1. The Nuts and Bolts of Budgets for Corporate Clients Eric Walker ewalker@insidengo.org

2. Recovering all costs of the work from any funder requires an investigative process to discover what approach to grant costing they have in place, if any, and adapting to that landscape.

3. “This paper discusses 10 methods to optimize overhead recovery within the changed environment. 1.Reduce administrative costs 2.Maximize direct charging 3.Bill through service centers 4.Directly allocate closely supporting costs 5.Create a network of organizations 6.Reconfigure cost structures 7.Align budgets to donor expectations 8.Subsidize or co-fund 9.Seek grant support for operations 10.Fixed price agreements” Reduce or shift costs Change in structure Increase revenue Sum by total activity cost Overhead recovery is usually the biggest problem! OPTIMIZING OVERHEAD RECOVERY IN CHALLENGING TIMES: 10 approaches to adapting to a new landscape

4. Corporations typically want to fund NGOs for one of three reasons: Corporate philanthropy, (make charitable tax deductible contributions to 501c3’s) Employee engagement, (make workers feel good about working for the company) It’s good business, (money can be made, reputation is enhanced, or ideally both) Corporations typically want to fund NGOs for one of three reasons: Corporate philanthropy, (make charitable tax deductible contributions to 501c3’s) Employee engagement, (make workers feel good about working for the company) It’s good business, (money can be made, reputation is enhanced, or ideally both) Corporation funding comes in many forms: A contribution direct from the corporation as money or in-kind contributions of goods or services, grants through the corporation’s foundation, investments in the form of program related investments or impact investments, or joint business arrangements with product co-branding Corporation funding comes in many forms: A contribution direct from the corporation as money or in-kind contributions of goods or services, grants through the corporation’s foundation, investments in the form of program related investments or impact investments, or joint business arrangements with product co-branding

5. Project Financial Plan $ Activity #1 35,000 Activity #2 50,000 Activity #3 45,000 Activity #4 15,000 145,000 Your contribution to the effort 50,000 Activity #1 $ Personnel 21,000 Travel 5,000 Communication 1,250 Supplies 750 Overhead 7,000 35,000 Tips: Talk about the whole project or an activity you know they are particularly interested in, Explain how much their contribution is leveraging. Explain how their part is essential for success of the whole. Avoid describing detailed line item budgets; talk about outcomes. Scenario 1 – Corporation wants to help fund a new project happening in their neighborhood to involve their employees.

6. Activity #4 $ Personnel 75,000 Travel 25,000 Communication 3,750 Supplies 750 Overhead 26,125 130,625 Fee 6,531 137,156 Activity #3 $ Personnel 125,000 Travel 25,000 Communication 6,250 Supplies 1,250 Overhead 39,375 196,875 Fee 9,844 206,719 Activity #2 $ Personnel 340,000 Travel 25,000 Communication 17,000 Supplies 3,400 Overhead 96,350 481,750 Fee 24,088 505,838 Project Financial Plan $ Activity #1 324,975 Activity #2 505,838 Activity #3 206,719 Activity #4 137,156 TOTAL COSTS 1,174,688 Activity #1 $ Personnel 210,000 Travel 25,000 Communication 10,500 Supplies 2,100 Overhead 61,900 309,500 Fee 15,475 324,975 Scenario 2 – Corporation wants to work with you to fund a project in a country where they need to improve community health. Tips: Assume the position of technical and project management expert. Focus on jointly developed outcomes. Lay out what you know is needed for success. Protect your brand!

7. With research, creativity and patience, full cost recovery is possible. THANKS Questions?