TAUNTON & SOMERSET NHS FOUNDATION TRUST. Fundraising Strategy

Transcription

1 TAUNTON & SOMERSET NHS FOUNDATION TRUST Report to Trust Board on Wednesday 26 November 2014 Purpose of the Report: (Please type in Bold) This paper is intended to enable debate and decision from the Board on the future direction of charitable fund raising for Taunton and Somerset NHS Foundation Trust. Sponsor: Author: Contact Details: Chris Perry, Executive Director of Change Chris Perry, Executive Director of Change Ext: Indicative Timings (Mins) Financial/Resource Implications: Risk Implications ink to Assurance Framework or Corporate Risk Register: egal Implications: ink to CQC Essential Standards N/A N/A N/A Freedom of Information Status: Tick if one of the following apply: Data protection staff or patient detail Commercially sensitive Stakeholder management Early stage of discussion Previous Considerations: Action Required: (Please type in Bold) The Trust Board is asked to discuss the three options for ove Musgrove and provide an agreed direction of travel TSTA/11.14 Page 1 of 11

2 1. PURPOSE OF THIS PAPER FUNDRAISING STRATEGY 1.1 This paper is intended to enable debate and decision from the Board on the future direction of charitable fund raising for Taunton and Somerset NHS Foundation Trust. 1.2 The Trust Board will be aware that for the past 24 months we have employed a Charitable Funds Manager on a 0.6 FTE basis as an attempt to dip our toe in the water in this area. There have been a number of notable achievements in this time including our Staff ottery, Christmas Raffle and the development of the ove Musgrove Brand. As is demonstrated in this paper since we have had our charitable fundraiser there has been a steady increase in the total income to our charity. This has been achieved with very little resource and certainly a very limited internal fundraising knowledge or expertise. However there have also been a number of false starts around major fundraising campaigns (eg maternity) and differing levels of appetite from Board members to increase our charitable activity. 1.3 Before August 2012, anything related to the charitable fund was managed by the Charitable Funds Accountant and then directed to the relevant fund holder. All publicity queries were sent to the Communications Department. All thank you s were dealt with by the relevant fund (In memory and legacy were sent from the Finance Director). 1.4 During the consideration of this paper our current Charitable Funds Manager has resigned and leaves the hospital towards the end of November. 1.5 This paper sets out some thoughts and themes on what might be achievable if we were to increase our ambition and activity on fundraising, it also encourages debate on how strategically important this is when contrasted with the significant operational and change agenda we are focusing on and the capacity for management focus on this. 1.6 It asks the Trust Board to consider three options: Scale back charitable funds and operate with just limited administrative support to ensure that we continue to run our staff lottery and administer and thank donations and unsolicited fundraising efforts (by staff and the public). In addition to focusing the work of the Charitable Funds Committee on building relationships with existing partners such as the eague of Friends Pursue a bolder strategy (and invest the required resource to kick start this) as outlined in this paper. Pursue a bolder strategy (as above) but defer acting on this until a later date (2015/16?) in recognition of the priority of other items on our management agenda. TSTA/11.14 Page 2 of 11

3 2 WHERE WE ARE NOW 2.1 Fundraising income enters the hospital in two main streams: External groups SURE Somerset Unit for Radiotherapy Equipment eague of Friends of the Taunton Hospital MG - Musgrove eukemic group Somerset Bowel Cancer Support Group ove Musgrove Musgrove Park Hospital (Taunton and Somerset NHS Foundation Trust Charitable Fund). 2.2 The Charitable Fund is made up of 51 smaller funds (excluding the community hospital figures). The small funds within the main charitable fund have been set up by a wide variety of sources ranging from individual surgeons through to whole department funds. 2.3 A small number of the 51 funds have a good level of support and receive a high proportion of donations. These funds include the Children s Unit, the Neo-Natal Intensive Care, Breast Care and the Beacon Centre. Whereas funds like Physiotherapy, the Medical admissions unit and Orthopaedic Wards have had few donations in the last three years (eg Orthopaedic wards received 407 in 2011/12, 515 in 2012/13 and 1596 in 2013/14). 2.4 Over the past few years we have closed down small and inactive funds and sought to limit the opening of new restricted or designated funds wherever possible as these clearly restrict how the funds can then be used. 2.5 The Beacon Centre generates a significant amount of support throughout the Somerset area and receives a high percentage of the total donations received. So far this financial year they have received 63k in donations. In previous years they have received 72k in 2011/12, 104k in 2012/13 and 122k in 2013/ The ove Musgrove general fund has seen a gradual decline in donations and legacies since the opening of the Beacon Centre in Before 2009 cancer services were spread across the hospital, donors looking to support this service did not have a specific area to donate or leave legacies too, so were more inclined to donate to the general fund. 2.7 The table below and graph show the total income for ove Musgrove (Charitable fund, excluding community hospitals) over the last seven years. Without the identified anomaly, 2013/2014 received the largest amount of donations and within the same financial year, two large legacies were received. This combination has resulted in a 75% increase on 2012/13 figures. It should be noted that legacy fundraising is difficult to forecast, and it is not unusual for these to fluctuate year on year. TSTA/11.14 Page 3 of 11

4 Year Donations egacies Fundraising Investment Total 2007/08 127k 57k 2k 142k 328k 2008/09 506k* 30k 3k 137k 676k 2009/10 268k 99k 1k 76k 444k 2010/11 292k 371k 7k 58k 728k 2011/12 247k 118k 24k 57k 446k 2012/13 300k 103k 22k 52k 477k 2013/14 424k 316k 37k 61k 838k * One off donation of 190k from a charity that was disbanding. Note: Donations include all one off donations, in memory donations and supporter led fundraising events etc. Fundraising includes Staff lottery and fundraising for the OSNA. Therefore the success of our fundraising effort should be viewed in the round and not by just judging the fundraising line. Fundraising Activity And Relationships 2.8 Currently, ove Musgrove Musgrove Park Hospital s charity reacts to the donations, queries etc it receives as opposed to being pro-active in driving donations forward and planning for the next The ove Musgrove s staff lottery was launched in July It currently has 1100 tickets included in the monthly draw generating 36k net income Presently, the relationship with our external fundraising groups has room for improvement. The Fundraising Manager has quarterly meetings with the eague of Friend s fundraiser and has supported SURE and Somerset Bowel Cancer Support Group at a number of presentations. There still remains a concern within these external groups that ove Musgrove is a new charity and not a rebrand of the existing charitable fund. In addition, the external fundraising groups could see the fundraising TSTA/11.14 Page 4 of 11

5 manager as a threat and may be reluctant to look for support or share plans. There is an increasing indication of a desire to pursue a more co-ordinated and collaborative approach, particularly with the eague of Friends. ocal and National Competition 2.11 There are a number of high profile national and local charities within the Taunton area that are in competition with ove Musgrove: The Dorset and Somerset air ambulance and St Margaret s Hospice are both well established and have a high profile and brand presence within Taunton and the surrounding community. In addition, both these charities can claim that they receive no government funding. Competition also comes from a number of national charities on-site e.g. Macmillan, Cancer Research UK. The eague of Friends, SURE, Somerset Bowel Cancer support group and MG should not be seen as direct competition (although the target market for donations is the same) but it needs to be highlighted that these groups are very specific or equipment driven and therefore is limited to certain areas of the hospital. A Maggie s Centre is in the planning stages of being built on Galmington playing fields (easily accessible from the Beacon Centre). This centre is likely to have an impact on the donations received by the Beacon Centre. General Fund 2.12 The hospital s general fund (when no-one specifies a ward or department) is almost empty and only receives the money generated from the lottery. A large part of the hospital relies on this fund to request additional money as they either have limited funds in their own fund or do not have a fund. This will become increasingly difficult for general funds to be generated without a pro-active approach to encourage income into the general fund. 3 WHAT MIGHT BE POSSIBE 3.1 The paper sets out in some detail the possibilities for fundraising until March However given the inevitable uncertainty for longer term planning, there is more detail within the first three years. 3.2 It should be noted that if we are successful with our Weston bid, then the ove Musgrove Musgrove Park Hospital Charity brand and fundraising within Weston Super Mare and North Somerset will have to be discussed further. Benchmarking 3.3 Based on a report from the Association of NHS Charities, the average hospital charity income accounts for 0.74% of the overall parent hospital budget. Using 2013/14 total income, ove Musgrove is achieving 0.33% of the trust s budget. However, it should be noted that in 2013/14, the hospital received two large legacies, which will have had significant impact on the year s results. If we reduce legacies to a more realistic sum of 116k, ove Musgrove is achieving 0.25% of the Trust s budget. However when we compare ourselves against our regional peers (see table below), we perform strongly considering the difference in fundraising resource. TSTA/11.14 Page 5 of 11

6 NHS Charity 2013/2014 ( 000 s) Northern Devon Healthcare NHS Trust Charitable Fund 2012/2013 ( 000 s) 2011/2012 ( 000 s) Fundraising Staff 613k 438k 2 Full Time Yeovil District Hospital NHS Foundation Trust Charitable Fund Salisbury District Hospital Charitable Fund Taunton and Somerset NHS Foundation Trust 382k 369k 457k 2 Full time 1,888k 1,478k 3 Full Time 838k 477k 446k 0.6 WTE 3.4 Based on this a stretching but achievable target could be to grow our charitable income to a level of 1.5m by This represents an income growth of 79% over the next 5 years. 3.5 To achieve this we have identified a number of areas that we would need to address to achieve this level of fundraising. These include the following categories (detail not included in this paper). Cultural elements Fundraising strands Role in the community and of the community Staffing resources Accommodation and resources Partnership approach Clarity of opportunity by fund-raising channel and understanding of the requirements Staff Resource 3.6 Currently the resource for pro-active fundraising is not sufficient for an ambition of this size. The hospital currently employs a fundraising manager on a part-time basis (0.6 WTE). This position was recruited on a two year fixed term contract, which was extended for a further seven months until the end of March If the hospital chooses to develop a strong local charity that can realise the full potential, then we will need to agree to further resource. 3.7 In addition, like other hospital charities, Art 4 ife could sit within the fundraising department. They are currently counted as one of the 51 charitable funds and use the same charity number. By being part of the fundraising function, will allow for a more joined up approach. TSTA/11.14 Page 6 of 11

7 3.8 A suggested requirement is set out below: Fundraising Manager EXISTING POST 0.6 FTE increase to Full time in 2015 Job will include:- - Fundraising Strategic planning Engage with High profile individuals Trust and Grant fundraising -Corporate fundraising ART 4 ife Team Community & Events Fundraiser PROPOSED NEW POST In 2015 Another fixed term post in 2017 for the Appeal Band 5 Full Time Job will include:- - aunch new events and produce an annual plan of events -Secure income from community groups (Rotary clubs, ions, Schools) -Encourage and support stakeholders /individuals/community groups to organise their own fundraising events. Fundraising Assistant / Administrator PROPOSED NEW POST In 2015 Band 3 Full time Job will include:- - Maintain and operate fundraising database to provide statistics i.e. contact names, money raised. -Collection Tins - ottery Admin - Event Admin - General Support Trust and egacy Fundraiser Proposed New Post in 2016/17 Band 5 Full Time Jobs will include:- -Research and submit applications grant making trusts and foundations - Develop a plan to promote legacies, tribute funds and In Memory donations 3.9 It would of course be appropriate for any future leader of this team to shape their own team so the suggestion is that, if we were to take a bolder approach to fundraising that we appoint a new fundraising manager and administrator as a first step. 4 THE PAN 4.1 The current income level of 838k is formed from only three income streams egacies, Donations and a small amount from the ove Musgrove Staff lottery. The plan to increase this level of income to 1.5m by 2020 would require investment in several new income streams, an increase in staffing and by increasing the presence of the ove Musgrove brand throughout the hospital and surrounding community. 4.2 There will also need to be a cultural shift towards raising funds from the local community in a far more pro-active style than in the past, with the ambition to become a well-recognised and respected local charity. This will require substantial financial and management commitment to succeed, especially during the first two years when costs will rise before any substantial rise in income might be seen. 4.3 Over the 5 year plan, income is planned to rise from 515k to 1.5m; (see table below) costs will rise from the current level of 35k per annum to a peak of 352k. Most important of all is the net contribution the funds available for charitable purposes. These will rise from the current level of 477k, peaking at 1.65m in the TSTA/11.14 Page 7 of 11

8 campaign and achieving 1.3m by the period end nearly a threefold increase. Cumulatively by 2020, additional contribution amounts to an extra 3m for an investment of 1.16m in costs. Activity ( k) Current Forecast 14/ / / / / /20 egacies Donations Staff ottery Events Corporate Regular Donors Trusts/ grants Direct Mail Tribute Funds In Memory SMS / Digital Sub Total Campaign Total Costs Staffing Manager Community & Event Fundraiser Fundraising Admin / Assistant Trust & Foundation Fundraiser Campaign Staff (2 year fixed term) Total Staffing Costs Fundraising Costs Marketing Support Costs Sub Total Cost: Income ratio 7% 26% 23% 22% 18% 19% Total income Total cost * It should be noted that these figures are only achievable with a team in place before the start of 2015/16 financial year. Commentary Income egacies are difficult to forecast so we have adopted the status quo until 2017, by which time we would expect some improvement having launched a legacy campaign and having a higher profile within the community. This forecast could be significantly understated. Donations will build as the charity is marketed and activity is increased, with new initiatives such as SMS text donations and on-line donations. Staff ottery has already started to plateau since its launch in July With increased effort there is potential to achieve a steady increase from the 1100 current TSTA/11.14 Page 8 of 11

9 tickets already sold There is greater potential in this area if we extend the lottery to the public but this will also increase expenditure. Events will develop with the appointment of a Community and Events fundraiser, lifting to 175k income by Volunteers will support these activities. There is a small (but keen) body of colleagues who are keen to get involved with increased fundraising. Corporate derives from linkages with local and/or regional businesses and will build to 60k per year through staff fundraising, staff events, payroll giving and other activities. Regular Donors will be cultivated and recruited on a planned basis. However, this is not expected to develop until 2016 following necessary development work to research existing donors and recruit new supporters. New growth to 50k by Trusts and foundations could provide steady income (if small projects are found) but this could grow if there are major projects in hand or research funding is needed. This is an area that will benefit from a campaign. Tribute Funds are at present undeveloped. A strategy will be devised to build income from this source to 60k by 2020, which is a modest target given current growth in other NHS Charities. In Memory is already a good contributor, but has considerable potential if cultivated with local Funeral Directors. Currently this is not being correctly measured and is being classed as a donation. By 2020 this figure should reach 55k. SMS Digital/ Social Networks is a developing area and will be a mainstream source of income for all charities by The target is modest and could well be exceeded but this may impact on other streams, as donors giving habits shift. Direct Mail to patients is a difficult concept within the NHS due to data protection and patient confidentiality. However a number of NHS trusts have run some very successful campaigns using this method following basic rules. By 2020 this source of fundraising should be generating 30k. Campaign a two year campaign is planned to be developed and launched in late 2017 to peak in late 2018 and fall back in This is expected to be a 1 million equipment campaign (subject to considerably more research and planning. 5 OPTIONS APPRAISA There are three main options to consider: Option 1 Minimum Activity (No employed Fundraiser within the Trust) 5.1 With the departure of our current fund raising manager we are moving to this default as an interim step this will see our current communications team with the support of c0.4wte (sourced from our staff bank) of administrative support subsume a minimum activity position. This will include: Staff ottery - The staff lottery was launched in July by the current fundraising manager. As previously discussed it has roughly 1100 tickets entered each month TSTA/11.14 Page 9 of 11

10 and generates a net yearly income of 32k. Even with minimum activity, this function will need someone to run and manage it. General enquiries - Many fundraising enquiries will be managed by the specific fund if this option is adopted, however the communications team will be responsible for supplying sponsor forms, assisting with Justgiving / Virginmoney web pages, allocating and collecting collection tins, and directing supporters to the appropriate department. TSTA/11.14 Page 10 of 11

11 However, it should not be forgotten that there are a number of areas within the hospital that already have good staff engagement towards fundraising. A number of staff particularly within the Beacon centre use their own time to attend fundraising events organised by community raising money for their department. This staff goodwill would continue without a fundraising department but would need to be managed by the individual fund managers. Investment in this area throughout the hospital could see more staff encouraged to do more to increase awareness of the need for fundraising and donations within their department. Whilst not being an ambitious strategy this does have the advantage of not adding to the current strategic workload and therefore possible distraction. It should be said, however, that if managed well and with the right calibre of Fundraising Manager and support from the Charitable Fundraising Committee it should be possible to minimise distraction on management time. Option 2 Pursue a bolder charitable funds strategy 5.2 Invest, using charitable funds, in developing a strong local charity that can realise the full potential. This is proven to have worked well for many NHS Foundation Trusts so we have a good model on which to base any development. There is potential to increase the base annual income (excluding any campaigns) to 1.5m by In considering this option we must be cognisant of the management time that might be required as well as the limited amount of expertise and knowledge currently existing in our team. This option provides much increased benefits of community and staff engagement and harnessing the goodwill out there to the hospital. Option 3 Pursue a bolder charitable funds strategy, but delay its execution 5.3 As option 2 however with a delay in implementation to take account for the current limited management time that can be applied to this approach. 6 RECOMMENDATION 6.1 There are advantages and disadvantages to each approach and a wide variation of views on the relative merits of these. Therefore the Trust Board is asked to discuss the three options for ove Musgrove and provide an agreed direction of travel. TSTA/11.14 Page 11 of 11