RD Strategy Jan 2014

8/13/2019 RD Strategy Jan 2014

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Ethiopian Red Cross Society

Resource Development & Mobilisation Strategy


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1. Executive Summary.

Working individually and together, we, the ERCS can maximize resource

mobilization opportunities to realize the strategic aims of Strategy 2010-2015 for the

ERCS.

Drawn from the enabling actions of Strategy 2020, the goals of the Federation-Wide

Resource Mobilization Strategy (the Strategy) are to:

Maintain leadership in resource mobilization for emergencies

Grow non-emergency income for international and domestic work

Increase resource mobilization capacity of National Societies (NSs).

Achieving our resource development strategy in line with the above

mentioned goals will enable the ERCS to ensure the availability of

resources to do more, do better and reach further.

The Strategy will help us build on our strengths and competitive advantages in

resource mobilization, while eliminating practices that undermine our national and

global resource mobilization capacities and objectives. To do this it is paramount that

ERCS are competitive in their markets. Only through an integrated approach, where

ERCS is governed by a collective understanding of mutual roles and responsibilities,

can we hope to achieve the goals outlined above.

In the absence of integrated action, we will not achieve our resource mobilization

potential and risk failing to meet the expanding needs of the Ethiopian most

vulnerable.

The Strategy is driven by five critical challenges that the ERCS must address to

remain the Ethiopias leading humanitarian network.

1. Increased competition for emergency income While ERCS receives large

amount of income to support emergency response efforts, a number of

competing agencies - including United Nations agencies and International

Non-Governmental Organizations (INGOs) - have moved into this space and

are investing heavily to secure increased income.


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2. Low growth in non-emergency incomeExcluding emergency income, ERCS

has a poor income growth rate over the last years. Meanwhile some high

performing international NGO competitors are growing.


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3. Domestic income challenges ERCS is the largest humanitarian actor in

Ethiopia with domestic government income being the primary source of

income. However the growing number of nongovernmental organizations is

resulting in increased competition. Failure to address this threat could

undermine the primary source of income for ERCS.


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4. Working in partnershipsDonor needs and preferences are changing, alter-

ing the way they want to work with the ERCS. We need to proactively engage

with donors to inform and shape these preferences, but also react quickly to

changes we cannot shape if we are to maximize funding opportunities from

the decentralization of international governments, multilateral institutions, the

European Union and foundations. Further we must adapt our working models

to respond effectively to corporations that wish to work in partnership with

ERCS, especially in employee-giving, to realize our potential.

5. Weak capacity buildingERCS are not achieving their resource mobilization

potential. Other international agencies are investing heavily in developing

markets. Other agencies have more sophisticated systems for developing the

resource mobilization capacities and competencies of their local affiliates -

from knowledge management to investment funds to training programmes.

These investments are paying dividends in income growth and expanding

market share.

2. Vision, Mission & Strategic Goals of ERCS.

Vision:

To be a self-reliant and efficient humanitarian organization in Ethiopia in reaching

the most vulnerable.

Miss ion:

Through action in Ethiopia and active participation as a member of the

International Red Cross and Red Crescent Movement, prevent and alleviate

human suffering, contribute to the well-being of mankind and the prevalence of

peace in conformity with the Geneva Conventions and the Fundamental

Principles of the Movement.

Values:

A credible and relevant National Society;

Adherence to integrity, accountability and transparency;

Partnership and solidarity;


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Result-focused;

Self-reliant;

Empowering the community; and,

A strong commitment to best quality in service delivery.

3. Strategic Goal of ERCS.

ERCS has widened its resource base and to a greater extent become a self-

reliant National Society.

4. Guiding principles of the Strategy.

Considering the challenges outlined on the executive summary, the Strategy willbe based on the following guiding principles:

Maximize unrestricted income but not at the expense of growing overall

income

Take donor interests into account and provide effective stewardship

Make concrete one Red Cross and Red Crescent to maximize funding

potential

Use evidence-based decision making: globally and nationally in resourcemobilization and fundraising.

Establish measurable resource mobilization performance targets.

Measure expenditure related to cost of resource mobilization activity and

maintain the return on investment.

5. External and Internal Drivers/ Threats and Key Objectives.

This Strategy is the product of the last two years review of resource mobilization

trends, competitor assessment and internal performance analysis supported by

senior leadership and resource mobilization personnel of ERCS.

The increasing demands for humanitarian support and the growth aspirations

detailed in the Strategic Aims of ERCS requires a resource mobilization (RM)

strategy that is focused on achieving net income growth. ERCS is still not enough

to deliver on the humanitarian goals and is struggling to raise the resources they

require to meet the expanding needs in its communities.


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Research conducted by IFRC on the growth and income patterns of a sample

dataset of NSs and comparative International Non-Governmental Organizations

(INGOs) suggests that, despite the global recession, the RM market worldwide is

growing and will continue to grow in most key income streams. However, this

research identified key changes in the RM market that demand RCRC action to

ensure its relevance to donors and re-position itself to benefit from evolving trends.

Accordingly these changes in line with ERCS are synthesized into internal and

external drivers. External drivers are those which demand that the ERCS reviews

how it engages with external stakeholders as a result of changes in the

environment:

Internal Drivers

- Financial constraints

- Poor external business perspectives

- Lack of operating business policies and guidelines

- Limited donors and partners.

- Donor driven resource mobilization (dependency syndrome)

- Inflation

- Increasing demand for humanitarian services

- Global economic crisis and donors fatigue

- Lack of skilled RM staff.

- ERCS needs to establish revised partnership principles in RM to respond to

donor concerns.

- Needs to establish a culture of joint accountability to achieve its full resource

mobilization potential.

- Need to invest its RM expertise to grow long-term income.

External dr ivers.

- ERCS needs to respond to donors and their changing interests by investing in

innovative approaches in communication, engagement and stewardship.

- ERCS leadershipvolunteer and staff- need to engage in and support the RM

process at every level to ensure opportunities are seized domestically and

globally.

- ERCS must invest in developing markets, emerging issues, and new

technologies to maximize opportunities and maintain its leadership in

emergency income and significantly grow non-emergency income


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Key Object ives.

The resource mobilization strategy considers how UNRWA will be able to deliver

the expected funding and other requirements by strengthening capabilities toward

external partners, delivered through improved internal capacity. It is based onthree high-level strategic objectives.

In the accompanying annexes to this strategy, a series of log frames has been

defined that detail the steps for how the Agency plans to address these objectives.

For the purposes of this strategy, high-level activities are described that are

expected to increase in scope and quality over the next four-year period.

The ERCS Resource Development Strategy prioritizes 7 key objectives resulting

from the drivers above.

1. Deliver best in class donor stewardship underpinned by quality programmes.

2. Partner and diversify increased income opportunities exist.

3. Understand own market potential and maximize funding opportunities.

4. Recruit, develop and retain resource mobilization talent of ERCS leadership,

staff & volunteers.

5. Share resource mobilization expertise, knowledge and innovations.

6. Invest in key markets, initiatives, donor research and technologies.

7. Measure and benchmark resource mobilization performance and create

culture of accountability

6. External and Internal Analysis.

Established on the eve of Ethio-Italian war, on July, 8, 1935, the Ethiopian Red

Cross Society (ERCS) signed the Geneva Convention on July 25 of the same

year and became 48th member of League of Red Cross/Red Crescent Societies

on 25, September 1935. ERCS first charter was enacted in the Negarit Gazette in

October 1947 and since then ratified 4 times .The current charter was issued in

1999. The structural arrangement brings ERCS closer to the grass roots

population and enabling it design and implement focused and responsive projects

to the needs of the population. Proximity to the grass roots population also

enables the Society run its prioritized community based Development Programs

through making good use of its decentralized structure for social mobilization.7.


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Currently, Ethiopian Red Cross Society is in a change process. This plan is

purposed primarily to make ERCS efficient, effective and responsive

humanitarian organization through up to date and integrated systems in place

and congruent leadership and staff rightly filled, upgraded and shared the mission

of ERCS whereby internal and external relationships are adequately built so that

beneficiaries and stakeholders are highly satisfied by the end of July 2014.

Specifically Resource Optimization along with its interrelated plan of activities is

also set as one of the specific objective to be set in the coming two years.8.

8.1. External Environment

Polit ical

Ethiopia is a politically stable country at peace with her neighbours except with

Eritrea. Internal political situation is also stable. Existing legislation favours Ethiopian

Red Cross Society. The National Society is not governed by the requirements

demanded from by the legal framework for NGOs establishment. Wide acceptance

among the National and Regional governments, authorities and the general public is

another favourable condition. Every citizen looks at ERCS with positive impression.

The Charter also allows the National Society to generate and mobilise resource from

diversified sources.

Economic

Due to multiple disasters occurring at different times in different parts of the world,

accessing international funding sources is increasingly challenging. The recent years

global economic crisis is also still posing additional challenges. Governments,

multinational corporations and other donors assistance is shrinking. It is also

increasingly costly to respond to natural and manmade disaster victims in a

geographically vast country like Ethiopia.

Nevertheless, Ethiopian economy is one of the fast growing and transforming

economies in the world. Per capita income is growing fast. Above all a big middle

income population is under formation. Big and small private companies are

flourishing here and there. These changes from within provides favourable condition

to mobilise resources and raise fund.


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Social

Major Humanitarian activities that ERCS is undertaking looks unpopular hence the

amount of support looks going down. ERCS has also been victim of the global

economic crisis and donor fatigue, while the societys demand for humanitarian

service is increasing from time to time. Even though the number of our target donors

have showed some decline in the past years, with the coming into effect of the new

management and the National Societys change plan, the number of PNS and

donors willing to work with ERCS has already started showing progress.

Technological

The growth of Information Communication Technology is alarming and offering

ERCS new ways to approach donors, members and other supporters. The

broadband internet services and the web allows ERCS to easily recruit members,

supporters, solicit online donations, SMS services and to easily communicate with

them and access the Ethiopian diaspora. This enables the National Society to reduce

costs of fundraising and also to get access to expertise from the Federation and

other National Societies.

8.2. Internal Environment

Some of the problems needing special attention stated in Strategy 2020 include

ERCS of being still very dependent upon traditional sources of income to cover core

costs while funding base for emergency relief and community based programs to the

larger extent is still very narrow and movement- focused. Accepting projects beyond

existing implementation capacity to get the 10% administration cost occasionally

leads to the overall poor performances level of projects and consequently to loss of

credibility and to deterioration of relationships between ERCS and its partners.

ERCS branches used to generate much of their income from small scale income

generating activities like flour mill, oil mill, rental of ceremonial items ( Tents, chairs,

tables, utensils) hollow blocks production, stationary shop, farming, tree plantation,

etc. These are not the areas in which the National Society has comparative

advantage over other organizations. Due to the very stiff competition from small but

very effective private business, the activities are withering with the income generated

decreasing over time. Today more than 50% of the zonal branches have their

income Generation projects in the form of Multipurpose Purpose Building (MPB) for


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Rental purpose. Whereas those branches that have their own MPB have become

financially in better position, who havent as yet built their MPB, are in precarious

financial situations. Quite a number of branches find it difficult to cover costs of core

activities with meagre income they generate.

Some zonal branches are given plots of prime area urban lands, for the construction

of income generating projects. However, for lack of the necessary capital the

branches are keeping the plots idle and may run the risk of expropriation by the

municipal officials who will put them up for sale through lease. However, there is an

initiative to establish at least one sustainable income generating project in each of

the branches to make them financially self-reliant so that in addition to covering their

core cots, branches will have the capacity to respond to small scale local

emergencies and to undertake small scale community based projects.

In the 1960s and 1970s the Society used to mobilize the international community

residing in Addis Ababa once a year for a special and grand fund raising event in

connection with the celebration of Red Cross Day, May 8. Such events were

attended by Emperor Haile Selassie, members of the Royal Family, ministers,

member of parliaments and high ranking officials and dignitaries. On such

occasions, bazaars, raffle draws, exhibitions and food and beverage were displayedwith the proceeds from the sale of items be income to ERCS. In recent years,

organized fund raisings are often limited to occasional walk for the Red Cross and

Gala Dinner parties.

The number of resource mobilization professional staff and volunteers and the

overall fundraising capacity and skill in ERCS is weak. The use of modern

fundraising techniques and capabilities such as digital fundraising and the traditional

tools are weak. Staff and volunteers are not familiar with basic fundraisingtechniques. There is no appropriate database which help us to maintain contact

with members , donors and other supporters. Relationship with partners is not

strong. There seems to be no clear guide on how to engage with partners such as

inter-governmental organizations, development banks, multilateral organizations and

private sector. ERCS hasnt developed a partnership/fundraising strategy based on

its assessment of the market potential and mapping of partnership opportunities yet.

Domestic fundraising must be a priority focus of such strategy.


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The auxiliary status of ERCS to the Government of Ethiopia , has the potential to put

them in a privileged position to partner with their Governments, inter-governmental

and multilateral donors. This opportunity so far hasnt be utlised to the maximum.

ERCS is facing increased competition from local charities and as a result it is trying

to get financial support from more sources. Failure to address this threat could

undermine the primary source of income our national society. So, the National

Society needs to develop systems for developing the resource mobilisation

capacities and competencies of staff and volunteers and the institution at all levels.

Membership fee by far remains the dominant source of income for ERCS branches

and has accounted for over 40% of the branches total income.

ERCS NHQ has also been investing in selected businesses. It has had more than

98% share in the former Hiwot Transport and Technical Servicebut which due to

bankruptcy is being liquidated. It has also share worth Birr 11.3 million in NIB

international bank. By renting the ground floor and first floor of the main building and

another house located in the Piazza area ERCS gets close to Birr 2.1 million per

year. It has started building a 16 story Filwoha Complex at estimated cost of Birr 200

million as a means of generating sustainable income. The new Filwoha Complex is

being built in the prime land area of Addis Ababa, on 5000 square meters of land

given to the Society free of lease by the Addis Ababa City Administration

ERCSs Training Centre which sells conference and catering services is generating

an annual profit of over Birr 3,000,000 is one of the major income generating

activities of the society. Over the past years a number of high class(4 stars and

above) hotels are built while some are under construction providing a range of

catering and conference services and putting up very stiff competition to the Training

Centre. To remain competitive in the business, TC is undertaking aggressive

modernization, modification and renovation program in terms of the quality of

services it offers and in making the facilities and the general physical plant attractive

to customers, since 2010. There is a plan to renovate the existing facilities of the TC

to be able to provide trainings as well as the catering and lodging services and to

reap the benefits arising from operating on large scale.


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Not all people used to have full knowledge of the mandate and activities of the

Society while much fewer know about the Red Cross Principles in general. Most

people used to know the Society only through its ambulance services and the former

blood bank services. This was because of the hard fact that no serious dissemination

and marketing had been undertaken to build the image of the society and to

popularize its mandates and activities. In recognition of these realities, the Society

has charted out the way forward to be aggressively engaged to create awareness

about the overall activities of ERCS and to promote Humanitarian values and

Fundamental Principles of RC/RC movement through frequent usage of the Mass

Media.

Such undertakings will surely result in improved image of the Society and in the

mobilization of more resources for its different humanitarian services and grass roots

development initiatives. Strengthening the Communication and information will

naturally be the top priority of ERCS for image building and resource mobilization. It

is evident from the fund structure that ERCS has still to work focusing particularly on

membership development, organizing special fund raising events and generating

revenue from services in the times ahead to enhance its capacity where it

considerably lags behind in resource mobilization. The benefit of working in these

areas is twofold since it promotes advocacy as well.

The National Society is committed to becoming a relatively financially self-reliant

society that can cover most of its core costs, undertake small scale community

based development projects as well respond to minor local emergencies with the

revenue it generates from domestic sources.

PEST Analysis of ERCS.

POLITICAL ECONOMIC

- Political Stability

- Acceptance of the Society by thegovernment

- Legal frame work for NGOestablishment.

- Relatively fast growing economy

- Existence of free market economy- Inflationary situation

SOCIAL TECHNOLOGICAL

- Acceptance of the Society by thegovernment and Community

- Increasing demand for humanitarianservice

- Global Economic Crisis and donor

fatigue.

- Existence of modern ICT that simplifiescommunication.


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SWOT Analysis of ERCS in terms of Fundraising

STRENGTH OPPORTUNITIES

- Good network of Branches in mostparts of the country with 11 regional

offices that can enable the nationalsociety to raise funds regionally- Existence of Resource Mobilization

(RM) structure- Has committed volunteers at

grassroots level to assist in resourcemobilisation activities.

- Enjoys community support- Has grassroots representation

- The national society was created by agovernment decree and has auxiliary

status to the government- Has the support of IFRC- Political stability- Acceptance of the Society by all- Existence of fast growing business

sector- Existence of youth volunteers.- The Red Cross movement enjoys

support and respect globally as trustedand transparent humanitarianorganisation.

WEAKNESS THREATS

- The national society largely dependson donor funding

- Lack of well skilled RM staff/Lack ofcapacity building activities for staffand volunteers involved in resourcemobilisation activities

- Lack of well-functioning resourcemobilisation task force/committee

- Lack of well planned annualfundraising events

- Lack of funding for resourcemobilisation activities

- Lack of relevant operating system- Weak IEC Capacity- Focusing on traditional way of RM/- Poor experience- Attitude towards resource

mobilization- Absence of business plan- Lack of viable business activities that

can generate funds for the national

society- Absence of fund raising strategy and

policy

- Emergence of high level competitors- Emergence of global economic crisis

and donor fatigue


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9. Key Objectives Activities & Expected Outcomes.

Objective Action Outcomes

1) Deliver best in class donor stewardshipunderpinned by quality programmes.

Ensuring that money secured from the RCRCmovement and other donors is spent wisely. Deliver greater transparency and accountability.

Broaden the constituency within ERCSnetwork of traditional donors. Share best practices in donor reporting principles.

Seek multi-year agreements with traditionaldonors.

Systematically measure donor feedback on theirprogramme.

Undertake joint exploration with traditionaldonors with the objective of establishing newdonor relationships Traditional donor partnership strengthened.

2) Partner and diversify increased incomeopportunities exist.

Establish systematic communications fromERCS with diversified donor-base

Diversify donor and resource base contributingincreasingly to resource needs

Piloting outsourced fundraising in other NS &replicating if successful.

Implement a set of principles of cooperation thatpromote and guide RM collaboration

Enhancing online donations through improvedcommunications design and upgradedtechnology.

Build on existing and develop new partnerships withUN agencies, EU, INGOs, corporations and othersthat expand RC funding.

Improving definition and management of RMcollaborative partnerships.

Share RM knowledge and expertise through apromotion mechanisms.

Develop targeted work-plans for non-traditional donors and RCRC movementpartners.

3) Understand own market potential andmaximize funding opportunities.

Ensuring RCRC partners and donors expecta-tions are met.

Enabling environment established to support donorrelationship management.

Making the most of income growthopportunities through partnerships.

ERCS utilize assessment tools and methodologies todefine the market potential.

Working with leadership to push to deliverpotential. Implement customized capacity building relating tospecific RM development potentials.

Annual discussions with branch, RCRCmovements and other donors.

Participate in communities of practice and usereference centres for key income streams.

Quarterly meetings between ERCS, branchesand RCRC movements and other donors.

Develop communication tools for branchesand programme activities to developmentaland humanitarian results.


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Objective Action Outcomes

4) Recruit, develop and retain resourcemobilization talent of ERCS leadership,staff & volunteers.

ERCS have RM staff and volunteers.

Unlock the talent of its staff, volunteers and membersto maximize RM potential.Provide development opportunities globally and locally.

Leadership push to deliver potentials of ERCSRM activities.

Professional and volunteer are more involved in RM.Governance and management at all level understandhow RM works.Leadership adopt a long-term view of RM investment.

5) Share resource mobilization expertise,knowledge and innovations. Building the ERCS RM expertise.

Implement a world class knowledge management

system to collect and share RM expertise.Learn from and adopt other relevant NS & external RMinnovations.

6) Invest in key markets, initiatives, donorresearch and technologies. Creating the context for talent.

ERCS at the forefront of developing and utilizing RM-related technologies.

Ensuring investment is shared.

ERCS increases investments to grow income in highpotential markets.ERCS invests in systematically analyzing andresearching donors, their needs and marketopportunities.

7) Measure and benchmark resourcemobilization performance and createculture of accountability. Guaranteeing results are concrete.

ERCS measures its performance more accurately andsystematically.ERCS establishes national RM targets based onbenchmarking of peer organizations and betterassessments of market potential.ERCS undertakes regular performance managementreviews to understand its own potential for growth.

Mechanisms are developed to oversee theimplementation of the Strategy.ERCS hold itself accountable for maximizing the RMpotential.


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10. ERCS Expected Income Streams.

While identifying the key income streams for ERCS, the FWRM Strategy of IFRC is adopted

and in line with it, nine key income streams are identified and thought to fit with that ofERCS. Accordingly it suggests that growth will come from the private, government and

multilateral institutions and other incomes income portfolios.

These key income streams of ERCS are the following:

1. Individu al givin g:

This income stream is the largest private income stream and identified as the largest private

growth opportunity for most NS. It needs to be highlighted that donations outside of

emergencies are generally un-earmarked and it is often the largest source of un-earmarked

donations across all income streams. ERCS needs to lever relationships cultivated during

emergency donations, identifying new one-time donors who can be converted intocommitted regular givers.

2. Foundations:

ERCS must better organize to tap into this income stream effectively. Many local & INGOs

present proposals to the largest foundations. ERCS in this respect need to build its

competency in foundation fundraising.

3. Corporat ions:

Though the amount and trends of corporate giving varies widely among the different NS,

this income stream has potential to grow since the corporate sector is investing in Corporate

Social Responsibility programs and is seeking strong organizations and brands to partner

with institution like Ethiopian Red Cross Society. ERCS must build capacity and coordinate

their efforts more effectively to benefit from the potential in the corporate sector found in

Ethiopia and abroad as well.

4. High Net wo rth Indiv iduals.

As it was in other countries, there are increasing numbers of rich financially rich people all

over Ethiopia who can and want to support the ERCS .However this to do this successfully

will mean scalable or transformational propositions, and a new way of working closely with

these often demanding donors which will require strong involvement from leadership.

5. Events:

In ERCS and other NS this stream is not a major source of income. However there is great

opportunities to share knowledge and skills between NSs..

6. Domest ic government funding:

Being as an auxiliary to FDRE, ERCS is uniquely positioned in Ethiopia to secure resources

from the Ethiopia governments both at regional and national level. The key focus is to

maintain this market lead through leadership engagement with governments and continued

provision of value-added services.


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7. International go vernment and EU fund ing:

Other NS and IFRC receives significant support from some governments for international

humanitarian work and, we, ERCS need to work to access this resource and this may create

an opportunities for growth in accessing government funding as well. While developing this

relationship good coordination is critical for the ERCS to grow its market potential in this

income area.

EU globally and in Ethiopia provides complex but considerable funding growth opportunities

for to humanitarian institution such as ERCS to support international work and

intracommunity programmes where significant EU funding is available. ERCS needs

coordination mechanisms to ensure that RCRC is aware of EU priorities.

8. Mult i lateral inst itu t ions :

This stream is considerable untapped potential from multilateral agencies. The source hasadditional resource mobilization opportunities in terms of grant financing from the

Multilateral Development Banks as well and these funds are best accessed through

specialist skills and thematic propositions linked in accordance with the agencies priorities.

9. Earned Income/ Other income:

Income streams that are found in this sources are from earned income/ income generating

activities which will vary depending on feasibility of the streams .This stream is an important

income stream and is necessary to explore growth opportunities both at HQ and branch

level.


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11. ERCS Income potential analysis.Income potential Current

potentialOpportunities/Threats potential Action

Individual giving

Individual pledge. Low High PositiveFoundations: Low

Corporations. Low

High Net worth Individuals. Low

Events

Bazar, sport events, dinner events, music events Low High positive

Domestic government funding Low High positive

GovernmentalUN organization, DFID, British embassy, US AID,SIDA

Low positive

International government and EU funding:Multilateral institutions.

Earned incomeMultipurpose building, Joint venture, Hotel, Garageand Lodging

Low High positive

House rental Low High income positive

Hiwot Transport compound - High income positive

Training Center services Low High income positive

Drug shops to pharmacies low Opportunity: HighThreat: strongcompetition

Positive


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12. Resources

Priority income stream Resource area Needed to achieveresults

Impact and importance

Individual Giving. Human resource;Training;ICT equipment.

Resource mobilized. potential givers increased;Members reached..Improved knowledge of fund raising.

Foundations: Expertise.Finance.

Resource mobilized.Lessons learnt.

Corporations. Expertise.

Training;Finance.

Resource mobilized.

Lessons learnt.

potential givers increased;

Members reached..

High Net worth Individuals. Expertise.Finance.


potential givers increased;Members reached..

Events Expertise.Finance.


Domestic government Expertise.Finance.

Resource mobilized.Strengthenedpartnership

Forward the case to the concerned body.

International government and EUfunding:Multilateral institutions.

Expertise.Finance.

Resource mobilized.

Earned income: Strengthenedpartnership


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13. Implementing the Resource Development & Mobilisation Strategy.

Resource mobilization is not the unique responsibility of any one group within ERCS. The

ERCS HQ, Regional, Zonal, Woreda branches governance, staff, volunteers and other

relevant stakeholders have responsibility of mobilizing resource. Regional, Zonal, Woreda

and Kebele branch structures have a distinct roles and provide support for resource

mobilisation. The strength of ERCS is its proximity to partners and flexibility in responding to

their needs. By simultaneously decentralising resource mobilisation close to the Regional

Zonal and Woreda level and investing in central resources through the HQ and functional

teams, ERCS is equally able to present detailed project proposals to some partners, while

advocating at a high level toward others.

The log-frame described in Section 8 will be broken down into annual work-plans,

reflecting milestones in the progress toward delivering the overall strategy. Each of the

work plans includes targets and specifies roles and responsibilities across the variousfunctional groups and departments. Each activity will also be broken down into more specific

actions to be carried out depending on donor/target audience.

Within ERCS, the log-frames are used as the basis to establish annual objectives for each

of the responsible bodies. The effective implementation of this plan will require the attention

of all responsible bodies inside and outside ERCS, and in particular:

- The Board, SG, DSG Branch and Resource: support of the RM strategy including

outreach to donor capitals and explicit agreement on the terms of reference for

the RM task force.

- Branch offices: support in building a broader constituency in ERCS

donornetwork and joint exploration of new donor relationships.

- Programme departments: collaboration with ERCS in developing convincing

investment productsillustrating social returns.

- Branches: commitment to implementing and adequately supporting project

management and control processes.

- Finance department: improved clarity toward donors of actual and expected cost

changes and project expenditure.

14. Resourcing the Strategy.

A draft budget for the implementation of this strategy is given in Annex 2, specifying annualbudget needs. The estimates made are only approximate, and will need to be refined whenthe annual work plans are fully developed. Estimates for later years are even more subjectto uncertainty. A summary of additional requirements per strategic objective is given in thetable below.


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Draft Implementation Budget Summary.

Strategic Objective

Budget In Birr Total byObjectives2014 2015 2016 2017 2018

Deliver best in class donor stewardshipunderpinned by quality programmes. 136,000 145,000 146,000 159,000 176,000 762,000Partner and diversify increased incomeopportunities exist. 250,000 275,000 287,000 320,000 420,000 1,552,000

Understand own market potential and maximizefunding opportunities. 320,000 380,000 365,000 385,000 385,000 1,835,000

Recruit, develop and retain resourcemobilization talent of ERCS leadership, staff &volunteers. 315,000 345,000 326,000 376,000 390,000 1,752,000Share resource mobilization expertise,knowledge and innovations. 243,000 266,000 342,000 312,000 322,000 1,485,000Invest in key markets, initiatives, donor researchand technologies. 1,500,000 2,200,340 3,400,000 3,654,000 4,345,000 15,099,340

Measure and benchmark resource mobilizationperformance and create culture of accountability 121,000 122,000 145,000 137,000 165,000 690,000

Total by year. 2,885,000 3,733,340 5,011,000 5,343,000 6,203,000 23,175,340


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15. Draft Target Incomes and Time Frame. 2014-2018.

Income streams TargetIncomes

2014 2015 2016 2017 2018

Individual GivingIndividual pledge 1,040,808 200,000 204,000 208,080 212,242 216,486

Gala Dinners 3,642,828 700,000 714,000 728,280 742,846 757,703Street collections 624,485 120,000 122,400 124,848 127,345 129,892Others 5,204,040 1,000,000 1,020,000 1,040,400 1,061,208 1,082,432Events 3,642,828 700,000 714,000 728,280 742,846 757,703Foundations. 15,612,120 3,000,000 3,060,000 3,121,200 3,183,624 3,247,296

Corporate -Collection of social responsibility funds 7,806,060 1,500,000 1,530,000 1,560,600 1,591,812 1,623,648Recruiting and retaining individual andcorporate members. 3,642,828 700,000 714,000 728,280 742,846 757,703Domestic Government funding. -Budgetary support from government. 52,040,402 10,000,000 10,200,000 10,404,000 10,612,080 10,824,322Earned Income: -Small business profits 520,404 100,000 102,000 104,040 106,121 108,243Rentals 3,903,030 750,000 765,000 780,300 795,906 811,824Training centre earnings 10,408,080 2,000,000 2,040,000 2,080,800 2,122,416 2,164,864Marketing Commercial FA of ERCS 1,561,212 300,000 306,000 312,120 318,362 324,730Other feasible IGA 468,364 200,000 204,000 208,080 212,242 216,486

Yearly Total.110,117,490 21,160,000 21,583,200 22,014,864 22,455,161 22,904,265


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Annex.

a) Detail implementation with logframe Plan. 2014-2018

b) Detail Implementation Budget. 2014-2018

c) Monitoring and Evaluation Framework.

Documents

RD Strategy Jan 2014