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Impact Report Results 08/09 Impact report _ 1


Portfolio organisations

Donors who have given more than £10,000

Grant-making trusts and foundations

Speaking Up St Giles Trust beat Leap Confronting Conflict Naz Project London (NPL) Keyfund Federation Camfed International Fairtrade Foundation IntoUniversity Acumen Development Trust Street League COUI – Teens & Toddlers Blue Sky Development & Regeneration

Individual donors

Andrews Charitable Trust Bridge House Trust Charities Aid Foundation City Parochial Foundation Esmée Fairbairn Foundation ExPat Foundation Lindenleaf Charitable Trust Lloyds TSB Foundation Private Equity Foundation The Gatsby Foundation The Henry Smith Charity The Indigo Trust The Rank Foundation The Schroder Foundation The Trust for Education Tuixen Foundation

Impetus Chief Executive and Trustees Daniela Barone Soares, Chief Executive Stephen Dawson, Co-founder and Chairman Nat Sloane, Co-founder and Vice Chair Adrian Beecroft (to July 2008) Craig Dearden-Phillips Louis Elson Amelia Fitzalan Howard Andy Hinton Stephen Lambert Ian Meakins Doug Miller (to May 2009) Chris Underhill Photographers’ credits Cover photo: Players from Street League, one of the innovative charities in the Impetus portfolio; Inside front cover, p6 (background) 29 & 30: Charlie Bibby/Financial Times; p4: Naomi Kranhold; p11: Johnny Armstead; p12: Karim Merie; p19: Monica Masih; p32: Fairtrade Foundation; p33: Simon Rawles; p40 & 41: Peter Hein, COUI; p43: Blue Sky Development & Regeneration; Our thanks to all portfolio charities for contributing the images in the Report.

Nick Archer Ian Armitage Edward & Amanda Astle Jonathan Baker Adrian Beecroft Jennifer & Richard Bowley Janet Brooks Adrian Carey Sir Ronald & Lady Cohen Jeremy Coller Stephen & Gitte Dawson Louis Elson Alastair Gibbons David Gregson Guy & Julia Hands Andy Hinton Nic & Jennifer Humphries Frances Jacob Robert Jenkins Stephen Lambert Ken Landsberg John Leach David Lewin & Sue Webber Chris & Clare Mathias Ruth McIntosh Ian & Serrie Meakins Doug & Audrey Miller Jon Moulton Richard Munton Frank Neale Tim & Jennifer Raffle Kevin Reynolds Joseph Schull & Anna Yang Andrew Sibbald Nat & Rebecca Sloane James Stewart Mark & Karen Storey Tom Sweet-Escott Charlie Troup Steve & Heather Tudge David Wansbrough Michael Webber Anonymous Well wisher Corporate donors Apax Foundation Barclays Capital British Venture Capital Association (BVCA) Deutsche Bank Graphite Capital ISIS Equity Partners LLP Lloyds TSB Development Capital Warburg Pincus William Blair & Company

Key pro bono corporate supporters Bain & Company Barclays Private Equity Base One Group BBC Bladonmore Debevoise and Plimpton LLP Directorbank Eden McCallum Equus Group ISIS Equity Partners LLP KPMG LLP Macfarlanes LLP OC&C Strategy Consultants O’Melveny & Myers LLP Pelham Public Relations Ltd Precise Silverhawk Partners Studio Associato per la Societa Digitale The Worshipful Company of Management Consultants Individual pro bono supporters Impetus gratefully acknowledges the generous donation of time from the more than 150 individual experts who are helping to build the capacity of our charities by donating their skills and expertise.

Contents 01 Letter from the Chief Executive 02 What does Impetus do? 04 Charity selection criteria 05 Charity investment summary 06 Spotlight on our supporters 07 Impetus portfolio results 08 Speaking Up 10 St Giles Trust 13 Robert’s story 14 beat 16 Leap Confronting Conflict 18 Naz Project London 20 Spotlight on Impetus experts 21 How real is poverty in the UK? 22 The business of social innovation 24 Leveraging venture philanthropy for greater impact 25 Spotlight on our charity chief executives 26 Keyfund Federation 28 Camfed International 31 Talent’s story 32 Fairtrade Foundation 34 IntoUniversity 36 Street League 39 Joe’s story 40 COUI – Teens & Toddlers 42 Blue Sky Development & Regeneration 44 Supporting Impetus

This Impetus Impact Report is kindly sponsored by KPMG

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Dear friends, This year has been a year of excitement and challenge. The first three charities in our portfolio “graduated” with spectacular results. We are also very excited to have invested in several new high-impact organisations tackling the root causes of poverty by helping disadvantaged people to gain education, skills and jobs. How proud we are that...

...at a time when many charities and social enterprises have had to cut back on the number of people they are able to serve, the Impetus portfolio of charities has bucked the trend. Even in these challenging times, there has been continued growth in the number of people helped across the portfolio, which is a good illustration of the benefit of our capacity-building work together, and the sustainability of our charities. We believe the world would be better with more venture philanthropy at work. To that end, we’ve been very busy this year sharing what we’ve learned over the past six years about this hugely impactful model for change, at conferences, in the media and with policy makers. Clearly the Impetus model of venture philanthropy is an idea whose time has come, and Impetus is delighted to be playing a role in shaping the agenda for the future. We continue to innovate. We are excited to be leading the way in the application of ‘social return on investment’ (SROI) measurement now being piloted in our portfolio. A Barclay’s Wealth survey found that 51% of its high net worth

respondents would give more money if they could be confident it was being well spent. It is only by measuring actual impact that we will be certain money is being well spent. For too long, many have felt this is too hard to do. But now more than ever we need to challenge ourselves to make it happen, if we are to make real headway in the fight against poverty. In our continuing quest to inspire and challenge you, we asked three global leaders to give us their thoughts about poverty, innovation and venture philanthropy. We hope you find these essays interesting and thought provoking. By 2012 we hope to be able to double the size of our portfolio, by using venture philanthropy to tackle key sectors within economic disadvantage and drive even more impactful change. With your help, we expect to be working with charities that are turning around the lives of nearly half a million people every year. At this time of very limited resource, we are calling on the government to invest in more initiatives that apply this proven, high-impact model, so the highest potential social initiatives can be

replicated and helped to grow. We would also like grantmakers, philanthropists and other funders to require and fund appropriate monitoring and evaluation; this will help new donors to know where to put their money, and may encourage even greater levels of giving. And we would like to challenge talented business people and their organisations to find opportunities to share their expertise effectively, for the good of society. Thanks to all of you who donated your expertise and money, who have given a bit of yourselves in our care and have reported back, in so many conversations, emails and calls, the meaning it has added to your lives. I would like to quote one donor who said, “I get more pleasure out of my gift to Impetus and the lives it is helping to turn around than I do from any other investment I make. Impetus is indeed transforming lives, mine included.” This made my day when I heard it – and continues to inspire me now. To all of you, and our trustees and staff, my heartfelt thanks. Daniela Barone Soares Chief Executive, Impetus Trust

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What does Impetus do? Impetus works with carefully selected charities to help transform their impact. We achieve this through our highly effective model of investment – based on the venture philanthropy model – which has three key components: 1. Unrestricted strategic funding in the form of grants 2. Very hands-on support from the Impetus investment team 3. Specialist support for capacity building, from experts who volunteer their skills.

1. Unrestricted strategic funding We give long-term core funding to charities, so they can build their capacity. This funding is linked to charity performance. At the beginning of each investment we work with the charity to establish clear objectives. We agree milestones and track progress against these, on a quarterly basis. Our funding is dependent on those milestones being met and we have the ability to withhold payment if a milestone is not met. In addition, an important part of the Impetus model is that we are often able to leverage our funding with additional funding from co-investors.

2. Very hands-on support The ‘secret ingredient’ of our investment model is the hands-on, collaborative management support given to the chief executive and senior management of the charity by an experienced Impetus Investment Director. Our Investment team members have substantial consulting, financial and voluntarysector experience and the Investment Director’s support spans the entire investment period. The Investment Director will meet frequently with the chief executive and senior management team of the charity. He/she is responsible for providing direct support, coordinating specialist projects (as below), reviewing performance against the agreed plan, revising action plans if necessary, and managing the graduation from the portfolio once the targets have been achieved.

What is venture philanthropy? Venture philanthropy is an active approach to philanthropy, which involves giving skills as well as money. It uses the principles of venture capital, with the investee organisation receiving management support, specialist expertise and financial resources. The aim is for a social, rather than financial return.

3. Specialist support We have a pool of talented experts, who volunteer their skills to our charities. This expertise is deployed in specific, mutually agreed areas of the charity, with the expert and charity agreeing the brief before a project starts. Each project has a defined period of time and objective, to ensure results. A number of our portfolio charities have said that while they were initially attracted to Impetus by the core funding, it is actually the expertise that has made the greatest difference to them and helped them grow at a much greater pace than they would otherwise have achieved. Example projects include: • Business model review • Business planning • Financial planning and reporting • Development of performance measures • Senior management team coaching • Tendering review and development • Competitor analysis • Franchise development.

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Turbo-charged growth

Strategic funding Long-term Impetus and co-investors’ funding Hands-on management support From Impetus Investment Directors

Specialist expertise Deployment of highly skilled experts for specific capacity-building projects

Which charities do we work with? We work with UK-based charities that are helping to break the cycle of poverty by creating opportunities for the poorest 20% of the population to gain employment, education and skills. We only select innovative charities that are achieving clear results in poverty alleviation and that are ambitious to increase their impact. Our portfolio charities are chosen with great care to ensure the charity both wants and needs our approach. Extensive due diligence is carried out on every potential investment.

Impetus charities increase the number of people they help each year by an average of 56%

What makes us different? This special combination of funding, leveraged by co-investment, pro bono expertise and our investment team support, leads to the Impetus ‘turbocharging effect’, multiplying charities’ social impact many-fold in just three-to-five years! Your donation goes further - for every £1 of funding we give to portfolio charities, we generate an additional £4 in the value of co-investment and volunteer expertise.

Impetus is the best investor of funds in the not-for-profit sector, by a mile. Of that, there is absolutely no question. Chris Mathias, Arbor Ventures, Impetus donor

Proven, long-term results The chief executive of our first investment, Speaking Up, said, “Working with Impetus is like putting a turbo-charger on your organisation.” Our results bear this out. On average our charities have grown their income by 40% a year, which is more than ten times the sector average.* This has enabled them to expand the services they provide and so increase the number of people they help each year by an average of 56%. * Source: National Council for Voluntary Sector Organisations

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What we look for in charities and social enterprises 1. Coverage: Impetus backs charities and social enterprises that are working with significant numbers of economically disadvantaged people 2. Ambition: We support charities and social enterprises that have the ambition to effect far-reaching change for the economically disadvantaged 3. Outcome focus: We seek charities and social enterprises that deliver outcomes addressing challenging issues such as long-term unemployment or offending. We focus on outcomes relating to increased educational attainment, skills and employment. Organisations we back have a commitment to monitoring and evaluating their outcomes 4. Talented chief executive: We seek chief executives with the vision, energy, enterprise and determination to motivate their teams to deliver ambitious plans, which aim to help more people move out of poverty. Quality of leadership is an important factor in our decision making 5. Distinctive and good prospects for sustainability: We target our support at charities and social enterprises that are distinctive and have strong prospects for success and sustainability in their sector 6. Supporting the whole organisation: We provide funding and expertise to support the development of the whole organisation and not just a particular project or activity.

Structural criteria: • Turnover of £250k+ • Operational and with audited accounts for at least three years • HQ and significant portion of management in England. The majority of organisations supported by Impetus operate only in the UK; a small number operate internationally. Exclusions: • Focus on animals, culture and heritage rather than people • Umbrella organisations • Organisations whose services are conditional upon the acceptance, profession or observance of a particular religious position • Organisations substantially/exclusively working in the areas of research or advocacy.

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Charity Investment Summary We invest in charities that are working to effect far-reaching change for economically disadvantaged people. The aim of our investments is to enable those charities to transform their impact so they can help many more people. At present, our charities are working with over 200,000 people per year. Organisation

Area of work

Investment period

Impetus package Total funding

Leverage from expertise provided to charity to date

Long-term investments (3-5 years) Speaking Up

Disability support

2004-2008

£410,000

£229,000

St Giles Trust

Offender resettlement

2004-2009

£348,000

£430,000

beat

Eating disorders information and support

2004-2009

£325,000

£345,000

Leap Confronting Conflict

Youth conflict resolution

2005-2009

£545,000 Includes

£386,000

Naz Project London

Sexual health support to BME communities

2005-2009

£275,000 Includes

£279,000

Keyfund Federation

Skills development for disadvantaged young people

2006-2010

£360,000 Includes

£376,000

Camfed International

Tackling poverty in Sub Saharan Africa through education of rural women

2006-2010

£540,000 Includes co-investment

£173,000

Fairtrade Foundation

Poverty reduction in the developing world through fairer trade

2007-2012

£500,000 Includes

£233,000

IntoUniversity

Providing learning centres where young people are inspired to achieve

2007-2011

£500,000 Includes

£178,000

Street League

Using sport to re-engage and progress disadvantaged people into education and/or employment

2008-2014

£550,000*

£204,000

co-investment from the Private Equity Foundation and an individual investor

co-investment from Charities Aid Foundation (CAF)

co-investment from The Trust for Education, Rank Foundation and Esmée Fairbaim Foundation

from The Trust for Education, Schroder Foundation, ExPat Foundation and individual donors

co-investment from CAF

co-investment from the Private Equity Foundation and The Trust for Education

Phase 1 investments (12-18 months) This is an Initial investment period to develop the plan for growth, usually followed by further investment over a longer period. Acumen Development Trust

Tackling long-term unemployment through skills development

2008-2009

£25,000

£35,000

After review, both parties felt that Acumen could continue its development without further support from Impetus.

COUI - Teens & Toddlers

Teenage pregnancy prevention

2009-2010

£50,000*

£13,000

Blue Sky Development & Regeneration

Reducing re-offending through employment

2009-2010

£50,000*

£19,000

*These organisations are backed by our London Fund, which is supported by Deutsche Bank.

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Spotlight on our supporters: why Chris Mathias gives to Impetus

Chris Mathias was co-founder of CMG Partners and Arbor Ventures, which are both private investment management companies. He was one of the founding trustees of Impetus, and has been a donor since its inception. He is a successful entrepreneur, born and raised in India and now living in the UK. He is an active philanthropist, and looks for charitable investments that are sustainable beyond the lifetime of the funding commitment, building lasting capacity, developing skills and focusing on the very poor.

How did you get involved in Impetus? When I first worked for Harpur Holdings, it was backed by ECI, and [Impetus cofounder] Stephen Dawson was the boss at ECI. Ten years later, in 2001, Stephen rang me up and told me he was thinking of starting an organisation that applied investment principles to charities.

I was born lucky and I have a lot of duty… and then there’s karma, that is, if I don’t do it, who will?

What was it that appealed to you? I believe it’s just as important to apply investment principles to not-for profit investments as it is to profit-making investments. In both, you are investing a resource with the aim of achieving an end. The principles that you use to try to translate that investment of resource into the end goal are exactly the same whether the end goal is making more money or, for example, reducing the incidences of eating disorders. What I had learnt in my previous philanthropy experience was that those principles were not routinely employed, in fact, they were not employed at all, in the not-for-profit area. Stephen’s new venture was addressing many of these issues.

You were one of the original donors to Impetus. What has the experience been like, and what’s been the most satisfying part?

What was it that made you become a donor? That’s an incredibly short answer or an incredibly long one. The short one is that‘s how I was brought up. I was born into very fortunate circumstances. That was nothing to do with me, and everything to do with the luck that went before me.

The best thing has been seeing the concept of venture philanthropy grow! That was the whole purpose. Venture philanthropy is now a term that you can use and half, three quarters of the people you talk to know something about it. It’s hard to imagine in 2000/2001, if you said venture philanthropy, no one had a clue what you meant. No clue! Now it’s more or less commonplace, or getting there.

There are two very Indian concepts which, funnily enough, every Indian irrespective of religion believes in. There’s a concept of dharma, of duty. Dharma is not negotiable. That concept is similar to “that to whom much is given, much is expected”. If you’re very lucky and you’re born lucky, then your dharma is quite high. The other concept is karma. Karma is the good deeds you do – sort of ‘what goes around comes around’. They come back to improve your next life or your next month.

If we are damaging this world in which we live, it is not negotiable, we must fix that. We must all do everything we can to make it better.

I’ve been a donor every year since Impetus started. Impetus is the best investor of funds in the not-for-profit sector, by a mile. Of that, there is absolutely no question.

That’s what I wanted to see happen – that this became a means of giving… or a means of investing that was much more disciplined than was ever the case. It will never ever replace the majority of giving, but hopefully it will become a significant part of the minority. It will infect the way in which donors and recipients treat money that comes in. There’s still a long way to go, but it’s the start of a movement. The satisfying thing is that it feels like the movement has started.

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Impetus portfolio results show sustained growth in 2008/09 With the support of Impetus, portfolio charities are continuing to increase their income and the number of people they can help. The graphs below track the growth of our portfolio charities, in terms of both people helped and income, with impressive results: the average annual growth in people helped of our portfolio charities is 56%, and the average annual growth in income of our portfolio charities is 40%, which is more than ten times the sector average. Our portfolio charities are now helping over 200,000 people a year, enabling these people to access education, skills and employment so they can lead more independent lives. Portfolio income growth 2008/09

£29.39m

2007/08

£24.79m

2006/07

£15.42m £8.87m

2005/06 2004/05 2003/04

£5.45m £2.61m 2004/05 investments

2005/06 investments

2006/07 investments

2007/08 investments

2008/09 investments

Portfolio growth in number of people helped 2008/09

218,461 192,725

2007/08 82,185

2006/07 50,929

2005/06 27,389

2004/05 2003/04

17,788 2004/05 investments

2005/06 investments

2006/07 investments

2007/08 investments

2008/09 investments

Charts rebased to 100 at year of investment, in order to depict actual growth rates across the portfolio. All long-term charity investments have been included in the graph: Speaking Up, St Giles Trust, beat, Leap, NPL, Keyfund, Camfed, Fairtrade, IntoUniversity and Street League. Impact

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Speaking Up Speaking Up provides training and support to people experiencing learning difficulties, mental ill health or other disabilities, to help them better represent themselves and shape their own lives.

Key achievements • Speaking Up has become a leading player in empowering people with learning disabilities, mental health problems or other disabilities to take control of their own lives • It has extended its reach beyond Cambridgeshire, and now offers its services from Kent to Yorkshire • The number of people it helps has increased nine-fold since the beginning of our partnership, to over 4,800. Over the same period its income has increased six-fold.

4 3.5 3 2.5 2 1.5 1 0.5 0 2003/4 2004/5 Prior Year of year investment

2005/6 Year 1

2006/7 Year 2

2007/8 Year 3

2008/9 Year 4

Year prior to investment

Latest year end draft

2003/04

2008/09

Income (in millions)

£0.64

£4.07

No. of people participating in a project/service

500

4,838

Investment summary 2004-2008

www.speakingup.org

4.5

Plan at time of investment Actual

Performance

Total funding: £410k Total expertise support: £229k

Average annual income growth: 45%

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Total income (£m)

Focus of Impetus expertise • Business planning; re-branding; developing and implementing a new sales strategy around advocacy services; IT systems redesign • Organisational design to support geographical growth; introduction of balanced scorecard; project integration and quality assurance • Re-structuring of consulting and training services; developing an outcomes-based model to measure social impact • Coaching senior management; contacts with potential new funders; development of a new business plan and pitch to funders; review and advice on the Department for Children, Schools & Families (DCSF) Pathfinder Fund.


Speaking Up turbo-charged by Impetus investment Speaking Up was a local charity that had developed a successful model of enabling people with learning difficulties to become more independent. It was ambitious to grow, but the organisation lacked the infrastructure and funding needed. After only four years of support from Impetus, Speaking Up is now a leading player in its area of work, and the number of people it helps has increased nine-fold. Speaking Up approached Impetus in 2003, as the Founder and Chief Executive Craig Dearden-Phillips believed there was huge potential for the organisation to grow. The charity had been founded in the mid-1990s with a mission of enabling people with learning difficulties to become more independent, and its services were increasingly in demand. Craig faced difficulties in growing the charity, though, as it was organisationally threadbare, there was little management capacity and few systems and processes in place. Speaking Up also struggled to define its exact offering to new audiences, and it had not developed a sophisticated pricing structure.

Despite these challenges, Impetus believed that Speaking Up’s offering was unique and highly effective. It represented a new breed of organisations championing the idea that disabled people could and should be in the driving seat when it came to decisions about their own lives. In 2004 Impetus invested in Speaking Up, with a four-year support package comprising over £400,000 of capacity-building funding, direct support from the Impetus Investment Director and the additional value (£229,000) of highly skilled experts brought in on specific projects. During the investment, Impetus worked with Speaking Up to address its challenges, and develop the systems and structure needed for it to scale up significantly. The Impetus Investment Director worked closely with the charity to strengthen its income generation and develop a clear five-year strategy. The management team was restructured and Impetus funding enabled Speaking Up to hire new key people, which helped it grow its business. Additionally, highly skilled experts were brought in to work on key projects such as re-branding and developing a clearer

offering, a new balanced scorecard reporting system, and introducing a more effective IT system. Working with Impetus is like putting a turbo-charger on your organisation. Impetus has enabled us to take bold steps and grow at a much faster pace than we would have otherwise. Craig Dearden-Phillips, Chief Executive, Speaking Up The result is that Speaking Up has been transformed as an organisation. It is now financially robust, its systems and processes have been upgraded, creating the infrastructure for more effective management; and it has attracted new, high-calibre talent throughout the organisation. Its growing national reputation is a testament to this change, with the organisation winning a number of major sector awards. Craig was awarded an MBE for services to social enterprise in the Queen’s 2009 Birthday Honours. by Sophie Castell, Impetus pro bono expert

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St Giles Trust St Giles Trust reduces re-offending through a range of innovative projects. The foundation of its work is training ex-offenders to help others in need to resettle and make a positive contribution to society. The focus is on providing access to housing, training and jobs for ex-offenders, especially through its peer advisor work in prisons.

Key achievements • St Giles is now the leading provider of offender resettlement support and services in South-East England, operating in 24 prisons • The number of people it helps has increased fifteen-fold since the beginning of our partnership • Its income has tripled and the percentage of contract income has increased • St Giles was shortlisted for two awards at the Charity Awards 2009 – the first charity ever to be shortlisted in two separate categories - and it won the award in the social care category.

Performance

Investment summary 2004-2009 Total funding: £348k Total expertise support: £430k

www.stgilestrust.org.uk

Average annual growth in people helped: 73% 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2003/4

Prior year

2004/5

Year of investment

2005/6

Year 1

2006/7

Year 2

2007/8

Year 3

2008/9

Year 4

Year prior to investment

Latest year end draft

2003/04

2008/09

Income (in millions)

£1.34

£4.32

Peer advisors trained to NVQ3

20

240

Housing obtained / tenancies saved

160

2,469

No. of people in employment (paid or placements)

8

205

No. of prisons

2

24

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No. of people helped

Focus of Impetus expertise • Strategic planning; marketing; balanced scorecard • Organisational development; team development; property assessment; strategic partnerships • Creating a business development process; building capacity for statutory bidding and input on key bids; review and advice on new fiveyear strategic plan; input on and contacts with potential new funders.


St Giles Trust now helping fifteen times more people St Giles Trust was providing services for the homeless in an increasingly competitive and cash-strapped environment. It was ambitious to expand, but wasn’t sure how. In four short years, with financial support and guidance from Impetus, St Giles is now recognised as a leading provider of offender resettlement support and services in South-East England. Its peer support programme has received many awards, and has the potential to go nationwide. St Giles Trust approached Impetus in 2003, at a time when its main areas of work were providing a homeless day centre and housing services. There were more than 200 homeless charities in London alone and funding was increasingly difficult to obtain. So it was clear that in order to grow sustainably, St Giles needed to differentiate itself. St Giles had also begun trialling a peer advisor programme in Wandsworth prison, helping offenders to prepare for successful resettlement on release. It was this area of work that caught the attention of Impetus as it had great potential for long-term social impact. Lack of housing and employment are cited as two of the leading reasons for re-offending, and this programme offered a possible solution to the cycle of re-offending. The then-CEO Daniel Currie agreed that St Giles’s best growth opportunity lay in its peer advisor programme, and in late 2004 Impetus entered into a four-year investment in St Giles. The package included over £300,000 in core funding, hands-on management support from an Impetus Investment Director, and the deployment of skilled Impetus experts for 14 specific projects. These spanned strategic, organisational and operational challenges that St Giles faced. One such challenge was the area of commissioning: St Giles could identify many opportunities for new business in its existing prisons and in new areas, but was not as successful as it wanted to be in winning those contracts. Impetus arranged support via The Worshipful Company of Management Consultants pro bono scheme from Bob Harris, a former Ernst & Young and Accenture partner with extensive experience in business development in the public sector. Bob helped St Giles’s business development and finance executives review where and how they should best “compete” and invest their efforts. Over a fifteen-month period, Bob provided 25 days of support, during which time he helped St Giles to craft eight specific bids and also to build their capacity for successful tendering. St Giles graduated from the Impetus portfolio in 2009 as a transformed organisation. Over the course of the investment, it has grown dramatically and exceeded all its targets. It now provides over 15,000 people a year with direct assistance or advice, and is recognised as a key provider in enabling offenders and other disadvantaged people to build positive, independent lives. Its achievements have been recognised in awards including The Andy Ludlow Homelessness Award (twice), The Charity Awards and the Third Sector Excellence award. by Peter Beverley, Impetus pro bono expert

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The person pictured is not the person referred in this story. Impacttoreport _ 12


Turning around more lives Robert’ ’s story Robert was brought up in foster families and when he moved out of care he started taking drugs and stealing. When he was 19 he was sent to prison, where he met a St Giles Trust peer advisor. He has now gained an NVQ and feels his life is back on track as he has a job placement, giving housing advice and tenancy support. One of the recommendations Impetus made to St Giles, upon partnering with them in 2004, was to focus on their peer advisor programme in prisons. Since Impetus has partnered with St Giles they have increased the number of peer advisors trained to NVQ3 from 20 in 2003/4 to 240 in 2008/09. St Giles are now working in many more prisons – 24 – compared to 2 in 2003/4. “When I was aged eight, I was taken into care and placed with a foster family. Later on, the rest of my siblings came to live with me at the foster home. After a while it did not work out so we were moved to another placement, which did not work out either. I decided to leave foster care and set out on my own. This is when I started to do a lot of crime and this then led me onto doing drugs. By the time I was 16, I had tried most drugs and gradually gained a cocaine addiction. During my last year of school I had a few problems with my family. I continued to hide behind my addictions. After a while I was no longer enjoying cocaine so I started to look for other drugs for a bigger rush. I started to smoke crack. At 17 I was a full-time criminal doing robberies, burglaries and also dealing drugs just to pay for my habit.

As an addict and also a dealer, I smoked my profit and then all of my capital. I got into trouble with my supplier and messed up not only my life but also those of my friends and family. In the end, all the people I cared about disowned me. I was shocked but could not stop what I was doing. Then the inevitable happened a month after my 19th birthday - I was remanded in a Young Offenders Institution for robbery and assault on a police officer. Whilst on remand I managed to deal with my drug and alcohol addictions and, although it was hard, I managed to get through it. I began to realise what I had put my family through. In jail, a St Giles Trust peer advisor told me how the NVQ helped him with self-esteem problems and how it could also help me by using my experience of drink, drugs and the care system to assist those in similar situations. I started the NVQ course and was delighted to finally get myself on track. I completed the course in nine months and was placed on the open unit where I could go to work each day. I did several voluntary jobs before I landed myself a job placement giving housing advice and tenancy support. I built my confidence but it also helped me face my own demons by helping other people with theirs. I could not have done this without the St Giles NVQ Assessor who mentored me through the NVQ and other difficult problems in my life.”

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beat beat is the only national charity dealing with eating disorders, which affect an estimated one million people in the UK. Approximately 20% of those seriously affected die as a result of these disorders. beat helps people beat eating disorders by campaigning for greater awareness and better services, and by giving people with eating disorders the help and support they need.

Key objectives agreed with Impetus (2004-09) To be the first point of contact for a young person whose life is dominated by fear of food by: • Raising public awareness and building the ability to influence, lobby and educate • Educating young people on the dangers of extreme dieting by raising awareness of eating disorders in schools and improving the provision of specialist training and clinics • Growing the organisation’s direct contact with potential beneficiaries from 28,400 to 168,000 people by 2010.

Focus of Impetus expertise to date • Financial reporting systems; training business plan; appointment of new chair • Re-branding; introduction of balanced scorecard • Review of self help network; review of training activity • Review of earned income potential; business planning; trustee skills review.

Support package Total funding To June 2009 Total (2004-2009) £325k £325k Value of expertise support To June 2009 Total (2004-2009) £345k —

Key achievements • The new beat brand was launched, increasing the organisation’s profile • beat’s training services were restructured, leading to growth in income and better margins • beat won the GlaxoSmithKline IMPACT award, receiving both an unrestricted donation and free training for two staff members.

5th year of 5

www.b-eat.co.uk

Impact report _ 14


Performance

Year prior to investment

Latest year end draft

2003/04

2008/09

Income (in millions)

ÂŁ0.62

ÂŁ0.92

Individual support users

16,400

69,000

Professionals trained

700

2,894

Unique web users

178,000

299,724

Impetus gives me the satisfaction of knowing I have made the biggest difference possible with my money. Adrian Beecroft, Apax Partners, Impetus donor

Average annual growth in people helped: 33% 80,000

No. of people helped

70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2003/04 Prior year

2004/05 Year of investment

2005/06 Year 1

2006/07 Year 2

2007/08 Year 3

2008/09 Year 4

Impact report _ 15


Leap Confronting Conflict Conflict is an inevitable reality in our society and the challenge is to resolve it in a non-violent way. Leap builds the skills of young people to prevent violence and better manage conflict in their lives, schools and communities. Programmes include work with gangs, peer mediation, restorative approaches in schools, reducing knife crime and training for adults.

Key achievements • Leap is recognised as the UK’s leader in conflict resolution with young people • It has increased the number of people it helps by an average of 36% a year • Leap launched the Leap Academy, to provide youth and conflict qualifications up to foundation degree. Leeds Metropolitan University is the academic partner, and will accredit qualifications • Leap was named Overall Winner at the Charity Awards 2009, for overall excellence in charity management. Leap also won the award in the Children and Youth category.

Performance

Investment summary 2005-2009 Total funding: £545k Total expertise support: £386k

www.leapconfrontingconflict.org.uk

Compound Annual Income Growth Pre-Impetus investment: 3.2% During Impetus investment: 33% 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2001

2002

2003

2004

4 yrs 3 yrs 2 yrs 1 yr prior to prior to prior to prior to invest- invest- invest- investment ment ment ment

2005

Year of investment

2006

Year 1

Year prior to investment

Latest year end draft

2004

2008

Income (in millions)

£0.55

£1.89

No. of young people reached directly

2,000

5,600

No. of adults trained

250

1,800

No. of young people reached indirectly

6,000

31,000

2007

Year 2

Impact report _ 16

Total income (£m)

Focus of Impetus expertise • Balanced scorecard; PR strategy and media training; premises review • Income generation review and development • Strategic review, business planning • Management development, including a Chief Executive’s course at INSEAD; marketing strategy • Trustee skills audit.


Impetus helps Leap become leading national charity In 2004, Leap was achieving impressive results in its conflict-resolution work with young people. However, it lacked the clear strategy needed to make the next step and become a national player. With the support of Impetus, in only four years Leap has grown phenomenally, and is now recognised as the leading youth conflictresolution charity in the country.

Leap had been in existence for around 15 years when its new chief executive Jenny Rogers came to Impetus in 2004. The charity had seen demand grow steadily for its pioneering work in conflict resolution, and Jenny believed there was much room for growth. However, she also recognised that Leap would need support if it were to become a national player. During the due diligence process it became apparent that although Leap had a fantastic model, it did not have a clear strategy. Impetus corporate partner OC&C Strategy Consultants, which undertook the due diligence, summed up the problem:

“Leap gets 100% positive feedback, but the offering is so complex that no-one can describe what Leap does in less than 45 minutes!” The OC&C team reviewed Leap’s work and made a number of recommendations, which included restructuring management, adding a few key posts and building a formal codification of the knowledge and curriculum. In early 2005, with Leap’s strategy devised, Impetus formally partnered with Leap. The support package consisted of £285,000 of Impetus funding (which it leveraged with co-investment of £260,000). Over the course of the investment, the Impetus Investment Director provided hands-on management support and also facilitated the deployment of Impetus expert volunteers on 12 specific projects, which covered strategic, organisational and operational issues. As a result of the Impetus investment, Leap has fully lived up to its promise – and its name – and surged forward on all fronts. Income has increased more than three-

fold and more importantly it is now able to help many more young people. In addition, Leap has developed its first regional base in Yorkshire and The Humber and it has developed its courses and qualifications with the Leap Academy, Leap’s landmark initiative to create much needed formal Youth and Conflict Qualifications, seminars, publications and training courses for professionals. Leap has continued to focus on maintaining its research base and “intellectual property” in order to remain a leader in its field. As an organisation, we’re on a different planet now than we were at the beginning of this relationship. Jenny Rogers, Chief Executive, Leap With a clear strategy, more assured funding, motivated management team and compelling, distinctive programmes, Leap enters the next phase of its growth with confidence. by Peter Beverley, Impetus pro bono expert

Impact report _ 17


Naz Project London (NPL) NPL provides sexual health and HIV prevention and support services to culturally and linguistically distinct Black & Minority Ethnic (BME) communities in London, and campaigns for effective sexual health policy and good practice.

Key objectives agreed with Impetus (2005-2009) To be the largest and most effective BME sexual health charity in the UK by: • Significantly increasing the scope of existing support and prevention services within existing target communities, prioritising young adults (20-30 years old) • Developing a specific teenage/school youth project to train and support BME teenage sexual health peer educators in London • Increasing the income base by 40% • Doubling the number of support users served and increasing prevention users by 50% • Creating a national policy voice on BME sexual health issues.

Focus of Impetus expertise to date • Strategic and implementation planning; recruiting and building a senior team; property strategy • Balanced scorecard; fundraising strategy • Review of peer education programme to develop better delivery model; developing fundraising subcommittee and new fundraising staffing model; development of new fundraising pitch.

Support package Total funding To June 2009 Total (2005-2009) £275k £275k Value of expertise support To June 2009 Total (2005-2009) £279k —

Key achievements • Launch of peer education and community volunteer services • NPL is now working with 11 London primary care trusts • A new impact measurement programme has been agreed and is being rolled out • Premises move completed • NPL’s income has grown by an average of 14% a year.

4th year of 4

www.naz.org.uk

Impact report _ 18


Performance

Year prior to investment

Latest year end draft

2004/05

2008/09

Income (in millions)

ÂŁ0.51

ÂŁ0.86

HIV support group numbers

250

636

Community volunteers trained

n/a

73

Teen peer educators trained

n/a

29

We could not have achieved the growth and impact at the pace we wanted without support from Impetus. Bryan Teixeira, Chief Executive, NPL

Average annual growth in people helped: 31% 800

No. of people helped

700 600 500 400 300 200 100 0 2004/05 Prior year

2005/06 Year of investment

2006/07 Year 1

2007/08 Year 2

2008/09 Year 3

Impact report _ 19


Spotlight on Impetus experts: how specialist expertise from corporate partner OC&C Strategy Consultants helped beat scale up What challenge were you working on with beat? We were working with the chief exec Susan and the beat leadership team looking at how to make beat more sustainable. They generated income from donations which wasn’t sufficient to meet their overall costs. Yet they had assets they weren’t monetising. We were helping them think more commercially about their business, and to prioritise where they were spending their money.

Impetus asked OC&C Strategy Consultants to undertake a strategic review of the funding streams of portfolio charity beat, which helps people beat eating disorders. The aim was to ensure that beat would be financially robust as it scaled up the number of people it helped and raised its national profile. Strategy consultant Daire Taylor led the OC&C team working on the project and describes the work they undertook.

Why were you chosen to lead this team? I specialise in media, and beat is, in a lot of respects, like a media company, with income generated from advertising directories, conferences and training courses. The areas we looked at for beat were directly relevant to the work we usually do for corporate clients. We did a major piece of work after the beat work where the corporate client’s revenue streams were almost exactly the same as beat’s. Within OC&C [working on an Impetus project] is seen as a bit of a reward for people. Many of the same principles we use in our commercial work apply here. But in other ways it’s quite different from what we do on a day-to-day basis and it’s seen as a good opportunity to take a more senior role than you would otherwise have done. It’s also a chance to get involved in businesses where there is a more immediate and noticeable impact, which is very rewarding and different from our usual corporate work that is often for much larger organisations. beat do great work, fantastic work – that was the thing that was really inspiring. But that was also frustrating because they weren’t getting the money and they weren’t getting the financial respect that they deserved for all the good work they were doing. Helping to turn that around is what makes [this project] so rewarding.

What surprised you? The surprising thing was how fast they were to action what they learned from our work together, and how grateful they were for the help. They were so receptive and responsive and thankful to have someone who was providing their experience and helping them to do better as a charity, to be a better business in many respects. Susan is an excellent advocate and such a lovely person. She feels very passionate about the work beat does, and it was great to help her. They do a phenomenal amount with the limited resources they have. But she was frustrated because she wants to do so much more. Being able to provide her with direction so she could really capture her resources in a more effective manner was very satisfying. All of the organisations we work with are a lot bigger, so the jump that they have to make is probably less than beat. beat was really going from being a very small organisation to something that could be enormous. It was almost as if we were working for a venture capital firm or a start-up company – that’s the scale of the opportunity. It was very exciting. We’ll be able to see the differences in a few years, whereas with the larger companies, the changes may be more incremental. What did OC&C gain from working on pro bono projects like this? It’s great that we are able to contribute to society in this way, and we also make this commitment because it is rewarding for the staff. The job we do is financially rewarding for us and very interesting because of the range of projects we get to work on. But we work very hard and we don’t necessarily have the opportunity to do the voluntary work we would like to do. I think most of us enjoy the opportunity to give something back.

Impact report _ 20


How real is poverty in the UK? Barbara Stocking

Over the last fifteen years, economic growth and government action have made a difference; but already before the recession, progress on poverty reduction was stalling. Levels of child poverty have begun to rise again in the past three years, having been in decline since 1999. And while poverty among all other age groups has reduced overall since 1997, the number of childless working age adults in poverty has risen to 7.5 million. As the recession bites, the number of unemployed people is rising substantially, with some forecasting that three million or more will be unemployed in the next two years. The damage caused by unemployment can lead to longer-term blight on lives and communities as well as immediate difficulties.

Barbara Stocking, Oxfam GB Chief Executive, challenges Impetus readers to reconsider their complacency about poverty in the UK. The UK is the sixth richest country in the world, yet still more than 13 million people in the UK live in poverty. In a society with such great resources, poverty is not inevitable. Whilst basic material needs are generally met, close to a quarter of the UK population still survives on the margins.

One of the notable aspects of poverty in the UK is how widely shared the risk of living in poverty is: about half the population spent one year in poverty out of the last ten. Poverty is concentrated geographically, in certain neighbourhoods and regions, and also amongst certain groups – people from some ethnic minority communities are more likely to live on a very low income, and women are the poorest in all sections of society. National and local government and civil society must work together to prevent a short-term crisis for many becoming a long-term catastrophe that entrenches millions in poverty and will take decades to solve. Government should move towards a society based on sustainability, with good quality jobs that allow people to have a more secure livelihood, backed by a safety net that neither traps people nor leaves them subsisting in poverty. Alongside this, civil society has a duty to redouble its efforts to increase the human and social capital of people living in the most disadvantaged areas, challenging the public sector to be more responsive to local communities and building the capacity of people living on low incomes to achieve change in their lives and their communities.

And we all have a duty to argue that it is both right and possible to end poverty, even in tough economic times. We must be brave and challenge this notion that those who haven’t enough are poor because they have chosen to be, through the decisions they have made about how to live their lives, through the opportunities they have somehow failed to take up. Poverty in this country is unnecessary and unacceptable; it’s caused by structural factors – the way we run our society – not simply by individuals’ choices.

Impact report _ 21


The business of social innovation John Elkington John Elkington, who coined the phrase “triple bottom line”, is a world authority on innovation and sustainable development. He finds, advises on and helps build innovative scalable solutions to great global challenges. In the following essay, written specially for Impetus supporters, he gives his views on where and how social innovation is being created.

We face epochal challenges, from conflict, terrorism and poverty to climate change and the threat of global pandemics. And we cannot surmount these challenges without the engagement and radical restructuring of business and markets. Our latest study - entitled The Phoenix Economy - spotlights the ‘Phoenix 50’, organisations from the public, private and citizen sectors evolving the mindsets, business models and technologies that will be needed as the social innovation and broader sustainability agendas go mainstream. Having asked several hundred social and environmental entrepreneurs for their nominations of extraordinary innovators and entrepreneurs, we expected their focus to be on people like them. It was - but they also came up with some quite unexpected choices, providing useful clues on where capitalism may be headed. So, first, no surprise that they picked people like Nobel Prizewinner Muhammad Yunus, nominating three of his Grameen Bank-linked social ventures. They also nominated people like Van Jones of Green for All, who President Obama has hooked into the White House to help boost the number of ‘green collar jobs’. And the fact that Shai Agassi, the ex-SAP No. 2 now working to convert consenting countries (like Israel, Australia and Denmark), states (California and Hawaii) and cities (Toronto) to electric vehicles was nominated was virtually a foregone conclusion. Ditto the inclusion of financial institutions like Sustainable Asset Management and Al Gore’s Generation Investment Management. The real surprises lay elsewhere. First, government. The most popular nominee was the Obama Presidency. The sheer ambition of the targets set in plans like ‘New Energy for America’ was energetically applauded. As was the role of California, despite its financial travails, in leading the charge in clean technology. But the entrepreneurs made it plain that what they want is “government-as-unusual”. A bigger surprise came with the corporations nominated. Those making it through the screening process to our Phoenix 50 include GE, GSK, Novo Nordisk and TNT. Our entrepreneurs celebrate the way such giants can bring new solutions to scale in global markets.

Impact report _ 22


Pathways to Scale 5-stage model Stage 1 Eureka! Stage 2 Experimentation Stage 3 Enterprise Stage 4 Ecosystem

Stage 5 Economy

We also have begun to explore the ‘pathways to scale’ that potentially can flip the entire economic system into new patterns. As part of the Phoenix Economy project, we evolved a simple, five-stage ‘Pathways to Scale’ model of change. Each new entrepreneurial business model will typically begin at Stage 1, with the early recognition of an opportunity for a new solution: the ‘Eureka!’ moment. In Stage 2, that initial idea is put to the test, with prototypes and experimentation. Over time, successful experiments evolve into solutions around which new, Stage 3 business models and enterprises are created and invested in. Stage 4 sees the focus shift to the evolution of broader ecosystems of change agents - involving a growing number of public, private and citizen sector partnerships, followed by waves of imitation and broader competition. Ultimately, if anything like a truly sustainable and equitable future is to be achieved, entrepreneurial initiatives will need to scale up their impact further to Stage 5 - a system change - typified by broad-based market and societal adoption of new mindsets, institutional models and technologies. Success in moving from Stages 4 to 5 involves the transformation of political priorities, governance process, market rules and cultures. As the sustainability agenda moves from the margins to the mainstream, the political battles will intensify - with incumbent industries fighting vigorously to defend their corners, like Detroit. A key part of the challenge in this era of what economist Joseph Schumpeter dubbed “creative destruction” will be to amplify the voices and positive impacts of these extraordinary innovators, entrepreneurs and investors.

John Elkington is co-founder of Volans (www.volans.com), based in London and Singapore. BusinessWeek noted that he has been “a dean of the corporate-responsibility movement for three decades”. Read more on www.johnelkington.com. The Phoenix Economy project was produced with support from Net Impact, the Skoll Foundation, Singapore’s Economic Development Board and the United Nations Environment Programme.

Impact report _ 23


Leveraging venture philanthropy for greater impact Paul Carttar and Kim Syman The Obama administration has undertaken a major new initiative to apply venture philanthropy practices to the most challenging social issues in the United States. US-based venture philanthropy organisation New Profit Inc (NPI), which led the coalition behind this bold new move, believed that it had a duty to do more than just help charities and social enterprises scale up. It was determined to leverage its experience for the good of the entire non-profit sector. New Profit Inc. Partners Paul Carttar and Kim Syman share their journey with Impetus supporters, in the hope that it may inspire further big thinking and action in the UK. As a distinct approach to charitable giving, “venture philanthropy” has proven to be a powerful means of growing innovative nonprofit organizations and, thereby, generating significant social impact. However, even in countries where it has flourished, the magnitude of problems plaguing society compared to the scale of venture philanthropy efforts remains truly daunting. Consequently, while continuing to deliver compelling portfolio results must remain their top priority, venture philanthropy firms should also consider pro-active ways to expand the application of key principles and practices in the broader social capital marketplace. Our recent experience in the United States suggests that such a two-pronged strategy can be very productive. Born of the results-oriented, highly engaged approaches to value creation used by for-profit investors, venture philanthropy represents a clear contrast to the grant-making methods typical of traditional foundations. New Profit, founded in 1998, was an early practitioner and to date has invested $26 million in 25 highpotential organizations. The performance of our direct investment program has been promising, highlighted by success stories like Teach For America, which recruits top university graduates to teach in disadvantaged schools and has inspired the creation of more than a dozen like-minded organizations around the world, notably Teach First in the UK.

In recent years, however, we have recognized that to fulfill our potential for social impact we must not only attend to the needs of our portfolio organizations but also apply our growing knowledge and capabilities toward improving prospects for others.

Accordingly, in 2007 we formally altered New Profit’s strategy to include a second “leveraged” pathway for change: helping to build an environment that is conducive to success for all social entrepreneurs and their organizations. The most promising “leveraged” initiative launched thus far has been America Forward, which built a coalition of more than 80 entrepreneurial organizations with two objectives: first, fueling a nation-wide discussion about more innovative ways to solve social problems and, second, advancing a specific bi-partisan policy agenda. America Forward worked successfully with both the Obama and McCain presidential campaigns to encourage adoption of this agenda and, subsequently, played a leading role in realizing key aspects of that agenda, including the White House Office of Social Innovation and the Social Innovation Fund established through the Kennedy Serve America Act. The Social Innovation Fund is particularly noteworthy as it envisions a new role for the federal government as catalyst for dramatic increases in philanthropic capital deployed toward organizations accountable for driving ambitious social change. Major features of the Fund include the following: • $360 million over five years is mandated to flow through a network of selected philanthropic intermediaries who will match government dollars 1:1. • Nonprofits receiving grants will provide an additional 1:1 match, generating up to three dollars of private investment for every public dollar appropriated. • Philanthropic intermediaries – not public agencies – will identify and support promising solutions to a defined set of problems, as they are best positioned both to take risk and to make hard decisions about where resources can be most productive. A portion of Fund resources is explicitly dedicated to research and development, for the purpose of equipping a broad, diverse community of funders and nonprofit organizations to develop and scale high-impact solutions to challenging social problems. To be sure, the highest priority for any venture philanthropy organization remains ensuring the success of organizations it is directly helping to grow. At the same time, a strategy that also seeks to improve the funding environment for all innovative nonprofits may hold significant promise for accelerating the type of impact to which all venture philanthropists – indeed donors of any stripe – ultimately aspire.

Impact report _ 24


Spotlight on our charity chief executives: Rachel Carr, IntoUniversity Impetus started investing in IntoUniversity in 2007. IntoUniversity is an educational charity that helps young people from disadvantaged backgrounds and neighbourhoods to improve their life chances. It runs programmes for children as young as seven, helping them to raise their aspirations and become more knowledgeable about the choices open to them. IntoUniversity’s Chief Executive Rachel Carr describes how she has found working with Impetus.

As a chief executive, what is the best thing about Impetus? The best thing is the money combined with the strategic support. Impetus gives me the kind of support I need when I need it. I trust them, and I really value the fact that Impetus delivers what it promises. What has been the hardest bit about working with Impetus? The hardest was at the beginning getting my head around what the relationship entails, because Impetus has taught us a lot that isn’t just about funding. At the beginning, I thought I would never fit the monthly meeting into my diary, but now I would miss it if it didn’t happen. What surprised you about this relationship with Impetus? How valuable the support was. Before we started working together, Impetus told us it wasn’t going to be just about funding. My question was, “Is this going to be ‘not just about funding’ that is annoying or ‘not just about funding’ that is useful?” Fortunately, it was definitely the latter. I always feel free to say to the Impetus Director if something isn’t working well, because the relationship feels so supportive, I am not afraid to admit it. Also, because of the relationship, if one of the experts she provides isn’t fulfilling our expectation, I tell her that as well – without feeling guilty. In actual fact, I do feel very grateful to the people I’ve met through Impetus because they deliver whatever I agree with the Investment Director needs to be sorted out.

Did you feel concern about whether the Impetus intervention might conflict with your board? Yes, we were concerned when we first heard about Impetus, but there is actually no conflict about it at all. Everybody has met the Impetus Investment Director, so they don’t feel threatened in any way. Actually, she has become part of the IntoUniversity family. If another chief executive asked your advice about Impetus, what would you say? I would say that Impetus is about providing you with a significant amount of funding and a significant amount of strategic support that will not always be comfortable, but will be a huge benefit to your charity. Impetus has made a huge difference in terms of funding and all the expert support that we have received to develop our systems. It has been a really positive experience for us so far and has been really helpful for me as a chief executive. To go from managing a local IntoUniversity programme to trying to manage a new network is a big learning curve for me personally, and it has been great to do it with Impetus support.

Impact report _ 25


Keyfund Federation Keyfund Federation works with marginalised young people to re-engage them in society, help them reach their potential and develop key life skills.

Key objectives agreed with Impetus (2006-2010) To set the standard for re-engaging disadvantaged young people in their communities by: • Building Keyfund’s organisational capacity to deliver high quality training to facilitators • Developing an effective model that would enable Keyfund to double the number of young people reached from 6,000 to more than 12,000 and to deepen the impact on those young people • Building the ability of Keyfund to be able to influence the youth sector more widely • Developing a broader income strategy as part of the post-2010 expansion.

Focus of Impetus expertise to date • Business and implementation planning; systems improvement and financial reporting; organisational structure; balanced scorecard • Senior team recruitment support; legal advice on licensing arrangements; support on building the proposition around the licensing and the marketing strategy • Intensive implementation planning and support.

Support package Total funding To June 2009 Total (2006-2010) £350k £360k Value of expertise support To June 2009 Total (2006-2010) £376k —

Key achievements • Signed four new licences, increasing self-generated income by 40% • Signed its first licence agreement outside of the North-East, expanding its reach into London • Runner-up in the North East Celebration of Learning and Skills Awards for ‘Working in the Community’.

3rd year of 4

www.keyfund.org.uk

Impact report _ 26


Performance

Year prior to investment

Latest year end draft

2004/05

2008/09

Income (in millions)

ÂŁ0.52

ÂŁ0.39

No. of young people involved in projects

6,049

5,748*

No. of new facilitators trained

100

184

David Gregson, Phoenix Equity Partners, Impetus donor

Average annual growth in people helped: -1% 8000 7000 No. of people helped

My high expectations have been more than met because everything that Impetus has done has been groundbreaking.

6000 5000 4000 3000 2000 1000 0 2004/05 Prior year

2005/06 Year of investment

2006/07 Year 1

2007/08 Year 2

2008/09 Year 3

*During 2008/09 Keyfund was oversubscribed with applications from young people to deliver projects. As a result, the gateway was temporarily closed to new applications after eight months. The gateway was re-opened in April 2009.

Impact report _ 27


Camfed International Camfed International is dedicated to breaking the poverty trap by supporting girls in rural Sub-Saharan Africa through their primary and secondary education and the post-school years. This raises their social and economic status, and empowers the young women to support their families and communities over time.

Key objectives agreed with Impetus (2006-2010) To enable Camfed to be recognised internationally as a “gold standard” for social change in rural communities in Sub-Saharan Africa by: • Achieving a turnover of £10m (from £2m in 2005) to support the growth from four to seven countries over four years • Developing a sustainable and scalable model within the existing country programmes. Focus of Impetus expertise to date • Fundraising strategy review; refinement of key performance indicators and outcome measurement; support on staff and board recruitment • Developing a strategy for tertiary level education for young women who have completed their secondary level education • Developing a tool for assessing and building operational team capacity • Refining the investment proposition for Camfed.

www.camfed.org

Key achievements • Signed Memorandum of Understanding with the Malawi Ministry of Education, Science, & Technology for the launch of Camfed’s education programme • Extended the partnership with the Government of Zambia to implement child-protection policies in public schools across the country • Launched a new initiative to train high school graduates in rural Zambia in leadership and enterprise • Average annual increase in people helped of 78%.

Support package Total funding To June 2009 Total (2006-2010) £502k £540k Value of expertise support To June 2009 Total (2006-2010) £173k —

3rd year of 4

Impact report _ 28


Performance

Year prior to investment

Latest year end

2005

2008

Income (in millions)

£2.06

£7.13

No. of girls receiving bursary support

10,717

21,637

No. of children receiving safety net funding

9,769

95,501

No. of partner schools

1,176

2,798

No. of young women entering tertiary education

56

115

As funders who couldn’t be involved in depth, we drew comfort from seeing Impetus Trust as involved in operational support as they are.

Compound annual income growth pre-Impetus investment: 30% During Impetus investment: 51%

Victoria Hornby, The Sainsbury Family Charitable Trusts, Impetus co-investor

8.0 Total income (£m)

7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2002

2003

2004

2005

2006

2007

2008

4 years prior to investment

3 years prior to investment

2 years prior to investment

1 year prior to investment

Year of investment

Year 1

Year 2

Impact report _ 29


Impact report _ 30


Turning around more lives Talent’ ’s story: facing a better future Talent, orphaned at ten, dreamed of becoming a doctor. Brought up by poor relatives and living in a small village in Zimbabwe, she knew her chances were slim. But she held onto her dream long enough to be able to benefit from support from Camfed International. Over the past three years, Impetus has been an instrumental partner for Camfed in finding new ways to multiply the number of girls in secondary school in Sub-Saharan Africa. Since 2006, Camfed has more than doubled the number of girls supported from 9,830 girls in 2006 to 21,637 in 2008, transforming their lives and setting in motion transformation for the next generation. By the time Talent was ten years old, both her parents had died. She and her two younger siblings faced an uncertain future growing up in rural Zimbabwe. They were raised by their aunt, who struggled to make ends meet. Although Talent was extremely bright, her aunt could not afford to send her to secondary school. Yet Talent was determined to succeed. I didn’t want to struggle, being poor all of my life. I wanted to change my life through education. I knew people who had done it, and they were my inspiration. One week before classes started, the head teacher at Talent’s school called her to his office. He told her that the charity Camfed had offered to support her through school. All of her school expenses, from her fees down to soap and bus fares, would be covered.

Talent completed her secondary school education with flying colours – and her dream of becoming a doctor was no longer out of reach. She is now in her second year of medical school and she is one of the top students in her class. Now that I am in medical school, I have faith that the gates to success are wide open. I just have to walk through them. Talent is one of 645,000 children who have benefited from Camfed’s programme of educational support since it began in 1993. The impact is enormous. Girls like Talent, who come from some of the poorest rural communities of Sub-Saharan Africa, are going on to become doctors, teachers, lawyers and businesswomen. In turn, they are becoming the next generation of philanthropists in Africa helping to break the cycle of rural poverty. Through their own community initiatives, young women like Talent have helped to support more than 71,838 children to go to school over the past ten years – making a lasting impact for generations to come. Ultimately, it is through these young women that Africa’s children, and their children’s children, will face a better future. by Vicky Anning, Writer-in-residence, Camfed International

Impact report _ 31


Fairtrade Foundation The Fairtrade Foundation works to improve the lives of poor and marginalised farmers in 59 developing countries, by promoting fairer forms of trade.

Key objectives agreed with Impetus (2007-2012) • Overall, to support the Fairtrade Foundation in achieving its strategic aim of tipping the balance of international trade in favour of disadvantaged producers in the developing world • Specifically, to support the Foundation to grow the UK Fairtrade market by an average of 30% annually. Focus of Impetus expertise to date • In-depth support on the Fairtrade Foundation’s strategic review • Participation on the Strategy Steering Group • Licence fee review • Participation on the Fairtrade Executive Committee.

Key achievements • Continued growth of Fairtrade in UK with retail sales of £713m in 2008, up 45% from 2007 • Partnership with Cadbury, to achieve Fairtrade certification for Cadbury Dairy Milk, the nation’s highestselling chocolate bar • Partnership with Starbucks™, with the aim of all Starbucks Espresso to be Fairtrade certified • Fairtrade Executive Director Harriet Lamb won the Credit Suisse Outstanding Woman in Business Award • Average annual growth in people helped of 23%.

Support package Total funding To June 2009 Total (2007-2012) £175k £500k Value of expertise support To June 2009 Total (2007-2012) £233k —

3rd year of 5

www.fairtrade.org.uk

Impact report _ 32


Performance

Year prior to investment

Latest year end

2006

2008

Income (in £m)

£3.56

£7.22

No. of Fairtrade certified producers supplying the UK market

307

463

The relationship has helped us raise our game. As a result, our strategy is bolder and our stakeholders are extremely excited about where this process is taking us. Harriet Lamb, Executive Director, Fairtrade Foundation

Average annual income growth: 42%

Plan at time of investment Actual

8

Total income (£m)

7 6 5 4 3 2 1 0 2006 Prior year

2007 Year of investment

2008 Year 1

Impact report _ 33


IntoUniversity IntoUniversity inspires and engages young people from disadvantaged backgrounds to attain either a university place or another chosen aspiration.

Key objectives agreed with Impetus (2007-2011) For IntoUniversity to be recognised nationally as a model of excellence for widening the participation of young people from disadvantaged backgrounds in higher education by: • Developing a replicable and sustainable model of integrated after-school study support • Reaching more than 11,000 young people from disadvantaged backgrounds across six centres by 2010, enabling them to improve their academic achievement and life chances. Focus of Impetus expertise to date • Developing a set of outcomes to support the strategic objectives and implementing a monitoring and evaluation system and database to track these • Developing the financial systems and reporting, and coaching support to the Finance Officer • Legal advice on employment policies and procedures.

www.intouniversity.org

Key achievements • Fourth centre opened in Bow, East London. Site secured for fifth centre • IntoUniversity North Kensington received Advanced Level of Quality in Study Support (AQISS); only 35 educational institutions in the UK have this status • Average annual growth in income of 146%.

Support package Total funding To June 2009 Total (2007-2011) £300k £500k Value of expertise support To June 2009 Total (2007-2011) £178k —

2nd year of 4

Impact report _ 34


Performance

Year prior to investment

Latest year end draft

2006/07

2008/09

Income (in millions)

ÂŁ0.16

ÂŁ1.00

No. of young people in academic support

225

688

No. of young people in focus programmes

445

4,596

No. of young people in mentoring

24

198

No. of people going on to university

18

n/a

Impetus gives me the kind of support I need when I need it. I trust them, and I really value the fact that Impetus delivers what it promises. Dr Rachel Carr, Chief Executive, IntoUniversity

Note: People helped figures represent projections to the end of the 2009 academic year.

Average annual growth in people helped: 177%

No. of people helped

6,000 5,000 4,000 3,000 2,000 1,000 0 2006/07 Prior year

2007/08 Year of investment

2008/09 Year 1

Impact report _ 35


Street League Street League uses sport as a hook to engage and motivate homeless and other disadvantaged people. Beyond engagement, it seeks to develop its players to build their confidence, improve their health, extend their social networks and develop their skills, with the ultimate aim of progressing them into further education, training and/or employment.

Key objectives agreed with Impetus (2008-2014) • Support Street League to role out its model nationally • Define the scale-up model and develop a detailed scale-up plan • Specifically support the organisation to roll out to three additional locations in the next five years. Focus of Impetus expertise to date • Analysis of Street League’s competitors in England, looking specifically at their cost per intervention • Follow-on analysis of the Scottish market to support Street League’s successful bid for funding from Inspiring Scotland • Review of the service delivery model and options for roll-out • Detailed roll-out plan covering financial and HR requirements and phasing • Review of Street League’s commissioning and fundraising processes with ongoing support for both of these activities • Legal support on drafting of partnership agreements for roll-out • Support on procurement and relocation.

www.streetleague.co.uk

Key achievements • Third centre opened in Newcastle • Funding secured for expansion in Scotland • Selected to take part in the global Football for Hope Festival due to its excellent commitment and track record in the field of Development through Football • Runner-up for Beyond Sport London Legacy Award 2009.

Support package Total funding To June 2009 Total (2008-2014) £50k £550k Value of expertise support To June 2009 Total (2008-2014) £204k —

2nd year of 6

Impact report _ 36


Performance

Year prior to investment

Latest year end draft

2007/08

2008/09

Income (in millions)

£1.34

£1.59

Streetsports participants

2,334

1,662*

No. of training courses attended

941

1,145

* The drop in number of individuals participating in Street Sports is due to the fact that the organisation, both in London and Glasgow, focused on quality rather than quantity of engagement – the aim was to work with ‘the right people more often’; specifically, the organisation focused its outreach activity more on strategic development and partnership events rather than recruitment of new referral agencies; it also removed its poorly attended sessions from its programme

Average annual income growth: 19%

Plan at time of investment Actual

1.8

Total income (£m)

1.6

Our staff love the fact that the charities progress. Returning to work with a charity several years after you first meet and seeing that the work you did set them on a successful path is just phenomenal. David Krucik, OC&C Strategy Consultants, Impetus pro bono corporate supporter

1.4 1.2 1 0.8 0.6 0.4 0.2 0 2007/08 Prior year

2008/09 Year of investment

Impact report _ 37


The person pictured is not the person referred to in this story.

Active Support

We were able to take advantage of some of the skills we normally use in assessing investment opportunities to demonstrate Street League’s differentiated offering in engaging with young adults through football. It was particularly pleasing that this helped to support a successful grant application that will enable them to expand their service in Glasgow. James Titmuss, ISIS, and his involvement with Impetus Trust charity Street League.

ISIS are proud supporters of the Impetus Trust. To hear more about how ISIS provides both financial support and operational expertise to Impetus charities visit: www.isisep.com/how-we-work/impetus-trust/ Impact report _ 38


Turning around more lives Joe’s story Joe is one of more than 1,700 homeless, unemployed or disadvantaged people of varying ages and backgrounds who have found their way to a career path they never knew existed, as a result of the innovative sports programmes of Street League.

In May last year Joe was selected for a sports coaching and development tour to Malta, along with 15 other players from Glasgow. “It was the first time I’d done anything like this and I felt privileged to take part. We did lots of coaching and it was here that I decided what I wanted to do with the rest of my life - to pursue a career Impetus has been working with Street League in the sports industry and to share my passion for a little more than a year, to develop a scale- for the game with others.” up plan to expand into three more locations. There are many more “Joe”s waiting for them After returning to the UK Joe set about turning to arrive! his dream into a reality and was selected for the Coach Apprenticeship Scheme. This Two years ago Glaswegian Joe was down on six-month initiative is a part-time, paid his luck, unemployed with no future plans. position and enabled Joe to achieve formal He spent much of his life at Parkhead Youth coaching qualifications and to gain experience Project which provides drop-in sessions, in other areas such as IT, marketing and outreach services and activities. It was here administration. that Joe heard about Street League. “I liked the idea of it,” says Joe. “They talked about Joe is now ready for the next step on using football to provide some structure and his journey. help you get a job, but to be honest at first it was all about the football. I just wanted to play I’ve already got a place at Glasgow some football.” Metropolitan College to do a two-year Higher Education Diploma in Sports Over the next year Joe took part in regular Coaching with Development of Sport, training sessions and tournaments. He says: and after that I want to do a sports“It was a real confidence boost. I’d always related degree. I’m excited about loved playing football and it was great to be where it will all lead. Street League part of something. The other big thing was my has really given me the direction I health and fitness. I’d never thought about this need, and has given me the confidence before, and ate and drank whatever I wanted. to pursue a successful future. But one of the coaches encouraged us to eat better food and think about nutrition and told me I’d be a better footballer if I took these things seriously. I’m glad to say I took his advice and I’m a lot healthier now. I feel better for it, mentally and physically.” Impact report _ 39


COUI - Teens & Toddlers COUI - Teens & Toddlers works to reduce teenage pregnancy. It supports and raises the aspirations of at-risk teenagers via its programme that pairs teens with toddlers in a safe nursery environment. Britain has the highest rate of teenage pregnancy of any European country and reducing this is a key component in breaking the cycle of poverty.

Key objectives agreed with Impetus (2009- 2010) Impetus has partnered with COUI Teens & Toddlers initially for 13 months with a view to making a longer-term investment at the end of the planning process.The key objectives in this first phase of work are to support COUI Teens & Toddlers to: • Define a replicable and sustainable business model • Develop a strategic plan for growth over the next 3-4 years.

Focus of Impetus expertise to date • Financial systems review • Organisational structure review • Business model review • Introduction of a new trustee to the COUI - Teens & Toddlers Board. Key achievements • The Department for Children, Schools and Families (DCSF) is trialling an intensive implementation of Teens & Toddlers in four Local Authorities in London • The latest evaluation study of Teens & Toddlers graduates (from 2007) showed that 92% were still in education, training or employment.

Support package Total funding To June 2009 Total (2009-2010) £25k £50k Value of expertise support To June 2009 Total (2009-2010) £13k —

1st year of 1

www.teensandtoddlers.org

Impact report _ 40


Performance

Year prior to investment

Latest year end audited

2007/08

2008/09

Income (in millions)

ÂŁ0.75

ÂŁ1.11

No. of young people who finish the Teens & Toddlers programme

300

558

No. of schools engaged with the Teens & Toddlers programme

27

44

No . of local authorities COUI Teens & Toddlers is operating with

9

13

Impetus stood out because it has such a direct impact on the effectiveness of a whole range of other charities, and on the difference they can make in their chosen field. Wol Kolade, ISIS Equity Partners, Impetus corporate donor

People helped

No. of people helped

600 500 400 300 200 100 0 2007/08 Prior year

2008/09 Year of investment

Impact report _ 41


Blue Sky Development & Regeneration Blue Sky’s mission is to help break the cycle of re-offending. It gives paid employment to people recently released from prison, with the aim of enabling ex-offenders to move successfully into permanent jobs. Blue Sky employs solely ex-offenders in grounds maintenance and related work.

Key objectives agreed with Impetus (2009-2010) Impetus has partnered with Blue Sky initially for 12 months with a view to making a longer-term investment at the end of the planning process. The aim is to: • Build Blue Sky’s capacity in terms of management, systems and business development • Develop scale-up strategies, looking at different roll-out models • Explore opportunities for expansion into adjacent areas of commercial activity • Refine its monitoring and evaluation systems.

Key achievements • Blue Sky has extended its reach beyond southern England, expanding into Manchester with its first franchise agreement • Blue Sky won a prestigious award from the Centre for Social Justice. These awards were set up to “recognise, reward and celebrate the work of exceptional poverty fighting organisations”. Blue Sky was one of only seven winners, out of 335 organisations that applied.

Support package Total funding To June 2009 Total (2009-2010) £25k £50k Value of expertise support To June 2009 Total (2009-2010) £19k —

Focus of Impetus expertise to date • Analysis of growth opportunities • Review of financial systems and controls.

1st year of 1

www.blueskydevelopment.co.uk

Impact report _ 42


Performance

Year prior to investment

Latest year end draft

2007/08

2008/09

Income (in millions)

ÂŁ0.68

ÂŁ0.79

No. of short-term employment contracts offered

50

62

People helped

Ian Armitage, HgCapital, Impetus donor

150 No. of people helped

I decided to support Impetus because I want to get the most for my money. The charities they select will have a high potential to make a difference and with support from Impetus they increase their chances of being real winners.

100

50

0 2007/08 Prior year

2008/09 Year 1 of investment

Impact report _ 43


Supporting Impetus Our charities are helping more than 200,000 of the poorest people gain employment, access education and dramatically improve their ability to lead positive, independent lives. With your help we can double the size of our portfolio so many more people will be reached. This is vitally important as there are over 13 million people living in poverty in this country. For the past decade social mobility has remained flat, which means that if you are born poor, without assistance you are likely to remain poor. The outstanding work that our charities do, each and every day, shows that it is possible to have a real impact on this problem, and turn around people’s lives.

What is special about us? • Our track record is second to none. On average our charities have grown their income by 40% a year. This is more than ten times the sector average. • The value of your donation will be multiplied. For each £1 we give to our portfolio charities, we leverage an additional £4 through co-investment and the value of pro bono expertise given to the charity. • The charities we pick are of the highest calibre. We carefully select our portfolio charities and undertake due diligence on all potential investees. This ensures our charities are achieving far-reaching change for the economically disadvantaged and they have the potential to increase their reach many-fold.

How can you support us? There are many charities that need our help. We aim to double the number of charities we support by 2012. To do this we need to raise £10m in cash, as well as additional co-investment and pro bono expertise given to the charities. You can support Impetus by giving financially and/or by giving your expertise. Financial support • A pledge of £150,000 (typically given over a threeyear period) will enable us to make a long-term commitment to a new charity. • £50,000 will fund a scale-up plan for a charity. • For upwards of £1 million, we can develop bespoke solutions or ‘virtual foundations’. • As an Impetus supporter, you will be invited to select events, giving you up-close-and-personal access to our work with the portfolio charities. You will be kept regularly informed about our investments and the difference your investment is making for our charities. Expertise support • A key part of our successful investment model is the role of specialist experts, who work with our charities on finding practical solutions to specific problems. • You will have the satisfaction of knowing that your expertise can help the charity become more efficient, so they can help many more people. • We are always interested in hearing from skilled professionals, so do contact us for more details.

Impact report _ 44


PR UD T W RK WITH TH SE WH NEVER ST P W RKING F R THERS.

www.barcap.com

We are proud to be able to support Impetus Trust

Doremus

Deutsche Bank

75x185mm

Annual Impact Report GCI 03 P51579a Proof 03 18-08-2009

Deutsche Bank is proud to be working with the Impetus Trust to support the growth of innovative charities in London.

Seeing the potential.

14538_OC&C Advert:Layout 1

15/06/2009

10:54

Page 1

CLEAR THINKING We bring clear thinking to complex strategic issues

OC&C are proud to collaborate with Impetus Trust and its affiliates in the development and provision of strategies that are innovative, cost effective and action-oriented. Our involvement with Impetus Trust and the support we are able to give to its social enterprises are an important part of what OC&C is about.

www.occstrategy.com Impact report _ 45


If you’d like to know more about how your donation can help Impetus to turn around more lives, please contact us. Impetus Trust 20 Flaxman Terrace London WC1H 9PN info@impetus.org.uk Registered charity 1094681

www.impetus.org.uk Impetus Trust Š 2009 | Design by wstudio.co.uk | Printed on 100% recycled fibre

Sign up to the Impetus e-newsletter: email us at info@impetus.org.uk Impact report _ 46

Impetus Impact Report2009/10  

Impetus Impact Report 2009/10

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