Disaster Recovery Funds: Which Fund Should You Choose? December 16 th , 2013

1. Disaster Recovery Funds: Which Fund Should You Choose?December 16th, 2013 Alan Chaney Yan Lu SerapSuvari-Guven Vaibhav Thadakamalla KaganYaran

2. Agenda University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum

3. Objectives University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum • Understand the disaster recovery funding environment • Classification into Traditional or Non-Traditional funds • Identify the market opportunity and attractiveness of Non-Traditional funds • Examine drivers of corporate motivation to support Non-Traditional funds vis-à-vis Traditional funds

4. Fund Classification University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum

5. Project Process University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum

6. Methodology University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum

7. Disasters University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum

8. Disasters University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum

9. Fund Commonalities University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum

10. Information Disclosure University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum Disclosure assessed by: • 990s (2 points out of 10) • mandatory filings (hence lowest weight) • Event Reports (3 points out of 10) • often used for marketing purposes • Breakdown of fund disbursements (5 points out of 10) • indicates the highest level of program transparency

11. Fund Research-Takeaways University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum

12. Companies Interviewed University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum

13. Donor Interviews-Takeaways University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum • Disaster Relief: a subset of CSR programs • Size of subset based on fit with values/competencies • Annual Giving more popular than event specific donations • Reporting requirements vary from company to company • Donors view Traditional and Non-Traditional Funds as mutually exclusive • Traditional: Capacity to deliver immediate response • Non-Traditional: Ability to support long-term recovery with donations made on a project-to-project basis

14. Donor Interviews-Takeaways University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum • Traditional funds favored over Non-Traditional • Desire and ability to build long-term partnerships • Trust built through execution history and reputation • Non-Traditional funds favored over Traditional • Program aligns with the company’s mission focus to support recovery • If there is a perception that the non-traditional fund is uniquely placed to fill a community need

15. Anecdotal Information: Perception of Funds “We donated [to the Boston One Fund] because they were respectable, had the backing of the mayor and there was a perception that it would be well managed." "Partnerships with funds are built on trust" "We want to work with organizations who have strong reputation and the capacity to execute a program" University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum

16. Anecdotal Information: Disaster Relief “Our disaster relief efforts look to contribute locally to national organizations." “We have a dedicated team that focuses on disasters and disaster relief. If an event occurs we want to be appropriately placed to inform and assist both our employees and our customers." University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum

17. Barriers for Non-Traditional Funds University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum • Reputation and Trust • Difficulty in establishing relationships due to short term existence • Difficulty in assuring donors of the capacity to execute • Funds Overcome these Barriers by; • Associating themselves with a political or celebrity figure • Associating themselves with a reputable partner such as the BCLC, NetHope or a traditional fund like the American Red Cross • Committing to rigorous reporting practices as part of program execution

18. “Which Fund Should You Choose?” University of Maryland - Smith School of Business - BUSI 718 Social Venture Consulting Practicum • Non-Traditional match Traditional in terms of transparency & accountability • Non-Traditional are complementary to Traditional • Assessing Non-Traditional analogous to assessing a start-up • Mission statement • Program proposal • Charter detailing • Local knowledge level (expertise) • Partnerships • Choice ultimately comes down to: • Is community central to donor? Contribute to relief and recovery? • If focus is disaster support/assistance? Contribute to relief?

19. QUESTIONS?