 30. Key components of our offer • Cash match £250M Lottery money1 • Run a two-stage competitive grants process2 • Offer Lottery development grants3 • Provide support to applicants throughout4 • Offer different application windows5 • Simplify reporting and monitoring requirements6
  31. 31. Q&A with morning keynotes
  32. 32. NCVO Funding Conference 2015 Money follows mission – creating a financially stable organisation
  33. 33. Craig Dearden-Phillips MBE Monday 23rd February 2015 NCVO Fundraising Conference From Asking To Earning
  34. 34. Who Am I and Why am I Here? • I have set up both charities and businesses • I am also a social investor • I have some strong views about the sector’s performance and potential • I think I have made some interesting mistakes 36
  35. 35. 37 1. My Charity Story
  36. 36. My first and biggest enterprise • Started in a community centre in Cambridge in 1994. • Now gives people a Voice • Helps 5000 people each year • Works across the UK • Winner of many awards • 250 staff, £10m turnover
  37. 37. 39 The First Five Years –Developing grant-based local charity
  38. 38. 40 And then the day the bank called me
  39. 39. Why I gave up with project grants • Grants leave you with unsustainable projects that have to end within 3-5 years • The only grants I think are worth having are ones that serve as start-up capital or support a decent income model. 41
  40. 40. 2. My Social Enterprise Story • We replicated SU in five major UK locations • We attracted a social investor over five years • We grew from 500 clients to 5000 and £500k to £5m
  41. 41. Grew VoiceAbility with Impetus Funds • Investment was in organisational capability not in programme • Professionalisation of business • Sorting me as a CEO 43
  42. 42. Success (eventually)
  43. 43. 45 Setting Out Stepping Out Staying Out 3. Public sector Spin Outs
  44. 44. Stepping Out: Using Enterprise to Transform Public Services • High-level feasibility • SE Readiness Assessment • ‘Socialising’ the SE idea with staff and other stakeholders • Strengthening management’s confidence › Business Planning & financial modelling › Project management › Support during contract negotiations › Powerful networks › Partner selection › Finding social investments › Executive mentoring › Planning for growth › Investment readiness › Leadership development › Social Value analysis › Interim management Setting Out Stepping Out Staying Out
  45. 45. There is enough resources for all the public services we need in the UK
  46. 46. From Paternalism to Empowerment • From the NHS to the welfare state, paternalism is expensive inefficient and unaffordable • Sustainable social policy will be about giving people the means to improve their own lives • This is where charities have a natural advantage over other sectors 48
  47. 47. The Blurring of Boundaries Between Sectors • That the three traditional sectors – private, public and voluntary are less distinct and that there are now more ‘hybrid’ organisations 49
  48. 48. Empowerment has been the theme of all my business ventures • Good things can only happen when power and control and responsibility is handed back to people • This has a big effect on personal & social well-being 50
  49. 49. 51 This is also an opportunity for charities
  50. 50. What is the potential for your organisation as a business? • Could you do more of what you took a more commercial approach? • Why are you not seeking rapid growth? • Are your resources being wasted on low- return activity (most fundraising)? 52
  51. 51. You Squeeze the Lemon Harder 53
  52. 52. Is that person a profit-centre or an overhead? 54
  53. 53. Organisationally..Less Like this…..
  54. 54. It is about figuring out this –how can you create a benefit that can’t easily be copied?
  55. 55. 4. INVESTMENT You may need investment for innovation and growth
  56. 56. Or to improve your organisation
  57. 57. Focused social investment • We look for best models, best teams, biggest impact • Grants are NOT for programme but for capacity • We look for disruptive business models with new takes on problems 59
  58. 58. Stepping Out Foundation • Tiny start-up investments in individuals • Pre-start-up often • For credibility • To develop an idea • To pilot something • To encourage exploration • Evergreen 60
  59. 59. Esmee Fairbairn, Tudor IMPACT-FIRST FINANCE-FIRST LOW INVOLVEMENT HIGH INVOLVEMENT Impetus - PEF Bridges Ventures VENTURE PHILANTHROPY VENTURE CAPITAL CAF Venturesome CDFIs, local investment funds Angel investors Big Society Capital BANKS GRANT MAKERS Big Issue Invest NESTA SIB Triodos Bank CAF Bank High street banks LGT S&SC FSE Charity Bank Differing types of social investment
  60. 60. What do proper Investors look for (not this lot) 62
  61. 61. The Leadership – it’s about YOU • Are you sticking around? • Are you resilient? • Are you open to change? • Can you work with others? 63
  62. 62. The Proposition • Do we understand it? • Is there a proven income model? • How will we get our money back? 64
  63. 63. I would never start another charity based on donated income • I started lots of schemes that died after 3 years • I think we do harm by creating non-sustainable projects • It is also inefficient use of the social pound. • Donated income should be invested projects with highest potential for long- term good. 65
  64. 64. 5. Challenges to You as Fundraisers 66
  65. 65. The limits of philanthropy • Philanthropy has natural limits and we may be approaching them • This doesn’t address the fundamental problems in a sustainable way 67
  66. 66. Social sector growth will not come from more fundraising! • It will come through the movement of government activity into more dynamic business models run from outside the state • It will come the more progressive elements in the private sector (e.g. new CICs and ‘B’ corps) • It will also come from charities with good ideas working with partners and investors to mainstream these to a bigger scale 68
  67. 67. You increase the good you can do in the world by focus and scale • Great businesses develop world class skills in a very small number of areas • They then use that strength to dominate a market and grow • Charities tend not to understand their unique strengths or build on them properly 69
  68. 68. The VCS is a stale oligopoly and in need of disruptive new players • The top ten charities barely change over the decades • Compare this to the private sector • New models are not being backed to replace older ones • The result is a very comfortable, unchallenging sector which isn’t fit for purpose in 21st century 70
  69. 69. Let there be Light • Companies and the public sector now far more accountable than 20 years ago • Not so charities • I think we need an OFSTED for charities, league tables and powers to put charities into special measures. • Tax breaks for all charities need to be earned by regular impact reporting 71
  70. 70. I am grateful for your time You for listening Contact me anytime Craig@stepping-out.biz 0845 474 6005 0776 420 3969 http://stepping-out.biz Twitter @DeardenPhillips
  71. 71. ENJOY MY REASONABLE- SELLING BOOKS: ‘Your Chance to Change the World – The No Fibbing Guide to Social Entrepreneurship’ ‘How to Step Out – Your Guide to Setting Up a Public Service Mutual’
  72. 72. NCVO Funding Conference 2015 Money follows mission – creating a financially stable organisation

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