How to Develop a Funding Model

Transcription

1 How to Develop a Funding Model Seri Renkin CEO, ten20 Foundation Caroline Chernov Executive Director, ten20 Foundation Greg Peel CEO & Managing Director, Bendigo Bank Community Sector Banking Jane Vadiveloo Founding CEO, Children s Ground

2 Funding Collec-ve Impact Efforts Seri Renkin CEO, ten20 FoundaAon Caroline Chernov ExecuAve Director, ten20 FoundaAon Greg Peel CEO & Managing Director, Bendigo Bank Community Secto Banking Jane Vadiveloo Founding CEO, Children s Ground

3 Session Objec-ves 1. Increase awareness of the types of funding and roles for funders in collecave impact efforts 2. Understand the realiaes of the state of play of this type of funding model and approach in Australia 3. Influence mind sets to think differently about leveraging funding resources and community assets to support collaboraave work

4 ten20 Founda-on A venture philanthropy organisaaon dedicated for 10 years to transforming outcomes for vulnerable children and their families by funding and supporang collecave impact iniaaaves in 20 high need communiaes, with potenaal to work differently. Recognise need to build the naaonal learning system and evidence base required to scale new community driven models. 4 cri-cal change levers we mobilise funds and our own exper-se around: 1. Brokering and Strategy 2. Community Leadership and Governance 3. Shared Data and Measurement 4. Aggregated Funding Models (including development of community based social finance products.)

5 Achieving Large- Scale Change through Collec-ve Impact involves funding the capacity for communi-es to develop the condi-ons for: 1 Shared Vision & a Common Agenda A broad set of cross- sector community partners who come together in an accountable way to implement a community vision and to communicate it effecavely so as to gain broad base support. 2 Collabora-ve Ac-on & Con-nuous Improvement Groups of appropriate cross- sector pracaaoners and individuals who organise around specific selected outcomes who use data to conanually idenafy, adopt and scale pracaces that improve that outcome. 3 4 Shared Measurement & Evidence Based Decision Making Backbone Coordina-on & Sustainability Data and professional experase (hard and so\ skills) used to drive evidence based decision making, conanuous improvement and adapave leadership. Infrastructure and resources that are commi[ed to sustain the work of the collaboraaon to improve idenafied outcomes (includes mobilising resources, running partnership operaaons and building strategies and products for self reliance and financial sustainability).

6 Taking a Collec-ve Impact Approach Offers Funders the Opportun to Amplify Impact, Leverage Funding, and Drive Alignment Amplify Impact Increase Efficiency of Resources Involves mulaple partners working towards long term, systemic change Offers a holis-c approach by channelling the energy of various stakeholders towards solving a problem Provides opportuniaes to influence the system from within and outside by coupling advocacy with acaon Allows more efficient use of funding, especially in Ames of scarce resources Enables leveraging of public and private sources of funding Opens channels for organizaaons to access addi-onal funding against an issue Drive Alignment Reduces duplica-on of services Increases coordinaaon Embeds the drive for sustained social change within the community

7 ShiVing from Isolated Impact to Collec-ve Impact Requires a Different Approach on the Part of Funders The current approach of many funders is less conducive to solving complex problems: Funders develop internal foundaaon strategy Funders pick and fund individual grantees, who work separately and compete to produce results Funders pre- determine approaches to get to the desired outcome Funders build capacity of individual organisaaons Funders evaluate individual grants and determine a[ribuaon Funders are held accountable to internal stakeholders (e.g. Board) Funders work independently and don t always coordinate their acaons with other funders In a collec-ve impact context, funders shiv their mindset to an adap-ve approach more aligned with complex issues: Funders co- create strategy with other key stakeholders Funders fund a long- term process of change around a specific problem in acave collaboraaon with many organisaaons within a larger system Funders must be flexible and adapave to get to the intended outcome with stakeholders Funders build the capacity of mulaple organisaaons to work together Funders evaluate progress towards a social goal and degree of contribuaon to its soluaon Funders are held jointly accountable for achievement of goals developed as part of effort Funders acavely coordinate their acaon and share lessons learned

8 ShiVing from Isolated Impact to Collec-ve Impact Requires a Different Approach by Communi-es Leverage and ualise what resources and assets you already have before you seek more Demonstrate the Business Case for Change (nothing fluffy) Design a mixed funding model built on strong relaaonships with significant investors who have a deep concern for and connecaon with a paracular community and/or the issues faced Design a collecave Investment approach where all funders support the shared agenda and investment is a[ributed to key milestones, outcomes and impacts - not individual components of the work Engage funders as partners in the overall iniaaave with a variety of important roles to play, over a long period of Ame. CommuniAes need to idenafy and leverage all potenaal funding sources AND human resources

9 Funders Can Engage in Collec-ve Impact Efforts in a Number of Ways Sample Funder Role Descrip-on Examples Catalyst Funder iniaates collecave impact strategy as champion, financier, and convener, potenaally playing a key role in a[racang resources throughout the effort Backbone OrganisaAon Funder organises and coordinates the acaons of cross- sector stakeholders to advance collecave impact effort Fairley FoundaAon, Shepparton, VIC Children s Ground, NT ParAcipant Funder acavely paracipates in collecave impact effort, and aligns funding and measurement to the effort Today Tomorrow FoundaAon, Benalla Funders can play a wide range of roles in Collect Impact efforts, even within these categories

10 There are different funding and support needs from Start up to Scale $ CAPITALSOURCES Philanthropic Foundations Corporate Foundations Giving Circles Family Foundations/ PAFs HNWs/ UHNWs Government (Fed, State, Institutions Local) Corporate CSR/ Shared Value Programs VC/Private Equity Firms $ CAPITAL TYPES Philanthropy Impact Investing Risk Grant Soft Debt Social Impact Bonds / Pay For Success DEVELOPMENT CYCLE Stage of Deal Type of Deal Blueprint/ Exploring Validate/ Emerging Prepare/ Initiating Scale / Sustaining Non Profit Venture Social Enterprise Collaboration Type of Return Social Social and Economic Economic

11 Funder Ac-vi-es Can Take a Number of Diverse Forms Over the Course of a Collec-ve Impact Effort Illustra<ve Funder Ac<vi<es Exploring Emerging Ini-a-ng Sustaining Fund data collecaon / research required to make the case for collecave impact Encourage grantees and stakeholders to collaborate Encourage other funders to join the effort / align with other funders Use convening power to draw key stakeholders to the table Broker relaaonships to create open lines of communicaaon between stakeholders ParAcipate on Steering Commi[ee Fund backbone infrastructure Fund shared measurement systems Fund trainings to increase stakeholder experase in key collecave impact skills sets, e.g. leadership, group planning Fund research on evidence- based pracaces Encourage grantees and other stakeholders to align evaluaaon to shared measures Convene community stakeholders ParAcipate on working groups or Steering Commi[ee Align funding with the common goals and measures of the effort ConAnue to fund backbone infrastructure and shared measurement systems Fund discrete iniaaaves idenafied through the collecave impact effort Provide content experase on evidence- based pracaces ConAnue to encourage grantees and other stakeholders to align evaluaaon to shared measures Align strategy with other funders and acavely coordinate ParAcipate on working groups or Steering Commi[ee

12 Key Success Factors for Effec-ve Funder Engagement Include Ins-tu-onal Adaptability, Culture ShiVs, and Long- Term Orienta-on InsAtuAonal Adaptability Culture Shi\ Long- term OrientaAon Flexibility to work outside of tradiaonal grant cycles and established internal processes Ability to be nimble in pursuing opportuniaes as they arise, without being prescripave about the outcome Willingness to learn new skills sets required including partnering, facilitaaon, communicaaon, community engagement, and convening Comfort with uncertainty and adaptability required to engage with community and stakeholders Awareness of shi\ in power dynamic among funders, grantees, and other stakeholders Openness to funding infrastructure, which is o\en seen as less a[racave than funding direct services or intervenaons Commitment to achieving progress on a specific issue, regardless of a[ribuaon vs. contribuaon Understanding of Amespan required for systemic change, making a long- term commitment Comfort with measuring progress using interim milestones and process measures

13 Children s Ground

14 Funding Model Gundjeihmi Aboriginal CorporaAon (GAC) are a core funder of Children s Ground in Kakadu/ West Arnhem. This is a unique model where community members lead the program for local change in educaaon, wellbeing and economic reform whilst also supporang cultural integrity.

15 Key Funding Areas Core Governance and Infrastructure to develop Children's Ground at Scale Family & Community Learning Centres In Home In community Early childhood Childhood Quality learning and development Health, Mental Health and Wellbeing Sport, RecreaAon and CreaAve Arts Family & Community Centres Local Economic Development Research and EvaluaAon Young People Early Adulthood Early childhood through to adult: educaaon & development physical, emoaonal, social, cogniave, creaave, academic, cultural Maternal & family health Suicide & violence PrevenAon, Grief & trauma NutriAon Alcohol, gambling, and other drug prevenaon A\er school/holiday programs Music, CreaAve Arts & Sport Homework & RecreaAon IT and MulAmedia Safe community Place Adult & intergeneraaonal educaaon Referral Enterprise Development Local employment Local Business & organisaaons engaged in learning and skills Local Community Research Longitudinal Study

16 Bendigo Bank

17 Bendigo Bank/CSB leading the way in collecave impact investment Community Sector Bank Sector driven collecave impact model Common agenda Shared success with community and end users CollecAve investment model with non for profit sector Community Bank Strategy Community driven collecave impact model Shared value Help communiaes address social issues at same Ame as economic value Create sustainable local jobs Rebuild social capital with around $60 million in community grants in 13 years Part of bank s core business to fund community capacity to create condiaons for scalable social change

18 Shared Value Community Banking for 21 St Century Common Agenda Shared Measurement Mutually Reinforcing AcAviAes ConAnuous CommunicaAon CoordinaAon Support (The Glue) Common understanding of the social/economic issues facing communiaes from loss of core banking services Shared vision between Bendigo and its communiaes Focus on performance and sustainability of community banks Shared accountability and responsibility for delivery of banking services to communiaes Coordina-on through joint plan of acaon to deliver core financial services to regional and rural communiaes Consistent and open communica-on to meet community needs and community of pracace to share learnings Focus on building trust with community partners Bendigo provided set of funcaons and resources (financial license, tools, capabiliaes) as a backbone organisa-on to support community banks

19 Community Sector Banking - Out of the Box Blended Capital SoluAons Demand for Social Finance Increasing PotenAal to harness and leverage capacity of non for profit sector for social impact Example of blended structures: Shared equity Home purchase plans Social enterprise planning

20 1. How could you or your organisaaon think differently about leveraging funding resources and community assets to support collaboraave work? Learning 2. What challenges do you anacipate? 3. What addiaonal support/skills do you need?