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ECF gratefully acknowledges financial support from the European Commission. Sustainable Not-for-profit incomes Kevin Mayne [email protected] Model for appraisal, comparison and investment in organisations Where are your strengths and weaknesses? Leadership Inputs Outputs Results Mission People Activities Vision Resources Products More people cycling Purpose Policy Services Organisation Campaigns More often Contents • Fundraising and income generation – the same? • Where the money comes from • The “not for profit difference” • What about membership? 3 What is fundraising • Wikipedia: – Fundraising is the process of soliciting and gathering voluntary contributions as money by requesting donations from individuals, businesses, charitable foundations, or governmental agencies • Income generation (business development) – Generating income/free cash flow for activities using a wide range of approaches including voluntary contributions 4 Not for profit income generation – matrix of sources Mission/values led Service led Corporate Foundations Corporate social responsibility (CSR) Sponsorship Advertising Advocacy Government Grants Partnerships Philanthropic Grants Programmes Individual Donations Membership Tenders Public sector promotions Events Services Events Membership 5 Mission/values led Service led Corporate Foundations Corporate social responsibility (CSR) Sponsorship Advertising Advocacy Statutory Grants Partnerships Philanthropic Grants Programmes Individual Donations Membership Tenders Public sector promotions Services Membership 6 Individuals • Donations – voluntary contributions, no personal gain (inc. crowdsourcing) – Mass donation – lots of small donations – High worth individuals – single large contribution • Memberships – To support the goals of an organisation – To receive a personal or private benefit • Sales – To make a profit/commission on sales of goods and services 7 Corporates • Foundations & donations – tax efficient giving to good causes supported by the owners/ employees • Corporate Social responsibility – Discharging the company’s responsibilities to wider society – Enhancing reputation • Marketing, market development and defence – Sponsorship – Advertising – Advocacy 8 9 Government • Grants – Money linked to the public policy goals of the body giving the payment – No expected benefit to the body itself • Services (tenders) – Delivery of benefit to a public body by efficient delivery of its activities 10 Philanthropic • Charities • Trusts & foundations • Lotteries – Receive income and tax relief “for the public good” – Spend money “on good causes” 11 13 The “Not for Profit difference” Mission/values led Service led Corporate Foundations Corporate social responsibility (CSR) Sponsorship Advertising Statutory Grants Partnerships Philanthropic Grants Programmes Individual Donations Membership Tenders Public sector promotions Services Membership 15 Discussion: not for profit difference 16 Example – EU Environmental NGO funding DG ENV needs: • Lobbying purpose • Subject expertise, issue focus • Coverage – city to global • Awareness – Emerging issues – Grass roots intelligence • Channelling – To and from grass roots – Networks – Media NGOs need: • Strategic development • Organisational infrastructure • Capacity building, enlargement • Technical competence • Communication and profile building • Diverse funding 17 Cycling Industry Club • Every Euro is an investment in growing cycling which is good for everyone’s business. • We're helping governments and cities create better places to ride, which gets more people riding. • More people riding means more people buying bikes and equipment • We’re putting cycling’s innovators onto the global new technology agenda • We are supporting job creation. 18 NGO Funding Matrix Mission/values led Service led Corporate Foundations Corporate social responsibility (CSR) Sponsorship Advertising Advocacy Statutory Grants Partnerships Philanthropic Grants Programmes Individual Donations Membership Tenders Public sector promotions Services Membership 19 Questions 20 Funding exercise • 200,000 Euros is available from either – Cycling Industry Club – Individual donations for your cause – NGO Program Grant for environmental action • The money will go to – A single campaign to change national policy – The best combination of: • The most believable campaign • Not for profit difference • Meeting the needs and motivations of the funders • Presentation 21 Feedback 22 Thank you for your attention ! For more [email protected] @eucyclistsfed @maynekevin www.ecf.com