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

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. Lessons learned
Lesson 1: More opportunities could be created for donating resources
Lesson 2: Strategic clarity is essential to effective resource-raising
Lesson 3: Fundraisers need to be better supported to resource-raise
- The right performance measures
- Supportive financial systems
- Collaborative working practices
Lesson 4: Acknowledge, budget for and ask for the ‘hidden costs’
Lesson 5: Resource-raising requires different and distinctive skills
Lesson 6: Negotiate for quality, reliability and sustainability

3. 5 steps to developing a resource-raising strategy
Resource
raising
strategy

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. 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. 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. 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 mission
delivery

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. 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. Step 3: who owns the strategy, who needs to work together?
Programmes/
services
Campaigns/
Procurement Fundraising comms/
policy
Finance

11. Step 4: make sure the supply is reliable and sustainable
Specify: develop a clear specification for the resource, involving the
procurement team and the people who will be using it or managing it.
Assess the risks: particularly around reliability and sustainability – are you
willing to accept these?
Identify costs: hard costs and time costs associated with the resource and
factor 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 first
principle.
Contract if you can: if you can‟t, make your expectations explicit. What
does 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 you
would a cash donor- reliability is directly related to the strength of the
relationship.

12. Step 5: value and report
Good 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 the
donor
Good 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 impact
Good 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. 10 point strategy
1. A definition of the role of donated resources in the organisation
2. A “wish-list” of planned or budgeted for goods, services or
facilities that have high potential to be resourced in-kind
3. Details of strategic focus areas, programmes or projects that
have high potential to have some resourcing in-kind
4. Campaigning, communications or policy goals that have high
potential to be achieved through supporters‟ access and influence
5. Organisations and individuals identified as resource-raising
targets
6. Any resources that the charity won‟t accept and reasons why
7. The process for deciding whether to accept resources in-kind
8. Some guidelines on budgeting for the associated costs
9. A policy on valuing and reporting resources in-kind
10.Performance measures, based on both financial value generated
and strategic outcomes contributed towards.

14. How to find out more
• Full report (including SoRP guidance) downloadable at
www.cloresocialleadership.org.uk/caroline-beaumont
• Boxnet files via Linkedin
• Join the Resource-raising working group on Linkedin and share
practice