FUNDRAISING REPORT. Executive Director of Finance. Commercial Development To provide the Committee with an updated report on Fundraising in the UHB.

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1 AGENDA ITEM 2.3 FUNDRAISING REPORT Report of Executive Director of Finance Paper prepared by Purpose of Paper Action/Decision required Link to Health Care Standards: Link to Health Board s Strategic Direction and Corporate Objectives / Legislative and Regulatory Framework Acronyms and abbreviations Head of Contracting, Transport & Commercial Development To provide the Committee with an updated report on Fundraising in the UHB. To note the report and agree the actions proposed The initiative supports Healthcare Standards 26 and 27 Not applicable Charitable Funds NHS National Health Service UHB University Health Board Fundraising Report Page 1 of 8 Charitable Funds Committee

2 FUNDRAISING REPORT Executive Summary. This report provides an overview of fundraising and charitable funds along with proposals for sustaining and developing this area within Cardiff and Vale UHB. 1. INTRODUCTION AND BACKGROUND In recent years, there has been great development in formalising fundraising as an essential service within acute NHS Trusts and Health Boards across the UK. In comparison to other sectors such as education, this development is still in its early stages. A review of NHS Trust/Health Board websites is an excellent indicator of where an individual organisation is in its income development journey. Cardiff and Vale UHB, despite its size and importance, was a late starter, only employing its first Head of Partnership Funding in Following the recruitment of this post in 2003 the fundraising department underwent a slow period of expansion, increasing the number of staff to a total of four. However, during 2009 the staff resource within the then fundraising department was significantly depleted culminating in a situation where there were no longer any staff in post. During August 2009 to ensure that key areas of fundraising work could be continued, as an interim measure the Procurement and Commercial Development Department were asked to assist. At this time it was agreed assistance was only available on a limited basis and the key priority agreed was reviewing the position of the staff lottery. 2. PROGRESS TO DATE Since August 2009 the key role of the limited fundraising staff resource has been in restoring and revising the Staff Lottery. A great deal of work has been completed to ensure the robustness of the membership database and advice was also sought from Internal Audit as to its future management arrangements. Following an Internal Audit Report, all the identified recommendations have now been completed/implemented. The key changes included: Fundraising Report Page 2 of 8 Charitable Funds Committee

3 Development of a Staff Lottery Policy and Operating Procedure Moving from a small society lottery to a private lottery restricted to staff membership only Moving to a monthly draw to enable reconciliation with payroll to ensure that all lottery draws reflect the paying membership for that draw. Upgrading of the lottery software and ensuring the UHB now receives full support and upgrades as required and will continue to do so Lottery publicity material amended to reflect changes Other areas of work have included: Increased use of the Harlequin software (Fundraising Database) to ensure all donations are recorded, acknowledged and gift aid obtained as appropriate. This will be used to further develop a donor retention programme in the longer term. Liaison with other Charities e.g we facilitated the Tenovus sponsored abseil down Brecknock House Co-ordinating individual appeals/fundraising events e.g. bucket collections, etc The management of other donations. The recent Paul McCartney concert in Cardiff generated 9,500 through donated tickets. We are currently in the process of obtaining gift aid on these donations. 3. FUNDRAISING ACIVITY Fundraising activity within the UHB falls within the following key categories: Individual Donations The majority of donations come from grateful patients or their families, friends and colleagues following receipt of a service or treatment provided by the UHB. Some donations are received directly by the fundraising office and these are processed and entered onto the fundraising database. All received within the fundraising office are followed up to obtain gift aid. However, it is believed that many donations are not gift aided (particularly those received at ward level) resulting in a very significant amount of money is lost to the UHB each year. Fundraising Report Page 3 of 8 Charitable Funds Committee

4 Endowment funds Most of the income received in donations is restricted to specific endowment funds. While it is easier to raise money for specific causes, the long term goal will be to increase unrestricted funds in order to maximise flexibility. Corporate Fundraising and Charitable Trusts Both of these income sources were a central focus for fundraising over the last few years and new staff were recruited during 2007 specifically to concentrate on these two areas. However these subsequently left the organisation and were not replaced. Both corporate funding and charitable trusts have the potential to generate high yields of income but both have a slower return on investment than other sources. It takes time to generate and develop relationships, especially in corporate fundraising, and during the recession this is one of the areas that has been hit the hardest in terms of income to charity. The Noah s Ark Appeal, for example, has not engaged in any proactive corporate fundraising activity for the last few years. Legacies Legacy donations are processed by the fundraising office and recorded on the fundraising database. Income from legacies is still relatively minor compared with other charities. A donor retention programme coupled with a much higher profile would result in an increase in legacy donations to the UHB over time. An investment in legacy marketing could be considered in the longer term and the fundraising database will assist in this process. Capital Appeals Capital appeals have the ability to produce good public relations opportunities for the UHB as well as generate income but they need to be executed with skill, the appropriate resources and materials to achieve success. Capital appeals should stand a strong chance of success given the direct contact with potential donors on a daily basis and a base of past patients who may have appreciated the care they received. Capital appeals can be very staff resource intensive and therefore it is considered that these should be explored carefully and resourced appropriately so that Fundraising Report Page 4 of 8 Charitable Funds Committee

5 they become strategically targeted and executed with increased benefits for the UHB. Advertising income This type of income is very limited and is mainly derived from notice board advertising. One previous advertiser paid 40,000 to use the UHB for advertising but such opportunities have now been restricted by WAG guidance. Advertising opportunities also exist on the UHB intranet. Staff lottery Re-launched in 2005 the staff lottery had, at the end of June 2010, one thousand eight hundred and thirty eight (1838) members with a total of two thousand one hundred and forty four (2144) allocated numbers each week. This generates circa 112,000 per year gross and circa 60,000 net after prizes. The lottery has paid out, via the Staff Lottery Grant Scheme, circa 94,000 to worthy causes in the last two years. Given that the current membership represents less that 15% of the current UHB employees it is considered that there is an opportunity to increase this activity generating significant and planned income for the UHB. Just Giving Just Giving is an on-line facility that allows individuals or groups to raise money through sponsorship for their chosen cause using a personalised website. The website can be ed to contacts or linked to a social networking site such as Facebook and people wishing to give sponsorship make their donation on-line and receive an automated thank you by s from Just Giving and the individual sponsored. Further, the Just Giving facility ensures that gift aid is claimed on all donations as appropriate. There is an opportunity for developing this source of income among the many staff across the UHB and the public at large. Charity partners Although not officially part of the UHB, certain organisation e.g. the Noah s Ark Appeal, Teenage Cancer Trust and Latch are Fundraising Report Page 5 of 8 Charitable Funds Committee

6 stakeholders who bring significant benefits to the UHB s operation. Income raised by these partners is not included in the UHB income thus the true amount of income raised for the UHB each year is not known and reflected in its accounts. A review of this system is recommended. 3. KEY PRIORITIES FOR 2010/11 The Procurement Department is currently going through it s restructuring as part of the re-organisation process. This may still take a few months to complete. However, the proposed structure includes a dedicated staff resource within fundraising. It is intended this additional resource will be obtained from the pool of displaced staff within the UHB. On the basis that staff will be in post by the end of September, key priorities for 2010/11 will be as follows: 3.1 Staff Lottery Maintain the robustness of the current lottery systems and to increase the lottery membership. This will be achieved by: Regularly promoting the staff lottery on the Intranet, via Administrator s and by taking a roadshow to individual hospital sites where draws could take place Use of a Super draw promoted well in advance in order to attract new members Targeting any new starters through starter packs and induction processes Dedicated proactive visits to all UHB sites specifically to target individual ward/department areas. This will include the locality offices and office only areas such as Lansdowne. 3.2 Gift Aid To introduce a UHB-wide process to ensure donors complete Gift Aid authorisation as appropriate. This will be a large project and it is proposed that 1 Whole Time Equivalent (WTE) of the additional staff resource is used for this purpose over a six month period initially. This would be a specific project and the remit would be: To develop a process to ensure donors complete Gift Aid authorisation Fundraising Report Page 6 of 8 Charitable Funds Committee

7 To engage with ward/departmental managers to agree and implement the process To provide any necessary training to nominated ward/departmental representatives The process should ensure appropriate data capture in order that this can be recorded on the fundraising database Once established the process will need to maintained with the appropriate staff resource. 3.3 Legacies To ensure all information on legacies is captured and entered onto the fundraising database in order to develop and build up a donor retention programme. Such information would include family details and details of family solicitors in order to exploit potential opportunities for bequests. 3.4 Major Local Events Building on the recent success of the donations resulting from the Paul McCartney concert it is proposed to contact local major event venues (and possibly agents) to ensure the UHB is considered for any future ticket donations. Although one-off events, these can prove reasonably lucrative for relatively little time investment. 3.5 Fundraising Strategy There is a need to develop an appropriate Fundraising Strategy which will set out clear objectives in the short, medium and longer term. This strategy will consolidate current action in the first instance and will be used over the next five years to develop charitable fundraising within Cardiff and Vale UHB. The longer term plans will explore opportunities to form strategic partnerships with charities that have existing relationships with the UHB. 4. RECOMMENDATION The Charitable Funds Committee is asked to: AGREE the key priorities for 2010/11. Fundraising Report Page 7 of 8 Charitable Funds Committee

8 IMPACT ASSESSMENT Health Improvement Workforce Financial Legal Equality There will be an impact on workforce as there is a requirement to have staff in post to ensure the fundraising can be sustained. There is the potential for financial gain in relation to charitable funds by implementing the key actions as outlined within this report. [eg Designed to support compliance with equality and employment legislation.] Environmental RISK ASSESSMENT Clinical/Service Financial Reputational Having correct processes in place for Charitable Funds will ensure the good reputation of the organisation. CONSULTATION AND ENGAGEMENT SOURCES OF INFORMATION & EVIDENCE Fundraising Report Page 8 of 8 Charitable Funds Committee