The Wheel is an organization that supports charities and community groups in Ireland. It has traditionally relied on government grants for 40-50% of its core funding but funding has declined in recent years. To address a projected budget shortfall of €500,000 over three years, The Wheel developed a strategy to diversify its income sources across five areas: external relations, growing earned income, increasing membership, pursuing foundation/trust funding, and developing private sector partnerships. The strategy aims to increase earned revenue by €700,000 total by 2013 through new business development efforts and additional staff capacity. Initial monitoring shows progress generally on track with the plan.

1. A Means To Diversify The Funding Base Presentation to Common Cents Conference 2011 12 May 2011 Presentation By Hugh O’Reilly Business Development Executive, The Wheel

2. About The Wheel The Wheel is the largest network of charities, community and voluntary organisations in Ireland. Vision Our vision is of an Ireland with a vibrant and dynamic community and voluntary sector, as united as it is diverse, operating at the centre of Irish life and decision making as a necessary part of a healthy democracy. Mission Our mission is to strengthen the community and voluntary sector, focusing on organisations that seek to create a better world.

4. A total of 25% (or circa €250,000) of income in 2009 came from members and others in the sector via earned income

5. Yet The Wheel has traditionally relied on a large proportion of its annual core funding (of between 40% - 50%) to come from statutory/government grants to meet service demand

6. Breakdown of 2010 Income*National Training Fund Allocation

8. Overall income high water mark was in 2008

11. The Wheel’s objective is to serve our members in two primary ways: helping them to get their work done and representing their shared interests to government and other decision-makers

12. Looked at the core budget and resources needed to deliver on the mission over the next three years

13. Looked at the likely funding available to do so. Assumptions were made that:

14. The Wheel will continue to grow its membership numbers year on year and will thus bring in an income from this activity (Law Society of Ireland 49% of income generated by member and subscription fees)

15. statutory income will be reduced by 50% in 2011 and repeatedly in subsequent years also

16. All costs associated with non-core funded schemes were not included and it only concerned our “core funding” needs as per our current business model.

19. Look at the core mission of the organisation and assess the services provided to deliver that mission

20. Assess ALL the ways your organisation can generate income. Rule nothing out initially but go through each systematically before you focus on the core sources available to you

22. The Wheel identified 5 core areas or strands where they could hope to develop and diversify the income streams of the organisationFocus on external relations to advance the organization – through significantly increased networking and contacts-management opportunities for the organization in general as well as for funding will be identified. Focus on incrementally growing the ‘earned income’ capacity of The Wheel by setting challenging targets in a number of areas: training income, selling publications, advertising and consultancy income. Focus on growing the membership base and doubling the numbers over three years: this will involve enhanced member benefits, enhanced sales techniques and various incentives. Approach foundations and trusts for project funding: researching, drafting and submitting applications. Identify, target and develop relationships with ‘preferred partners’ in the private sector that secure sponsorships, advertising and other types of financial support for The Wheel.

24. The Wheel identified the capacity and resources available to them internally to deliver the 5 strands

25. Looked at the cost/benefit of taking on additional resources to deliver the programme

26. Added the overall calculated cost (€180K) of additional resources needed to deliver the programme to the original deficit of €500,000

27. Thus The Wheel’s three-year income diversification target comes to ca €700,000.

28. Employed a new Business Development Executive at the end of June 2010

29. Income diversification Strategy is to increase the earned revenue of the organisation by €700,000 in the three years from 2011 – 2013:

30. Year 1 TargetIncrease (2011): €150,000 approx

31. Year 2 TargetIncrease (2012): €250,000 approx

33. We are mapping all earned income lines to strands of the income diversification strategy

34. Some line items are a little flattering due to timing issues etc

35. Some line items are flagging

36. Good news is that we are tracking it and monitoring it

37. All told we are about where we need to be

39. Step 1: Engage the Board and your staff; buy in from everyone from the top down

40. Step 2: Scope the task; take the starting point of assuming cuts to funding of 50% and see how you would survive

41. Step 3: Assess Your Options; rule everything (all income generation ideas) in until you have to rule them out

42. Step 4: Develop Actions; every piece of real estate and service you provide has a monetary value, choose the ones that best deliver your mission

43. Step 5: Capacity to deliver; internally or externally, unless you resource the plan adequately you are setting it up for failure from the start

45. There are no silver bullets, be prepared to work and be prepared for things not to work out

46. You are not alone, everyone is in the same boat so network and ask advice

47. Imitation is the highest form of flattery … which is justification for theft! (cut, copy, paste)

48. Data is key (being able to have data and being able to regularly review it)

50. Questions & Answers Presentation to Common Cents Conference 2011 12 May 2011 Presentation By Hugh O’Reilly Business Development Executive, The Wheel