Het Venture Philanthropy Fonds

Benoit Fontaine23/03/2015

The need for structural support of organisations has become more important

NEED TO STRUCTURALLY

RETHINKING THE ORGANISATION

HIGHER NEED FOR STRUCTURAL THAN

PUNCTUAL PROJECTS SUPPORT

“What you see is both declining subsidies and the

inability of public authorities to commit in long

term support. In this context, we need structural

support more than ever under more to develop a

longer term vision.”

(Association director, FL)

“The loss in subsidies will ask us to change the way

we operate. We will definitely need to rethink the

core of our activity, what are our objectives and

how we finance ourselves”

(Association director, WL)

“Thinking about how our organisation can sustain in

the long run has become one of the top 3 priority of

our board.”

(Association director, WL)

Requires understanding of needs of philanthropic orgs for structural

support

Kenmerken van een VP benadering

• Structureel ondersteuning - versus projecten - voor veranderingen of groei

• Steun : voornamelijk consultancyopdrachten

• In tweede instantie geld. Geld : gift & lening

• 3 jaar tijd

• Accent op de meetbaarheid van de resultaten : kwantitatief als kwalitatief / Reguliere

monitoring

• Netwerk

VPF value proposition differs from traditional philanthropy

WHAT IT IS NOT WHAT IT IS

• Projects funding• Structural organisations

reinforcement

• One-time support • Multi-year support

• Unclear view on social impact generated

• Commonly agreed performance indicators and expected returns (societal/financial)

• One-way communication of results• Accountability for results and

collaborative performance follow-up

• Financial support only• Financial and non-financial

support (consulting, network…)

• Small tickets <€10K• ~€80K tickets (min 50%

consulting)

Enkele milestones

VP Fonds opgericht in 2009

• 27 organisaties in de portfolio

• 80.000 euros per organisatie

• 2000.000 euros uitgegeven

Welke selectiecriteria ?

• Nood aan structurele versterking : momentum

• Transparantie

• Potentieel

• Fonds moet een meerwaarde kunnen betekenen : governance, strategie, financiën, meetbaarheid impact.

• Leadership

Hoe gebeurt de selectie ?

• Investeringscomite

• Dossiers binnen, preselectie, bezoek, presentatie KBS

En na de selectie ?

• Scherp definieren van de Doelstellingen en Indicatoren. Doelstellingen van deorganisatie zelf. Rol KBS : scherpe formulatie. Kwantitatief en kwalitatief. Monitoring om de 4 maanden

• De goede consulenten vinden : KEY. Match.

Volgende oproep : lancering mei

Non-financial support needs differ based on lifecycle and share of trading revenues

No trading revenues(<10%)

Small share(10%-39%)

Significant share(40%-75%)

Covering almost all expenses(76%-100%)

Start-up

Growth

Maturity

Decline

Ea

rly

Late

Org

an

isati

on

life

cy

cle

sta

ge

• Support to translate concept into a viable model in the longer term

• Mgmt coaching and endorsing image and network from KBF

• Transformational support primarily aimed for structural rethinking of core activities and related operating model

• Financing strategy, governance support and new idea implementation

• Transformational supports such as governance, ambition definition and new financing sources identification to ensure growth and long term sustainability

• Need for reinforcement, relatively less for model transformation

• Access to network/other stakeholders

Low HighShare of trading revenue

Source: Associations Survey 2014 (n=578); Experts interviews; Bain experience

Non-financial

support needs

In the past four years, VPF has been successful, reaching its transformation objective for ~80% of its portfolio

80% OF ORG. IN LINE WITH KPI

(DASHBOARD JUNE ’13)

>95% OF ORG. RECOGNIZE HIGH

CONTRIBUTION OF VPF

~70% of org. claim VPF structural support delivers higher impact than punctual project funding

“Contrarily to project support, structural support initiate a reflexion on the organisation model which is crucial to fulfil our societal impact mission. ”

VPF Supported Association (Interface 3)

“Belgian associations and social impact enterprises have a very strong need for structural support. Many valuable organisations, with a high potential for impact are disappearing due to structural issues which can be addressed.”

Social sector organisation director (BE)

“The key benefit of supporting organisations [vs. projects] is the multiplication effect. Once the organisation is set on the right track, it will increase its impact in what is does best. There is a true leverage in structural support.”

VP practitioner (FR)

“How was the societal impact of the structural support received if compared to

similar sized support but affected to project financing?”

Source: VPF organisations survey 2014 (n=21); Expert interviews

Higher focus on transformational organisation support

Low

Str

en

gth

of

VP

F

to p

rovid

e s

upport

High

Impact of the support for the organisations

Low High

No proactive focus

Priority support

Focus

* Transversal support; ** Only if instrumental in achieving agreed impact ambition

Source: VPF Impact report; VPF organisations Dashboard; VPF portfolio survey 2014; EVPA

Particularly important for start-up and declining org..

Improvement required

Particularly relevant for

declining org.

No proactive focus**

1

These strengths are confirmed by those who know VPF well

Source: VPF 2013 impact report; VPF organisations survey 2014 (n=21); Expert interviews

Match the right consulting expertise for the specific reinforcement need of the association

Identification of relevant levers

for organisation

reinforcement

Matching with the right

expertise / consultant

21

Case : Kringwinkel Antwerpen – Danny Vercauteren

Lean management bij Kringwinkel Antwerpen