THE CLIMATE OUR HISTORY. well documented. well documented. well documented
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- Lizbeth Bryant
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1 The world is changing and we are all having to adapt and evolve; that includes grant-makers. This session will explore some of the changes that are taking place in the grant-making community and give delegates the opportunity to hear from a funder s perspective what constitutes best practice, and to learn some top tips for success. OUR HISTORY well documented well documented Set up in 1985 by the Trustee Savings Bank Group; One of four independent charitable trusts Distributing 1% of the Bank s pre-tax profits; Since then we have made in excess of 13,000 grants totalling almost 94 million to thousands of charities the length and breadth of Scotland. In 2009 Lloyds Banking Group attempted to change the terms of the covenant: o reducing the pot of pre-tax profits by half; o aligning distributable funds to the Group s business priorities; o and appointing senior Bank staff as Trustees. We refused; they served notice on the covenant in February 2010 well documented The covenant will expire in early 2019 after a final payment due in February A Supreme Court ruling in early 2013 against the Foundation drew to a close our negotiations with the Banking Group THE CLIMATE 1
2 The statutory purse is shrinking, rapidly With cuts estimated at 25% or 2.7bn* in real terms over the next few years putting even greater pressure on the delivery of public services. Many charities working with vulnerable people / fragile communities anticipate that demand for their services may grow over the coming few years**, as the needs of society change. ** more than 85% expect demand for their services to increase 35% predict a dramatic rise in demand. 1/10 surveyed do no think that their charity will exist in five years http** Depending on where you get your information from traditional fundraising sources may or may not be diminishing. Lack of certainty around long-term funding is making planning for the future more challenging. 2
3 CAF UK Giving 12/13 suggests an improving picture for giving in the UK in 2012/13 with the proportion of people reporting that they donate to charitable causes in a typical month increasing to 57% (up from 11/12 55% but not yet at the 10/11 peak of 58%) (Same SCVO report) Scottish charities increased their turnover by 300 million in 12/13 to 4.9 billion - double what was generating 10 years ago. During the same decade charities have also nearly doubled the amount they spend, up to 4.7 billion with 42% spending more than they earn nfpsynergy measure giving levels six times a year surveying 1,000 people. additional note Lots of available information from surveys e.g. SCVO s State of the Sector 2013, NCVO Almanac, CAF UK Giving Survey and from collaborative data sharing such as Voluntary Sector Cuts website as well as statistical sources like HMRC gift aid reclaims. Not one single source. Philanthropy is changing HOW GRANT-GIVING IS CHANGING More active: grant-giving there is a palpable move away from passive grantmaking; there is a strong desire to better understand sectoral issues. More choosy: with our funding choices, more sophisticated donors ; More demanding: we are looking for outcomes, not just outputs, and yes we do like innovation and exit strategies. grant-giving More connected: with each other; with the voluntary sector - you will find us present at events and forums; looking for partnerships: with each other; with you FUNDER+; and between you; to policy makers. 3
4 More active: what does that mean for you? lead and stand out, get yourself known for what you do; be knowledgeable, understand what is likely to happen next. More choosy: make smart, exceptional applications - more about that in a moment ; More demanding: challenge yourself! what does that mean for you? More connected: be transparent; treat us like humans; take an interest (homework helps ); develop a relationship. applying BEST PRACTICE / TOP TIPS 1. Research: READ THE GUIDELINES - know what they are interest in funding; familiarise yourself with timescales and how that synchs with other funders that you are approaching. 2. Clear and concise: avoid jargon, acronyms, abbreviations; sound finances explain anomalies and reserves; and consistent... applying 3. Validate the need: avoid designing a project to fit a funder s criteria if you can not evidence need; demonstrate a clear understanding of what will change. 4. Do not chase the money: if the funding parameter is up to 50k and your application equals 50, expect us to be suspicious; don t ask if you don t need. applying 5. Grant-making should be part of the mix: we like to know that you are aiming for a diverse source of funding to minimise your risk and reduce dependency. 6. Make it easy for us to say yes: most grant-makers have a set distributable budget and have to look for reasons to reject applications don t give them one. 4
5 reporting keep in touch 1. On time: obvious? 2. Aligned: obvious? 3. Honest: obvious? friendship partnership compassion challenge celebrate support Conversation about what next involve facilitate and.. CHALLENGES challenges challenges 1. Innovation v. core costs: where is the need? 2. The Future: redefine statutory responsibility exit strategies Power and language 3. Restricted v unrestricted: Balance? 5
6 OUR FUTURE strategy Strategy ratified by Trustees in February 2014 Will run for three years until February 2017 Three overarching objectives: ANY QUESTIONS 1. Be the best grant-maker that we can be 2. Reach communities that grant-making doesn t 3. Support other grant-makers THANK YOU 6
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