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Today’s Agenda Afternoon <ul><li>The UK experience </li></ul><ul><ul><li>Impetus Trust / St Giles Trust case study </li></...
<ul><li>UK registered Charitable Trust </li></ul><ul><li>www.impetus.org.uk </li></ul><ul><li>Founded by Stephen Dawson an...
Impetus Vision <ul><li>A diverse, innovative and effective market for investment in social gain, in which charities and fu...
Impetus Mission <ul><li>To enable our charities to make a  step change  to deliver more, maximizing the social impact of o...
Achieved by: <ul><li>Enabling distinctive charities to make a step change in their performance </li></ul><ul><li>Encouragi...
Impetus income  (July 03 to June 04) <ul><li>Grants from: </li></ul><ul><li>Esmee Fairbairn Foundation </li></ul><ul><li>T...
Impetus income  (July 04 to June 05) <ul><li>Grants from: </li></ul><ul><li>Esmee Fairbairn Foundation </li></ul><ul><li>T...
Projected annual spend <ul><li>2005/06  €1.4 m </li></ul><ul><ul><li>Rising to </li></ul></ul><ul><li>2009/2010  €2.1 m </...
Structure Impetus structure Board of trustees Chair: Stephen Dawson Vice-chair: Nat Sloane Chief Executive Judith Brodie E...
An integrated investment package The Impetus approach to venture philanthropy <ul><li>Systematic analysis of capacity weak...
Hands-on support <ul><li>Associates: </li></ul><ul><ul><li>20, seconded from the private/other sectors </li></ul></ul><ul>...
Charity selection criteria <ul><li>Charities </li></ul><ul><li>that make a demonstrable, significant and sustainable diffe...
Investment process <ul><li>Screening </li></ul><ul><li>Review application letter/other info. </li></ul><ul><li>Meet CE/Cha...
Due diligence <ul><li>Organisational and legal details </li></ul><ul><li>Financial details </li></ul><ul><li>Income  </li>...
Current portfolio 200+ enquiries plus 200+ applications, four investments with commitments of £1.3m   £1 = €1.4 Make impac...
<ul><li>Step change:  to triple in size and quadruple earned income to reduce grant dependency </li></ul><ul><li>The need ...
<ul><li>Step change:  to transform impact and increase numbers of people served, especially young people </li></ul><ul><li...
<ul><li>Step change:  to make an impact on a national scale </li></ul><ul><li>The need:  in London schools alone, 78,000 c...
<ul><li>Step change:  to move away from a broad range of homelessness services and focus on prisoners and ex offenders </l...
Impetus value added <ul><li>Finding the right charities:  220 applications and five investments (more in the pipeline) </l...
Independent evaluation confirms Impetus added value, quality and innovative approach <ul><li>“ I am not aware of any other...
Impetus Trust  – venture philanthropy in action <ul><li>A step change for charities to help many more disadvantaged people...
Daniel Currie Chief Executive
  and Impetus A case study in venture philanthropy Daniel Currie Chief Executive of St Giles Trust
The case study <ul><li>Setting the scene - about St Giles </li></ul><ul><li>First contact – a transforming experience </li...
St Giles in Europe Transnational groups HIDAK – Blue CARAVEL - Yellow St Giles Overall funding
St Giles - History <ul><li>1962 – soup kitchen </li></ul><ul><li>1994 – first   prison service starts </li></ul><ul><li>19...
Beginnings with Impetus <ul><li>Everyone’s first time (almost) </li></ul><ul><li>Approach May 03 – Approval Dec 04  </li><...
Due diligence <ul><li>101 items of information </li></ul><ul><li>Personal relationships </li></ul><ul><li>Competitor analy...
Difficult decision <ul><li>1 day presenting findings </li></ul><ul><li>2 preferred options: Homeless SE London or Offendin...
The new St Giles <ul><li>Offender focus </li></ul><ul><li>Strategy and financial projections </li></ul><ul><li>My commitme...
New hopes <ul><li>Not so much about the money </li></ul><ul><li>Build some capacity ahead of growth </li></ul><ul><li>Be m...
The money <ul><li>£335,000/€492,435 over 3¼  years  </li></ul><ul><li>Annual expenditure £2.5m/€3.7m </li></ul><ul><li>Pot...
Capacity Building  <ul><li>Strategic advice </li></ul><ul><li>Personnel – restructuring, competencies, personal developmen...
DRAFT Sogei Strategy Map Prevent offending by creating positive opportunities for disadvantaged people Goals Build admin, ...
Traffic light monitoring
2006 <ul><li>Partnership work </li></ul><ul><li>Publicity </li></ul><ul><li>Premises </li></ul><ul><li>Staff communication...
Making it work- lessons learned <ul><li>Push back if it doesn’t work </li></ul><ul><li>Associates most effective on core a...
Different approaches <ul><li>Grantmakers </li></ul><ul><li>Power/info struggle </li></ul><ul><li>Pre-agreed change </li></...
Today’s Agenda Afternoon <ul><li>The UK experience </li></ul><ul><ul><li>Impetus Trust / St Giles Trust case study </li></...
Funding beyond grants <ul><li>Most philanthropic funding is grant based </li></ul><ul><li>Some charities are able to accep...
Entrepreneurs <ul><li>Entrepreneurship  :  venture capital     new businesses, wealth & employment </li></ul><ul><li>Soci...
Nonprofits are evolving: - and so are their funding needs High social return High financial return No Trading  Revenue Pot...
Mapping the specialist funders suggests a gap remains venture philanthropy 4m Futurebuilders (public services £125m) Grant...
Emerging loan or equity  based funders <ul><li>Venturesome (UK) </li></ul><ul><ul><li>£5 million loan fund </li></ul></ul>...
the challenge of innovative noabership social venturing through
Background Returns Social Venturing Examples Agenda
Background Returns Social Venturing Examples Agenda
Noaber Foundation founded in 2000 donations  and  investments inspired by innovation, tradition and entrepre-neurship lean...
Criteria entrepreneurial orientation responsive for responsibility cooperative and participative leveraging and enabling i...
Innovative Noabership knowledge experience business  models technology people means new solutions new connections new know...
Global
Domains technology health  &  care education culture  &  community
Background Returns Social Venturing Examples Agenda
ROI’s For  Benefit For  Philantropy For stability For  Profit Blended  Return on Investments Social   Return on  Donations...
Background Returns Social Venturing Examples Agenda
title organisation Look and Take Locotender BV Mentally and learning disabled children can learn how to read if they are t...
title organisation Noabership in the Middle East Region Software Horizons Professionals in conflicting regions could be ch...
title organisation Ageing – Health – Care - ICT VitaValley Accellerate innovation in health care through the use of inform...
HEALTH  AGING  CARE  TECHNOLOGY & September 30 VitaValley  Incubator VitaValley  Projects VitaValley  Network VitaValley  ...
the challenge of innovative noabership social venturing through
P.M. (Pieter) Oostlander RA   Director Noaber Foundation  Dorpsstraat 14  6741 AK  Lunteren  The Netherlands  +31 (0)318 5...
Today’s Agenda Afternoon <ul><li>The UK experience </li></ul><ul><ul><li>Impetus Trust / St Giles Trust case study </li></...
2005
EVPA Origins <ul><li>Founders from the European Private Equity Community </li></ul><ul><ul><li>Doug Miller, Stephen Dawson...
EVPA definition of venture philanthropy <ul><li>Venture philanthropy is a field of philanthropic activity where private eq...
EVPA Vision <ul><li>A diverse market place for funding nonprofit organisations, at all stages of their development, which ...
EVPA Mission <ul><li>Supporting our membership in their venture philanthropic activities </li></ul><ul><li>Promoting the e...
Foundations Public Funding Connecting ~ Engaging ~ Impacting E V P A Business Entrepreneurs Private Equity Community Socia...
EVPA At a Glance <ul><li>The EVPA was formed in 2004 by professionals from the European Private Equity Industry, and is re...
EVPA Members, September 2005 <ul><li>Full Members </li></ul><ul><ul><li>Impetus Trust (UK) </li></ul></ul><ul><ul><li>Bonv...
current interest
Benefits of membership <ul><li>Networking :   conferences and seminars.  A unique pan-European peer group of venture phila...
Today’s Agenda Afternoon <ul><li>The UK experience </li></ul><ul><ul><li>Impetus Trust / St Giles Trust case study </li></...
Thanks for participating Have a safe journey home!
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  • To show graphically the subset of the social entrepreneurship space that we are looking at in this report, we have mapped it on a spectrum ranging from high social return and zero financial returns on the left to pure profit maximisers aiming for high financial return on the right. Social ventures sit in between these two ends of the spectrum and consist of both social enterprises and socially driven businesses. We have mapped some social ventures on this spectrum as examples. More details on some of these follow below: Green-Works is a recycling organisation that collects unwanted office furniture from businesses and redistributes it to schools, charities and community groups. Green-Work’s turnover in 2003 was £493,000; it is expected to increase to £1million in 2004. It is a company limited by guarantee. Green-Works generates 96% of its own income through fees charged to members for the collection and removal of their furniture and the revenue received from the sale of the furniture. FRC Group is a revenue generating social enterprise that provides a one-stop furnishing service to social landlords. The Group has started other ventures like Bulky Bobs and Revive which have been highly cash generative but these profits are not distributed to shareholders, but reinvested in the business. Café Direct aims to get small coffee producers a better price for their crops and greater opportunities for their communities. Its turnover in 2004 is projected to be around £15 million. Café Direct is a public company limited by shares. In 2003, the company decided to raise £5M from individual ethical investors through an alternative share issue on Ethex, the alternative matched bargain share trading system run by Triodos Bank, in order to invest in its brand, repay borrowings, fund working capital and invest in computer systems. Source: SEC Access to finance guide, BCV interviews
  • We have mapped out the landscape of funding providers that fund different organisations within the spectrum we used earlier in this report ranging from pure charity to profit-maximising business. On the left axis we have laid out the type of product that is provided from high default risk (grants are not repaid at all) to low default risk (historic loan default rates in CDFIs have been low). The reason loans are lower risk than equity is that in the event of a liquidation, loans would be paid out first, and then equity-like investment. Finally the residual payment would be paid to equity holders. Patient capital is sometimes forgiven so the risk of loss here is greater than pure equity. We believe there is a gap in equity funding provision for social ventures that has not been addressed by current providers. Within the patient capital and equity-like capital space, providers have remits which will fulfil many of the funding needs of social ventures, but only in specific areas: Adventure Capital – will invest patient capital in community-based organisations (community enterprises) and does not operate at the socially driven business end of the spectrum. Adventure Capital has funding from the Government and several RDAs. Futurebuilders – will invest in non-profit organisations seeking to develop capabilities to deliver public service contracts and does not operate at the socially driven business end of the spectrum. Investment comes from Government funds and funding is both loans and grants. Venturesome - provides patient capital and some equity-like capital mainly operating at the charity end of the spectrum but has made some investments into socially driven businesses like Café Direct. It is a fairly small fund of £3M which has been raised from CAF, Barclays Bank, the Lloyds TSB foundation and the Tudor Trust.
  • Transcript of "presentation slides- Rob John, EVPA"

    1. 1. Today’s Agenda Afternoon <ul><li>The UK experience </li></ul><ul><ul><li>Impetus Trust / St Giles Trust case study </li></ul></ul><ul><li>Finance beyond grants </li></ul><ul><ul><li>Noaber Foundation </li></ul></ul><ul><li>European expansion – the EVPA </li></ul><ul><li>Wrap up and coffee </li></ul>
    2. 2. <ul><li>UK registered Charitable Trust </li></ul><ul><li>www.impetus.org.uk </li></ul><ul><li>Founded by Stephen Dawson and Nat Sloane in 2002 as UK’s first ‘general purpose venture philanthropy fund’ </li></ul><ul><li>Stephen form venture capital industry </li></ul><ul><li>Personal philanthropic journey </li></ul>
    3. 3. Impetus Vision <ul><li>A diverse, innovative and effective market for investment in social gain, in which charities and funders work together to achieve the greatest benefit for society </li></ul>
    4. 4. Impetus Mission <ul><li>To enable our charities to make a step change to deliver more, maximizing the social impact of our donors’ money and our time. </li></ul>
    5. 5. Achieved by: <ul><li>Enabling distinctive charities to make a step change in their performance </li></ul><ul><li>Encouraging donors to give and give more </li></ul><ul><li>Encouraging people to contribute time and expertise </li></ul><ul><li>Combining the best of the business and non profit worlds demonstrating our brand of venture philanthropy is successful </li></ul>
    6. 6. Impetus income (July 03 to June 04) <ul><li>Grants from: </li></ul><ul><li>Esmee Fairbairn Foundation </li></ul><ul><li>The Gatsby Charitable Foundation </li></ul><ul><li>City Parochial Foundation </li></ul><ul><li>Bridge House Trust </li></ul>Total = €870,000 Grants for core costs Donations from individuals Other income
    7. 7. Impetus income (July 04 to June 05) <ul><li>Grants from: </li></ul><ul><li>Esmee Fairbairn Foundation </li></ul><ul><li>The Gatsby Charitable Foundation </li></ul><ul><li>City Parochial Foundation </li></ul><ul><li>Bridge House Trust </li></ul>Total = €1.35 m Grants for core costs Donations from individuals Pro bono professional services Other income
    8. 8. Projected annual spend <ul><li>2005/06 €1.4 m </li></ul><ul><ul><li>Rising to </li></ul></ul><ul><li>2009/2010 €2.1 m </li></ul>
    9. 9. Structure Impetus structure Board of trustees Chair: Stephen Dawson Vice-chair: Nat Sloane Chief Executive Judith Brodie Executive (charities, operations, marketing, HR, IT) Judith Brodie Volunteer executive (charities, finance, donor relations) Stephen Dawson (3 days/wk) Volunteer executive (charities, associates) Nat Sloane (2 days/wk) Office manager Christine Clark (4 days/wk) Venture philanthropy Manager (charities) Amelia Sussman (starts 5/9/05, 4 days/wk)) Associates Donors Portfolio Organisations
    10. 10. An integrated investment package The Impetus approach to venture philanthropy <ul><li>Systematic analysis of capacity weaknesses, for example: </li></ul><ul><li>income generation, senior </li></ul><ul><li>management, systems </li></ul>… to support charities through a step change to sustainability (and Impetus exit) Long term investment requires long term funding – three to five year commitment Ongoing performance monitoring and support <ul><li>Business planning </li></ul><ul><li>Monthly meetings: challenge and support </li></ul><ul><li>Sounding board for chief executive </li></ul>
    11. 11. Hands-on support <ul><li>Associates: </li></ul><ul><ul><li>20, seconded from the private/other sectors </li></ul></ul><ul><ul><ul><li>consultants, BBC, venture capital, small businesses, KPMG </li></ul></ul></ul><ul><ul><li>Volunteers </li></ul></ul><ul><ul><li>Pro bono arrangements </li></ul></ul><ul><li>Impetus: </li></ul><ul><ul><li>Recruitment and induction of associates </li></ul></ul><ul><ul><li>Quality assurance of their work </li></ul></ul><ul><ul><li>Project leadership and management </li></ul></ul><ul><ul><li>Some hands-on support </li></ul></ul>
    12. 12. Charity selection criteria <ul><li>Charities </li></ul><ul><li>that make a demonstrable, significant and sustainable difference to the lives of a substantial number of disadvantaged people </li></ul><ul><li>at a critical stage in their strategic development - wanting to make a step change </li></ul><ul><li>whose leadership keenly wants and needs the distinctive investment package that we offer </li></ul><ul><li>with more than £250k (€350,000) and less than £10 million (€14 million) charitable income per annum </li></ul><ul><li>that have operated, and produced audited accounts for at least three years </li></ul><ul><li>With HQ and a significant portion of management in England and Wales </li></ul><ul><li>NOT animals, culture, heritage, research, advocacy </li></ul>
    13. 13. Investment process <ul><li>Screening </li></ul><ul><li>Review application letter/other info. </li></ul><ul><li>Meet CE/Chair/others </li></ul><ul><li>Visit the charity </li></ul><ul><li>Assessment </li></ul><ul><li>Due diligence/business </li></ul><ul><li>plan review </li></ul><ul><li>Proposal to IIC </li></ul>Decision Aiming for 12 charities by mid 2007 Impetus Investment Committee (IIC) decides whether to approve charity to be an Impetus investment Impetus Investment Committee (IIC) considers whether to approve proceeding to Assessment stage Investment: Written agreement McKinsey Capacity Framework
    14. 14. Due diligence <ul><li>Organisational and legal details </li></ul><ul><li>Financial details </li></ul><ul><li>Income </li></ul><ul><li>Management and people </li></ul><ul><li>Service delivery and operations </li></ul><ul><li>Sector and competition analysis </li></ul><ul><li>Future plans </li></ul><ul><li>Impetus relationship </li></ul>An in depth investigation of the charity to assess whether Impetus will make an investment. Due diligence covers: Partnerships with strategy consultants OC&C and RSM Robson Rhodes to deliver sector and competition analysis
    15. 15. Current portfolio 200+ enquiries plus 200+ applications, four investments with commitments of £1.3m £1 = €1.4 Make impact on national scale £700K £275K (£30K surplus share) May 05 Leap Confronting Conflict Transform impact £620K £325K (£50K surplus share) Dec 04 Eating Disorders Association (eda) Focus on prisoners and ex offenders £1800K £330K (share in property sale) Dec 04 St Giles (homelessness) Growth, especially earned income £840K £400K (£90K surplus share) Sep 04 Speaking Up (disability) Step change Income Investment Date Name
    16. 16. <ul><li>Step change: to triple in size and quadruple earned income to reduce grant dependency </li></ul><ul><li>The need : 210,000 people with severe learning difficulties in England; 90-95% of people with severe learning difficulties unemployed; 60% live with their parents through adult life </li></ul><ul><li>USP : people with learning difficulties deliver consultancy services </li></ul><ul><li>Effect on lives : independence, jobs, role models </li></ul><ul><li>Impetus capacity building: branding, business development, financial systems </li></ul><ul><li>Lives touched - current (plan): 800 (2000) disabled people took part in projects; 340 (1100) received 1:1 advocacy support; 11 (30)gained an academic qualification and 13 (40)gained a paid job through the projects </li></ul>
    17. 17. <ul><li>Step change: to transform impact and increase numbers of people served, especially young people </li></ul><ul><li>The need: 1.1m sufferers in the UK; highest death rate among mental illnesses, 20% of those seriously affected die </li></ul><ul><li>USP: the only substantial charity in a sector that is poorly understood and served </li></ul><ul><li>Effect on lives: save lives, reduce side effects, prevention </li></ul><ul><li>Impetus capacity building: new chair, rebranding, financial systems </li></ul><ul><li>Lives touched – current (plan): 16,000 (32,000) helpline calls; 7,500 (15,000) helped through self help groups; 40,000 (100,000) unique website users; 100 (1000) text messages </li></ul>
    18. 18. <ul><li>Step change: to make an impact on a national scale </li></ul><ul><li>The need: in London schools alone, 78,000 children feeling threatened by gangs, bullied, experience of racism - high exclusion and truancy rates </li></ul><ul><li>USP: UK leader in conflict resolution & mediation for young people </li></ul><ul><li>Effect on lives: reduced levels of violence, greater self - confidence, better exam results and job prospects </li></ul><ul><li>Impetus capacity building: change management, business planning, marketing </li></ul><ul><li>Lives touched – current (plan): 2,000 (5,000) young people directly and 6,000 (20,000 -25,000) indirectly </li></ul>
    19. 19. <ul><li>Step change: to move away from a broad range of homelessness services and focus on prisoners and ex offenders </li></ul><ul><li>The need: 78,000 prisoners, 120,000 annual releases; 30% homeless when entering prison; 30% more lose their homes while in prison; contributes to re-offending rate </li></ul><ul><li>USP: prisoners obtain NVQ to deliver housing and other advice to fellow prisoners </li></ul><ul><li>Effect on lives: reduce re-offending, create jobs, find / keep homes </li></ul><ul><li>Impetus capacity building: business planning, branding, management development </li></ul><ul><li>Lives touched - current (plan): 2,000 (10,000) prisoners given advice; 25 (120) peer advisers in prisons; 70 (500) people housed; 100 (700) tenancies saved </li></ul>
    20. 20. Impetus value added <ul><li>Finding the right charities: 220 applications and five investments (more in the pipeline) </li></ul><ul><li>Substantial free resources : SD/ NS equals one full- time senior exec plus over 800 hours from 20 volunteer associates to date; OC&C £75K value per project </li></ul><ul><li>Leverage from coinvestors and other funders : made much more productive by Impetus added value; Impetus infrastructure largely funded by grantmaking trusts </li></ul><ul><li>Hands on support : through monthly meetings and mentoring </li></ul>
    21. 21. Independent evaluation confirms Impetus added value, quality and innovative approach <ul><li>“ I am not aware of any other donor organisation in the UK that takes such a hands on approach to its work with charities.” (interviewee) </li></ul><ul><li>80% of respondents felt that the application process had been of benefit to their organisation. This is a remarkable achievement, given the fact that less than 10% of all applicants had been invested in. </li></ul><ul><li>The associates impressed the charities not simply because of their skills and knowledge, but also because they are willing to “do things” not just offer advice. </li></ul><ul><li>The calibre of business support offered is extremely high, as is the nature and extent of the vetting process. It is clear that an investor’s money is safe with Impetus and a charity embarking on a relationship with Impetus has a great deal to gain. </li></ul>Impetus has the potential to not only lead the sector but deliver real and valuable change within it Social Solutions Limited conducted an independent review of Impetus. The following are extracts from their report (July 2005):
    22. 22. Impetus Trust – venture philanthropy in action <ul><li>A step change for charities to help many more disadvantaged people more effectively </li></ul><ul><li>A bridge between the business and voluntary sectors </li></ul><ul><li>The biggest impact with donors’ money </li></ul>
    23. 23. Daniel Currie Chief Executive
    24. 24. and Impetus A case study in venture philanthropy Daniel Currie Chief Executive of St Giles Trust
    25. 25. The case study <ul><li>Setting the scene - about St Giles </li></ul><ul><li>First contact – a transforming experience </li></ul><ul><li>Working with Impetus – highs and lows </li></ul><ul><li>Lessons learned </li></ul>
    26. 26. St Giles in Europe Transnational groups HIDAK – Blue CARAVEL - Yellow St Giles Overall funding
    27. 27. St Giles - History <ul><li>1962 – soup kitchen </li></ul><ul><li>1994 – first prison service starts </li></ul><ul><li>1995 – new building </li></ul><ul><li>2001 – modern homeless services </li></ul><ul><li>2002 first peer advice work programme </li></ul>
    28. 28. Beginnings with Impetus <ul><li>Everyone’s first time (almost) </li></ul><ul><li>Approach May 03 – Approval Dec 04 </li></ul><ul><li>St Giles motivations, money, and a vague sense of unease </li></ul>
    29. 29. Due diligence <ul><li>101 items of information </li></ul><ul><li>Personal relationships </li></ul><ul><li>Competitor analysis: 200 London homeless agencies </li></ul><ul><li>Internal analysis </li></ul>
    30. 30. Difficult decision <ul><li>1 day presenting findings </li></ul><ul><li>2 preferred options: Homeless SE London or Offending SE England </li></ul><ul><li>45 minutes and six key people to chose </li></ul><ul><li>At stake – the future, with a lot of money backing one option </li></ul>
    31. 31. The new St Giles <ul><li>Offender focus </li></ul><ul><li>Strategy and financial projections </li></ul><ul><li>My commitment to the Impetus board </li></ul><ul><li>Completed due diligence & approved December 04 </li></ul><ul><li>Service changes </li></ul>
    32. 32. New hopes <ul><li>Not so much about the money </li></ul><ul><li>Build some capacity ahead of growth </li></ul><ul><li>Be more professional </li></ul><ul><li>Develop new contacts </li></ul><ul><li>Think on a bigger scale – even national </li></ul>
    33. 33. The money <ul><li>£335,000/€492,435 over 3¼ years </li></ul><ul><li>Annual expenditure £2.5m/€3.7m </li></ul><ul><li>Potential payback (circa £70,000/€110,000) </li></ul><ul><li>04/05: £35,000 grant - £190,000 surplus </li></ul>
    34. 34. Capacity Building <ul><li>Strategic advice </li></ul><ul><li>Personnel – restructuring, competencies, personal development plans (5/10) </li></ul><ul><li>Brand consultancy – research, planning, design (5/10) </li></ul><ul><li>Strategy mapping and monitoring (9/10) </li></ul>
    35. 35. DRAFT Sogei Strategy Map Prevent offending by creating positive opportunities for disadvantaged people Goals Build admin, ICT, and finance infrastructure to support strategy Evaluate our services externally & learn from the results Create ambassadors: from clients, partners & funders Achieve real change: access to homes, jobs, family support Grow: cover London & SE England – double in size by 08 Keep service costs down to stay competitive Commissioners to fund essential services, charities to fund innovation Meet the needs of commissions and partners – as well as clients Make clients part of the solution - not just the problem Focus on real change for clients: keep finding & doing what works Motivate staff with personal develop-ment & involvement in strategy Achieve a surplus each year to fund investment Finances Foundations Methods St Giles Trust
    36. 36. Traffic light monitoring
    37. 37. 2006 <ul><li>Partnership work </li></ul><ul><li>Publicity </li></ul><ul><li>Premises </li></ul><ul><li>Staff communication </li></ul><ul><li>Board development </li></ul><ul><li>Evaluation </li></ul>
    38. 38. Making it work- lessons learned <ul><li>Push back if it doesn’t work </li></ul><ul><li>Associates most effective on core activity (ours and theirs) </li></ul><ul><li>Value of hard questions vs hard cash </li></ul><ul><li>An evolving relationship is critical </li></ul>
    39. 39. Different approaches <ul><li>Grantmakers </li></ul><ul><li>Power/info struggle </li></ul><ul><li>Pre-agreed change </li></ul><ul><li>Sporadic relationship </li></ul><ul><li>Low investment </li></ul><ul><li>Pure gift/grant </li></ul><ul><li>A transaction </li></ul><ul><li>Impetus </li></ul><ul><li>Power/info sharing </li></ul><ul><li>Ongoing change </li></ul><ul><li>Ongoing relationship </li></ul><ul><li>High investment </li></ul><ul><li>Return expected </li></ul><ul><li>A marriage </li></ul>
    40. 40. Today’s Agenda Afternoon <ul><li>The UK experience </li></ul><ul><ul><li>Impetus Trust / St Giles Trust case study </li></ul></ul><ul><li>Finance beyond grants </li></ul><ul><ul><li>Noaber Foundation </li></ul></ul><ul><li>European expansion – the EVPA </li></ul><ul><li>Wrap up and coffee </li></ul>
    41. 41. Funding beyond grants <ul><li>Most philanthropic funding is grant based </li></ul><ul><li>Some charities are able to accept loans or underwriting </li></ul><ul><li>Social enterprises or socially orientated businesses can accept equity or equity like funding </li></ul><ul><li>What role for venture philanthropy? </li></ul>
    42. 42. Entrepreneurs <ul><li>Entrepreneurship : venture capital  new businesses, wealth & employment </li></ul><ul><li>Social entrepreneurship : venture philanthropy  social capital & public benefit </li></ul>
    43. 43. Nonprofits are evolving: - and so are their funding needs High social return High financial return No Trading Revenue Potentially sustainable - 75%+ trading revenue Profitable - Surplus not distributed Trading Revenue And Grants Breakeven - All Revenue from Trading Profit distributing - socially driven Profit Maximizing Charities Revenue Generating Social Enterprises Socially Driven Business Traditional business Blended After Bridges Ventures
    44. 44. Mapping the specialist funders suggests a gap remains venture philanthropy 4m Futurebuilders (public services £125m) Grants (100%) Foundations, Government No Trading Revenue Potentially sustainable - 75%+ trading revenue Profitable - Surplus not distributed Trading Revenue And Grants Breakeven - All Revenue from Trading Profit distributing - socially driven Profit Maximizing Patient Capital (50%) High default risk Low default risk Loans (1-10%) CDFIs and Banks (Triodos 50m, Charity Bank 10m) Equity and equity/like capital (10-20%) Foursome (40m) CDVC Funds <ul><ul><ul><li>Adventure Capital (community £2.7m) </li></ul></ul></ul>Venturesome (2m) Regional funds* <ul><li>Regional funds invest up to 250K and Objective 1 and 2 funds target areas of social deprivation </li></ul><ul><li>Source: adapted from McKinsey report for Unltd from Bridges Ventures 2005 </li></ul>Objective 1 and 2 funds* London Rebuilding Society (0.5m) LIF (6m) Gap for equity-like capital
    45. 45. Emerging loan or equity based funders <ul><li>Venturesome (UK) </li></ul><ul><ul><li>£5 million loan fund </li></ul></ul><ul><li>Adventure Capital Fund (UK) </li></ul><ul><ul><li>£10 million for community social enterprises </li></ul></ul><ul><li>Futurebuilders Fund (England & Wales) </li></ul><ul><ul><li>£125 million for service delivery nonprofits </li></ul></ul><ul><li>Media Development Load Fund (Emerging democracies) www.mdlf.org </li></ul><ul><ul><li>$39 million (1996-2004); launching press freedom investment notes </li></ul></ul>
    46. 46. the challenge of innovative noabership social venturing through
    47. 47. Background Returns Social Venturing Examples Agenda
    48. 48. Background Returns Social Venturing Examples Agenda
    49. 49. Noaber Foundation founded in 2000 donations and investments inspired by innovation, tradition and entrepre-neurship lean and mean organisation clear set of criteria and policy
    50. 50. Criteria entrepreneurial orientation responsive for responsibility cooperative and participative leveraging and enabling innovation driven embedded in christian background
    51. 51. Innovative Noabership knowledge experience business models technology people means new solutions new connections new knowledge new experiences
    52. 52. Global
    53. 53. Domains technology health & care education culture & community
    54. 54. Background Returns Social Venturing Examples Agenda
    55. 55. ROI’s For Benefit For Philantropy For stability For Profit Blended Return on Investments Social Return on Donations Finacial Return on Investments
    56. 56. Background Returns Social Venturing Examples Agenda
    57. 57. title organisation Look and Take Locotender BV Mentally and learning disabled children can learn how to read if they are taught by using pictograms; they should have the opportunity to be as much as independent from a teacher Investment in a business in which a publisher, a multi-media company and a consulting firm cooperate in order to develop a multi-media tool for teaching basic reading skills background objective <ul><li>product developed </li></ul><ul><li>sales started </li></ul><ul><li>+150 teachers trained </li></ul><ul><li>new markets explored </li></ul>results
    58. 58. title organisation Noabership in the Middle East Region Software Horizons Professionals in conflicting regions could be challenged to collaborate on projects of mutrual interest. The development of software can be used as a ‘vehicle’ for change. Enhance peace process by stimulating cooperation background objective <ul><li>business (ongoing process) </li></ul><ul><li>mutual understanding and respect </li></ul><ul><li>basis for stability </li></ul>results
    59. 59. title organisation Ageing – Health – Care - ICT VitaValley Accellerate innovation in health care through the use of information technology background objective results We face challenges to keep health care affordable and accessible. Population is ageing and the demand for care is growing, while the number of people to provide this care decreases. <ul><li>............ </li></ul>
    60. 60. HEALTH AGING CARE TECHNOLOGY & September 30 VitaValley Incubator VitaValley Projects VitaValley Network VitaValley Plaza <ul><li>Meetings </li></ul><ul><li>Entrance </li></ul>VitaValley Face <ul><li>Lobby-activities </li></ul>VitaValley Campus VitaValley Knowledge Center <ul><li>Conferences-Seminars </li></ul><ul><li>Training </li></ul><ul><li>Knowledge Web </li></ul>VitaValley Proof <ul><li>Expositions </li></ul><ul><li>Showcases </li></ul><ul><li>Quality-checks </li></ul><ul><li>Certification </li></ul>VitaValley WorkingSpace <ul><li>Office facilities </li></ul>VitaValley Living Labs <ul><li>Showcase </li></ul>VitaValley Congress <ul><li>Conference facilities </li></ul>VitaValley Speakers <ul><li>Experts </li></ul>VitaValley Fund <ul><li>Investments </li></ul>VitaValley Coach <ul><li>Support </li></ul>VitaValley Consult <ul><li>Advice </li></ul><ul><li>Projectsupport </li></ul><ul><li>Projectmanagement </li></ul><ul><li>GDMS </li></ul><ul><li>Tele-Care </li></ul><ul><li>Digi-District </li></ul>VitaValley Office <ul><li>Roles </li></ul><ul><li>Governance </li></ul><ul><li>Management </li></ul><ul><li>Tasks </li></ul><ul><li>Direction </li></ul><ul><li>Management </li></ul><ul><li>Coordination </li></ul><ul><li>Focus </li></ul><ul><li>Concept-development </li></ul><ul><li>Governance-model </li></ul><ul><li>Businessmodel/-case </li></ul>VitaValley: accellerate innovation in health and care through use of ICT 1/ Prevention 2/ Early diagnosis 3/ Independency 4/ Distance Care 5/ Use and usability 6/ Growth of capacity 7/ Chains of care VitaValley Connex <ul><li>Netherlands-Europe-Israel-USA </li></ul>VitaValley Grants <ul><li>Subsidies </li></ul>
    61. 61. the challenge of innovative noabership social venturing through
    62. 62. P.M. (Pieter) Oostlander RA Director Noaber Foundation Dorpsstraat 14 6741 AK Lunteren The Netherlands +31 (0)318 59 64 00 [email_address]
    63. 63. Today’s Agenda Afternoon <ul><li>The UK experience </li></ul><ul><ul><li>Impetus Trust / St Giles Trust case study </li></ul></ul><ul><li>Finance beyond grants </li></ul><ul><ul><li>Noaber Foundation </li></ul></ul><ul><li>European expansion – the EVPA </li></ul><ul><li>Wrap up and coffee </li></ul>
    64. 64. 2005
    65. 65. EVPA Origins <ul><li>Founders from the European Private Equity Community </li></ul><ul><ul><li>Doug Miller, Stephen Dawson, Luciano Balbo, Michiel de Haan and Serge Raicher </li></ul></ul><ul><li>Strong Links with EVCA </li></ul><ul><li>Member of EFC and its Social Investment Group </li></ul><ul><li>Sponsored by 3i, Barclays Capital and KPMG </li></ul><ul><li>Full Membership </li></ul><ul><ul><li>Practicing venture philanthropy funds </li></ul></ul><ul><li>Associate Membership </li></ul><ul><ul><li>Organisations or individuals interested in venture philanthropy </li></ul></ul>
    66. 66. EVPA definition of venture philanthropy <ul><li>Venture philanthropy is a field of philanthropic activity where private equity / venture capital models are applied in the non-profit and charitable sectors. There are many different forms of venture philanthropy but the EVPA believes it can be characterised as: </li></ul><ul><ul><li>The active partnership, or engagement, of donors, volunteers and/or experts with charities to achieve agreed outcomes such as organisational effectiveness, capacity building or other important change; </li></ul></ul><ul><ul><li>The use of a variety of financing techniques in addition to grants, such as multi-year financing, loans or other financial instruments most appropriate for a charity's needs; </li></ul></ul><ul><ul><li>The capability to provide skills and/or hands-on resources with the objective of adding value to the development of a charity; </li></ul></ul><ul><ul><li>The desire to enable donors to maximise the social return on their investment whether that be as a financial donor or as a volunteer of time and expertise </li></ul></ul>
    67. 67. EVPA Vision <ul><li>A diverse market place for funding nonprofit organisations, at all stages of their development, which is responsive to their needs </li></ul><ul><li>A role for venture philanthropy which complements and strengthens traditional forms of funding </li></ul><ul><li>A Europe-wide organisation that makes an impact </li></ul>
    68. 68. EVPA Mission <ul><li>Supporting our membership in their venture philanthropic activities </li></ul><ul><li>Promoting the expansion of venture philanthropy </li></ul>
    69. 69. Foundations Public Funding Connecting ~ Engaging ~ Impacting E V P A Business Entrepreneurs Private Equity Community Social Entrepreneur Investors Charities/Social Enterprises Venture Philanthropy
    70. 70. EVPA At a Glance <ul><li>The EVPA was formed in 2004 by professionals from the European Private Equity Industry, and is registered as a charity in the UK </li></ul><ul><li>It is sponsored financially by 3i, Barclays Capital and KPMG, endorsed by EVCA and has a formal relationship with the European Foundation Centre in Brussels </li></ul><ul><li>EVPA held its first European meeting in Amsterdam in December 2004 and registered its first members in February 2005 </li></ul><ul><li>EVPA’s first Country Meeting was held in Munich in May 2005 and an Italy meeting is planned for the autumn </li></ul><ul><li>1 st Annual European Conference held in June 2005, London, hosted by JPMorgan Private Bank </li></ul><ul><li>During 2005 EVPA carried out a research project which mapped venture philanthropy activity in Europe and suggested barriers and drivers for its expansion </li></ul><ul><li>EVPA is launching 3 working groups in 2005 to explore in depth issues critical to venture philanthropy and share good practice </li></ul><ul><ul><li>‘ Non-financial services’ – how venture philanthropy adds value beyond finance </li></ul></ul><ul><ul><li>‘ Performance Measurement and Impact Assessment’ – developing a directory of tools that measure performance and social impact </li></ul></ul><ul><ul><li>‘ Finance’ – raising funds for venture philanthropy and how to use them effectively </li></ul></ul>
    71. 71. EVPA Members, September 2005 <ul><li>Full Members </li></ul><ul><ul><li>Impetus Trust (UK) </li></ul></ul><ul><ul><li>Bonventure (Germany) </li></ul></ul><ul><ul><li>Demeter Foundation (France) </li></ul></ul><ul><ul><li>PhiTrust (France) </li></ul></ul><ul><ul><li>Fondazione Oltre (Italy) </li></ul></ul><ul><ul><li>Venturesome (UK) </li></ul></ul><ul><ul><li>One Foundation (Ireland) </li></ul></ul><ul><ul><li>The Sutton Trust (UK) </li></ul></ul><ul><ul><li>NESsT (Hungary) </li></ul></ul><ul><li>Associate Members </li></ul><ul><ul><li>King Baudouin Foundation (Belgium) </li></ul></ul><ul><ul><li>Van Leer Group Foundation (Netherlands) </li></ul></ul><ul><ul><li>Esmee Fairbairn Foundation (UK) </li></ul></ul><ul><ul><li>The Rayne Foundation (UK) </li></ul></ul><ul><ul><li>Skoll Centre, Said Business School, University of Oxford (UK) </li></ul></ul><ul><ul><li>Ashoka (European) </li></ul></ul><ul><ul><li>UnLtd Ventures (UK) </li></ul></ul><ul><ul><li>John Pepin & Associates </li></ul></ul><ul><ul><li>Scholten Frannssen (Netherlands) </li></ul></ul><ul><ul><li>Corporate Connect (Netherlands) </li></ul></ul><ul><ul><li>Factary (Spain & UK) </li></ul></ul><ul><ul><li>New Philanthropy Capital (UK) </li></ul></ul><ul><ul><li>PilotLight (UK) </li></ul></ul><ul><ul><li>Coller Capital (UK) </li></ul></ul><ul><ul><li>Natexis Private Equity (France) </li></ul></ul><ul><li>Honorary Members </li></ul><ul><ul><li>European Foundation Centre </li></ul></ul><ul><ul><li>European Venture Capital Association </li></ul></ul><ul><ul><li>David Carrington </li></ul></ul>
    72. 72. current interest
    73. 73. Benefits of membership <ul><li>Networking : conferences and seminars. A unique pan-European peer group of venture philanthropists and others involved in social investment </li></ul><ul><li>Working Groups : in depth study of critical issues, underpinned by our own research projects </li></ul><ul><li>Professional Development : Training seminars for VP staff and trustees planned for 2006 </li></ul><ul><li>Strategic Partnerships : engaging professional service firms with our members and their portfolio organisations </li></ul>Download a membership form at www.evpa.eu.com United Kingdom Registered Charity No. 1105785
    74. 74. Today’s Agenda Afternoon <ul><li>The UK experience </li></ul><ul><ul><li>Impetus Trust / St Giles Trust case study </li></ul></ul><ul><li>Finance beyond grants </li></ul><ul><ul><li>Noaber Foundation </li></ul></ul><ul><li>European expansion – the EVPA </li></ul><ul><li>Wrap up and coffee </li></ul>
    75. 75. Thanks for participating Have a safe journey home!
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