Value Fund Engineering
A Non Profit Strategy

The Strategy

The Basic underlying strategy for Value Fund Engineering is to use the point of view of the potential fund source to create a connection to your need. You provide something of value to them that is directly attached to their perceived needs or mission. It is this invented connection that opens up the funding channel. It is in their best self interest to fund your project because it first solves their problem or need. Once the source is selected and needs established the non-profit entity engineers the connection to the source. This is a creative approach and goes beyond traditional funding approaches. Literally everyone in the world who you can create value for is a potential funding source.
 

Value Fund Engineering

In a traditional funding approach the point of view of the non-profit is ‘sold’ or marketed’ in traditional channels to traditional sources. All for profits and high net worth individuals are sources. The traditional attachment or enticement to funding is that of community service or that of corporate citizenship. It is therefore necessary for the non-profit to put together a better story than that of the competition. A much more powerful strategy that side steps all competition is to align your project or mission with the needs of the donor. This is Value Fund Engineering. VFE is a three-step process.

• Identify potential Funding Sources of Merit.
• Investigate the needs and problems of each source.
• Engineer a connection between your need and theirs in order to deliver maximum value.

In identifying the sources in step one the objective is to find donors that have both the long term funds and the reputation that you would value. You are creating new partners. Since your new field of potential partners is inexhaustible you can be very selective. Once you have identified your preferred partners you begin to investigate their needs. This can be done via interviews, the Internet, published material, the press and by networking. Once the prospects needs or problems have been uncovered you move into step three. The engineering of the connection(s) is not as difficult as it may seem. There is a process to follow that has a set of protocols developed by the J.R, Hull Co., Inc. This allows the non-profit to develop a number of connections that can be used to facilitate the funding partnership. The following are two examples from a funding project that used the Value Fund Strategy and it’s engineering protocols.


Two VFE Solutions

The Project – To create a major national interactive science exhibit for children that would both educate and promote manned missions to other planets.


1. Exhibit Site – Through value fund engineering it was proposed that a well-known Western Museums joint venture the project. Their needs were to increase the breadth of interest in their museum from the traditional but narrow group of Western Enthusiasts. Through value fund engineering a new type of ‘crossover’ exhibit concept was developed. The non-profit firm, the museum and NASA/JPL would co sponsor an exhibit called ‘The Spirit of Man’. As it was the spirit of man that opened the west so it will be that same spirit that returns us to space. This was the common theme that pulled together all three parties needs and goals. (Note: Due to extenuating legal and administrative circumstances the event was not scheduled but the idea was approved and embraced by all parties. They all agreed that it added value to their respective organizations.)

2. Exhibit Construction- Using Value Fund Engineering methods new partners to fund and build the exhibits were created. Although the normal channels represented by space enthusiasts and grants were pursued, new avenues were opened using the VFE Process. A state wide manufactures group was looking for a project for their members to be the centerpiece of a new educational/apprentice program. Initial discussions have led to an agreement that this type of project would meet their needs and provide a valuable enhancement to their program. The expectation is that they will provide the materials and labor to construct one or more of the exhibits. In addition to providing an exciting high tech project for the students, it will give the association the chance to create working models to display their capability to the prime aerospace contractors. It is hoped these models will provide a seed to develop a full-fledged space systems sub contractor infrastructure in the state. Through value fund engineering needs have been aligned and what was once a multi million dollar-funding problem is no more.

VFE can open up new funding sources at will. It is an open-ended process of fund source creation. Please contact the J.R. Hull Co., Inc. for more information on how your non-profit organization can take advantage of this new soft funding technology.