CORE Feasibility Study

Organization -Adeso: African Development Solutions, www.adesoafrica.org

Consultancy Title -Feasibility Study Consultant

Reporting To -Director of CORE

Working Closely With -Adeso Team

Duty Station -Remote

Starting Date – Mid-September 2022

ORGANIZATIONAL CONTEXT

Adeso is a vibrant African-based development and humanitarian organization. At Adeso, we work with African communities who are yet to realize their full potential; working inside these communities to create environments in which Africans can thrive. Our belief that economic, social and environmental security is the bedrock of a healthy community drives the nature and intent of our programming. We work to prevent and overcome situations that adversely affect community well-being by: reinvigorating the economy, developing skills for life and work, providing humanitarian aid, and influencing policy.

For the past 30 years, we have strengthened rural livelihoods through environmental awareness, training, technology transfer and innovative humanitarian projects in pursuit of a peaceful, self-reliant, and greener future. Currently, Adeso has programs in Somalia. In addition, Adeso has proven itself to be one of the foremost leaders in the ongoing global effort to decolonize the humanitarian and development aid system. Adeso currently leads coalitions to re-imagine aid to shift power, resources, and decision making toward Global South communities where they will ultimately be the most effective, enduring and transformative. Adeso is a great place to work that is currently experiencing managed rapid growth. We have great benefits, a great team, and we pride ourselves on our opportunities for personal growth and development.

PROJECT SUMMARY

The biggest hurdle to direct funding of local organizations in the Global South is perceived risk associated with the lack of compliance and due diligence systems that are needed to meet donor requirements. Because local organizations can rarely access direct funding, they are unlikely to receive the type of funding that will allow them to develop the backend systems that will allow them to meet these compliance requirements for direct funding.

The lack of a standardized due diligence process from funders, limited access to unrestricted funding, and lack of transparency in the capacity building graduation process has created a vicious cycle that underfunds local organizations. This cycle complicates donors’ ability to meet their commitments to increase direct funding to local organizations. CORE is an alternative and innovative solution to address the funding access and capacity challenges that currently exist for local organizations.

CORE will be a private management services company that will provide backend support solutions for local organizations in the Global South, allowing them to outsource some or all of their Finance, Human Resources, Operations and other administrative processes. CORE will provide services that are standardized and that meet the due diligence requirements of the most common donors; ensuring that all policies and procedures meet the threshold for the most stringent donor rules and regulations. Currently CORE is in ideation stage within Adeso and a Feasibility Study is needed to move from ideation to creation of this social enterprise.

BACKGROUND AND PURPOSE FOR CONSULTANCY

This Feasibility Study should include an examination of four areas for CORE:

1. Market Analysis – size, growth, competition, barriers to entry. Adeso has already completed the preliminary work to inform this aspect of the study.
2. Operational – IT/data systems, sales and channels, pricing, legal structure, location of staff. Adeso has already undertaken a review of the registration possibilities in Kenya and Philippines.
3. Financial – Start-up costs, Cash flow, break-even point, market penetration assessment and forecasting
4. Organizational – Staffing, recruiting and hiring, training and skills development, and other program design.

These areas are analyzed through the lens of our business objectives – number of organizations served, increase in direct funding to CORE’s client base, and profitability.

Conducting the study will help us make a few key decisions to move forward including:

1. Which country to register the business? In the first stage of CORE, we will cater to local organizations in the Global South, who need assistance with donor due diligence in English. Currently, we are looking into registering CORE in three countries: Philippines, India and Kenya. The Market Study will help us decide which country is the best for our needs. In the future, CORE will grow to meet the needs of donor compliance in other languages, prioritizing French, Spanish and Arabic, with the potential to franchise CORE in countries with these languages and with markets amenable to outsourcing businesses.
2. Shall we form our own business or form a joint venture or partnership with another existing outsourcing business? Outsourcing backend services is not a novel idea, there are many companies already doing this type of work in Philippines, India and Kenya, but none of these businesses are currently providing these specific outsourcing services to nonprofits. Could CORE develop in partnership with another outsourcing company already successfully providing financial, procurement and HR services? We know the needs and the standards; the other company already has the staff and technological infrastructure.
3. Who are our most likely customers and which services will they consistently pay for at a price which covers our costs and supports growth? Based on our research thus far it is assumed that CORE’s ideal market base will be medium-sized organizations in the Global South with annual budgets between US$200,000 and USD$3 million.
4. Who are our most likely Competitors and Comparable Organizations and what can we learn from them? Cost sharing backend services and streamlining efforts are not new and have a proven successful track record. A similar justification was used to streamline the financial processes of the International Medical Corps, headquartering the financial team in Eastern Europe where costs were low and skill sets high, rather than hiring financial experts in each local office in the areas in which they work. America’s Charities is a membership-based nonprofit that provides consulting and funds management services to nonprofits and employers all over the USA, while “maintaining a resolute commitment to transparency and accountability”. Private companies such as Atlantic-IT in the USA allow non-profits to outsource back-office technology tasks. Jitasa, Fractured Atlas, Tides and TSNE are managed services companies for nonprofits. A thorough analysis will be conducted during the Feasibility Study.
5. What are our funding needs in the short and medium term? This will be based upon the organizational and operational needs determined during the study.

SPECIFIC ROLES AND RESPONSIBILITIES

• Lead the research to complete the feasibility study.
• Review existing background material.
• Conduct a market survey or market research to identify the market demand and opportunity for pursuing the project or business
• Write an organizational, operational, and business plan, including identifying the amount of labor needed, at what cost, and for how long
• Prepare a projected income statement, which includes revenue, operating costs, and profit
• Prepare an opening day balance sheet
• Identify obstacles and any potential vulnerabilities, as well as how to deal with them

DELIVERABLES

1. Workplan to conduct the feasibility study
2. Outline of the study report which includes at a minimum:
   1. Executive summary: Formulate a narrative describing details of the project, product, service, plan, or business.
   2. Governance: How might the enterprise be structured? Where should it be registered?
   3. Technological considerations: Ask what will it take. Do you have it? If not, can you get it? What will it cost?
   4. Existing marketplace: Examine the local and broader markets for the product, service, plan, or business.
   5. Marketing strategy: Describe it in detail.
   6. Required staffing (including an organizational chart): What are the human capital needs for this project?
   7. Schedule and timeline: Include significant interim markers for the project’s completion date.
   8. Project financials.
   9. Findings and recommendations: Break down into subsets of technology, marketing, organization, and financials.
3. Draft study report including initial recommendations
4. Final presentation and report with final recommendations
5. Resources list

ESSENTIAL SKILLS AND QUALIFICATIONS

• Must be experienced in conducting feasibility studies.
• Must have experience in the management services or business process outsourcing industry.
• Must act independently so that a fair and correct opinion is arrived at on which decisions will be based.
• Experience with social enterprises and/or the nonprofit sector desired
• Excellent research and writing skills
• English language

The successful candidate or firm must believe in the core values of Adeso and be driven by the mission. The candidate should demonstrate a passion for breaking new ground to lead change.