A fundraising program for Not For Profits. I believe in thinking different and it just happens that this solves problems.

1. Acquisition for Good
ASB Community Trust
Social Funding Working Group

2. What we will Cover Today
1. Who are We
2. Social Innovation and where A4G fits
3. A4G’s benefits
4. The international picture
5. The 7-Step Process
6. The NZ environment
7. A4G way forward in NZ
8. Roles for ASB Community Trust

3. Vivien Maidaborn 17 years Leadership
experience in the Community Sector

4. TRAVIS O’KEEFE
+ Highly accomplished and results driven executive
with over 19 years of successful new enterprise
development and business leadership experience.
Achieving revenue, profit, and business growth
objectives within start-up, turnaround, and rapid-
change environments.
+ Acknowledged in New Zealand for Innovation and
Entrepreneurial achievements in 2009
+ Passionate about helping 'not-for-profits' convert
into 'not-for-loss' via development of social
enterprise
Everywhere:
www.linkedin.com/in/travisokeefe

5. MARSHALL COUPER
BEFORE

6. Social Innovation is a disruption to
the current system resulting in
better social outcomes

7. POTENTIAL REVENUE MODELS FOR
SUSTAINABLE SOCIAL INNOVATION
4 OPTIONS
1) Charge for existing services
2) Traditional funding
3) New social enterprise start ups
4) Acquisitions for Good

8. New social enterprise start ups
High Risk: 90% FAIL IN THE FIRST THREE YEARS

9. If you had an experienced
‘start up’ team – 4 YEARS
1. ideas generation
12 mths
2. interrogating ideas and refining options – which may
include some crude financial modelling of their likely
implications for income and expenditure
3. market research to test the feasibility of an option
12 mths
4. developing an operational plan
5. piloting the project
6. development and implementation
24 mths
7. successful generation of a surplus

10. ECONOMIC ENGINES
The Acquisitions Model
A proven model where charities buy profitable
businesses and turn them into social enterprises.
=
LESS RISK +
FINANCIAL SUSTAINABILITY +
LONG TERM SOCIAL IMPACT

11. Acquisition for Good (A4G)
The WHY
To develop new pathways to sustainable NFPs with less risk and
cost than start-up social enterprises.
The HOW
Buy profitable businesses that have a potential for growth and
measurable social impact, in particular employment of
marginalised groups

12. NZ CASE STUDIES
ST JOHNS DEVELOPMENT WESTCOAST
IWI COMMUNITY TRUST OF SOUTHLAND

13. The A4G 7-Step Model

14. The A4G 7-Step Model
… Creates a sustainable independent income stream for
community organisations
… Is lower risk than a start-up social enterprise
… Easier access to bank funding than for a start-up
… Increases the capacity of NFPs to do good
… leads to a better SROI
… Doesn’t distract executive staff from their core role
… Creates a specialist acquisition knowledge and handover
pathway therefore managing down capacity and capability
risks

15. Not Reinventing the Wheel

17. The NZ Context
• Fundamental changes to government contracting of
community agencies over next 3 years
• Tight focus of philanthropic and grant making organisations,
resulting is less general support for service provider driven
mission
• Increasing complexity of multi systems issues families and
community agencies work with.
• Capability and capacity issues for Boards and Executives in
community sector

18. “Some noted frustration with traditional funding
methods that respond to what comes in, spread
funding thinly and fund for short periods or in ways
that do not build the capacity or sustainability of
recipients. Some have signaled in their strategic plans
a desire to explore different funding approaches (for
example Bay Trust, TSB).
”
Emerging Practices in Philanthropy – Funder Stories
(Philanthropy New Zealand, 2012)

21. ASB Community Trust
• What role might ‘Acquisitions for Good’ play in ASB
Community Trust achieving its social and business objectives?
• How much would NZ social capital be increased through the
transition of ‘for-profit’ business to Social business?
• What role would ASB CT see for itself to facilitate charitable
organisations toward financial independence?

22. The launch model in Scotland
Scottish Programme outcomes:
• Lottery funded 3½yr programme to:
– Increase knowledge of acquisition in the NFP sector
– Create 8 – 10 Social Firms through acquisition
• Support potential purchasers from “just interested in the
possibility of acquiring a business” to “we've got a target
company in mind”.

23. Scottish Programme
– “Getting ready to buy” and other capacity building
workshops
– Access to pre-selected professional advisers
– Use of pro forma documents to save time & money
– Single portal with information on funding, SROI,
structures and appropriate support
– Free deal flow project management for pre-
approved transactions
– Working with Charities and potential sellers

24. Scottish Programme
• Reduce risk by comprehensive support package
and robust process
• Strong links with funding and finance providers to work around
timing constraints and bridging requirements

25. A4G way forward in NZ
• Achieve a business, philanthropy, government
partnership to provide leadership for A4G in NZ
• Secure three years funding.
– Set up, and process testing
– Information, and ‘getting ready to buy’ workshops.
– 8 Initial acquisitions
– Establish deal flow