SDSVP Investment Process

Guide to Outcome Planning

Each year SDSVP invests in a different sector of need in San Diego County. This is
our 8th investment cycle, and our focus this year is children and youth in San Diego County. Prior year's grants were in the area of homelessness, the elderly, foster care, parental education, financial literacy, employment development for disadvantaged youth, and the environment.

While SDSVP wants to see the added value in any organization’s program, we are particularly focused on the client and community outcomes achieved as a result of the programs and services.   An applicant’s proposal could include, but is not limited in any way to, programs or services that are collaborative and that leverage the contributions of other entities working to address the same client or community issues. The goal is to partner with organizations who are best able to leverage funds and Partner involvement to substantially address the need and, if possible, create sector change.   

Our process utilizes teams of Partners to research, review, select, and assist each Investee (grantee).  The Investment Working Group (IWG) researches and selects Investees, a chief liaison (“Lead Partner”) and individual Resource Teams assist and collaborate with Investees throughout the next three years of the investment, and our Portfolio Working Group (PWG) oversees all investments made and monitors progress made on each Investee’s annual performance targets.  Our process of investment is similar to the following in any given year:

• 3rd Quarter/ Fall:  Research needs and effective solutions in the sector, such as Youth and Children in San Diego
• 4th Quarter/ Winter:  Encourage nonprofits to submit letters of interest (LOIs)
• 4th Quarter/ Winter:  Request investment proposals (RFPs) and presentations
• 1st Quarter/ Spring:  Visit potential Investees (Site Visits) to learn, perform due diligence, discuss challenges, answer questions and discuss mutual obligations, and in general seek to enable each party to gauge the potential for successful collaboration.
• March:  Select two Investees and mutually sign memorandums of understanding (MOUs) 
• April:  Provide orientation for new Investees and new Lead Partners who are primarily responsible to create and ensure a trusting, respectful partnership
• April:  Assist each Investee with an internal Capacity Assessment, comprising a self-evaluation of core operational areas within the organization
• May:  Mutually prepare and sign an Annual Plan which provides mutual commitment to achieve performance targets in both organizational capacity and also programs and services
• July:  Release first quarterly funds
• Each quarter thereafter:  Review accomplishment of performance targets, including interim milestones, seek additional ways to meet Investee needs, and release quarterly funds, contingent upon collaborative progress achieved
• Each year thereafter:  Mutually prepare and sign a new Annual Plan

SDSVP Investment Criteria

SDSVP invests in only those organizations that are open to and can benefit from a “hands on” collaboration that includes volunteer involvement by SDSVP Partners.  We look for organizations committed to visionary change and organizational growth, and which are able to establish and achieve measurable results.

Our financial commitment to such an organization (an “Investee”) is typically $90,000, distributed over the three year funding cycle.  SDSVP Partners also provide a range of hands-on talent and professional skills. This in-kind volunteer support has been estimated to equal $300,000 to $600,000 over the three years of partnership with each of our Investees.

Potential Investees must have 501(c) (3) IRS tax-exempt status or other nonprofit status and be located within and currently operating services or programs in San Diego County.  An organization can submit only one proposal per funding cycle.  Proposals may include projects or services that are collaborative with other organizations and/or government agencies.

SDSVP uses a team process to select our Investees. The team will usually ask questions such as the following about each investment opportunity:

Leadership	Is the Executive Director or Project Leader passionate and driven to change and grow the organization? Is the organization scalable and does it have adequate, professional management personnel?  Is the organization appropriate for SVP involvement and influence?
Size	Is the organization large enough to absorb what SVP offers?  Is it small enough for SVP to make a meaningful impact?
Organizational Independence	Is it a 501c3? Is it independent of any parent organization?  Is it able to adopt structural changes, such as a shift in strategy or board composition, without significant interference?
Geographic Focus	Is the organization focused completely within San Diego County?  Is all or only a portion of the county served?
Target Population	Is the organization focused on serving the SVP target population established for that year’s particular investment cycle?
Outcomes	Is the submitted proposal focused on capacity building with SVP involvement? Are outcomes measurable?  Is a return on social investment measurable?
Innovation and Impact	How great is the overall impact on the sector from this organization?  How many needs are addressed?  How important are these needs?  How many individuals will be served?  How much change can be leveraged? How scalable are the programs and services?
Capacity Building	Does the organization understand SVP’s capacity building model and welcome the involvement of SVP partners? Are there sufficient needs that SDSVP can have a capacity building impact?

Organizations will not be selected that consider SDSVP as merely a source of funding as opposed to a true entrepreneurial partnership opportunity.  SDSVP invests in an organization committed to achieve measurable results in organizational capacity and programs.  Hence, SDSVP will generally not fund or invest in: 

• Individuals
• Endowments
• For-profit organizations
• Organizations outside San Diego County
• Religious organizations for sectarian purposes
• Organizations that discriminate on the basis of race, sexual orientation, gender, age, marital status, national origin, or physical ability.

Also, SDSVP will not “make grants” for or invest in: 

• Capital campaigns
• Land acquisition
• Short-term or one time events including conferences, performances or productions
• Scholarships
• Research
• Political activities intended to influence legislation or support candidates for political offices
• Litigation or legal expenses
• Re-granting dollars to other nonprofit organizations
• Travel outside the San Diego region
• Existing obligations or debt

SDSVP Resources for Capacity Building 

SDSVP helps nonprofits to be as effective as possible in delivering their programs and services by helping to build the organizational capacity of the nonprofits we fund.  We define organizational capacity building as the development of core skills, management practices, strategies and systems to enhance an organization’s effectiveness, sustainability and ability to fulfill its mission.  

SDSVP is comprised of individuals with a wide range of expertise and experience.  In response to Investees’ organizational capacity building needs, SDSVP provides skilled individuals and Resource Teams to work collaboratively with the Investee.  The Resource Teams serve not only Investees, but also other nonprofit organizations who request assistance. These Resource Teams are comprised of Partners who have expertise or interest in areas critical to building core capabilities within a nonprofit organization (“capacity building”).  Individual Partners and Resource Teams offer assistance in the following areas:

• Strategic Planning
• Board Development
• Finance & Accountability
• Fund Development
• Information Technology
• Marketing

Strategic Planning

Assistance in developing and implementing strategic planning and goal setting:

• Review and reframing of  mission and vision
• Assessment of needs and operational processes
• Development of outcomes, performance targets, and milestones
• Allocation of resources

Board Development and Governance 

Assistance in making boards more effective:

• Review of size, composition, and committee structure of current board
• Development of board policies and procedures
• Coaching for effective board leadership
• Assistance in recruitment and selection of CEO/ED

Finance and Accountability 

Review, development of recommendations, and assistance in the implementation of required solutions in finance and accounting:

• Review and design of general ledger
• Review and design of budgeting process
• Review and design of internal controls and accounting processes, including managing restricted and non-restricted funds
• Establishment of banking relationships
• Recommendation of cash management systems

Fund Development

Assistance in all aspects of non-profit fundraising systems:

• Funding sustainability
• Fundraising infrastructure
• Fund development planning and evaluation
• Revenue generation

Information Technology

Assistance with computer technology, software applications, and telephone systems:

• Hardware and networks
• Websites
• Training
• Oversight and management of systems

Marketing/Public Relations

Assistance in all aspects of marketing:

• Branding and positioning
• Market research
• Communication and collateral
• Public relations and media buying
• Public affairs

Thank you for your interest in learning more about San Diego Social Venture Partners.