From Vision to Reality: The Value Chain in Fundraising Nathalie Fontana Director Development, ETH...

From Vision to Reality:The Value Chain in FundraisingNathalie FontanaDirector Development, ETH Zurich Foundation

Copyright Advancement Academy 1September 15, 2012

By the end of the session we will

• Learn about – the Value Chain in Fundraising– The groundwork for a case for support– a about best practice example ETH

• have practiced an illustrative case, • be able to adapt what we learned.


Scope of this session

• Warm-up & Dive-in Session 10:00-10:45

The Value Chain in Fundraising– Definition and framework

Fundraising Essentials– Strategy– Leadership– Case for Support– Instruments

• Practice Session 10:45-12:00– Example ETH Zurich– Case Study (group-work)


From Vision to Reality


The Value Chain – Definition

ProfitThe Value Chain is a string of companies or players working together to satisfy market demands for a particular product.

Nonprofit The Value Chain is a string of activities for collaboration with stakeholders in order to meet needs of the society in major challenges.


Fundraising – Value Chain

Source: http://www.managementcentre.co.uk/pages/fundraising_innovation_value_chain

What for? > Accelerate Innovation


Idea – Creation

• Approach for ideas-> more of the same or different/new ideas?

• Culture of organization to support approach-> is it hard to put forward novel ideas?-> Why and how to optimize?

• Institutional Readyness of the organization-> Profile, position, cause recognizable?-> Resources available?


Institutional Readyness

• Model: Clearly formulated self-understanding• Mission: Convincing purpose of organization• Corporate Identity: Good reputation and profile• Communication strategy: High visibility, presence, attention• Projects (cases): Need & clear purpose, impact• Human resources: Strategic and operative level• Financial resources: Fundraising budget (investment)

What is it good for? Attracts potential donors and builds the basis for any activities

and practices in creating and turning over a professional, successful fundraising.


Integration – Involvement

• Involvement of relevant internal stakeholders, opinion leaders to form cases-> which units or teams have to provide content? -> which parties shall benefit and why?

• Systematic processes to ensure happening-> shared work practices or ownership possible?-> willingness to contribute, go the extra mile?


Information – Groundwork

• Inputs for new ideas-> where do ideas come from? (Influence)-> is external input required? (outside perspective)-> how are our stakeholders involved? (network, pooling)

• Chance of adaption -> may we count on full willingness to implementation-> is sustainable effect reachable?


Selection – Identification

• Identification of high potential / high payoff ideas-> do we have a priority setting by process of elimination?-> is a continued story telling possible? -> is a long-term thinking considered?

• Process rigorous but open-> is the selection by constructive process of elimination?-> is it strictly aligned with overall strategy?-> are the responsibility clarified?


Support – Development

• Assessment and progress-> do we have a duty to report?-> are we able to plan our resources? (financial & human)-> are we able to keep promises?

• Instruments and tools-> do we know what makes sense?

• Risk Management-> are we aware of possible irritations?-> do we know how to steer and react?


Launch (1) – Diffusion

• Roll out of ideas-> are we well prepared?-> are we able to spot on ideas?-> do we have a clear understanding of success?

• Time period -> are we aware of how much time we need?-> are we able hold the pace?


Launch (2) – Returns

• Identification of possible donors-> do we have gift-table that realistic? (numbers of donors, fundraising amount, period)-> do we know the “low hanging fruits”?

• Expectations on financial return -> have we taken best and worst-case into account?-> have we got an Plan B, if we do not succeed at all?


Learning - Improvement

• Evaluation and review process-> do we control and measure?-> what do we do with the findings? -> are we open for external reviewers? (e.g. donors)

• Successes and failures recognised-> do we know why we succeeded or failed?

• Capture learning and sharing among organization-> do we let involved parties experience?-> are we willing and able to improve?


Fundraising Essentials

• Strategy• Leadership• Case for Support• Instruments


Strategy - Guide

• Vision (USP)• Mission• Goals• Guide Lines• Identity• Resources• Steering & Controlling


Leadership - Basis

Groundwork• All relevant stakeholders believe in the manifesto of the

organization and its derived needs.• They are willing to engage in or invest themselves.• They are determined to move others to it to do the same.

Internal stakeholders are: Decision makers: members of the board, deans, heads of departments Executive staff: Fundraisers, involved members of the faculty

External stakeholders are: Ambassadors (society, politics, economics) Fund-giver (Individuals, companies, foundations and other organizations) Other NPO’s / NGO’s


Case for Support

“The case is an expression of the cause, or a clear, compelling statement of all of the reasons why anyone should consider making a contribution in support of or to advance the cause.” Harold J. Seymor


Case for Support (2) - Framework

Criteria and specifications

• Tangible: Clear idea, purpose, need of funding and timeframe,• Consistent: 100% match with the vision of the organization,• Visible: communicable and increases awareness,• Connective: allows donors identification and experience,• Effective: leads to a visible success and verifiable result.


Case for Support - Review

Controlling questions of the case- Themes and focus attractive for possible fund-giver?- Relevant for society?- Concrete and fast action possible?- Obvious solution for problem?- Need of funding for fund-giver recognizable?- Motivation of fund-giver considered?- Wishful external effects considered?- Competence, credibility, proof of reliability of institution?


Instruments

• Annual Funds (e.g. for Alumni Fundraising)• Capital Campaigns (e.g. for cancer research)• Matching Gift (e.g. for new infrastructure)• In-kind (e.g. construction material)• Volunteer Grant (e.g. for congresses)


Annual Fund

• Prospects: Alumni, faculty members• Basis: big database• Favorite projects: Scholarships, infrastructure• Advantage: build-up donor base• Boundaries: time and resource-intensive


Campaign

• Definition: An intensive fundraising effort designed to raise a specified sum of money within a defined time period to meet the varied asset-building needs of an organization.

• The gifts solicited are much larger than those generally sought during an annual fund." Second, "pledges are emphasized as commitments payable over a number of years convenient to the donor or through the transfer of appreciated real or personal property.


Matching Gift


• Prospects: Faculty-Government-Society• Basis: common initiative and strategy• Favorite projects: Infrastructure (Campus)• Advantage: Fast progress• Boundaries: exclusion of possible future

donors

In-kind


• Prospects: small & mid-size companies• Basis: “competitive” invitation of venders• Favorite projects: infrastructure • Advantage: effect of calculation• Boundaries: dependency

Volunteer Grant


• Prospects: Alumni, companies• Basis: case-to-case commitment• Favorite projects: congresses, publications• Advantage: story telling relationship• Boundaries: intensive in recruiting and

coordination

Example – ETH Zurich


ETH Zurich – Strong driver

• Long standing: Founded in the year 1855.• Home of talents: > 17’000 students, > 400 professors• Clear mission: Outstanding education and research in technical

& natural sciences and engineering, for the use of the society.• High reputation: 21 Nobel Prize Winners studied, worked and

were/are linked to ETH. Top ranked: on position 15 (No 1 in Continental Europe).

• Globally active: SEC Singapore-ETH Center, collaboration with EiABC Ethiopia, member of international university alliances.

• Multiplier: > 120 spin-off companies founded 2007-2011• Substantial Sources: federal budget CHF 1.3 billion p.a.


ETH Zurich – Foci & Initiatives

Materials, Process Engineering

Energy, Environment and Sustainability

Future Science and Technology

TalentsInformation and Complexity

Electrical PowerGeothermal

Sustainable Construction

Medical Engineering World Food System

Molecular Health Science

Super ComputingInformation Security

Integrative Risk Management

Health Science and Technology

Technical Application of the Quantum Science

Excellence ScholarshipsPioneer Fellowships

Micro-Nano ScienceMechatronic

Robotics


ETH Zurich – Enforcement

Major ChallengesNeed of Society

ETH Fundraising

Activities

ETHStrategy


Strategy• Board of ETH together with departments

Leadership• Prof. Ralph Eichler, President • Prof. Roland Siegwart, Vice President Research• Prof. Lino Guzzella, Rector• Head of departments• Board of ETH Zurich Foundation

Executive staff• Selected professors• Fundraisers of ETH Zurich Foundation

ETH Zurich – World Food System


Food AvailabiltyProduction & processing

StabilityEnvironmental, economic and

political

Food UseHealthy food stuffs of high quality

Food AccessPhysical & monetary

New chair Sustainable Land Use

New chair Sustainable Agro-ecosystem

New chair Environmental Law & Policy

New chair Water Economics & PolicyNew chair Soil Protection & Diversity

New ETH Center of Competence for World Food System (CC WFS)

Project Fund World Food System interdisciplinary research

Strategic Focus• Energy, Environment and

Sustainability

Leadership• Board of ETH• Heads of Departments for - Environmental Sciences - Health Sciences & Technology

Cooperation• Academic institutions worldwide• Government and NGOs

Donors Syngenta, Nestlé, Coop, Bühler, Stiftung Merctor Schweiz

ETH Zurich Foundation – About


• Standing: founded 2003, independent, private-law non-profit• Purpose: promoting research and education at ETH Zurich• Vision: bridging society and science and enabling progress• Mission: build-up strategic partnerships between ETH and donors• Leadership: 10 Board Members, President Jürgen Dormann• Staff: 7 employee (3 Major Donor Fundraiser, 1 Alumni-

Fundraiser), Managing Director Dr. Donald Tillman• Acquisition: annually Swiss Francs 70 Mio.• Assets: Swiss Francs 244 Mio.• Awards to ETH: Swiss Francs 50 Mio. (2012)

For more information look at

• www.ethz-foundation.ch• www.ethz.ch• www.managementcentre.co.uk


Questions?


http://www.appleunity.de/wp-content/uploads/2010/11/Fragezeichen.jpg

Exercise (60 minutes)


Case Study (group work)

Define a realistic “Case for support” (20 Min)- along the Value Chain- Involve most promising fund-givers- Choose best appropriate instruments

Group presentation and discussion (40 Min)

Thank you!

Nathalie FontanaDirector DevelopmentETH Zurich Foundation

[email protected] +41 44 633 69 61Cell +41 78 707 46 60

ETH ZurichRämistrasse 1018092 Zurich / Switzerland


mailto:[email protected]

From Vision to Reality: The Value Chain in Fundraising Nathalie Fontana Director Development, ETH...

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