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

Funding  Collec-ve  Impact  Efforts  •  Greg  Peel  •  CEO  &  Managing  Director,    •  Bendigo  Bank  Community  Sector  

Banking  

•  Jane  Vadiveloo  •  Founding  CEO,    •  Children’s  Ground  

Seri  Renkin  CEO,    ten20  FoundaAon      Caroline  Chernov  ExecuAve  Director,    ten20  FoundaAon          

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  

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.)  

Achieving  Large-­‐Scale  Change  through  Collec-ve  Impact  involves  funding  the  capacity  for  communi-es  to  develop  the  condi-ons  for:  

Shared  Vision  &        a  Common  Agenda  

Collabora-ve  Ac-on  &  Con-nuous  Improvement  

Backbone  Coordina-on      &  Sustainability  

Shared  Measurement  &  Evidence  Based  Decision  Making  

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.  

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.  

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).  

Data  and  professional  experAse  (hard  and  so\  skills)  used  to  drive  evidence  based  decision  making,  conAnuous  improvement  and  adapAve  leadership.  

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Taking  a  Collec-ve  Impact  Approach  Offers  Funders  the  Opportunity    to  Amplify  Impact,  Leverage  Funding,  and  Drive  Alignment    

Increase  Efficiency  of  Resources  

Amplify  Impact  

Drive  Alignment  

•  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    

•  Reduces  duplica-on  of  services    •  Increases  coordinaAon    •  Embeds  the  drive  for  sustained  social  change  within  the  community  

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  

 

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  

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  

Fairley  FoundaAon,  Shepparton,  VIC  

Backbone  OrganisaAon   •  Funder  organises  and  coordinates  the  acAons  of  cross-­‐sector  stakeholders  to  advance  collecAve  impact  effort  

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    

There  are  different  funding  and  support  needs  from  Start  up  to  Scale    

Philanthropic Foundations VC/Private

Equity Firms

Institutions

Corporate CSR/Shared Value Programs

Corporate Foundations

Giving Circles Government (Fed, State, Local)

Family Foundations/PAFs

HNWs/ UHNWs

$ CAPITALSOURCES

$ CAPITAL TYPES

DEVELOPMENT CYCLE

Risk

Philanthropy Impact Investing

Grant Soft Debt Social Impact Bonds / Pay For Success

Stage of Deal

Type of Deal

Blueprint/ Exploring

Validate/ Emerging

Prepare/ Initiating

Scale / Sustaining

Non Profit Venture Social Enterprise Collaboration

Social Social and Economic Economic Type of Return

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    

•  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  

Exploring   Emerging   Ini-a-ng   Sustaining  

Key  Success  Factors  for  Effec-ve  Funder  Engagement  Include  Ins-tu-onal  Adaptability,  Culture  ShiVs,  and  Long-­‐Term  Orienta-on    

InsAtuAonal  Adaptability  

Long-­‐term  OrientaAon  

Culture  Shi\  

•  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  

Children’s  Ground  

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.      

 

Key  Funding  Areas  

Core  Governance  and  Infrastructure  

to  develop  Children's  Ground  at  Scale  

Early  childhood   Childhood   Young  

People  Early  

Adulthood  

Family  &  Community  Learning  Centres  

In  Home  

In  community    

Quality  learning  and  development    

Health,  Mental  Health  and  Wellbeing    

Sport,  RecreaAon  and  CreaAve  Arts  

Family  &  Community  Centres  

Local  Economic  Development  

Research  and  EvaluaAon  

•  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  

Bendigo  Bank  

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  -­‐  1400  

•  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  

 

Shared  Value  –  Community  Banking  for  21St  Century  

Common  Agenda  

Shared  Measurement  

Mutually  Reinforcing  AcAviAes  

ConAnuous  CommunicaAon  

CoordinaAon  Support  (The  Glue)  

1.  

2.  

3.  

4.  

5.  

•  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  

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  

 

Learning  

1.  How  could  you  or  your  organisaAon  think  differently  about  leveraging    funding  resources  and  community  assets  to  support  collaboraAve  work?  

2.  What  challenges  do  you  anAcipate?  

3.  What  addiAonal  support/skills  do  you  need?