Impact investment for ambitious charities for slideshare

National Council for Voluntary Organisations

Sustainable Funding Project

PM 4

Impact investment for ambitious

charities

Chair: Julie Ward, Sustainable Funding Officer, NCVO



Julia Grant

Portfolio Director, Impetus Trust

www.impetus.org.uk

Presentation to:

Julia Grant, Portfolio Director, Impetus Trust

Nov 2012

National Council of Voluntary Organisations

www.impetus.org.uk 4

www.impetus.org.uk

www.impetus.org.uk


Our operating strategy

Scale Up:

* Increase significantly the number of people impacted

* Replicate the service delivery model through expansion, merger, franchise, etc.

* Build organisational capacity to ensure this expansion is sustainable

Speak Up:

* Influence public opinion/ policy to create greater “share of voice”

* Disseminate best practice

Link Up:

* Extend the reach of the organisation beyond itself through strategic partnerships

7

We want to achieve more

than the sum of the parts:

Greater level of expertise

with potential to influence

these sectors by being

strategically positioned

(ie, combination of direct

charity investment,

knowledge dissemination

and influence/thought

leadership) – will

significantly increase the

“multiplier effect” that we

have

Laying the groundwork for systemic change in the two thematic areas – to be credible and impactful we need to add

influencing (link up) and advocacy (speak up) capacities to our “scale up” ability.


Our portfolio of innovative charities:

An independent

evaluation by Bain

& Company

reported that 94%

of Impetus portfolio

charity respondents

said that they could

not have achieved

the same degree of

change without

Impetus.


How we invest: our process

Select portfolio

charities

Manage

investment Manage exit

Formalise

investment

• Engaged relationship

with Investment

Executive

• Pro bono projects

• Progress monitored

against milestones

• “Alumnus” relationship

• Agree milestones and

pro bono projects

• Identify and vet

• Due diligence

• Investment committee

approval


Investment scale-up phase

• Business model / strategic review

• Financial modelling

• Business planning

• Board assessment

• Organisational capacity

• Performance management

• Systems and reporting

• Monitoring and evaluation

• Coaching/mentoring SMT

• Business development/fundraising

Pro bono project areas

Investment planning phase

General support

• IT/HR/operations/legal support

• Marketing strategy and PR

Due diligence

• Market and competitive position analysis

• Financial/legal review

Screening

• Research potential areas of interest

• Input into Impetus review of new charities


Impetus pro bono corporate partners

• Bain & Company

• Barclays Capital

• BBC

• BearingPoint

• Benjamin Ball Associates

• CVC Capital Partners

• Debevoise & Plimpton

• Deutsche Bank

• Directorbank

• Eden McCallum

• First100

• FTI Consulting

• Goldman Sachs

• ICAEW Corporate Finance Faculty

• ISIS Equity Partners

• J.P. Morgan

• Korn/Ferry Whitehead Mann

• KPMG

• Linklaters

• Macfarlanes

• Merryck & Co

• MphasiS

• OC&C Strategy Consultants

• O’Melveny & Meyers LLP

• PMC Treasury

• Precise Media

• PricewaterhouseCoopers

• Randall's Parliamentary Service

• Silverhawk Partners

• SJ Berwin LLP

• Studio Associato per la Societa Digitale

• The Worshipful Company of IT Consultants

• The Worshipful Company of Management Consultants

• Warburg Pincus

www.impetus.org.uk

Success factors: why other companies and individuals give to Impetus

1. Rigour of charity selection, due diligence and monitoring

2. Long-term impact of active engagement

3. We multiply the value of donations

• Over 2,000 applications, 25 investments

• Know where money is going and what it will do for the charities

• We have monthly monitoring, semi-annual and annual evaluations

• We back a strategic plan, not a project

• We build the capacity of an organisation so it can sustainably scale up

• Impetus charities grow their influence in the sector and in public policy

• For each £1 of funding charities received from Impetus, they get

nearly £4 more in value (money & expertise)

• Donations leveraged by attracting partnership investment, pro

bono expertise and additional funds raised

12

www.impetus.org.uk

Case study: IntoUniversity

0

1000

2000

3000

4000

5000

6000

7000

2007 2008 2009 2010 2011

Axis

Tit

le

People helped

Before Impetus

(2006/07)

Year 4 of a 4-year

investment

(2010/11)

Organisational

focus

Model of long-term

academic and

pastoral support to

young people from

disadvantaged

families

London-based

network of learning

centres offering

long-term academic

and pastoral

support

Strategic challenge Test the model on

6 centres and

develop a

replication plan

Planning the next

phase of growth

Annual income £164k £1.57m

No. of young

people in Focus

programmes

445 6,405

No. of centres 1 7

Management

team/Board

Founder CEO,

minimal

management

capacity, Board

more suited to

start-up phase

Broader leadership,

Board suited to

scale up

What IntoUniversity does:

IntoUniversity inspires and engages young people

from disadvantaged backgrounds to attain either a

university place or another chosen aspiration, by

offering long-term, out-of-school study support.

13

www.impetus.org.uk

Early Years Initiative

The need

14

• The scale

• 500,000 children under 5 in the UK live in severe poverty • There are 120,000 “at risk” families in the UK, facing multiple disadvantages – their

children face a 70% chance of still being classified as “at risk” by age 30

• The problem starts early

• Disadvantaged children are already one year behind their more affluent peers when they start school – this gap only widens as they get older

• Early disadvantage has life-long consequences

• Cognitive development at 22 months correlates strongly to educational attainment at age 27

• Male aggressive behaviour is highly stable as early as age two and is the single best predictor of violence later on

www.impetus.org.uk


Key change levers

• School readiness

Defined as a holistic set of elements capturing a child’s overall development at age five,

including cognitive, emotional and physical dimensions.

=> Evidence that elements are interdependent and need to be considered holistically to

ensure a coherent strategy for systemic change in the child and the surrounding environment

can be developed (C4EO, Grasping the Nettle).

• Children’s life chances

Heavily dependent on quality of parenting and home learning environment; however,

especially for the most disadvantaged children, high quality pre-school experiences can make

a real difference; high quality staff is a key ingredient (The Effective Provision of Pre-School

Education (EPPE) Project: Findings from Pre-school to end of Key Stage1).

15

www.impetus.org.uk

Physical

development

Cognitive

development Emotional,

interpersonal skills • Within the 0-5 age

range, this is mainly

about a child’s

communication skills

• Also includes disposition

to learning (ie, ability to

concentrate)

Includes a child’s

health and safety

School-

readiness

• How a child relates to other

people in its environment -

includes the concept of self-

regulation

• Heavily influenced by

attachment formed

between newborn

and main carer


School-readiness

16

www.impetus.org.uk Impetus Trust © 2011 | Registered Charity 1094681 | ALL RIGHTS RESERVED | Not to be reproduced without permission

www.impetus.org.uk



Virginia Beardshaw

Chief Executive, I CAN

NCVO Sustainable Funding Conference Wednesday 28th November 2012 Presentation by Virginia Beardshaw Chief Executive, I CAN

I CAN: The Children’s Communication

Charity

No child left out, or left

behind because of a

problem speaking or

understanding

I CAN: The Children’s Communication

Charity

Increasing public awareness

Information and advice to parents and families.

Assessments for children

Two specialist special schools

Programmes, training and interventions giving the workforce

and families skills to help children communicate.

Campaigning

What can go wrong? (speech,

language and communication needs - SLCN)

Expressive

language

delay

Receptive

language

delay

Social interaction

difficulty

Speech

sound

difficulty

Language is key to breaking the

cycle of deprivation

Vocabulary at age 5 is the best predictor of whether children from

deprived backgrounds can ‘buck the trend’ and escape poverty in

later life

Low income children lag behind their high income counterparts at

school entry by 16 months in vocabulary

SLCN most common type of primary need for pupils with SEN

15% of pupils with SLCN get 5 A-C GCSEs compared to 57% of all

young people

The scale of the problem

More than 50% of children in

disadvantaged areas have delayed

speech, language and communication

1 in 10 children has a long term,

persistent difficulty communicating

I CAN’s response: Early Talk 0 -5

Placing communication

at the heart of

Early Years

Resources Accreditation and validation

Training courses

Resources

Early Language Development

Programme

Lead Children’s

Centre

‘Local Hub’

3 x Local Children’s Centres

4 x Local PVI

Settings

2 x SLTs

1 x Heath Visitor

Universal training

provided to (up to 485)

lead practitioners and (up

to 485) training partners

via 35 two-day road-show

training events enabling

local cascade and

establishing (up to) 485

local hubs

Up to 40% of lead

practitioners receive

enhanced level

training enabling

further local cascade

and more advanced

learning

Early Language

Development Toolkits

supplied by consortium

to lead practitioner,

health practitioners and

settings within each

hub in quantities shown

Support and advice

provided through ELDP

Advisory Service and on-

line community network.

Good practice sharing

events organised in year3

I CAN’s Model – Creating Hubs of Early Language

Expertise

Local Cascade Provision of training, resources and support by consortium

Children and Families

Children and Families

Ch

ildren

and

Families C

hild

ren

an

d F

amili

es

KPIs

By March 2013: 970 Lead practitioners and Training Partners will be trained in how to cascade training in early language to other EY, health and family support practitioners

95% lead practitioners reached through regional events report having the knowledge to cascade early language principles to colleagues in early years settings

By December 2013: 75% of sampled lead practitioners report changes to practice in their local hub

By March 2014: 12,028 (+/- 20%) practitioners will be trained by lead practitioners in supporting early language development

85 % practitioners trained report increased awareness and knowledge to support children’s early language, and to identify those with language delay

By March 2014: 96,731 (+/- 20%) parent or family members attend events to learn more about early language development

80% of parent or family members sampled report increased awareness and knowledge in supporting early speech, language and communication

Licensing Programme

We embarked on an aggressive plan to transform our distribution

& product and become profitable/self-sustaining in one year

£1.2m revenue

New fragmented marketplace

DD + new way : Licensing

Build & refresh entire suite of products

Social enterprise – building team/back-office as we go

• £0.6m revenue

• LA customer base

• Direct Delivery (DD) + free cascade

• Saleable product – absent or low value

• Cottage industry

• Identifying effective marketing channels

• Testing assumptions about Licensee performance across product suite

• Testing market assumptions – price etc

• Building systems to support growth - CRM

Previously This Year

Creating a future

platform

The Journey ahead

QA/CPD

CRM

Recruitment

& Training

Contract

Management

Production &

fulfilment

Reporting

& Billing

Shaped for third party delivery

Accreditation products

Wave 2 Booster

Programme

Talk Training

ET,PT, ST

Other

people’s

really

good

stuff

Infrastructure, systems and processes designed and built

Happiness

IMPETUS ‘In Kind’ Support

ELDP Tender Development Accenture £1,440

CognoLink £6,000

Diagnostic KPMG £111,600

Programme Management Support Accenture £15,360

Financial Model for Licensing PA Consulting £14,400

Facilitation of business planning Accenture £1,800

Total £150,600

I CAN

8 Wakley Street

London

EC1V 7QE

: 0845 225 4073/020 7843 2510

: [email protected]

www.ican.org.uk

www.talkingpoint.org.uk

http://www.ican.org.uk/

http://www.talkingpoint.org.uk/

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Impact investment for ambitious charities for slideshare