The presentation was part of the Funding Conference in London on Monday 23 February 2015. These presentations were part of the main plenary. Slides include Peter Lewis, Andrew Morris and Craig Dearden-Phillips MBE presentations. Find out more about the Funding Conference from NCVO: https://www.ncvo.org.uk/training-and-events/funding-conference/workshops

1. NCVO Funding Conference
2015
Money follows mission – creating a
financially stable organisation

2. Welcome
Diane Lightfoot, Director of
communications and fundraising,
United Response

3. State of the sector
Peter Lewis, Chief Executive,
Institute of Fundraising
@piterk68

4. 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

5. Excellent fundraising for a better world
Voluntary groups
• National, Regional and Special
Interest Groups
• Range of support and services
across the UK
• 350 regular volunteers
over 200 events across the UK

6. Excellent fundraising for a better world
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/

7. Excellent fundraising for a better world
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

8. Excellent fundraising for a better world
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

9. Excellent fundraising for a better world
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

10. Excellent fundraising for a better world

11. Excellent fundraising for a better world

12. Excellent fundraising for a better world
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 (ncvo
almanac £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

13. Excellent fundraising for a better world
2014 had some fantastic
successes
• No make-up selfie – over £4 million
• Stephen Sutton’s JustGiving page - £4.5 million

14. Excellent fundraising for a better world
Trends...
• Major Donors
• Digital Giving
• Reform of Payroll Giving
• Improvements to Gift Aid
• Expansion of Legacy Giving
• Corporate partnerships

15. Excellent fundraising for a better world
Online giving

16. Excellent fundraising for a better world
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 project
Remember a Charity, Co-op Legal Services
and 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

17. Excellent fundraising for a better world
Data driving success
Macmillan Coffee Mornings:
• The worlds biggest coffee morning -
this event has raised over £95m since
the 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

18. Excellent fundraising for a better world
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:

19. Excellent fundraising for a better world
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

20. Excellent fundraising for a better world
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/

22. WHAT’S IT ALL ABOUT?

23. “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

24. 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

25. Working locally with local enterprise
partnerships (LEPs)
36 out of 39 LEPs
considering working with
the Big Lottery Fund
Total investment about
£550 million

26. WHAT WE’VE ALREADY DONE

27. 36 grants worth £915,000
Announced 23 October
Projects underway now
Purpose is to raise
awareness in your area
about opportunities
Programme Development Funding

28. WHAT MIGHT WE FUND?

29. Emerging themes
• Employment1
• Support for social enterprise2
• Financial inclusion3
• Digital inclusion4
• Skill and volunteering5

30. HOW THE FUND MIGHT WORK

31. 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

33. Q&A with morning
keynotes

34. NCVO Funding Conference
2015
Money follows mission – creating a
financially stable organisation

35. Craig Dearden-Phillips MBE
Monday 23rd February 2015
NCVO Fundraising Conference
From Asking
To Earning

36. 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. 37
1. My Charity Story

38. 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. 39
The First Five Years –Developing grant-based local charity

40. 40
And then the day the bank called me

41. 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

42. 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

43. Grew VoiceAbility with Impetus Funds
• Investment was in organisational
capability not in programme
• Professionalisation of business
• Sorting me as a CEO
43

44. Success (eventually)

45. 45
Setting
Out
Stepping
Out
Staying
Out
3. Public sector Spin Outs

46. 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

47. There is
enough
resources
for all the
public
services
we need
in the UK

48. 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

49. 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

50. 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. 51
This is also an opportunity for charities

52. 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

53. You Squeeze the Lemon Harder
53

54. Is that person a profit-centre or an
overhead?
54

55. Organisationally..Less Like this…..

56. It is about
figuring out
this –how
can you
create a
benefit that
can’t easily
be copied?

57. 4. INVESTMENT
You may need investment for innovation
and growth

58. Or to improve your organisation

59. 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

60. 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

61. 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

62. What do proper Investors look for
(not this lot)
62

63. The Leadership – it’s about YOU
• Are you sticking
around?
• Are you resilient?
• Are you open to
change?
• Can you work with
others?
63

64. The Proposition
• Do we
understand it?
• Is there a proven
income model?
• How will we get
our money
back?
64

65. 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

66. 5. Challenges to You as Fundraisers
66

67. 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

68. 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

69. 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

70. 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

71. 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

72. I am grateful for your time
You for listening
Contact me anytime
Craig@stepping-out.biz
0845 474 6005
0776 420 3969
http://stepping-out.biz
Twitter @DeardenPhillips

73. 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’

74. NCVO Funding Conference
2015
Money follows mission – creating a
financially stable organisation