Sheet 1: Notes

	
	
	

		
Family Philanthropy Services Financial Model Template - vsn 1
		
	

		
National Center for Family Philanthropy Community Foundation Network
		
	

		


		
	

		
Community Foundation Family Philanthropy Playbook:  Module 9 
		


	
	

		
National Center for Family Philanthropy, 2019
		


	
	

		


		
	

		
Background
		
	

		
Tony Macklin created this Excel template for NCFP to help community foundations estimate the financial model of enhanced services for philanthropic families. A financial model forecasts revenue streams and cost structures over time and articulates the assumptions made about both. 
		
	

		
The template contains line items common to delivering family philanthropy services, including as contracted services for private foundations. Some lines may not apply to your foundation, and you may have some to add. NCFP encourages you to adapt the template to your needs, and to share your adaptation with your peers. Email your version to community@ncfp.org and we'll add it to the Playbook.
		
	

		
Using This Template
		
	

		
After this first tab, you'll find a Projections tab that summarizes revenues and costs. Some of the lines are linked to more detailed formulas under the Assumptions tab. The projections assume a "start-up" year of preparation or quiet testing, but your foundation may not need that column. 
		
	

		
Revenues Notes
		
	

		
The revenues section lists income sources beyond your normal fees on funds. You could choose to add a line for those fees if you know what percent or amount of the total fees you'd dedicate to new specialized services.
		
	

		
Internal investment
		
A one-time or multi-year investment from your annual budget or operating reserve; or income from an extra temporary fee on a fund
	
	

		
Donor investment
		
A "founding friends" group of fund advisors and donors, often helping to get things launched through a one time donation or multi-year pledge. Akron, Houston, Seattle have examples.
	
	

		
Sponsorships
		
Business sponsorship income for your annual package of family philanthropy services (sponsorships for a specific program or event go in "service income" below).
	
	

		
Subscriptions
		
Families paying an annual fee or subscription to enhanced services - e.g. Atlanta has packages at $1,000 and $2,500 for donors, Houston has packages from $2,000-$5,500 marketed to private foundations. You can use the Assumptions tab for more detailed projections (e.g. 5 subscriptions at $1,000 each in year 1) or just type estimates in the Projections tab.
	
	

		
Services
		
Rename these lines as needed and add lines as needed for individual products, programs, and services. You can use the Assumptions tab for more detailed projections or just type estimates in the Projections tab.
	
	

		
Service 1 Income
		
ex) Annual family philanthropy event (assumption of 40 attendees at $25 each or one-time event corporate sponsorship of $1500)
	
	

		
Service 2 Income 
		
ex) Family meetings (assumption of  2 at "a la carte pricing" of $1200 each)
	
	

		
Service 3 Income
		
ex) Customized grants program (assumption of $3,000 per grant round x 5 grant rounds for 2 customers)
	
	

		
Service 4 Income 
		
ex) Next gen education series or giving circle (assumption of 25 members at $500 each for admin/programming)
	
	

		
Other 
		


	
	

		
Core Costs Notes
		
	

		
For a simple financial model, estimate these common core expenses for delivering your services. 
		
	

		
Core staffing 
		
The 1-3 staff who will be primary deliverers of enhanced services and contracted services. The Assumptions tab details for each staff member the % FTE and salary & benefits each year. Your foundation may also want to add to the equations a standard overhead percentage.
	
	

		
Training & licensing
		
Special training/licensing and professional development in family philanthropy work for the core staff e.g. 21/64 programs, NCFP conferences, Chartered Advisor in Philanthropy program.
	
	

		
Contractors
		
Subcontractors or consultants to deliver enhanced services to families (e.g. a part-time person to run specialized awards or grantmaking programs, or a pool of $ for subcontracted family facilitation)
	
	

		
Services
		
As in the Revenues section, rename these and add rows as needed, focusing the lines on direct expenses
	
	

		
Service 1 Direct Expenses
		
ex) annual family philanthropy event - space rental, food/drinks, printed materials, speaker fee
	
	

		
Service 2 Direct Expenses
		
ex) family meeting staff travel costs, supplies/printing costs, purchase of values card decks or other facilitation tools
	
	

		
Service 3 Direct Expenses
		
ex) Customized grants program convenings, externally printed materials
	
	

		
Service 4 Direct Expenses
		
ex) Next gen education series - event costs, materials costs, speaker costs
	
	

		
NCFP subscription
		
Don't forget your access to NCFP's peer network for your staff and Knowledge Center of resources for donors :-)
	
	

		
Additional Costs Notes
		
	

		
For a more complete estimate, also factor in these related internal costs as applicable
		
	

		
Additional staff support
		
Pro-rated costs of program, marketing, admin, or finance staff who are critical to delivering enhanced services to families. The Assumptions tab details for each staff member % FTE and salary & benefits each year. Your foundation may also want to add to the equations a standard overhead percentage.
	
	

		
Channels and Marketing
		
New printed materials, microsites, advertising, keyword purchases, etc. related to the family philanthropy services; other direct outreach costs
	
	

		
Investor/sponsor relations & experience
		
Costs for stewardship of Donor Investors ("founding friends") and Sponsors that go beyond your typical stewardship efforts; other costs for providing upgraded customer experiences that drive satisfaction and loyalty
	
	

		
Customer relations & experience
		
Costs for stewardship of donor families that go beyond your typical stewardship efforts; other costs for providing upgraded customer experiences that drive satisfaction and loyalty
	
	

		
Partners & suppliers
		
Investments (above your usual philanthropic services costs) in the partners and suppliers needed to deliver your family philanthropy services, programs, and products. These may include involvement of partners such as professional advisors or suppliers such as software companies.
	
	

		
Physical space & equipment upgrades
		
Creating a comfortable meeting area or a creative brainstorming area for families
	

 




Sheet 2: Projections

	
	
	

		
XX Community Foundation 
		


		


		


		


	
	

		
Family Philanthropy Services Projections - as of date
		


		


		


		


	
	

		


		


		


		


		


	
	

		
Revenues
		
Start-up
		
Year 1
		
Year 2
		
Year 3
	
	

		
Internal investments
		


		


		


		


	
	

		
Donor investments
		


		


		


		


	
	

		
Sponsorships
		


		


		


		


	
	

		
Annual subscriptions/fees
		
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Service 1 Income
		
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Service 2 Income 
		
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Service 3 Income
		
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Service 4 Income 
		
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Other
		


		


		


		


	
	

		


		


		


		


		


	
	

		
Total Revenues
		
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Core Costs
		


		


		


		


	
	

		
Core staffing 
		
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Training & licensing
		


		


		


		


	
	

		
Contractors
		


		


		


		


	
	

		
Service 1 Direct Expenses
		
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Service 2 Direct Expenses
		
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Service 3 Direct Expenses
		
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Service 4 Direct Expenses
		
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NCFP subscription
		


		


		


		


	
	

		


		


		


		


		


	
	

		
Related Costs
		


		


		


		


	
	

		
Additional staff support
		
 $-   
		
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Channels and marketing
		


		


		


		


	
	

		
Investor/sponsor relations & experience
		


		


		


		


	
	

		
Customer relations & experience
		


		


		


		


	
	

		
Partners & suppliers
		


		


		


		


	
	

		
Physical space & equipment upgrades
		


		


		


		


	
	

		
Other
		


		


		


		


	
	

		


		


		


		


		


	
	

		
Total Costs
		
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Annual Cash Flow
		
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Break-Even Analysis
		
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