Post on 05-Dec-2014
description
transcript
Thinking about the future:
The need for a new funding model for
nonprofits
Presented by Marcus Coetzee
July 2009
Part 1:
The Problem
1. Pool of funding oversaturated
www.Flickr:com : Mrr182
2. Increase in numbers of NGOs
Size and scope of the nonprofit sector in South Africa, 2002.
…and this was only in 1999
3. Project funding is dangerous
• What happens in the gaps between funding?
• Who pays for the infrastructure needed to support projects?
• How big is the profit margin?
• Who pays when funding is late?
4. Financial management complicated
• Multiple donors, each
with their own reporting
requirements
• Overheads no one
wants to pay for
• Gaps between funding
but still bills to pay
• No profit margins
• Separate audits and
bank accounts
• Restrictions on use of
funding
www.Flickr:com : Walwyn
5. Fraction of impact
HDI Index from WorldMapper
Are you having more than 10%
of the impact you desire?
Part 2:
Some Good Ideas
1. Change your paradigm
2. Market, don’t fundraise
• Sell success, not problems
• Embrace web 2.0
• Demonstrate impact
• Package products
• Clearly define purpose and
outcomes
• Differentiate from competitors
• Grab PR opportunities
• Provide ROI to donors/investors
• Develop enticing brand
Abalimii
3. Earn income, don’t beg for donations
For example…
Social enterprises are well-established
in the United Kingdom:
• 55,000 social enterprises
• Turnover of £27 billion/year
• Employs 5% of workforce
• Government has a social enterprise
strategy and department of social
enterprise
• Legal form for social enterprises
(community interest company)
• Social enterprise funds (e.g. DOH
has £100 million in investment fund
for social enterprises.)
4. Hunt for the profit margin!
www.Flickr:com : Charles Fred
5. Explore new funding models
• Sell services/products to beneficiaries (e.g. All Grameen
Projects and A-Z Textiles and SoHCo Housing)
• Sell services to government (e.g. TADSA and NICRO)
• Increase paying membership (e.g. Fine Music Radio)
• Setup/buy and use businesses (e.g. Acumen Fund)
• Certify (e.g. Forestry Stewardship Council & Heart
Foundation)
• Increase individual donors (e.g. Doctors without Borders &
Greenpeace)
• Raise money from successful beneficiaries (e.g UCT
Alumni)
• Recycle resources (e.g. FeedBack and various community
recycling co-ops)
• Siphon money from businesses (e.g. Charity Wines or
other cause-related marketing projects)
6. Integrate into business systems
Tetra Pak
Timber Plastics recycles waste and employs
former prisoners
NICRO manages
rehabilitation
SASOL ChemCity
Green and low cost building materials
Fibre to Paper Mills
Earns income Provides
rehabilitation
Enterprise development and honouring responsibilities
Thank you
Good fortune, and hope we have
given you something to think about
Marcus Coetzee
www.MarcusCoetzee.co.za
Marcus.Coetee@gmail.com
0828799131