Funding Conference 2015

NCVO Funding Conference

2015

Money follows mission – creating a

financially stable organisation

Welcome

Diane Lightfoot, Director of

communications and fundraising,

United Response

State of the sector

Peter Lewis, Chief Executive,

Institute of Fundraising

@piterk68

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


Voluntary groups

• National, Regional and Special Interest Groups

• Range of support and servicesacross the UK

• 350 regular volunteersover 200 events across the UK


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/



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

http://www.institute-of-fundraising.org.uk/treatingdonorsfairly


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


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




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 (ncvoalmanac £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


2014 had some fantastic successes

• No make-up selfie – over £4 million

• Stephen Sutton’s JustGiving page - £4.5 million


Trends...

• Major Donors

• Digital Giving

• Reform of Payroll Giving

• Improvements to Gift Aid

• Expansion of Legacy Giving

• Corporate partnerships


Online giving


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 projectRemember a Charity, Co-op Legal Servicesand 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

http://www.institute-of-fundraising.org.uk/library/applying-behavioural-insights-to-charitable-giving


Data driving success

Macmillan Coffee Mornings:• The worlds biggest coffee morning -

this event has raised over £95m sincethe 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


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:

http://stephensstory.co.uk/


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


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/

http://www.institute-of-fundraising.org.uk/guidance/five-minute-fundraiser/


http://www.institute-of-fundraising.org.uk/guidance/frequently-asked-fundraising-questions/

WHAT’S IT ALL ABOUT?

“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

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

Working locally with local enterprise

partnerships (LEPs)

36 out of 39 LEPs

considering working with

the Big Lottery Fund

Total investment about

£550 million

WHAT WE’VE ALREADY DONE

36 grants worth £915,000

Announced 23 October

Projects underway now

Purpose is to raise

awareness in your area

about opportunities

Programme Development Funding

WHAT MIGHT WE FUND?

Emerging themes

• Employment1

• Support for social enterprise2

• Financial inclusion3

• Digital inclusion4

• Skill and volunteering5

HOW THE FUND MIGHT WORK

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

Q&A with morning

keynotes


2015



Craig Dearden-Phillips MBE

Monday 23rd February 2015

NCVO Fundraising Conference

From Asking

To Earning

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

37

1. My Charity Story

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

39

The First Five Years –Developing grant-based local charity

40

And then the day the bank called me

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

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

Grew VoiceAbility with Impetus Funds

• Investment was in organisationalcapability not in programme

• Professionalisation of business

• Sorting me as a CEO

43

Success (eventually)

45

Setting Out

Stepping Out

Staying Out

3. Public sector Spin Outs

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

There is enough

resources for all the

public services

we need in the UK

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

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

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

51

This is also an opportunity for charities

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

You Squeeze the Lemon Harder

53

Is that person a profit-centre or an overhead?

54

Organisationally..Less Like this…..

It is about figuring out this –how can you create a

benefit that can’t easily be copied?

4. INVESTMENT

You may need investment for innovation

and growth

Or to improve your organisation

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

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

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

What do proper Investors look for(not this lot)

62

The Leadership – it’s about YOU

• Are you sticking around?

• Are you resilient?

• Are you open to change?

• Can you work with others?

63

The Proposition

• Do we understand it?

• Is there a proven income model?

• How will we get our money back?

64

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

5. Challenges to You as Fundraisers

66

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

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

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

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

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

I am grateful for your time

You for listening

Contact me anytime

[email protected]

0845 474 6005

0776 420 3969

http://stepping-out.biz

Twitter @DeardenPhillips

mailto:[email protected]

http://stepping-out.biz

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’


2015



Government & Nonprofit

Funding Conference 2015