Step 3 of the Project Application Process
Once you have been "approved" for Phase 2, please complete the process below...
ISDA Project Development Process
Stage 3. Deliverables and Discovery (to be completed within 8 weeks)
1. Phase 2 interviews with the other Principals & Project Management/Directors (within week 1 of Stage 3):
Confirm organization’s vision, mission, goals, objectives and priorities to confirm congruency amongst the team.
Ensure that project principals and their management team have a good understanding of ISDA’s process and policies (including next steps).
Understand whether they are committed to the growth and long term development of their organization.
Evaluate the Principal(s) and its Board of Director’s level of commitment to their organization (i.e. willing to give time and financial resources) and willingness to work within ISDA’s unique framework.
Evaluate the Principal’s ability to comply with due diligence, prompt and timely response to requests of documents, professionalism, and their readiness to complete their project.
2. Principal to complete and send Phase 2 Project Submittals to ISDA team (submit to ISDA team within 6 weeks to allow time for review by ISDA team)
3. Once ISDA team receives all of the Phase 2 Project Submittals, all materials and information will be evaluated (during weeks 7 & 8).
Evaluate materials and information collected to-date
Compare organizations results to industry data and third party market studies
Review opportunities with ISDA experts, advisors and/or other third parties for feedback
Determine whether enough information has been obtained to confirm moving forward
Supplement and fill gaps until minimum requirements have been satisfied
Determine if Site Visit is needed, either before or after Phase 3 (see below, and extend Stage 3 completion time accordingly)
Site Visit (if ISDA team requests, to be completed within 3 weeks)
Inspect facilities and locations of interest (reserved for before or after Stage 4)…
Perform program site visits to observe the organization’s program in action
Schedule meetings with CEO, COO, Program Director, CFO, Director of Development, and other key staff members to cover areas critical to ISDA’s assessments
ISDA Board of Directors receives Site Team report and project package for approval.
If it is clear that management and influencers are not congruent, then the project will be terminated at this point. The process will be suspended if the Principals have not satisfactorily completed one or more quantitative/qualitative requirements for eligibility (with quarterly updates). Principals have the opportunity to reapply in the following submittal period (approximately every two months).
If previous phase requirements have been met, project will advance to next stage…
Highlights of the basic submission standards for Phase 2 are as follows (all documents are at the bottom of this page):
1. Submission of a full 10-year Comprehensive Business Plan Pro-Forma (with assumptions and projections), having quarterly breakdowns for each year, in order to establish proper future project draw schedules. One’s Pro-Forma should include charts and a breakeven point. The 10-Year Business Plan Pro-Forma must be created by a certified accountant, with data supplied to him by the business’ CEO and corporate management team (e.g. team is 3 or more principals). A summary of the Pro-Forma should be included on the second page of the two-page Executive Summary. A Use of Funds Form for the first 24 months of business operations must also be submitted. It should coincide with the Pro-Forma.
Note: For further clarification, a Pro Forma IS NOT an Excel sheet with a list of expenses and potential profits over time; rather, it is a quarterly breakdown of: expenses, liabilities, assumptions, income streams, taxes, amortizations schedules, salaries, benefits, costs, depreciation of assets, and an established break-even point. Financials and assumptions should be acknowledged by a CPA, according to International Financial Reporting Standards (IFRS) or a national (U.S.) standard equal, such as GAAP.
Included in the business plan (after one’s Break-even Point has been acquired) should be an explanation of how the applicant will create abundance and overflow, through successfully mentoring their leaders, staff and partners; thus, leading to the sharing of its enrichment and blessings with those less fortunate.
2. Submission of the names and biographies of the project’s Management team and Board of Directors. Depending on the size of a project and its components, a good management team would have the following: CEO, CFO (or accountant), COO, HR Director, and a Marketing & Sales Manager. An appropriate understanding of organizational management structure and styles would be very helpful for best business practices and business sustainability. Submission of the names and positions of the corporate Board of Directors will be required.
3. Passport from the following must be provided for identification: Project Principals, Chairman of the Board of Directors, Chief Financial Officer, Chief Operational Officer, and/or all other authorized signatory Principals required per project.
4. Information to include in the applicant’s Succession Plan (usually included in the Business Plan) would be: How managed resources and organized systems have been constructed to last and function in each Management position's absence.
5. Legacy plan: a Will and/or completed Family Love Letter by all Management positions. This would need to be provided upon request. Note: We don't request this to be "nosy". The intention isn't to study or analyze these types of key personnel documents. It is to simply make sure you have all your bases covered, in the event this could be needed by the applicable people down the road.
6. Certain Project categories require a comprehensive Market Study, valuations, or estimates (third-party validation required).
7. Management Team Health: Report of a clean “bill-of-health” for Principals. This would need to be completed and provided within 5-days of being requested. Again, this isn't to be "nosy", but to make sure your project and organizational needs are planned and mapped accordingly.
8. Key Contacts: Please provide a complete list of team contact information including (but not limited to): ALL Principals, Officers, Directors, key personnel, and all other professional advisors such as: Legal, Tax, Financial, Insurance, Banking, Audit, Real Estate, and other key consultancy relationships. Using the following format, please provide the contact information for each on your letterhead.
Sample Contact Format:
Supplemental Pro-Forma Guidelines
Include, as applicable:
Interest Reserve: Include for the duration of construction/build-out to revenue (Libor + 3)
General Contingency: (+/- 10%)
Contingency for Material & Transportation Fuel Costs: (+/- 20%)
Draw Schedule: Year 1 by month; Years 2-5 by quarter; Years 6+ by year
Break-Even: Should occur within 5 to 7 years (post revenue recognition)
Treasury / Cash Management: Inflation, CPI, currency devaluation, future contracts, hedging strategy, etc.
Corporate Philanthropy: Declaration of one or more ISDA qualified charitable in-family organizations.
Important Note: The point of this process is to get the principal(s) “ready to receive”. Other document submittals may be required. Terms and conditions are subject to change without notice. Once the quantitative and qualitative thresholds have been obtained, the Principals must maintain this “ready” status (documents current). Please DO NOT make submittals if you have no intention of keeping the comprehensive package up-to-date for transparency and reporting purposes.
Teamwork, for our purposes will be defined as a proficient group of individuals with appropriate skill-sets that can produce a successful and competent team result.
Important Note: Team Development Formula: If you find yourself asking “what …” or “how …” to do something, you should consider who would be the best person that you know (or an excellent referral) that has the skills needed to complete your desired task. Then seek his/her assistance; share the vision, and add that person to your team.
Click the icons below to begin the Phase 2 Submittals:
(Submitting PDF files are preferred to leverage our state of the art Cloud Computing environment in a virtual due diligence room format.)
Phase 2 DD Checklist
Economic Impact Assessment
Family Love Letter
If previous phase requirements have been met, project will advance to Stage 4 (Phase 3)...
Stage 4. Private ISDA Social Exchange Listing
Private ISDA posting for appropriate “matchmaking” of social enterprise projects with complementary scope and specification requirements.
Introductions to suitable/compatible ISDA partnerships, collaboration, and provision of projects
Principal to maintain listing transparency and disclosure requirements with material updates and documentation (quarterly)
If the Principal fails to maintain disclosure requirements and/or fails to update materials as needed, the Project will be suspended and delisted until the Principal complies accordingly.