Building scalable and sustainable funding models

We place paramount importance on sustainable and scalable projects that make a difference to the greatest volume of people. Often success is bought around by the selection and strength of our partnerships. Our ambition is to develop new partnerships and deepen existing partnerships, where the public benefit is clearly demonstrated and evidenced.

We work closely with foundations, wealthy individuals and commercial partners across the UK to amplify the impact of our funding.

By working with selected partners we seek to:

  • Deploy our funding in a secure and scalable way
  • Ensure we have robust contractual relationships to protect the charities we fund
  • Work with proven, innovative and market leading organisations
  • Ensure our programmes are delivered with a consistently high delivery level
  • Collect comparative and standardised studies to see sector trends to amplify our impact
  • Never derive any kick back or benefit from our partners to avoid conflicts of interest
  • Use data driven approaches to assessing the impact of our funding towards public benefit

Deploy our funding securely

We are accountable to our trustees and funders to deploy our funding securely with trusted suppliers. This means doing due diligence (customer references, market research, financial due diligence, establishing robust contracts) on all partners before paying for services to ensure they have the capacity to deliver and financial stability.

If we left every charity to find their own supplier for our different programmes, this would be prohibitive given we are a relatively small funder with a small team, therefore we will only work with vetted partners. We hope to extend out the number of partnerships over time.

We are able to accelerate our due diligence if an organisation is an approved National Council for Voluntary Organisation (NCVO) Trusted Supplier.

Robust contractual relationships

We require approved legal agreements to be signed with all partners before we deploy any funding.

We have an independent trustee board, two with strong legal backgrounds, who will review the nature of all our partnerships and ensuring there are robust legal arrangements in place with each partner and charity that we fund.

Work with innovative, market leading organisations

We only work with companies that have a track record in delivering to charities, or are trusted leading blue chip companies in the case of our Digital Skills Timebank. We carry out extensive research and reference checking on our partners and work to assess the effectiveness of all our funding on an ongoing basis with the resource we have available. We also prioritise partners who are NCVO Trusted Suppliers as this gives us further reassurance in our due diligence process.

Consistently high level of delivery

We are looking to work with partners who can commit to delivering at high volume with a proven track record at consistently high standards. Partners must provide evidence that their delivery process is sufficiently scalable to meet the requirements of the programme.

Collect comparative studies

All our programmes are dedicated to not only helping progress each individual charity we work with, but progressing the entire sector. For example with our Facebook Grants we are hoping to learn from each charity study to crack the common steps to success in Facebook fundraising and marketing for charities to amplify our impact in the sector. We therefore seek technology partners who can work with us to deliver data driven insights that allow us to help demonstrate how investment in digital can directly lead to income and impact.

Scaling social impact is the only consideration for our partnerships

Transform Foundation does not derive any kick-back, referral fee or financial incentive for working with any partners.

Our aim is to work with partners to prove the return on investment that digital can provide and help organisations overcome the upfront investment barriers to prove the investment case for sustainable funding.

Reviewing the impact of our partnerships

Many funders rely on laborious reports to assess the impact of their funding which can be unreliable and cumbersome for the charity. We are innovating as a funder to build frictionless real-time quantitative reporting on the impact with our partners.

Our aim as a funder is to help charities understand the unit economics of growth through digital - ultimately the cost per acquisition and the life time value that can be derived to build the return on investment model. We do not provide ongoing funding support, and therefore look for charities to invest internally on an ongoing basis once the business case is proven.

We typically enter into a pilot programme with partnerships, in order to prove the impact of our funding before committing further investment. For example, with our Website Grant programme we carried our a pilot in Year 1 which was successful in funded charities raising £1.3M, and some case studies increasing fundraising by 10x or more.

We continued this programme into a second year, and have a real time reporting tool for measuring increased donations from funded charities. Funded charities have raised over £7M and counting, providing great leverage on the investment by Transform Foundations and the partner charities to produce a scalable recurring income stream for charities.

We have currently provided funding for the first cohort of charities for our Facebook Grants and will be reporting on the results of these before the end of 2017.