Welcome to CENFACS’ Online Diary!
20 March 2024
Post No. 344
The Week’s Contents
• Matching Organisation-Property Investor Winter/Spring 2024 Activity – Fragment 4 (from 20 to 26/03/2024): Matching Organisation’s Considerations to Planning Restrictions and Budget with Property Investor’s Exit Strategy
• Spring Relief 2024: Rebuilding and Renewing Lives, Infrastructures and Institutions in the Context of Squeezed Household Spending
• Coming This Spring 2024: FACS Issue No. 83 which will be titled as Charity Trade, Investment and Poverty Reduction in Africa
… And much more!
Key Messages
• Matching Organisation-Property Investor Winter/Spring 2024 Activity – Fragment 4 (from 20 to 26/03/2024): Matching Organisation’s Considerations to Planning Restrictions and Budget with Property Investor’s Exit Strategy
The last episode of our 4-week Matching Organisation-Property Investor Winter/Spring 2024 Activity is about Matching Organisation’s Considerations to Planning Restrictions and Budget with Property Investor’s Exit Strategy.
Both parties (i.e., Africa-based Sister Housing Charitable Organisation and Not-for-profit Property Investor) have worked hard in every step of the way of the serialisation and fragmentation of this Activity. They have so far made noticeable progress, as they have continued to score points. These scored points are enough to enable them to enter the last stage of the matching talks.
They are excited and have started to dream to pass Easter Season 2024 with a new investment for Africa-based Sister Housing Charitable Organisation (ASHCO) and a new asset in portfolio for not-for-profit (n-f-p) property investor. However, each of them still has some work to do to complete the matching process.
• • What ASHCO Can Do at This Stage of Matching Talks
For ASHCO, this Fragment 4 is about paying attention to the planning restrictions and explaining its any budget constraints. It is about showing how mindful ASHCO is about regulations and housing legal matters. It is also about being open regarding the plan for money to be coming in and going out.
This last stage is the last opportunity for ASHCO to elevate its pitch and application in line with housing project planning theories, processes, practices and legalities. It is the stage at which ASHCO has to sell its project unique point to stand out amongst competing projects and organisations, while highlighting impactful aspects of its project in terms of poverty reduction.
• • What Not-for-profit Property Investor Can Do at This Stage of Matching Talks
Concerning the n-f-p property investor, Fragment 4 is about explaining how he/she will quit the process in the end. It is about for him/her to own the structure of his/her investment by, for instance, keeping the control of their portfolio or transferring it. It is the stage at which he/she will have to explain his/her vision whether he/she wants to minimise the costs of investing in ASHCO (or ASHCO’s project) or maximising the benefit in terms of the number of people who will will be lifted out housing poverty.
It is also the level of evaluation whereby n-f-p property investor will look at qualitative (facts) and quantitative (numbers) data, metrics and indicators to help him/her in its investment decision-making process or case. The n-f-p property investor can test the project’s replicability. This insight will indicate to him/her whether or not to back the project and the ASHCO that initiates this project.
Where the two (i.e., investee and investor) need support, CENFACS will work with each party to fill the gap or narrow their distances.
More on Fragment 4 can be found under the Main Development section of this post.
• Spring Relief 2024: Rebuilding and Renewing Lives, Infrastructures and Institutions in the Context of Squeezed Household Spending
The Winter Season of Light, which is ending today, gives us an opportunity to bring some lights and hopes to those in most need so that they can find the reasons to believe in life again. The Season of Light tackles poverty as a lack of hope and expectations. However, our work does not stop there.
Spring is the Season of Rebirth and Rejuvenation. We call it Spring Relief within CENFACS. Generally, the key theme for Spring within CENFACS is Rebuilding or Renewing Lives, Infrastructures and Institutions. In other words, Spring Relief is the season of rebuilding from what has been destroyed by wars, natural disasters, economic mismanagement, mistakes from the past, other disasters (like the cost-of-living crisis, health crisis of Ebola or COVID-19), etc.
We need to rebuild in order to reduce poverty, stop its re-appearance and avoid the emergence of new types of poverty and new generations of poor people. We want to move away from the endemic structures and institutions of disadvantage, discrimination and inequality towards the poor. During this period, we take the challenge of working with those in need to rebuild their lives, infrastructures, buildings, development of relationships, communities, etc. from damages, losses and worse changes experienced or caused.
So, the key words for the Spring Season are rebuilding and renewing. We shall come back on these words at different occasions as we step into Spring and progress towards its end; especially with our advocacy project of Rebuilding Africa.
• • Build Forward Better Together to a Greener, Cleaner, Safer, Inclusive and Climate-Resilient Future within the Context of Squeezed Household Spending.
In order to build forward, it is wise to take into account the context of doing it and how to exactly build forward.
• • • Context of building forward this Spring 2024
Last Spring, we helped reduce poverty and rebuild lives within the context of Falling Real Household Disposable Incomes.
This Spring 2024, our focus is on rebuilding and sustaining lives, infrastructures and institutions within the context of Squeezed Household Spending. But, what is household spending.
~ Basic understanding of household spending
According to Organisation for Economic Cooperation and Development (1),
“Household spending is the amount of final consumption expenditure made by resident households to meet their everyday needs, such as food, clothing, housing (rent), energy, transport, durable goods (notably cars), health costs, leisure, and miscellaneous services”.
As the World Bank (2) puts it,
“Household consumption is typically the core concept at the centre of any attempt to measure living standards, inequality and poverty in the developing world”.
Household consumption expenditures can be measured by budget surveys. These metrics can help indicate or know if there has been increase or decrease or even squeeze in the amount of household consumption expenditures.
~ Squeeze on household final Consumption expenditures
In recent months, there has been a squeeze on household spending and living standards. For example, according to the Office for National Statistics (3) in the UK,
“From Quarter 4 (Oct. to Dec.) 2021 to Quarter 2 (Apr. to June) 2023, there has been a fall in the quantity and/or quality of many items bought by households, but increasing prices mean that the overall nominal value of household spending has risen sharply”.
The Office for National Statistics (4) in the UK also argues that
“In Quarter 3 (July to Sept.) 2023, household spending growth (adjusted for inflation) was negative 0.5%. Compared with Quarter 2 (Apr. to June) 2023”.
Decrease in household spending can be an indication of the struggle that households are having to make ends meet. Easing the squeeze can help decrease the difficulty these households are experiencing.
Squeeze on household spending can be an impediment in the process of continuing the building forward work. Given these context and impediment, how can we build forward?
• • • How to continue the work of building forward in the current context
We are going to continue our work on building forward where we left it last year. Last year, it was much about recovery in the building forward process.
Like any process, building forward process has phases or steps. For instance, ‘uneca.org’ (5) identifies three steps linked to build forward; steps which include: response, recovery and re-set.
Following the perspective of ‘uneca.org’, we are going to continue our work of building forward by re-setting the system. As ‘uneca.org’ states it, re-set aims at giving tools to direct economic recovery to drive sustainable growth that will be aligned with the Sustainable Development Goals and the Paris Agreement.
The 2024 process of Building Forward Better Together includes all the elements of 2023 Process of Building Forward Greener, Cleaner and Safer that related to the cost-of-living crisis. However, the focus will be on resetting the system.
Therefore, the theme for this Spring Relief 2024 is still “Build Forward Better Together to a Greener, Cleaner, Safer, Inclusive and Climate-Resilient Future” but within the context of Squeezed Household Spending. We will be working on resetting the system, our system of poverty reduction.
The announcement of Spring Relief’s theme comes with that of projects and programmes making it or the notes composing this theme. In our next post, we shall provide the projects and programmes we have selected to make this Spring – Spring Relief season.
As we have just announced, it is a selection. Consequently, one should expect the introduction of new activities and the continuation of on-going initiatives like our All-year Round (or Triple Value) projects. That is also to say, there will be additional projects and programmes as we progress throughout this coming Spring season.
• Coming This Spring 2024: FACS Issue No. 83 which will be titled as Charity Trade, Investment and Poverty Reduction in Africa
Trade and investment can make a lot difference in the lives of those living in poverty. Trade does not always to be for profit. Charites and voluntary organisations do trade and can trade, but not to make or distribute profit. Their ability to trade is limited (6). Also, there are rules in the UK on what types of activities count as trading. Charities can run and/or own shops (e.g., charity shops). Charities can trade by setting up a separate trading company or subsidiary or ancillary.
Charity trade can help to back charities’ mission and charity objects like the reduction of poverty. For example, according to ‘charityretail.org.uk’ (7),
“Profit contribution of charity retail to parent charities was £387 million between 2022 and 2023. Social value generated by UK charity shops was £75.3 billion between January and December 2022”.
The 83rd Issue of FACS will be about trade and investment run by Africa-based Sister Charitable Organisations to help reduce poverty and hardships amongst those in need. It will also include trading activities carried out by the members or beneficiaries of these organisations, who are engaged in trade to reduce poverty or simply to make ends meet. Amongst these people are those poor who cross borders on a daily basis to sell goods and services to make ends meet. The 83rd Issue of FACS will focus on these organisations and individuals selling goods and services for the purpose of coming out poverty.
The 83rd Issue of FACS will inspect contemporary theories of trade and the space they provide to explain trade in the charitable and voluntary sector, particularly in Africa. Far from being a simple theoretical account of these theories or models, the 83rd Issue of FACS will aim at providing the justifications or cases for trade within the charitable and voluntary worlds. One of these justifications comes from International Trade Council (8) which argues that
“Economic growth spurred by international trade can directly contribute to poverty reduction. As countries export goods and services, they not only generate income but also create employment opportunities, which can uplift people out of poverty”.
The 83rd Issue of FACS will deal with intra-regional trade carried out by Africa’s charities and how this trade is helping to reduce poverty. As a treaty of intra-regional trade, the 83rd Issue of FACS will envisage cases of trade within the region of Africa and the space given by African Continental Free Trade Area with all the advantages and disadvantages that area contains. In doing so, the 83rd Issue of FACS will not undermine the value of trade conducted beyond Africa’s borders.
The 83rd Issue of FACS will be a story of trade creation, rather than trade diversion, in order to reduce poverty and enhance sustainable development. From this perspective, the 83rd Issue of FACS will be an illustration of how Africa-based Trade Charitable Organisations are trying to capture the window of opportunities provided by a free trade regime to reduce poverty in various sectors of human empowerment.
In practical terms, the 83rd Issue of FACS will be a handy piece of work explaining how poor and vulnerable beneficiaries are trying to create usable means to live off and push poverty away. To push poverty away via trade, these beneficiaries need trade skills. So, investing in these beneficiaries to acquire or improve these skills will be dealt within the 83rd Issue of FACS, just as the transmission and sharing of trade skills.
To read more about this new Issue, please keep checking on CENFACS incoming posts this Spring 2024. To reserve a paper copy of this 83rd Issue of FACS, please contact CENFACS with your mailing details.
Extra Messages
• ICDP (Individual Capacity Development Programme) Resource, Holiday with Relief – In Focus for Spring 2024 Issue: Holiday with Restricted Budget
• Climate Action 3: Support Crowdfunding Campaigns and Poverty Reduction (18 to 24/03/2024)
• All-year Round Projects Cycle (Triple Value Initiatives Cycle) – Step/Workshop 5: Negotiating and Agreeing Your Play, Run and Vote Projects
• ICDP (Individual Capacity Development Programme) Resource, Holiday with Relief – In Focus for Spring 2024 Issue: Holiday with Restricted Budget
How to make your holiday plan with restrictions on your holiday funds
The next Issue of our ICDP Resource entitled as ‘Holiday with Relief’ will focus on Holiday with Restricted Budget. The Issue will deal with limited spending for holiday, with a family’s or household’s immediate needs rather than wants during holiday.
Holiday with Restricted Budget can happen in the following circumstances:
a) “When a family is on a restricted budget, it means it is limiting its spending “, according to ‘pocketsense.com’ (9)
b) When a funder or donor, who funds your holiday, adds restrictions to their gift by telling you that the funds you require for holiday must be used for the purpose agreed upon by you and whoever funds your holiday (here holiday funder or donor), according to ‘pairsoft.com’ (10)
c) If the person who sponsored your holiday project does it through a policy on restricted funds budget.
Many people on low income will have their holiday budget restricted to essential spending. With restricted budget for your holiday you have some challenges to deal with.
This year, ‘Holiday with Relief’ will provide wealthy advice, tips and hints to overcome these challenges and find opportunities to finance your holiday. Through this wealth of information, we will try to tackle holiday poverty or poverty linked to restricted or limited means to enjoy a decent holiday whether at home or away from home.
This resource will be packed with Spring-like poverty-relieving ideas about how to reduce poverty linked to restricted means while being on holiday. Although the contents of this year’s Holiday with Relief will be for holiday, they can be used at any other time of the year.
To enquire about the 2024 Issue of Holiday with Relief, please contact CENFACS.
• Climate Action 3: Support Crowdfunding Campaigns and Poverty Reduction (18 to 24/03/2024)
Net-zero emissions reduction of greenhouse gases by 2050 can be achieved by backing an organised series of actions designed to support net zero goals. Some of these actions are called crowdfunding. But, what is crowdfunding?
• • Basic Understanding of Crowdfunding
Crowdfunding can be defined in many ways. The website ‘thebalancemoney.com’ (11) defines it as
“The method of financing a business venture, project, or cause by collecting small monetary contributions from large group of people through online platforms”.
There are pros and cons about crowdfunding. However, what we are interested in is their pros arguments. Those who would like to take climate actions can support these platforms which are of various types.
• • Types of Crowdfunding
It is said on the website ‘oberlo.com’ (12) that there are many types of crowdfunding available on the market, which include reward-based crowdfunding, equity-based crowdfunding and donation-based crowdfunding.
If we focus on donation-based crowdfunding, the ‘oberlo.com’ explains that this type of crowdfunding, which is usually employed by charitable causes, is when supporters freely donate money without reward or monetary incentive. The Campaign on Fundly to support a food recovery project for the Happy Kids Cancer is one of these charitable causes. One can even start their own crowdfunding to support a charitable cause.
Different types of crowdfunding provide various examples of crowdfunding.
• • Examples of Crowdfunding
Examples of environmental protection crowdfunding platforms in the UK include: Energise Africa, Energy 4 Impact, Abundance, Triodos Crowdfunding, etc.
Other examples of environmental crowdfunding projects are Take#Savethebees to the Streets, Join the fight to save Coul Links, Blooming Wild Devon, We are building a machine to remove beached plastic, etc.
Further examples of crowdfunding platforms for impact on the environment are Indiegogo, Startsomegood.
The above are just few of the many examples. What matters here is to support these campaigns or platforms. There are ways of supporting them.
• • Ways of Supporting Crowdfunding Campaigns and Poverty Reduction
They include the following:
√ Respond to their product surveys with poverty-reduction contents
√ Sign-up for their email campaigns
√ Find trustworthy crowdfunding campaigns dealing with both net-zero issues and poverty reduction
√ Be aware of their brands
√ Become one of the active or loyal followers
√ Provide feedback about their campaigns
√ Check their pricing policies whether or not they are affordable for all income budgets
√ Verify their results in terms of poverty reduction and other benefits to the poor
Etc.
The above is our note for Climate Action 3.
Those members of our community who would like to work with CENFACS on Supporting Crowdfunding Campaigns and Poverty Reduction, they can take climate actions as well as actions on reducing poverty with us.
For any queries or enquiries about Climate Action 3 and Climate Actions Month, please do not hesitate to contact CENFACS.
• All-year Round Projects Cycle (Triple Value Initiatives Cycle) –
Step/Workshop 5: Negotiating and Agreeing Your Play, Run and Vote Projects
Step/Workshop 5 contains two tasks: negotiations and agreement.
• • What Is Negotiation?
Negotiation is part of humans’ everyday life. To explain it, we are going to refer to what ‘pmi.org’ states about it. The website ‘pmi.org’ (13) provides three features about negotiation, which are
“[a] Communication back and forth for the purpose of making a joint decision
[b] A way of finding a mutually acceptable solution to a shared problem
[c] Achieving an ideal outcome: a wise decision, efficiently and amicably agreed upon”.
Negotiation can be hard, soft and principled. As an all-year-round project user, your negotiation needs to end with negotiated agreement to put your all-year-round project into action, whereby there could be a win-win outcome for you and those engaged with you in the negotiation. Negotiation can lead to an agreement.
• • What Is an Agreement?
An agreement is simply a joint decision after negotiation or discussion, and can be translated into a contract or promise to carry out what has been negotiated or discussed. The agreement helps to outline the terms and conditions between all-year-round project user and the other party.
• • Example of Negotiated Agreement: Your Project about Playing the CENFACS’ League of Poverty Reduction
Let say you want to run a tournament over this coming Easter season with friends or relatives in order to find which African country is making commendable progress in terms of poverty reduction. You need to negotiate with friends and/or relatives the terms and conditions of this tournament.
• • • What to include into your negotiated agreement
Your negotiation could revolve around the following:
~ the number of African countries making your Easter tournament
~ the criteria or metrics to rate them in terms of performance relating to poverty reduction
~ the analytical period you would like to consider (e.g., 01/01/2024 to 31/03/2024 or first quarter of 2024)
~ the roles each of the participants to the game would like to play
~ the length of the tournament
~ the time and day of the Easter holiday to play
~ the way of recording and communicating your results
etc.
You can think whether or not to insert a fundraising element (such as crowdfunding) into your tournament.
• • • Crowdfunding your tournament
You can start crowdfunding for the tournament so that any money donated by friends and relatives go to good causes such as CENFACS‘ noble and beautiful ones. You can set up a minimum or maximum amount as target to raise as money, and share crowdfunding tasks to achieve this target.
• • What Will Happen after Negotiation
After negotiation, you need to agree on certain terms, conditions and rules to follow during the play. Depending on your skills, knowledge, experience and resources; you may decide to turn your game into a play station or use a game theory to solve some of the hurdles you may encounter.
For those who would like to dive deeper into the negotiation and agreement relating to their Play or Run or Vote project, they should not hesitate to contact CENFACS.
Message in French (Message en français)
• Ressource du PDCI (Programme de Développement des Capacités Individuelles), Vacances avec soulagement – Gros plan pour le numéro du printemps 2024 : Vacances avec budget restreint
Comment faire votre plan de vacances avec des restrictions sur vos fonds de vacances
Le prochain numéro de notre ressource de PDCI , intitulé «Vacances avec soulagement», portera sur les vacances avec un budget restreint. Le numéro portera sur les dépenses limitées pour les vacances, sur les besoins immédiats d’une famille ou d’un ménage plutôt que sur ses désirs pendant les vacances.
Les vacances avec budget restreint peuvent se produire dans les cas suivants :
a) «Lorsqu’une famille a un budget restreint, cela signifie qu’elle limite ses dépenses », selon « pocketsense.com» (9)
b) Lorsqu’un bailleur de fonds ou donateur qui finance vos vacances ajoute des restrictions à son don en vous disant que les fonds dont vous avez besoin pour les vacances doivent être utilisés aux fins convenues entre vous et la personne qui finance vos vacances, conformément au site internet « pairsoft.com » (10)
c) Si la personne qui a parrainé votre projet de vacances le fait par le biais d’une politique sur le budget des fonds restreints.
De nombreuses personnes à faible revenu verront leur budget des vacances limité aux dépenses essentielles. Avec un budget restreint pour vos vacances, vous avez quelques défis.
Cette année, «Vacances avec soulagement» vous fournira des conseils, des astuces et des indications pour surmonter ces défis et trouver des opportunités de financer vos vacances. Grâce à cette mine d’informations, nous tenterons de lutter contre la pauvreté liée aux vacances ou à la pauvreté liée à des moyens restreints ou limités pour profiter de vacances décentes, que ce soit à la maison ou à l’extérieur.
Cette ressource sera remplie d’idées de soulagement de la pauvreté pendant le printemps, sur la façon de réduire à la fois la pauvreté liée à des moyens limités tout en étant en vacances. Bien que le contenu des «Vacances avec soulagement» de cette année soit pour les vacances, il peut être utilisé à tout autre moment de l’année.
Pour en savoir plus sur l’édition 2024 de «Vacances avec soulagement», veuillez contacter le CENFACS.
Main Development
• Matching Organisation-Property Investor Winter/Spring 2024 Activity –
Fragment 4 (from 20 to 26/03/2024): Matching Organisation’s Considerations to Planning Restrictions and Budget with Property Investor’s Exit Strategy
Both parties (i.e., Africa-based Sister Housing Charitable Organisation and Not-for-profit Property Investor) have made considerable progress so far, as they have continued to score points. These points are sufficient to enable them to enter the last stage of the matching talks, Fragment 4.
At the level of Fragment 4, the matching talks will be about finding ways to reach an agreement between Housing Organisation’s Considerations to Planning Restrictions and Budget with Property Investor’s Exit Strategy.
To explain what is going to happen at this last stage or Fragment 4, we have organised our notes around the following headings:
σ Africa-based Sister Housing Charitable Organisation’s Considerations to Planning Restrictions and Budget
σ Not-for-profit Property Investor’s Exit Strategy
σ The Match or Fit Test
σ Concluding Note on Matching Organisation-Property Investor Winter/Spring 2024 Activity.
Let us look at each of these headings.
• • Africa-based Sister Housing Charitable Organisation’s Considerations to Planning Restrictions and Budget
To approach ASHCO’s Considerations to Planning Restrictions, let us first explain planning restrictions and budget, then what ASHCO needs to do to have its considerations approved by the n-f-p property investor.
• • • What is a planning restriction?
The website ‘lawinsider.com’ (14) explains that
“Planning restriction means any restriction on the use or development of the land under any planning scheme, statute, regulation, local law or permit condition or imposed by the Council or any other authority empowered to control the use or development of the land”.
The website ‘farmandcountryfinance.co.uk’ (15) adds that
“The effect of a planning restriction is to limit those persons who are entitled to occupy a property and this in turn limits the market to which the property may be sold”.
A planning restriction may have an impact on the property investor and the property evaluation. This is why ASHCO has to take serious considerations to the planning restrictions that may apply to the property.
• • • What is a budget?
Using the definition of ‘nerdwallet.com’ (16),
“A budget is a spending plan based on income and expenses”.
A budget can be constrained. According to ‘open.oregonstate.education’ (17),
“The budget constraint is the set of all the bundles a consumer can afford given that consumer’s income. We assume that the consumer has a budget – an amount of money available to spend on bundles”.
ASHCO, that has a budget, needs to consider any restrictions or constraints that may apply to its budget. The good news for ASHCO is that the n-f-p property investor as a donor is not adding any financial restrictions to its gift of investment to the housing project.
ASHCO is also required to do more in order to reach an agreement.
• • • What ASHCO can do to reach an agreement
There is number of tasks ASHCO can undertake in order to reach an agreement with the n-f-p property investor. They include the ones given below.
ASCHCO needs to balance income, expenses and the goal of acquiring a new investor.
ASCHO has to make a comprehensive list of expenditures and explain them.
ASCHO can use the 50/30/20 budget rule, which suggests that you spend about 50% of your monthly after-tax income on necessities, 30% on wants and 20% on savings and paying off the debt. Within this budget rule, housing costs are needs or necessities or expenses you cannot avoid .
This could an opportunity to negotiate the greatest need of the housing project in conversation with the n-f-p property investor so that the latter can increase its gift to project beneficiaries, especially if ASHCO’s budget is restricted. ASHCO can a bit bend or tweak certain parameters in the building of its budget. It can make some of the housing costs to appear as a want not just a need in the budget. However, ASCHCO must be careful about its language during this solicitation for increased gift. Otherwise, ASCHCO will blow everything away.
ASHCO is required to check if the planning permission to perform certain types of work is within the consent from the local authority for the proposed building.
ASHCO has to make sure that it has permitted development rights for the enlargement, improvement or other alterations of a house for their home building and/or renovation.
Briefly, ASHCO must show that is leading the way and the project has something noble to offer and can generate tangible and palpable results in terms of housing poverty reduction. The project is worth undertaking and commends a genuine case or value for investment and for poverty relief.
• • Not-for-profit Property Investor’s Exit Strategy
The final stage of the investment property lifecycle is the exit phase. It is as well the phase where the n-f-p property investor will look at the results in terms of the number of people to be lifted out of poverty because of his/her contribution to the project. He/she will test the replicability of the housing model. He/she will check if ASHCO includes in its considerations to planning restrictions and budget any plans to gather lessons learned, evaluate results and disseminate findings. He/she may want to know if the housing project will prove to be a successful model for similar projects in the future. In the light of this bulk of information, he/she has to unveil his/her own exit strategy. But, what is exit strategy?
• • • Meaning of exit strategy
According to ‘propertygeek.net’ (18), exit is
“Exiting the stage of being an active investor and turning your thoughts towards retirement”.
For ‘opencorp.com.au’ (19),
“An exit strategy is all about minimising tax and maximising returns”.
There are many strategies or ways of exiting property investment.
• • • Types of exit strategies
The above mentioned ‘opencorp.com.au’ explains that it is critical to have a vision or to start with the end in mind. The same ‘opencorp.com.au’ provides four exit strategies, which mostly apply to for-profit property investors. Amongst these strategies, there is one which consists of handing over your property investment portfolio to your children.
As part of an exit strategy, the n-f-p profit property investor can transfer control of their portfolio. He/she can as well keep its portfolio at a positive (or neutral) cash flow position and leave it to increase in value of poverty reduction titles, in turn allowing them to live off their good reputation of funder/donor who helps lift people out of housing poverty.
Additionally, the exit strategy can depend on whether or not ASHCO possesses a trading harm or subsidiary or ancillary trading. In which case, the n-f-p property investor may prefer to exit by moving its investment to this harm or subsidiary.
• • • What Not-for-profit Property Investor can do to reach an agreement
He/she will need to show he/she has a clear strategy to exit the property investment cycle. He/she can indicate if he/she is giving a one-off donation or he/she is willing to be contacted for any further appeals. He/she will make sure that his/her Exit Strategy will have the chance to match the Considerations to Planning Restrictions and Budget from the organisation’s perspective. He/she needs to address any questions or issues that ASHCO may raise in relation to the exit strategy, especially if the n-f-p property investor would like to become long term supporter/donor/funder.
• • The Match or Fit Test
As part of the match or fit test, n-f-p property investor’s Exit Strategy needs to match ASHCO’s Considerations to Planning Restrictions and Budget. The match should be perfect or close in order to reach an agreement. If there is a huge or glaring difference between the two, the probability or chance of having an agreement at this fourth round of negotiations could be null or uncertain.
• • • Impact Advice to ASHCO and Guidance to n-f-p Property Investor
CENFACS can impact advise ASHCO to improve its Considerations to Planning Restrictions and Budget. CENFACS can as well guide n-f-p property investors with impact to ameliorate their Exit Strategy to a format that can be acceptable by potential ASHCOs.
CENFACS’ impact advice for ASHCOs and guidance on impact investing for n-f-p property investor will be impartial and help each of them (i.e., investee and investor) to make informed decisions and to reduce the likelihood of any significant losses or misunderstandings or mismatches.
• • • The Rule of the Matching Game
The rule of the game is the more property investors are attracted by ASHCOs’ Considerations to Planning Restrictions and Budget the better for ASHCOs. Likewise, the more ASHCOs are willing to accept property investors’ Exit Strategy the better for investors. In this respect, the matching game needs to be a win-win one to benefit both players (i.e., organisation and investor).
The above is the fourth fragment of the Matching Organisation-Property Investor Winter/Spring 2024 Activity.
Those potential housing organisations seeking investment and n-f-p property investors looking for organisations who are interested in it, they can contact CENFACS to arrange the match or fit test for them. They can have their fit test carried out by CENFACS’ Hub for Testing Hypotheses.
For any queries and/or enquiries about this fourth fragment of Matching Organisation-Property Investor Winter/Spring 2024 Activity and/or the programme itself, please do not hesitate to contact CENFACS.
• • Concluding Note on Matching Organisation-Property Investor Winter/Spring 2024 Activity
To close this activity, let us recognise that although this activity has been based on a 4-stage model of property investment lifecycle and a 4-step approach to house design , there could be more than four stages in any property investment lifecycle and in house design.
The match probability can be high or average or low depending on how much ASHCOs’ needs meet property investors’ interests.
CENFACS is still available to work with ASHCOs that are looking for Impact Advice and Not-for-profit Property Investors who need Guidance with Impact so that the former can find the investment they are looking for and the latter the organisation to invest in, and both of them can realise their respective Easter dreams.
To work together to make your matching dream come true by finding your ideal investee or investor, please contact CENFACS.
_________
• References
(1) https://data.oecd.org/hha/household-spending.html (accessed in March 2024)
(2) https://documents1.worldbank.org/curated/en/265491468312013923/pdf/WPS5501.pdf (accessed in March 2024)
(3) https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/onshouseholdexpendituredatainsightsintotheeffectsofcostoflivingpressure (accessed in March 2024)
(4) https://www.ons.gov.uk/economy/nationalaccounts/satelliteaccounts/bulletins/consumertrends/julytoseptember2023 (accessed in March 2024)
(5) https://archive.uneca.org/sites/default/files/PublicationFiles/building_forward_together.pdf (accessed in March 2024)
(6) ncvo.org.uk/help-and-guidance-/running-a-charity/financial-management/tax-and-trading/trading-and-charities/ (accessed in March 2024)
(7) https://www.charityretail.org.uk/key-statistics/ (accessed in March 2024)
(8) https://tradecouncil.org/exploring-the-relationship-between-international-trade-and-poverty-reduction/#
(9) https://pocketsense.com/restricted-budget-8444362.html (accessed in March 2024)
(10) https://www.pairsoft.com/blog/nonprofit-budget-restricted-funds/ (accessed in March 2024)
(11) https://www.thebalancemoney.com/what-is-crowdfunding-5188116 (accessed in March 2024)
(12) https://www.oberlo.com/blog/complete-guide-crowdfunding (accessed in March 2024)
(13) https://www.pmi.org/learning/library/negotiating-project-outcomes-develop-skills-6781 (Accessed in March 2023)
(14) https://www.lawinsider.com/dictionary/planning-restriction# (accessed in March 2024)
(15) https://www.farmandcountryfinance.co.uk/agricultural-restrictions-also-known-as-agricultural-ties/# (accessed in March 2024)
(16) https://www.nerdwallet.com/article/finance/what-is-a-budget (accessed in March 2024)
(17) https://open.oregonstate.education/intermediatemicroeconomics/chapter/module-3/# (accessed in March 2024)
(18) https://propertygeek.net/article/exit-strategies-property-investors/ (accessed in March 2024)
(19) https://opencorp.com.au/property-investment-4-exit-strategies-2/# (accessed in March 2024)
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• Help CENFACS Keep the Poverty Relief Work Going this Year
We do our work on a very small budget and on a voluntary basis. Making a donation will show us you value our work and support CENFACS’ work, which is currently offered as a free service.
One could also consider a recurring donation to CENFACS in the future.
Additionally, we would like to inform you that planned gifting is always an option for giving at CENFACS. Likewise, CENFACS accepts matching gifts from companies running a gift-matching programme.
Donate to support CENFACS!
FOR ONLY £1, YOU CAN SUPPORT CENFACS AND CENFACS’ NOBLE AND BEAUTIFUL CAUSES OF POVERTY REDUCTION.
JUST GO TO: Support Causes – (cenfacs.org.uk)
Thank you for visiting CENFACS website and reading this post.
Thank you as well to those who made or make comments about our weekly posts.
We look forward to receiving your regular visits and continuing support throughout 2024 and beyond.
With many thanks.
