Self-Sufficiency
with an
Entrepreneurial Spirit
"My
concerns regard financial independence. Our network fees don't reflect
the true costs and it will eventually catch up with us!"
Lifetime
Member
What
This Element Means
This element reflects
PLAN's core value of independence from direct government funding.
Independence from government funding provides PLAN with the ability
to be an effective advocate and voice for families. It also removes
the anxiety many families have about the long-term viability of contractual
government funding.
A diversified
funding base is the foundation for sustaining our organization in
the long-term and for assuring families we will be around for the
lifetime of their relative with a disability. PLAN cannot afford to
become dependent on any one source of funds. Our founding families
wanted PLAN to be a partnership with families. Family involvement
in PLAN's self-sufficiency is crucial to our organizational health.
"Self-sufficiency
with an entrepreneurial spirit" reflects our understanding that
in order to remain an independent and effective voice for families,
entrepreneurial approaches to resource development are required. In
addition, contributions from the membership to the financial and spiritual
health of our organization are crucial to PLAN's sustainability. Corporations
are more likely to support PLAN if it is clear our members are strong
supporters.
Entrepreneurial
approaches mean earning revenue by finding a fit between the needs
and requirements of our membership and those of corporations offering
future planning products and services. Finding this fit results in
improved services and less expensive products and services for families
and revenue for PLAN.
Two key aspects
were explored to assess how PLAN is performing in this domain: the
amount of time and money directly contributed by lifetime members
and network fees.
The
Findings
1. Amount of
time and money directly contributed by families
53% operating revenue from families and supporters (total of 22% donations,
21% network fees, 10% seminars, publications and consulting)
25% operating revenue from public fund-raising events
16% operating revenue from corporations and foundations
6% operating revenue from investment income.
Total operating
revenue $453,100 (Total does not include additional
$494,000 special project funding from foundations and corporations)
31% of lifetime
members volunteer an average of seven hours per month for PLAN
96% of lifetime members see PLAN as a worthwhile organization for
charitable donations
75% of lifetime members make a regular donation
64% of lifetime members contribute to PLAN's Funds to Live by Campaign
19% of lifetime members have included a bequest to PLAN in their wills.
2. Network
fees
- The
hourly fee of $35 per hour represented 54% of the average cost per
hour based on an average of fiscal years 2001 & 2002
- While
network fees vary from $0 to $140 per month depending on network
activity, the average fee charged to families is $70 per month
77% of lifetime
members think the current fee structure is reasonable considering
the benefits of the network
65% of lifetime members feel they receive a good return on investment
considering the network and PLAN's services
96% of facilitators believe that direct billing results in improved
services for families
- Approximately
1,000 non-billable hours were worked by facilitators. Covered by
PLAN, these hours include training, meetings, etc. In addition,
facilitators frequently work hours they bill neither PLAN nor the
family for.
Analysis
Currently PLAN
receives 53% of its operating revenue from families and supporters.
This revenue is generated through network fees, donations, and the
sale of products and services. To continue to enhance PLAN's sustainability,
it is important to increase this revenue stream along with corporate
and foundation funding. By increasing these sources of revenue, PLAN
could reduce its reliance on charitable gaming (currently 25% of core
operating).
Charging a cost
recoverable fee for service and generating donations from the same
individuals (lifetime members) is a challenge for PLAN. Some lifetime
members believe that paying their monthly bill for PLAN's service
(even though it only covers a little more than one half of the actual
cost) is enough of a contribution towards PLAN's financial health;
therefore, they choose not to make a donation.
In addition, 23%
of families do not feel the current fee structure is reasonable. Clear
communication and accounting for network expenses to lifetime members
is necessary. PLAN's fee structure needs to be examined with an aim
to having fees cover more of the total cost at the same time as providing
members with value for their money. Securing tax credits for fees
would make PLAN more affordable for families.
PLAN has approximately
4,000 subscribers to its newsletter and 1,400 associates. Associates
represent a significant revenue stream. Subscribers do not contribute
to PLAN's financial well-being (although some consider themselves
"members" of PLAN). Subscribers represent a group of people PLAN could
target for increased involvement.
One very important
area where communication and development are required is the percentage
of lifetime members who have left a bequest for PLAN in their wills.
Bequests represent PLAN's long-term security. Bequests can allow PLAN
to retain its independence, decrease its reliance on foundation and
corporate support, keep network fees low, and support individuals
who do not have families. It makes sense for families (who after all
are counting on PLAN to be there in the future) to invest in the future
of the organization with a bequest in their will yet survey data indicate
only 19% have done so.
Targets
for 2004
- At least 70%
of the cost of non-subsidized networks will be covered by fees and
contributions
- 70% of lifetime
members will feel they receive a good return on investment considering
the network and PLAN's services
- At least 50%
of lifetime members will indicate they have left or intend to leave
a bequest to PLAN in their wills
- There will
be 1,600 PLAN associates
- At least 57%
of operating revenue will be secured from families and supporters
- 22% of operating
revenue will be secured from foundations and corporations
- Tax credits
for family fees will be secured.
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