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Social Venture Philanthropists Seek High-Growth Nonprofit:
Plans and Metrics Preferred
9.8.11
Dennis Cavner, Innovation+Lisa Fielder, College Forward
Social Entrepreneurship Landscape
• The Social Sector Climate Increasing Need Diminishing Resources
• In times of economic dislocation, both human and financial capital flow to ideas that present the greatest opportunity for real impact
• Fundamental change in the mobilization of resources on a national scale
• Scarcity or opportunity?
The Development of Innovation +
• Experience with high-growth organizations
• Go to the nonprofits – ask them what they need:Growth capital Human capital Mindshare of smart people who care
• Models in the for-profit world Venture capitalGrowth equity Investment banking
Selection Criteria
• Innovation
• Proven impact
• Scalable model
• Leadership
• Sustainable funding model
• Key partnerships
1 Focus
1 Emphasis: Metrics
1 Goal: Bachelor’s Degrees
College Forward
“Do your little bit of good where you are; it's those little bits of good put together that overwhelm the world.”
Mission, Focus, and Goal
College Forward provides college access and college persistence services to motivated, economically disadvantaged students, in order to facilitate their transition to college and make the process exciting and rewarding.
— Desmond Tutu
Organizational Will
”If you only do what you know you can do – you never do very much.”
Growth is part of our DNA
Since 2003:
9800% growth in student enrollment
2600% growth in revenues
1250% growth in staff
82% reduction in per-student cost
— Tom Krause
Theories of
Change promote
unity and
commitment
Student Enrollment
0
500
1000
1500
2000
2500
3000
2004 2005 2006 2007 2008 2009 2010 2011
Tota
l Stu
den
t P
op
ula
tio
n
CoFo New Student Enrollment, 2004-2011
Annual Revenues
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 (est.)
CoFo Annual Revenues
Cost Per Student
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2004 2005 2006 2007 2008 2009 2010 2011
Tota
l Co
st/S
tud
ent
CoFo Per-Student Cost
Student Success Metrics
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
200520062007200820092010 2011
Continuation
Acceptance
Start With the End in Mind
Community Partners
IMPACT
Education
Health Care
Culture
Environment
Social
Real Changein Lives
Time$
Identify Candidates
Candidate
Scout
Scout
Scout
Innovation Impact LeadershipFunding Model
Key Partnerships
Evaluate & Select
Candidates
Finalists
Due Diligence
Legal
Governance
Human Resources
Organizational Planning
Program Evaluation
Site Visits
Growth Plan Evaluation
Program Services/Impact
Innovation
Market
Competition/Collaboration
Mode of Growth
Funding Model
Barriers to Growth
Leadership
Resources Required
Role of Innovation +
Selection Partner
Strategic Growth Volunteer, 18 months
2 Dedicated Staff Members, 12 months
Strategic Growth Committee, 18 months
Strategic Partners
Planning for Growth
”If we’re growing, we’re always going to be out of our comfort zone.”
Focus on sustainability and diversification
— John Maxwell
Innovation +
“Take time to deliberate, but when the time for action has arrived, stop thinking and go in.”
Like drinking from a firehose…
2+ people, 3 months, 16-hour days
Complete business plan
Supporting attachments
Due diligence documents
Compelling presentation
—Napoleon Bonaparte,as quoted by Andrew Jackson
Clear, realistic plans, clearly articulated
Professional document
High-level advice
Exposure
Experience
The Big Win
“Kites rise highest against the wind, not with it.”
A “No-Lose” proposition
— Winston Churchill
Mobilize Resources
Financial Capital
Term: 3-5 Years
Total: <$1M - $5M
Sources:
Individuals
Family Foundations
Corporate Foundations
Funded Directly to Community Partner
Joint Efforts with Community Partner
Human Capital
Mind Share
Networking
Legal/Financial
Technology
Marketing/Communications
Domain Expertise
Execute, Monitor, & Report
• Implement Strategy
• Adjust Procedures
• Board Participation
• Periodic Progress
• Identify Obstacles
Guiding Principles
• Mission First• Maintain the Culture• Highest Quality• Build the Brand• High Level of Communication• Diversify• Diversity• Develop models that can be replicated and scaled• Be Nimble / Entrepreneurial• Say NO – avoid opportunities outside our plan• Decisions based on market research• Build a strong governance model
Earned Income Strategies
Organic Growth – new cities
Strengthen the Brand
Expand services
The Future: Growth!
“I did not have implants, I just had a growth spurt.”
— Britney
Spears
1.4 million low-income high school juniors qualify for CoFo services every year.
Projected Student Enrollment
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2010 2015 2020 2025
Cum
ula
tive E
nro
llment
Learn to work in harness—responsibly and responsively
Develop organizational capacity to “think beyond the box”
Maintain highest quality organization and services
Cope with change
Preserve the culture
Succession planning
Grow exponentially!
Challenges Ahead
“When you're finished changing, you're finished.”
—Benjamin Franklin