From Vision to Reality: The Value Chain in Fundraising Nathalie Fontana Director Development, ETH Zurich Foundation Copyright Advancement Academy 1September 15, 2012

By the end of the session we will Learn about – the Value Chain in Fundraising – The groundwork for a case for support – a about best practice example ETH have practiced an illustrative case, be able to adapt what we learned. Copyright Advancement Academy 2September 15, 2012

Scope of this session Warm-up & Dive-in Session10:00-10:45 The Value Chain in Fundraising – Definition and framework Fundraising Essentials – Strategy – Leadership – Case for Support – Instruments Practice Session10:45-12:00 – Example ETH Zurich – Case Study (group-work) Copyright Advancement Academy 3September 15, 2012

From Vision to Reality Copyright Advancement Academy 4September 15, 2012

The Value Chain – Definition Profit The Value Chain is a string of companies or players working together to satisfy market demands for a particular product. Nonprofit The Value Chain is a string of activities for collaboration with stakeholders in order to meet needs of the society in major challenges. Copyright Advancement Academy 5September 15, 2012

Fundraising – Value Chain Source: What for? > Accelerate Innovation Copyright Advancement Academy 6September 15, 2012

Idea – Creation Approach for ideas -> more of the same or different/new ideas? Culture of organization to support approach -> is it hard to put forward novel ideas? -> Why and how to optimize? Institutional Readyness of the organization -> Profile, position, cause recognizable? -> Resources available? Copyright Advancement Academy 7September 15, 2012

Institutional Readyness Model: Clearly formulated self-understanding Mission: Convincing purpose of organization Corporate Identity: Good reputation and profile Communication strategy: High visibility, presence, attention Projects (cases): Need & clear purpose, impact Human resources: Strategic and operative level Financial resources: Fundraising budget (investment) What is it good for? Attracts potential donors and builds the basis for any activities and practices in creating and turning over a professional, successful fundraising. Copyright Advancement Academy 8September 15, 2012

Integration – Involvement Involvement of relevant internal stakeholders, opinion leaders to form cases -> which units or teams have to provide content? -> which parties shall benefit and why? Systematic processes to ensure happening -> shared work practices or ownership possible? -> willingness to contribute, go the extra mile? Copyright Advancement Academy 9September 15, 2012

Information – Groundwork Inputs for new ideas -> where do ideas come from ? (Influence) -> is external input required? (outside perspective) -> how are our stakeholders involved? (network, pooling) Chance of adaption -> may we count on full willingness to implementation -> is sustainable effect reachable? Copyright Advancement Academy 10September 15, 2012

Selection – Identification Identification of high potential / high payoff ideas -> do we have a priority setting by process of elimination? -> is a continued story telling possible? -> is a long-term thinking considered? Process rigorous but open -> is the selection by constructive process of elimination? -> is it strictly aligned with overall strategy? -> are the responsibility clarified? Copyright Advancement Academy 11September 15, 2012

Support – Development Assessment and progress -> do we have a duty to report? -> are we able to plan our resources? (financial & human) -> are we able to keep promises? Instruments and tools -> do we know what makes sense? Risk Management -> are we aware of possible irritations? -> do we know how to steer and react? Copyright Advancement Academy 12September 15, 2012

Launch (1) – Diffusion Roll out of ideas -> are we well prepared? -> are we able to spot on ideas? -> do we have a clear understanding of success? Time period -> are we aware of how much time we need? -> are we able hold the pace? Copyright Advancement Academy 13September 15, 2012

Launch (2) – Returns Identification of possible donors -> do we have gift-table that realistic? (numbers of donors, fundraising amount, period) -> do we know the “low hanging fruits”? Expectations on financial return -> have we taken best and worst-case into account? -> have we got an Plan B, if we do not succeed at all? Copyright Advancement Academy 14September 15, 2012

Learning - Improvement Evaluation and review process -> do we control and measure? -> what do we do with the findings? -> are we open for external reviewers? (e.g. donors) Successes and failures recognised -> do we know why we succeeded or failed? Capture learning and sharing among organization -> do we let involved parties experience? -> are we willing and able to improve? Copyright Advancement Academy 15September 15, 2012

Fundraising Essentials Strategy Leadership Case for Support Instruments Copyright Advancement Academy 16September 15, 2012

Strategy - Guide Vision (USP) Mission Goals Guide Lines Identity Resources Steering & Controlling Copyright Advancement Academy 17September 15, 2012

Leadership - Basis Groundwork All relevant stakeholders believe in the manifesto of the organization and its derived needs. They are willing to engage in or invest themselves. They are determined to move others to it to do the same. Internal stakeholders are:  Decision makers: members of the board, deans, heads of departments  Executive staff: Fundraisers, involved members of the faculty External stakeholders are:  Ambassadors (society, politics, economics)  Fund-giver (Individuals, companies, foundations and other organizations)  Other NPO’s / NGO’s Copyright Advancement Academy 18September 15, 2012

Case for Support “The case is an expression of the cause, or a clear, compelling statement of all of the reasons why anyone should consider making a contribution in support of or to advance the cause.” Harold J. Seymor Copyright Advancement Academy 19September 15, 2012

Case for Support (2) - Framework Criteria and specifications Tangible: Clear idea, purpose, need of funding and timeframe, Consistent: 100% match with the vision of the organization, Visible: communicable and increases awareness, Connective: allows donors identification and experience, Effective: leads to a visible success and verifiable result. Copyright Advancement Academy 20September 15, 2012

Case for Support - Review Controlling questions of the case -Themes and focus attractive for possible fund-giver? -Relevant for society? -Concrete and fast action possible? -Obvious solution for problem? -Need of funding for fund-giver recognizable? -Motivation of fund-giver considered? -Wishful external effects considered? -Competence, credibility, proof of reliability of institution? Copyright Advancement Academy 21September 15, 2012

Instruments Annual Funds (e.g. for Alumni Fundraising) Capital Campaigns (e.g. for cancer research) Matching Gift (e.g. for new infrastructure) In-kind (e.g. construction material) Volunteer Grant (e.g. for congresses) Copyright Advancement Academy 22September 15, 2012

Annual Fund Prospects: Alumni, faculty members Basis: big database Favorite projects: Scholarships, infrastructure Advantage: build-up donor base Boundaries: time and resource-intensive Copyright Advancement Academy 23September 15, 2012

Campaign Definition: An intensive fundraising effort designed to raise a specified sum of money within a defined time period to meet the varied asset-building needs of an organization. The gifts solicited are much larger than those generally sought during an annual fund." Second, "pledges are emphasized as commitments payable over a number of years convenient to the donor or through the transfer of appreciated real or personal property. Copyright Advancement Academy 24September 15, 2012

Matching Gift Copyright Advancement Academy 25September 15, 2012 Prospects: Faculty-Government-Society Basis: common initiative and strategy Favorite projects: Infrastructure (Campus) Advantage: Fast progress Boundaries: exclusion of possible future donors

In-kind Copyright Advancement Academy 26September 15, 2012 Prospects: small & mid-size companies Basis: “competitive” invitation of venders Favorite projects: infrastructure Advantage: effect of calculation Boundaries: dependency

Volunteer Grant Copyright Advancement Academy 27September 15, 2012 Prospects: Alumni, companies Basis: case-to-case commitment Favorite projects: congresses, publications Advantage: story telling relationship Boundaries: intensive in recruiting and coordination

Example – ETH Zurich Copyright Advancement Academy 28September 15, 2012

ETH Zurich – Strong driver Long standing: Founded in the year Home of talents: > 17’000 students, > 400 professors Clear mission: Outstanding education and research in technical & natural sciences and engineering, for the use of the society. High reputation: 21 Nobel Prize Winners studied, worked and were/are linked to ETH. Top ranked: on position 15 (No 1 in Continental Europe). Globally active: SEC Singapore-ETH Center, collaboration with EiABC Ethiopia, member of international university alliances. Multiplier: > 120 spin-off companies founded Substantial Sources: federal budget CHF 1.3 billion p.a. Copyright Advancement Academy 29September 15, 2012

ETH Zurich – Foci & Initiatives Materials, Process Engineering Energy, Environment and Sustainability Future Science and Technology Talents Information and Complexity Electrical Power Geothermal Sustainable Construction Medical Engineering World Food System Molecular Health Science Super Computing Information Security Integrative Risk Management Health Science and Technology Technical Application of the Quantum Science Excellence Scholarships Pioneer Fellowships Micro-Nano Science Mechatronic Robotics Copyright Advancement Academy 30September 15, 2012

ETH Zurich – Enforcement Major Challenges Need of Society ETH Fundraising Activities ETH Strategy Copyright Advancement Academy 31September 15, 2012 Strategy Board of ETH together with departments Leadership Prof. Ralph Eichler, President Prof. Roland Siegwart, Vice President Research Prof. Lino Guzzella, Rector Head of departments Board of ETH Zurich Foundation Executive staff Selected professors Fundraisers of ETH Zurich Foundation

ETH Zurich – World Food System Copyright Advancement Academy 32September 15, 2012 New chair Sustainable Land Use New chair Sustainable Agro-ecosystem New chair Environmental Law & Policy New chair Water Economics & Policy New chair Soil Protection & Diversity New ETH Center of Competence for World Food System (CC WFS) Project Fund World Food System interdisciplinary research Strategic Focus Energy, Environment and Sustainability Leadership Board of ETH Heads of Departments for - Environmental Sciences - Health Sciences & Technology Cooperation Academic institutions worldwide Government and NGOs Donors Syngenta, Nestlé, Coop, Bühler, Stiftung Merctor Schweiz

ETH Zurich Foundation – About Copyright Advancement Academy 33September 15, 2012 Standing: founded 2003, independent, private-law non-profit Purpose: promoting research and education at ETH Zurich Vision: bridging society and science and enabling progress Mission: build-up strategic partnerships between ETH and donors Leadership: 10 Board Members, President Jürgen Dormann Staff: 7 employee (3 Major Donor Fundraiser, 1 Alumni- Fundraiser), Managing Director Dr. Donald Tillman Acquisition: annually Swiss Francs 70 Mio. Assets: Swiss Francs 244 Mio. Awards to ETH: Swiss Francs 50 Mio. (2012)

For more information look at Copyright Advancement Academy 34September 15, 2012

Questions? Copyright Advancement Academy 35September 15, 2012

Exercise (60 minutes) Copyright Advancement Academy 36September 15, 2012 Case Study (group work) Define a realistic “Case for support” (20 Min)  along the Value Chain  Involve most promising fund-givers  Choose best appropriate instruments Group presentation and discussion (40 Min)

Thank you! Nathalie Fontana Director Development ETH Zurich Foundation Phone Cell ETH Zurich Rämistrasse Zurich / Switzerland Copyright Advancement Academy 37September 15, 2012