Creating a Business Plan for a Charity Management Service

Financial Consulting Strategies

Client Challenge

The client, a charity management service intended to pool assets of investors with a desire to contribute to India related charitable investments. The NRI community was targeted as the primary source of funds for the venture. The funds from these investments would be utilised for charitable causes defined by the board of advisors. The client was of the opinion that a charities management service ideally functioned in the same manner as an asset management company. The objective of the venture was to ensure that investor funds were managed optimally, and an on-going cash stream was generated for charitable purposes. The client was looking for assistance to define the business concept, ascertain sustainability, document a business plan, and define an implementation plan for setting up the charities management service in India.

Our Approach

To make a business plan, UC Strategy adopted the following approach:

  • Carried out in-depth secondary research to understand characteristics and trends in charity management in India and around the world
  • Interviewed the heads of dynamic and successful charitable organisations in Mumbai to obtain a first-hand perspective on the nature of the service, and to ascertain the sustainability of the proposed venture. Also understood the legal norms, set up requirements and practical difficulties for setting up and managing a charities management service in India
  • Generated and evaluated business model options based on the pros and cons of each. A model involving two companies, one for focusing on the management of charitable funds, and the other for managing the asset management operations, was recommended
  • Recommended the ideal organisational structure for the service
  • Estimated and documented financials indicating the investment requirements and on-going costs for the service
  • Prepared a detailed implementation plan for setting up the service

Our Impact

The client received an implementation plan for a dual model approach to setting up the charity management service. This included an investment forecast and funding requirements document.