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Impact investment for ambitious charities for slideshare


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Julia Grant, Portfolio Director, Impetus Trust and Virginia Beardshaw, Chief Executive, I CAN

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Impact investment for ambitious charities for slideshare

  1. 1. PM 4Impact investment for ambitiouscharitiesChair: Julie Ward, Sustainable Funding Officer, NCVONational Council for Voluntary OrganisationsSustainable Funding Project
  2. 2. Julia GrantPortfolio Director, Impetus TrustNational Council for Voluntary OrganisationsSustainable Funding Project
  3. 3. Presentation to:National Council of Voluntary OrganisationsJulia Grant, Portfolio Director, Impetus TrustNov
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  7. 7. Our operating strategyLaying the groundwork for systemic change in the two thematic areas – to be credible and impactful we need to addinfluencing (link up) and advocacy (speak up) capacities to our “scale up” ability. We want to achieve more than the sum of the parts: Scale Up: Greater level of expertise * Increase significantly the number of people impacted with potential to influence * Replicate the service delivery model through expansion, merger, franchise, these sectors by being etc. strategically positioned * Build organisational capacity to ensure this expansion is sustainable (ie, combination of direct charity investment, knowledge dissemination and influence/thought leadership) – will significantly increase the Speak Up: Link Up: “multiplier effect” that we * Extend the reach of the * Influence public opinion/ policy to create greater “share have organisation beyond itself through strategic partnerships of voice” * Disseminate best 7
  8. 8. Our portfolio of innovative charities: An independent evaluation by Bain & Company reported that 94% of Impetus portfolio charity respondents said that they could not have achieved the same degree of change without 8
  9. 9. How we invest: our process Select portfolio Formalise Manage investment investment Manage exit charities • Identify and vet • Agree milestones and • Engaged relationship • “Alumnus” relationship pro bono projects with Investment • Due diligence Executive • Investment committee • Pro bono projects approval • Progress monitored against 9
  10. 10. Pro bono project areas Screening Due diligence • Research potential areas of interest • Market and competitive position analysis • Input into Impetus review of new charities • Financial/legal review Investment planning phase Investment scale-up phase • Business model / strategic review • Organisational capacity • Financial modelling • Performance management • Business planning • Systems and reporting • Board assessment • Monitoring and evaluation General support • Coaching/mentoring SMT • IT/HR/operations/legal support • Business development/fundraising • Marketing strategy and 10
  11. 11. Impetus pro bono corporate partners • Bain & Company • KPMG • Barclays Capital • Linklaters • BBC • Macfarlanes • BearingPoint • Merryck & Co • Benjamin Ball Associates • MphasiS • CVC Capital Partners • OC&C Strategy Consultants • Debevoise & Plimpton • O’Melveny & Meyers LLP • Deutsche Bank • PMC Treasury • Directorbank • Precise Media • Eden McCallum • PricewaterhouseCoopers • First100 • Randalls Parliamentary Service • FTI Consulting • Silverhawk Partners • Goldman Sachs • SJ Berwin LLP • ICAEW Corporate Finance Faculty • Studio Associato per la Societa Digitale • ISIS Equity Partners • The Worshipful Company of IT Consultants • J.P. Morgan • The Worshipful Company of Management Consultants • Korn/Ferry Whitehead Mann • Warburg 11
  12. 12. Success factors:why other companies and individuals give to Impetus 1. Rigour of charity selection, due diligence and monitoring • Over 2,000 applications, 25 investments • Know where money is going and what it will do for the charities • We have monthly monitoring, semi-annual and annual evaluations 2. Long-term impact of active engagement • We back a strategic plan, not a project • We build the capacity of an organisation so it can sustainably scale up • Impetus charities grow their influence in the sector and in public policy 3. We multiply the value of donations • For each £1 of funding charities received from Impetus, they get nearly £4 more in value (money & expertise) • Donations leveraged by attracting partnership investment, pro bono expertise and additional funds 12
  13. 13. Case study: IntoUniversity Before Impetus Year 4 of a 4-year (2006/07) investment What IntoUniversity does: (2010/11) IntoUniversity inspires and engages young people Organisational Model of long-term London-based from disadvantaged backgrounds to attain either a focus academic and network of learning university place or another chosen aspiration, by pastoral support to centres offering offering long-term, out-of-school study support. young people from long-term academic disadvantaged and pastoral families support Strategic challenge Test the model on Planning the next 6 centres and phase of growth People helped develop a 7000 replication plan 6000 Annual income £164k £1.57m 5000 No. of young 445 6,405 people in FocusAxis Title 4000 programmes 3000 No. of centres 1 7 2000 Management Founder CEO, Broader leadership, 1000 team/Board minimal Board suited to management scale up 0 capacity, Board 2007 2008 2009 2010 2011 more suited to start-up phase 13
  14. 14. Early Years InitiativeThe need• The scale • 500,000 children under 5 in the UK live in severe poverty • There are 120,000 “at risk” families in the UK, facing multiple disadvantages – their children face a 70% chance of still being classified as “at risk” by age 30• The problem starts early • Disadvantaged children are already one year behind their more affluent peers when they start school – this gap only widens as they get older• Early disadvantage has life-long consequences • Cognitive development at 22 months correlates strongly to educational attainment at age 27 • Male aggressive behaviour is highly stable as early as age two and is the single best predictor of violence later 14
  15. 15. Early Years InitiativeKey change levers• School readiness Defined as a holistic set of elements capturing a child’s overall development at age five, including cognitive, emotional and physical dimensions. => Evidence that elements are interdependent and need to be considered holistically to ensure a coherent strategy for systemic change in the child and the surrounding environment can be developed (C4EO, Grasping the Nettle).• Children’s life chances Heavily dependent on quality of parenting and home learning environment; however, especially for the most disadvantaged children, high quality pre-school experiences can make a real difference; high quality staff is a key ingredient (The Effective Provision of Pre-School Education (EPPE) Project: Findings from Pre-school to end of Key Stage1) 15
  16. 16. Early Years InitiativeSchool-readiness Cognitive Emotional, development interpersonal skills • Within the 0-5 age • How a child relates to other range, this is mainly people in its environment - about a child’s includes the concept of self- communication skills regulation • Also includes disposition • Heavily influenced by to learning (ie, ability to attachment formed concentrate) between newborn School- and main carer readiness Physical development Includes a child’s health and 16
  17. 17. Trust © 2011 Impetus | Registered Charity 1094681 | ALL RIGHTS RESERVED | Not to be reproduced without permission
  18. 18. Virginia BeardshawChief Executive, I CANNational Council for Voluntary OrganisationsSustainable Funding Project
  19. 19. NCVOSustainable FundingConferenceWednesday 28th November 2012Presentation byVirginia BeardshawChief Executive, I CAN
  20. 20. I CAN: The Children’s CommunicationCharity No child left out, or left behind because of a problem speaking or understanding
  21. 21. I CAN: The Children’s CommunicationCharity Increasing public awareness Information and advice to parents and families. Assessments for children Two specialist special schools Programmes, training and interventions giving the workforce and families skills to help children communicate. Campaigning
  22. 22. What can go wrong? (speech, language and communication needs - SLCN)Receptive Expressivelanguage language delay delay Social interaction difficulty Speech sound difficulty
  23. 23. Language is key to breaking the cycle of deprivationVocabulary at age 5 is the best predictor of whether children fromdeprived backgrounds can ‘buck the trend’ and escape poverty in later life Low income children lag behind their high income counterparts at school entry by 16 months in vocabulary SLCN most common type of primary need for pupils with SEN 15% of pupils with SLCN get 5 A-C GCSEs compared to 57% of all young people
  24. 24. The scale of the problem More than 50% of children in disadvantaged areas have delayed speech, language and communication 1 in 10 children has a long term, persistent difficulty communicating
  25. 25. I CAN’s response: Early Talk 0 -5 Accreditation and Resources validation Placing communication at the heart of Early Years Training courses
  26. 26. Resources
  27. 27. Early Language DevelopmentProgramme
  28. 28. I CAN’s Model – Creating Hubs of Early LanguageExpertise Children and Families Universal training Early Language provided to (up to 485) Development Toolkits lead practitioners and (up supplied by consortium to 485) training partners to lead practitioner, via 35 two-day road-show 3 x Local training events enabling Children’s health practitioners and Centres settings within each local cascade and hub in quantities shown establishing (up to) 485 local hubs Children and Families Children and Families Lead Children’s 4 x Local 1 x Heath Centre PVI Visitor Settings ‘Local Hub’ Up to 40% of lead Support and advice 2 x SLTs practitioners receive provided through ELDP enhanced level Advisory Service and on- training enabling line community network. further local cascade Good practice sharing and more advanced events organised in year3 Children and Families learning Provision of training, resources and support by consortium Local Cascade
  29. 29. KPIsBy March 2013: 970 Lead practitioners and Training Partners will be trained in how to cascade training in early language to other EY, health and family support practitioners 95% lead practitioners reached through regional events report having the knowledge to cascade early language principles to colleagues in early years settingsBy December 2013: 75% of sampled lead practitioners report changes to practice in their local hubBy March 2014: 12,028 (+/- 20%) practitioners will be trained by lead practitioners in supporting early language development 85 % practitioners trained report increased awareness and knowledge to support children’s early language, and to identify those with language delayBy March 2014: 96,731 (+/- 20%) parent or family members attend events to learn more about early language development 80% of parent or family members sampled report increased awareness and knowledge in supporting early speech, language and communication
  30. 30. Licensing Programme
  31. 31. We embarked on an aggressive plan to transform our distribution & product and become profitable/self-sustaining in one year Previously This Year• £0.6m revenue  £1.2m revenue• LA customer base  New fragmented marketplace• Direct Delivery (DD) + free  DD + new way : Licensing cascade  Build & refresh entire suite of• Saleable product – absent or products low value  Social enterprise – building• Cottage industry team/back-office as we go Creating a future platform • Identifying effective marketing channels • Testing assumptions about Licensee performance across product suite • Testing market assumptions – price etc • Building systems to support growth - CRM
  32. 32. The Journey ahead Other people’s really good Talk stuff Training ET,PT, ST Wave 2 Booster Programme Accreditation products Shaped for third party deliveryRecruitment Contract Production & Reporting & Training CRM QA/CPD Management fulfilment & Billing Infrastructure, systems and processes designed and built Happiness
  33. 33. IMPETUS ‘In Kind’ SupportELDP Tender Development Accenture £1,440 CognoLink £6,000Diagnostic KPMG £111,600Programme Management Support Accenture £15,360Financial Model for Licensing PA Consulting £14,400Facilitation of business planning Accenture £1,800Total £150,600
  34. 34. I CAN8 Wakley StreetLondonEC1V 7QE: 0845 225 4073/020 7843 2510: