Presentation on theme: "Building revenue streams for EducationUSA Advising Centers An intensive one-day training, Part 1: Sustainability, Intro to Business Planning, & Overview."— Presentation transcript:
Building revenue streams for EducationUSA Advising Centers An intensive one-day training, Part 1: Sustainability, Intro to Business Planning, & Overview of Funding Models written & presented by Jayne Cravens, MSc
Jayne Cravens, 2 of 27 January 24, 2011 Overall Workshop Objectives Reviewing essentials for creating revenue streams/how to charge appropriately for services, both to get all costs covered in the most efficient manner and to increase how donors, embassy staff, university staff and others view the value of EducationUSA center services. ensuring an excellent working relationship with initiatives under the U.S. Department of State, including U.S. Embassies, USA university representatives, etc., emphasizing the fundamental importance of providing consistent service quality to those paying these costs.
Jayne Cravens, 3 of 27 January 24, 2011 Materials for download
Jayne Cravens, 4 of 27 January 24, 2011 My Perspective From experience as a nonprofit manager (project management, writing grant proposals, marketing, evaluator) for tiny grassroots orgs and large international orgs and everything in between in various countries. From experience as a funder (reading proposals, choosing recipients & rejecting/ ”breaking hearts”). Work in rural and urban areas of the USA, in Germany, in Afghanistan, in Egypt, and short-term gigs all over., with a variety of people/communities.
Jayne Cravens, 5 of 27 January 24, 2011 Modus Operandi There are no stupid questions. Everyone in this room has knowledge worth sharing. Please share it. Everyone in this room is doing something well. Please share it. There is no one-size-fits-all, no one magical blueprint. There are fundamental qualities, but different applications. I'm here to PROVOKE & CHALLENGE. Fear not! I don't have all the answers.
Jayne Cravens, 6 of 27 January 24, 2011 Workshop v. Lecture Listen, but also: Ask questions. Share stories. Discuss, discuss, discuss.
Jayne Cravens, 7 of 27 January 24, 2011 Tech During Workshop You are free to take notes on your lap top, tweet & micro-blog during presentation ABOUT the presentation. HOWEVER, in the interest of respecting everyone in this room: Please turn your phone off or to vibrate. If you get a call during this presentation, or an that you absolutely must respond to, please leave the room to talk/respond. Please be present during the presentation.
Jayne Cravens, 8 of 27 January 24, 2011 What I've Learned About You You have a great, relevant “product.” Your greatest service is your staff time. You are advising centers, not just info centers. Your staff are providing expertise and time. Your strengths and areas-for-improvement vary from center to center. Your challenges can be addressed / overcome. There is always a way.
Jayne Cravens, 9 of 27 January 24, 2011 For your consideration... ” Cited on the “Best Colleges 2010” list by US News & World Report. Excellent for journalism, photojournalism, broadcasting, engineering, forensics and history. Outstanding sports programs (including women's). Walkable, beautiful campus Low cost of living. Vibrant campus life. Western Kentucky University (WKU), Bowling Green, Kentucky, USA
Jayne Cravens, 10 of 27 January 24, 2011 Think Selfishly This workshop is meant to benefit your EducationUSA center, but it will also benefit YOU, now as a current employee as well as in future professional roles.
Jayne Cravens, 11 of 27 January 24, 2011 Your “To Do” List Write on top of a blank piece of paper, “Action Items” or “To Do.” We will refer back to this all day.
Jayne Cravens, 12 of 27 January 24, 2011 Ready? Here we go...
Jayne Cravens, 13 of 27 January 24, 2011 Group Discussion Sustainability means to keep going over a period of time Do you want your education center to exist five years from now? 10 years from now? Why?
Jayne Cravens, 14 of 27 January 24, 2011 Sustainability requirements Sustainability requires finding the right balance between the three interrelated areas of mission, business model, and money.
Jayne Cravens, 15 of 27 January 24, 2011 How to categorize a center... For the purposes of this workshop, I'm calling centers nonprofits. Other terms, like NGO or charity, don't seem to fit, although materials for NGOs and charities re: management may be helpful to you.
Jayne Cravens, 16 of 27 January 24, 2011 Nonprofit Plans A strategic plan articulates the activities an organization is going to undertake to achieve its mission. It provides focus and direction to move the organization from where they are now to where they want to go. It is used to decide what activities an organization should be exploring and undertaking. It covers a period of 3 to 5+ years. A business plan details the organization’s operations in pursuing its strategic plan. It is used to assess the viability of each activity, and details what resources will be needed to undertake each activity (HR, finances, partnerships, equipment needed, etc.). It is used to say exactly how a particular activity, or set of activities will happen, how they will be paid for, etc. It's never more than one year long.
Jayne Cravens, 17 of 27 January 24, 2011 Business Plans A business plan details the organization’s operations in pursuing its strategic plan for one year. details what resources will be needed to undertake each activity (HR, finances, partnerships, equipment needed, etc.) for one year. says exactly how a particular activity, or set of activities will be undertaken and how they will be paid for, etc. for at least one year should be available for any funder who asks for it. (Discussion: why?)
Jayne Cravens, 18 of 27 January 24, 2011 Nonprofit Funding Models Before we discuss developing a business plan, let's discuss different kinds of funding models for nonprofit organizations.
Jayne Cravens, 19 of 27 January 24, 2011 Nonprofit Funding Model - EXAMPLES Sugar Daddy/Super Sponsor "We have one mega funder who puts up all the money needed every year." The funder can be an international NGO, a government agency, a foundation or an individual. This is the dream business model for (too) many nonprofit organizations. Good: funds can be easier to administer Bad: it can go away, leaving nothing
Jayne Cravens, 20 of 27 January 24, 2011 Nonprofit Funding Model - EXAMPLES Multiple Donors "We get donations from a variety of sources." This mix of donors can be international NGO, government agencies, foundations and individuals. Good: not completely reliant on one funder Bad: everyone can want different things at different times
Jayne Cravens, 21 of 27 January 24, 2011 Nonprofit Funding Model - EXAMPLES Out-Of-Our-Own-Pockets The founders of the organization are paying for everything out of their own pockets until they create a different business model. Good: No one asking for reports! Bad: No one has bottomless pockets
Jayne Cravens, 22 of 27 January 24, 2011 Nonprofit Funding Model - EXAMPLES Super customer "We have one major contract with one agency to provide a service." All funding comes from this contract; the contract is NOT a donation but, rather, a payment of service. Good: funds can be easier to administer Bad: it can go away, leaving nothing
Jayne Cravens, 23 of 27 January 24, 2011 Nonprofit Funding Model - EXAMPLES We Sell Products or Services -- Producing/Hosting classes/training -- Test preparation and fees -- Renting space -- Membership fees (membership comes with benefits) -- Books -- Consulting services/staff expertise Good: diversity of funding sources Bad: overhead/administration
Jayne Cravens, 24 of 27 January 24, 2011 Nonprofit Funding Models Sugar Daddy/Super Sponsor Multiple Donors Out-Of-Our-Own-Pockets Super Customer We Sell Products Related To Our Mission A Mix of All These Which is the best Funding model and why? (Discussion)
Jayne Cravens, 25 of 27 January 24, 2011 All Nonprofit Funding Models... The best funding model, over the long-term, is probably “the mix.” Doesn't have to be a perfect mix, however.... No matter what, every funding model requires that you have a business plan. (Even I have a business plan for myself!)
Jayne Cravens, 26 of 27 January 24, 2011 What's next... Moving general and theory to specific planning. Prepare for a lot of thinking and writing. By the end of the day, you will have the start of a written business plan. But it will be up to you to finish it.
Jayne Cravens, 27 of 27 January 24, 2011 And now... Break?