CACCI CHAMBER OPERATIONS COURSE August 10, 2009, Taipei, Taiwan INCOME GENERATING ACTIVITIES OF CHAMBERS By: Geronimo D. Sta. Ana - PowerPoint PPT Presentation

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CACCI CHAMBER OPERATIONS COURSE August 10, 2009, Taipei, Taiwan INCOME GENERATING ACTIVITIES OF CHAMBERS By: Geronimo D. Sta. Ana

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Title: CACCI CHAMBER OPERATIONS COURSE August 10, 2009, Taipei, Taiwan INCOME GENERATING ACTIVITIES OF CHAMBERS By: Geronimo D. Sta. Ana


1
CACCI CHAMBER OPERATIONS COURSEAugust 10, 2009,
Taipei, TaiwanINCOME GENERATING ACTIVITIES OF
CHAMBERSBy Geronimo D. Sta. Ana

2
Presentation Outline
  • Need for Income Generating Activities
  • Major Sources of Funds for Chambers
  • Income from Operations Usual Sources
  • IV. Income Generating Activities Some Notes
  • V. Fundraising Some Basic Guidelines
  • VI. Process/Steps in Project Planning
  • Sample List of Funding Agencies
  • Cebu CCI Income Profile
  • IX. PCCI Income Profile

3
I. Need for Income Generating ActivitiesAn
acceptable definition of an income generating
activity would be an activity performed by, or
under the auspices of a chamber, of which the
chambers costs are not entirely borne by its
general budget.
4
  • A chambers primary source of income is
    membership fees, whether membership is voluntary
    or mandatory. Most of the time, however, the
    chamber cannot operate effectively and give the
    necessary services to members when it relies
    entirely on the membership fees especially when
    the chamber is relatively small. So there is a
    need to engage in income generating activity.

5
  • No positive or negative connotations should be
    given to the term income generating activity in
    comparison with the term services performed free
    of charge. All the activities and services
    undertaken by a chamber for the benefit of its
    members and the community have positive effects
    on the chambers strength and reputation.

6
II. Major Sources of Funds for Chambers
  • II-A. Income from Operations- funds
    generated from regular operations, and through
    extra services to members/non- members
  • II-B. Grants, financial and other assistance
  • - funds from external sources obtained
    thru fundraising activities.

7
III. Income from Operations -Usual Sources
  • III-A. Membership fees and dues
  • III-B. Trainings and seminars
  • III-C. Fairs and exhibits
  • III-D. Events Management
  • III-E. Conferences
  • III-F. Publications
  • III-G. Export documentation fees (Chamber
    seal)
  • III-H. Import processing fees
  • III-I. Trade Missions outgoing incoming
  • III-J. Some Chamber Services that may be a
    source of income
  • III-K. Other services of Chambers
  • III-L. Securitization

8
  • III-A. Membership fees and dues
  • Fee structure
  • Fixed fees
  • Variable fee based on
  • - Number of employees
  • - Assets
  • - Income
  • - Sales
  • - Total salaries

9
  • III-B. Trainings seminars
  • Enterprise management
  • Association management
  • Technical courses and examinations
  • Leadership training

10
  • III-C. Fairs Exhibits
  • CCI can assist in booking space, arranging group
    travel, running a common information desk,
    provide secretarial, translation and
    interpretation service
  • Funding from government or aid agency if any, can
    be disbursed by Chamber
  • Administrative charge can be levied on
    participants or donors

11
  • III-F. Publications
  • Trade directories
  • Handbooks
  • Packaging for export
  • Export documentation
  • Country surveys
  • Accounting for SMEs
  • How to start and manage your own business

12
  • Special Publications
  • Commemorating occasions
  • Visits
  • Exhibitions
  • Economic Bulletins

13
III-G. Export Documentation Fees
  • Certificate of Origin is a document which
    identifies the origin of goods being exported.
    It is required by customs as one of the key bases
    for applying tariff rates. Most chambers of
    commerce and some trade associations have been
    authorized by their Customs agencies to certify
    non-preferential, and in some cases, preferential
    certificates of origin. Thus, a chambers role
    in the issuance and attestation of Certificates
    of Origin is both unique and vital in
    facilitating international trade.

14
III-H. Import Processing Fees
  • Processing and filing of importation of members.

15
III-J. Some Chamber Services that may be a
Source of Income
  • 1. Office services
  • Fax service
  • E-mail service
  • Internet use
  • Photocopies
  • Correspondence, minute-taking for meetings
  • Translations

16
2. Rental of Premises
  • Entrepreneurs discussions
  • Seminars
  • Conferences
  • Panel discussions
  • Company anniversaries, especially those of member
    enterprises
  • Presentation of awards
  • Other solemn occasions
  • Small exhibitions, particularly by the
    handicrafts sector

17
  • 3. Rental of equipment
  • LCD
  • Computers
  • Providing basic business information
  • Establishing a business information center
  • Trade and business opportunities
  • Information on trade services
  • Social, political and economic information of the
    country
  • Basic business laws

18
  • Providing investment information
  • Negative lists that indicate product areas or
    industrial sectors where foreign investors are
    prohibited from investing in
  • Wages and fringe benefits by geographical
    area, occupation and industry
  • Labor availability by major occupation and
    geographical area
  • Rental of office space and industrial land
  • Cost and availability of utilities (water,
    gas, electricity)

19
  • Investment information (continued)
  • Telecommunications cost
  • Other costs of doing business in the country
  • Financial and banking system
  • Taxation
  • Tax incentives for investors
  • Product and technical standards
  • List of national sources of information

20
  • 6. Providing specialized business information
  • Special or customized industry reports
  • Information on foreign trade regulations
  • Laws relating to foreign investments and business
    co-operation

21
7. Providing Data on Business Opportunities
  • List of potential local and foreign buyers
  • Tender information from local or national
    government, international organizations and
    foreign governments
  • Guide or reference books on major trade
    exhibitions held within and outside the country
  • List of foreign missions visiting the country

22
  • Providing data on business opportunities
    (continued)
  • Business/trade inquiries from abroad
  • Publications of other trade associations
  • Foreign trade association publications (specially
    directories)
  • Directory of local and foreign suppliers
  • Company newsletters
  • Annual reports of companies

23
III-K. Other Services of Chamber
  • Internet-based services
  • E-commerce
  • Website development
  • Research
  • Community service and environmental protection
    program
  • Outreach programs
  • Educational programs
  • Medical assistance
  • Support to disaster relief operations

24
IV. Income Generating Activities Some Notes
  • IV-A. Introduction of new services
  • IV-B. Services offered for a fee
  • IV-C. Range and choice of services
  • IV-D. Larger and more qualified staff
  • IV-E. Tougher competition in the recruitment of
    members
  • IV-F. An active and larger chamber attracts
    new members
  • IV-G. Spreading risks, continuity and planning
  • IV-H. Greater recognition
  • IV-I. Cooperation agreements
  • IV-J. Consultants
  • IV-K. Inter-chamber cooperation

25
IV-A. Introduction of new services
  • A chamber should not offer to its members an
    income-generating activity that it had previously
    provided free of charge. Therefore a chamber of
    commerce that seeks new means of obtaining
    revenue should look for new activities, while
    upholding the standard of services offered free.
    However, where non-members are concerned, some
    easily defined membership services may be
    packaged and offered as a fee-based service.

26
  • IV-B. Services offered for a fee
  • - must be of an indisputable quality, as the
    chambers reputation will stand or fall by it.
    It is therefore of prime importance to choose
    competent staff, advisers or consultants. As a
    rule, it is better not to offer fee-based
    services than to offer services of poor quality.

27
  • IV-C. The range and choice of services offered
    should be determined by demand.
  • A chamber must have special reasons to offer
    services already provided by other organizations
    or individuals. These reasons may include
    demand from members or the ability of the
    chamber of commerce to offer services of a
    higher quality.

28
IV-D Larger and more qualified staff
  • Staff experienced in the diverse applications
    of business law and regulations
  • Employ several specialists

29
IV-E Tougher competition in the recruitment of
members
  • Companies prefer organizations offering the best
    cost-benefit ratio.
  • Membership in two or more organizations is
    indeed common, but this may be different during
    recessions, or when the company experiences a
    downturn.

30
IV-F An active and larger chamber attracts new
members
  • Companies will be more attracted to join a
    highly (and therefore better known) chamber, than
    one that is less known.
  • Companies will be more inclined to join one that
    enrolls increasing numbers of local companies as
    members.

31
IV-G Spreading risks, continuity and planning
  • Changes in official regulations sand lean years
    may put the chamber into financial difficulties.
    In times of recession, governments may reduce the
    financial support given to a chamber established
    under public law.
  • Income-generating activities broaden a chambers
    financial base and enable it to manage difficult
    periods and adjust to new conditions.

32
IV-H Greater recognition
  • Income-generating activities may stimulate
    publicity and recognition of the chamber
  • The more active the chamber, the more
    recognition it will receive

33
IV-I Cooperation agreements
  • A chamber from one geographic location may have
    an understanding with another chamber in a
    different location, so that when members require
    assistance and guidance on local or regional
    issues, the two chambers, under an agreement, can
    provide assistance to each other.

34
IV-J Consultants
  • Chambers may hire consultants on specialized
    fields for specific projects

35
IV-K Inter-chamber cooperation
  • With increasing use of electronic networks, it
    is possible for a chamber in one region to
    cooperate with a chamber in another on the basis
    of an agreement providing for a two-way flow of
    assistance to members of their respective
    chambers, for their mutual benefit and in
    exchange for a fee for services rendered.
  • Chambers often cooperate on a provincial or
    national level, forming federations, associations
    or councils, thus enabling them to avail of the
    services of each others specialists.

36
IV-L Marketing of services
  • Chambers of commerce must make their services
    known to the public by circular letters, through
    their journals, etc.

37
V- Fundraising Some Basic Guidelines
  • A. Ensure that the Board is strongly involved in
    the planning and implementation of fundraising
    efforts
  • B. Develop fundraising goals resources needed
    to reach the strategic planning
  • C. Identify a variety of fundraising sources -
    for each of the goals (through networking,
    internet research, etc.) and formulate
    strategies for each.

38
FundraisingSome basic guidelines (continued)
  • D. Ensure that roles and responsibilities are
    clearly indicated in the plan so that there will
    be no duplication of requests to the same
    funders/sponsors
  • E. Determine the proper timing for submitting
    proposals/requests for sponsorship eg., during
    the last quarter of the year when organizations/
    companies are preparing their budgets
  • F. Engage a proposal writer if skills are not
    available within the organization.

39
VI. Process/steps in project planning
  • A. Statement of your project or need - This is
    a brief statement of the project, needs or
    concerns that your organization recognizes and
    is prepared to undertake/address.
  • B. Objectives - The objectives must be
    measurable and specific, and it must relate to
    the need. When youve defined and substantiated
    the need, describe how you expect to attain
    them.

40
Process/steps in project planning (continued)
  • Methodology (Procedure) -
  • Describe how you will accomplish your
    objectives. This is where you lay out what you
    will actually do. For instance, part of your
    procedure may be to hire a project coordinator.
  • Expected results
  • Developmental results that are immediate,
    visible, concrete and tangible consequences of
    completed project activities.
  • Budget -
  • You need to prepare a budget, and it is best
    done early in the process.

41
F. Projects Some notes
  • 1 Projects may be funded by charitable
    institutions, foundations, local and
    international grant agencies and corporate
    donors.
  • 2 Donors spend a great deal of time and effort to
    raise funds, you should always keep in mind that
    they find it quite difficult to give money away
    without justifiable reason.
  • 3 You need to follow guidelines provided by your
    potential donor agency.
  • 4 It takes time, patience and persistence to
    succeed. It may take 6 months to 1 year before
    your proposal is approved. In between this time
    your potential donor may be asking so many
    questions.

42
G. Typical Format of a Technical Proposal
  • I. Project title
  • Proponent
  • Background and development
  • context
  • IV. Activities and implementation schedules
  • V. Project team
  • VI. Monitoring and evaluation
  • VII. Performance milestones reporting schedule

43
H. Tips on how to develop a Project
  • Innovate
  • Be flexible
  • Ability to break the project to suit donors
    objectives (preferred areas of support)
  • Ability to break the project into sub- projects
    to suit donors funding limits.

44
VII. Sample List of Funding Agencies
  • Australia - AusAid
  • Austria - Directorate General for Development
    Cooperation
  • Britain - Department for International
    Development
  • Canada - Canadian International Development
    Agency (CIDA)
  • Finland - Finnish International Development
    Agency (FINNIDA)
  • France - Ministere de la Cooperation
  • Germany - Deutche Gessellschaft fur Technische
    Zusammenarbelt (GTZ)
  • ZDH - Zentral Verband des
    DeutschenHandwerks
  • Ireland - Development Cooperation Division
  • Italy - Department of Development
    Cooperation
  • Japan - Japan External Trade Organization
    (JETRO), Japan International Cooperation
    Agency (JICA)
  • Netherlands- Directorate General for
    International Cooperation (DGIS)
  • Spain - Spanish Agency International
    Cooperation (AEC)
  • Sweden - Swedish International Development
    Agency (SIDA)

45
CCCI Grants from Funding Agencies 2005-2008
  • Agency/Organization Project Amount
  • German Technical
  • Cooperation (GTZ)
  • SMEDSEP Web Portal Dev Maint. 288,000.00
  • SMEDSEP EDS Trainings For a 300,000.00
  • Ecozone Study Proj-Intl.Consultant
  • SMEDSEP
    1,800,000.00
  • Ecozone Study Proj-Local ConsultingGrp
  • Decentralization Program
    1,200,000.00
  • 3,588,000.00
  • German Dev Service(DED)
  • Quality Management Consultant
    6,480,000.00
  • Doc.Control Custodian Subsidy
    150,000.00
  • Equipment 300,000.00
    Members Training Subsidy
    1,000,000.00
  • Staff Training Subsidy
    300,000.00
  • 8,230,000.00
  • CIDA-Pearl 2 996,000.00

46
Cebu CCCI Sources of Revenue 2003-2008
  • Membership Dues 35
  • Export documentation Fees 18
  • CBM 17
  • Rental Income 12
  • Interest Income 4
  • Services to Members 3
  • Donations 2
  • Trainings Seminars 1
  • Business Studies/ Trade Missions 1
  • Consultancy Fees 1
  • Desk Calendar Income 1
  • Publications, Business Directory 1
  • Others 4
  • Total 100

47




























Cebu CCI Sources of Revenue ( 2003 -2008 ) Cebu CCI Sources of Revenue ( 2003 -2008 )
Membership Dues 35
Export documentation Fees 18

48
PCCI Sources of Revenue 2004 - 2008
  • 2004 2005 2006 2007 2008
  • Phil. Business Conference 18 21
    23 28 39
  • Membership Fees 17 18 16 17
    20
  • Import Processing Fees 46 42 37
    35 17
  • Certificate of Origin 9 9
    8 10 10
  • Others 10 10 16 10 14

49
PCCI Sources of Revenue 2004-2008
50
PCCI Sources of Revenue 2008
  • Phillippine Business Conference 39
  • Membership Fee 20
  • Import Processing Fee 17
  • Cerificate of Origin 10
  • Others 14
  • Total 100

51
(No Transcript)
52
PCCI Grants from Funding Agencies 2005 - 2008
  • Sen. Francisco Pangilinan Livelihood
    Assistance
  • for Micro Enterprises P24 M
  • I-MUST (British Embassy) Trade Negotiation
  • Training 6 M
  • JETRO Capability Building for
  • CCIs 4 M
  • USAID Family Planning
  • Workplace Program 2.7M
  • Association of Overseas Training for
    Enterprises 2.5M
  • Training Services
  • (AOTS-Japan)

53
  • C
  • H
  • E
  • E
  • R
  • S !!!
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