On June 20, 2016, the Net Impact NYC Service Corp team presented their final recommendations to FXB USA’s Program Director and Interns.
Since FXB released the FXBVillage Model Toolkit and Planning Guide in May 2015, we have been grappling with how to scale our impact in order to accomplish the Sustainable Development Goals (SDGs) while ensuring organizational financial sustainability. As part of our strategic plan, FXB USA aims to both strengthen its direct service delivery model through implementation of FXBVillages and develop capacity building programs to strengthen the ability of other institutions and communities to implement integrated and holistic programs for the ultra poor. Pathways to scaling include expanding the FXBVillage Model through partnerships, innovating new solutions to development challenges, and advocacy for integrated and community led development initiatives. The Net Impact NYC Service Corp explored strategies such as impact investing, partnerships, global dialogue, and social franchising. The most promising strategies include impact investing and partnerships.
The Net Impact NYC Service Corp team assessed the possibility of impact investing for FXB as a way to increase revenue. Before FXB can identify how to engage with impact investing, we need to fully consider the following questions:
- How can FXB USA enhance its programming to better support the growth and development of micro enterprises in FXBVillages?
- How can FXB USA elevate its programming around entrepreneurship, as part of its value proposition to potential donors, including impact investors?
- Given FXB’s model and target population, can FXB USA serve as a connector between social investment funds and start-up businesses in FXBVillages?
The team concluded that FXB USA’s ability to receive impact investments – or other philanthropic investments – hinges on developing clarity on FXB USA’s core programmatic model. Recommendations include discussing the strategic planning process with board members and key stakeholders about FXB’s theory of change and action. To address potential mission drift, FXB USA must frame impact investing positively to board members: that impact investments do not harm, but actually support FXB’s mission, and will ultimately benefit the people FXB serves. FXB USA should also explore other communication strategies that other non-profits with hybrid models have employed for board engagement.
FXB is a member of the INGO Impact Investing Working Group and is learning from member organizations such as CARE, Catholic Relief Services and FHI 360, among others.
The Net Impact NYC Service Corp team also researched the potential for partnerships with local NGOs and larger organizations. Working with local organizations would increase impact in the short term since grassroots NGOs can reach communities in an effective and efficient manner. These grassroots organizations would be the face of FXB and have the potential to reach new communities. FXB should utilize its country offices to determine which local organizations to approach. Regarding partnerships with larger organizations, FXB could increase long-term impact by partnering with large-scale organizations including the UN, large International NGOs, private companies, and government organizations. To execute successfully, FXB needs to identify its unique value proposition, build its profile and visibility, and participate actively in global dialogue. FXB should attend events that align with FXB’s focus areas with the goal of developing strategic relationships (partnerships and donors) while also gaining expertise in fundraising, marketing, operations, etc.
FXB USA is grateful to Net Impact NYC team for their diligence, thorough research, and sound proposals as we continue on our journey to achieving the Sustainable Development Goals and ensuring a world free of poverty!