Caroline Beaumont, Race Online 2012


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Operating in a cashless economy - from fundraising to resource-raising. Presented at NCVO Sustainable Funding Conference 2011: Adapt, Gain, Grow.

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  • Introducing resource-raising and mixFocus on other elements, not money, time – classic fundraising/volunteering disciplines are well establishedNot about how to get more out of donors, how your organisation needs to beHow many are ‘fundraisers’/as only roleIssue for whole organisation and senior leadershipIntroducing me and RO2012 approach to resource raisingMix – examples people have worked with?Sum up overall experience vs cash
  • Lessons 1&2: Q: Describe org’s approach: indifferent (don’t seek or accept); reactive: offered and find a way to use; proactive: specific about need and seek; opportunistic: spot and opportunity and go for it (flip)(1/3, 1/3, 1/3)Lesson 3: Q: Value of resources in kind set against fundraising targets? Always, sometimes, never? (3%, 23%, 72%)Have to be valuing to count: Q: Do you know the value of resources in kind? 66% DK, 21% could find.“. . . it can be frustrating if you can see how skills or gift in-kind could be of benefit to programmes and if only you had the process to support you, you could mobilise a huge amount of additional resource.” “. . . it’s very much about us asking the questions [internally] rather than proactively going out into the market and that means we have very defined conversations that are really more about what the company has to give than the priority that [we have] in terms of need.. . sometimes half the battle is finding the right person to speak to.” Lesson 4: Hidden costs no1 barrier 61%, time consuming 59%, hard to manage 47%Lesson 5: fundraiser vs resource-raiserLesson 6: Unreliable 47%, negotiating for cash vs in-kind, supporter cultivation 2nd biggest benefit Resource should always have value in own right. . .
  • Greater involvement at planning stage, closer to org strategy/programmes = more sophisticated resource raisers
  • Turned into money = goods (usually) then soldIn lieu of money = goods, services, facilities; cash not neededMoney can’t buy = knowledge, profile, access, influence – partnership and into heart of organisationIncome gen & comms: (usually fundraising comms)
  • Most orgs will sit in 1-3Those in 4 tend to be entrepreneurial, smaller, agileLeadership
  • Approach 4: resource-raising organisation; not hierarchical; access to experts and decision makers; all disciplines work together; best placed person makes the ask/building the relationship
  • Ref SORP guidelines
  • Can’t be written by fundraising exclusively, has to involve all parties
  • Caroline Beaumont, Race Online 2012

    1. 1. Operating in a cashless economy:from fundraising to resource-raising Money Influence Time Profile Resource- Goods raising mix Knowledge Services and skills Facilities Caroline Beaumont, 2010 Clore Social Fellow Programme Director Race Online 2012
    2. 2. Lessons learnedLesson 1: More opportunities could be created for donating resourcesLesson 2: Strategic clarity is essential to effective resource-raisingLesson 3: Fundraisers need to be better supported to resource-raise - The right performance measures - Supportive financial systems - Collaborative working practicesLesson 4: Acknowledge, budget for and ask for the ‘hidden costs’Lesson 5: Resource-raising requires different and distinctive skillsLesson 6: Negotiate for quality, reliability and sustainability
    3. 3. 5 steps to developing a resource-raising strategy Resource raising strategy
    4. 4. Step 2: decide on your overarching resource-raising strategy Resource-raising Opportunistic/ Income- Mission delivery at the heart of reactive generation the organisation
    5. 5. Step 1: identify the role that donated resources could play Income generation & Management Mission Delivery communications Oxfam + M&S To turn into money CRUK + TKMaxx Clear Channel NSPCC pro bono Crisis at media space legal panel Christmas In lieu of money Donated office BT secondees Sightsavers + space Mectizan (Merck) Celebrity Venture Macmillan + Toni endorsements philanthropy pro & Guy/Boots More than money bono advisory CoTYs Christian Aid pro- poor business strategy
    6. 6. Approach 1: opportunistic/reactive Income generation & Management Mission Delivery communications To turn into money X X X In lieu of money X X X More than money X X X•Potentially any type or use but not planned in advance•Can also be a cultivation tactic for cash donors•Can become strategic
    7. 7. Approach 2: income generation Income generation & Management Mission Delivery communications To turn into money X In lieu of money X More than money X•Goods to be sold•Fundraising comms•Budget relieving resources• Generate or save money that can be spent on management or missiondelivery
    8. 8. Approach 3: mission delivery Income generation & Management Mission Delivery communications To turn into money In lieu of money X More than money X•Clear programme/strategic goals and outcomes• Openness to how they are achieved using donated resources• Donated resources reduce the cash requirement
    9. 9. Approach 4: resource-raising at the heart of the organisation Income generation & Management Mission Delivery communications To turn into money X X X In lieu of money X X X More than money X X X•Can be any type or use, but integral to the business model• Displined and systematic• Culture of considering the role of donated resources in planning,budgeting and measuring performance
    10. 10. Step 3: who owns the strategy, who needs to work together? Programmes/ services Campaigns/ Procurement Fundraising comms/ policy Finance
    11. 11. Step 4: make sure the supply is reliable and sustainableSpecify: develop a clear specification for the resource, involving theprocurement team and the people who will be using it or managing it.Assess the risks: particularly around reliability and sustainability – are youwilling to accept these?Identify costs: hard costs and time costs associated with the resource andfactor this into your decision as to whether to pursue or accept it.Budget for the costs: and seek to recover them from the donor as a firstprinciple.Contract if you can: if you can‟t, make your expectations explicit. Whatdoes the donor agree to deliver and what do they expect from you?Manage well: the resource as though it were paid for, the supporter as youwould a cash donor- reliability is directly related to the strength of therelationship.
    12. 12. Step 5: value and reportGood practice: Valuation•„If it‟s worth having, it‟s worth valuing‟•Use a „reasonable estimate of the market value‟•Develop a simple formula for valuation, agreed by FD, auditors and thedonorGood practice: Reporting•Report the value of resources in-kind separately from general donations•If you can‟t put a value on it, at least measure and report on impactGood practice - Income targets•Count value towards fundraising targets if the resource is on mission•If the resource was in budget: unrestricted income target.•If the resource was out of budget: restricted income target.
    13. 13. 10 point strategy1. A definition of the role of donated resources in the organisation2. A “wish-list” of planned or budgeted for goods, services or facilities that have high potential to be resourced in-kind3. Details of strategic focus areas, programmes or projects that have high potential to have some resourcing in-kind4. Campaigning, communications or policy goals that have high potential to be achieved through supporters‟ access and influence5. Organisations and individuals identified as resource-raising targets6. Any resources that the charity won‟t accept and reasons why7. The process for deciding whether to accept resources in-kind8. Some guidelines on budgeting for the associated costs9. A policy on valuing and reporting resources in-kind10.Performance measures, based on both financial value generated and strategic outcomes contributed towards.
    14. 14. How to find out more• Full report (including SoRP guidance) downloadable at• Boxnet files via Linkedin• Join the Resource-raising working group on Linkedin and share practice