Class 1 - DGMT Web viewII.Generally Accepted Codes of Conduct – Fundraising Sector (how related to business ethics)194. ... is the key word here! ... risks and, indeed failures

The Fundraising Academy

Course Pack

2013

CLASS 1 1

CORE FUNDRAISING PRINCIPLES 1

The key principles of fundraising 2Building personal relationships 2Exercise 1: Building personal relationships 2Exercise 2: Building personal relationships 3Exercise 3: Building personal relationships 4Marketing vs. Selling 4Exercise 4: Marketing 4Exercise 5: Marketing vs. Selling 5Individuals as potential donors 5Discovering the potential of the mass market and marketing to it 6The ASK 7The difference between fundraising and public relations 8Fundraising is about 8Different ways to build relationships 9The fortune at the bottom of the pyramid 10

CLASS 2 11

FINANCIAL MANAGEMENT 11

The building blocks of Financial Management 12What is financial management? 13Why do we need financial management? 14Elements of financial management 15What are accounting records? 15Why should you keep accounting records? 15What is financial strategy? 16What do financial reports do? 17Who uses financial reports? 17What sort of financial reports and statements? 18The Budget 18What is a budget? 18What makes a good budget? 19When do we plan a budget? 19What does planning a budget involve? 19Three core principles 19Planning 20TFA Course Pack January 2013 i

Exercise 6: How to prepare a budget (PLAN) 20Doing 20Reviewing 21Budget vs. Actual Report 21Budgeting – Final Notes 21Be organised 21Set up a timetable. 21Make sure everything is clearly written down and explained 21Use the same headings 22Estimate costs 22Calculate contingencies, don’t fudge them 22Forgotten costs – don’t forget them! 22Get help 23The Budget Report 23Examples of Budget Reports 24The Income Statement 25The Balance Sheet 26Cash Flow 27Budgeting – preparation, communication and reporting 28Exercise 7: Prepare a budget for a proposal 28Peer assessment 29Exercise 8: Reviewing performance 29Exercise 9: Moving beyond the budget to the implementation of activities: 30The annual report – including financial and narrative reports 30Important principles of reporting 31The financial report 32The narrative report 32The importance of narrative reporting 32What is the purpose of narrative reporting? 32What should a narrative report include? 33The organisation’s background 33The organisation’s mission 33The organisation’s strategy 34The difference between output and outcome 34The organisation’s goals and performance 35Risks facing the organisation 35What questions should the Annual Report answer? 36Audits 36What is an Audit? 36What is an Audit Trail? 36The four types of financial audit 37External Audit 37Internal Audit 37

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Donor Audit 37Investigative or Forensic Audit 38Accountability and Control 38What does accountability actually mean? 38The two types of accountability 38The Control Environment and Control Procedures 39What are internal controls? 39SPACE 39Control environment 39Control procedures 39Exercise 10: Homework: Understanding Terminology 40All about Tax 40Tax for Non-Profit Organisations 41PBO registration 41What is a PBO? 41Exercise 11: Homework – Researching PBOs and PBAs 41S 30 of the income tax act 41s18a certificates 42Tax Deductibility of Donations 42

CLASS 3 43

INTRODUCTION TO DONORS AND THE NGO SECTOR 43

What is a donor? 44Exercise 12: Getting to know you 44Exercise 13: What is a donor? 44Different types of donors 45Individual donors 45Databases of individual donors. 45Classifying your organisation/project and its needs 45Exercise 14: Listing common categories that organisations and projects fall into within South Africa. 46Exercise 15 Homework: BEN: The Bicycling Empowerment Network 47Exercise 16: Looking at donors more closely 47Exercise 17: On-going Homework: Opening your eyes 47The needs of an organisation or project 48What is an annual campaign? 48What does an annual campaign do? 49What is a capital campaign? 49Who are individual donors? 49Approaching individual donors 50Direct-Mail campaigns 50TFA Course Pack January 2013 iii

Telephone appeals 50Fundraising events 51Newsletters 51Where do you find individual donors? 51Additional ways to research individual donors 52Exercise 18: Meeting with a prospective donor 52Other ways in which individuals might donate funds 53Key principles to remember when raising funds from individuals 54Exercise 19: Why maybe? 54Individual donors: A Review 54Businesses as Corporate Social Investment (CSI) 55Exercise 20: What is Corporate Social Investment? 55Features of CSI 56Foundations 56Cause marketing 56Sponsorships 56Community service 56How to learn more about CSI on the Internet 56Corporate Social Investment and Corporate Social Responsibility 57CSR 57CSI 57More about CSIs 57CSIs and fundraising programmes 58Exercise 21: Researching CSI 59Approaching a CSI for funding 59How to tap into CSI funding 60Exercise 22: Funding criteria: finding a fit 60Researching CSI to find correct/suitable partnerships 61Exercise 23: Finding a good fit between CSIs and your project 61How to make contact with a company 61Exercise 24: What is my project about? 61Exercise 25: Finding a company that matches your project 62Ways of approaching a company 62Networking 62Phone calls 63Exercise 26: Role-playing 63Email 64Approaching a CSI for funding – a final checklist 64Exercise 27: Homework – What to know about a company before approaching them for funding? 65Exercise 28: Homework – Finding out about the company’s CSI/CSR policy 65Exercise 29: Homework – Looking for funding 67Researching businesses – a review 67

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Non-Profit Organisations (NPOs) 68Non-Governmental Organisations (NGOs) 69The evolutionary stages of development of NGOs 70Exercise 30: Researching NGOs 71Exercise 31: Homework: Researching NGOs 71What is the difference between an NPO and an NGO? 71Exercise 32: Homework: What is the difference between an NPO and an NGO? 71Small businesses 71Reasons to approach small businesses 72Exercise 33: Researching Small Businesses 73Exercise 34: Homework – Researching Small Businesses 73Internships 74What is an internship? 74Exercise 35: Researching internships 74Exercise 36: Homework – Researching internships 75Foundations 75What is a foundation? 75A private foundation 75Grantmaking public charity 76Grants 77Donations 77Show Me the Money Presentation 77Researching foundations 77Matching the criteria of your project with the work carried out by a foundation 77Where to find information about foundations 77Networking 78Approaching Foundations 78Donor, or philanthropist? 80Exercise 37: What is the difference between a donor and a philanthropist? 80Class Discussion: Philanthropy vs. Donation 81How does this affect fundraising? 81Prospect Research 82Creating a Prospecting Worksheet 82Exercise 38: What items should be included on a prospecting worksheet? 82

CLASS 4 84

WRITING FOR FUNDRAISING 84

What is an inventory? 85Writing for Fundraising 85Why is writing so important to fundraising? 85What sort of writing will I do? 85TFA Course Pack January 2013 v

Grant Proposals 86What is a grant? 86How do I submit a grant proposal? 86Vision and Ambition 87The inquiry letter 88Timing 88Contact Person 88Mailing 89Letter of Inquiry 89Introductory Paragraph 89Synopsis 89Impact 89Be Positive 90Ownership 90Gift Terms 90How to increase your chances of being funded 90Do your homework 90Customize and recycle 91Condense beautifully 91Show respect to your donor 92What has to be included in a grant proposal? 92The first paragraph 92The second paragraph 92The third paragraph 93The last paragraph 93Table of contents 93MS word and TOC 94Abstract 94The Problem Statement or Statement of Need 95The problem statement describes 95The Project Description (also known as the Programme Narrative) 96Approach 97Benefits 97Plan of Operation 97Project design 97Project structure 97Goals 97Objectives 97Activities 97Timelines 98A Summary of the plan of operation 98Management Plan 98As well as an operations plan, you also need a Management Plan. 98

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Personnel 98Organisational charts 99Budget 100Evaluation 100Exercise 39: Programme Evaluation – is it forced and contrived, or a vital part of my project? 100Programme evaluation: the positives 100Programme evaluation in grant proposals 101Evaluation in programme operations 101After you get funded and while the project is in operation: 101More positive reasons to embrace Programme Evaluation 101Doing the evaluation 102Evaluation tips 102What is the purpose of the evaluation? 102Research methods: Quantitative or Qualitative? 103The final part of the grant proposal 104Exercise 40: Homework – Preparation for Grant Proposals 104Exercise 41: Grant Proposals 104Exercise 42: Writing a summary/abstract 105Funding for NGOs 105Exercise 43: Other outlines of proposal grants 105Exercise 44: Homework – Good examples of grant proposals 106Lively language: Active Vs. Passive 106The Case Statement 108What is a case statement? 108What does the Case Statement explain and contain? 108How a case statement is used 110Exercise 45: The case statement 110Exercise 46: Homework – The case statement 111Writing a cover letter 111Tips and reminders before you start writing your cover letter 111Exercise 47: Writing the first draft of your cover letter. 113Exercise 48: Checking your partner’s cover letter for format 113Exercise 49: Assessing the content, tone and quality of your partner’s cover letter 114Exercise 50: Cover letters – your next attempt 115Writing a thank-you letter 115The reasons for writing thank-you letters 115Exercise 51: The importance of a thank-you letter 115If you have been rejected 115Put yourself in the grantor’s shoes 115Learn more about your proposal 116The phone call before the thank-you note 116

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If your proposal has been accepted 116Exercise 52: What happens when you don’t send thank-you letters? 116How to write an effective thank-you letter 117An example of a successful thank-you letter. 118Exercise 53: What makes a good thank-you note? 120Exercise 54: Writing a thank-you letter for assessment 120Exercise 55: Homework – Case Statement study – on-going assignment 120Practising your writing – more thank-you letters 121Exercise 56: Writing three more thank-you letters 121Exercise 57: Homework – Writing three more thank-you letters 121Exercise 58: Feedback on thank-you letters 121Making your own notes 122Researching 123Making notes about and presenting a lesson on direct mailing to the class 123Sofii 123Exercise 59: Homework – Researching and making notes on Direct Mail 123Exercise 60: Before you write your fundraising letter 124A few more reminders before you write your letter 125So what? 126What now? 126Format, language and style 126Exercise 61a: So what?/Now what? What about me? Before you write your letter.

126Exercise 62: Assessing the direct-mailing sample letters 127Exercise 63: Class Discussion – Engaging your reader, how can you do this? 128The Opening Paragraph 128The body of the letter 128The Closing Paragraph 129The PS (post script). 129Exercise 64: Homework – Write a direct-mail fundraising letter 129Direct Mailing: Is it worth it? 129

CLASS 5 130

BOARD GOVERNANCE 130

What is Board Governance? 131Why does Board Governance matter for fundraisers? 131What is a board? 131What does the word governance mean? 131What do Board Members do? 132Exercise 65: The importance of a board and of good board governance 134What are the main fundraising tasks of the board? 134TFA Course Pack January 2013 viii

Exercise 66: Why are board members reluctant to fundraise and solicit? 135Increasing the fundraising role of your board 135Exercise 67: Homework – Getting your board members to be willing fundraisers

136What is an Elevator Pitch? 136A Great Elevator Pitch 137Crafting Your Elevator Pitch 137Exercise 68: Homework – Friendraising 139Exercise 69: The composition of a board 139Models of Governance and Leadership and Accountability 140Tripartite system 140Carver’s Policy Governance® Model 14010 Universal Policy Governance® Principles 142Cyclical Board Model 144Founding Phase 144Collective Phase 144Sustaining Phase 145Supermanaging Phase 145Corporate Phase 145Advantages of corporate phase for non-profits 146Disdvantages of corporate phase for non-profits 146Ratifying Phase 147Should the board be a leader or a manager? 148Reactive management vs. proactive leadership 148Proactive and reactive responses to change 149Micromanagement 149How to identify the micromanaging boss: 149What does micromanaging do? 150Exercise 70: Why do bosses micromanage? 150How to end Micromanaging 150Questions a boss needs to answer: 150Accountability 152Demonstrating accountability 153Exercise 71: Accountability study 154Board structure, leadership and organisation 154Structure 154Effective board organisation 155Meetings 155Committees 155Work 155Never forget to say thank you 155The size of the board 156Determining the size of your board 156

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Small Boards – the advantages and disadvantages 157Large Boards – the advantages and disadvantages 157Committees 158The Board’s Work 159Board Orientation 159What happens during board orientation? 159Exercise 72: What are the realities as far as boards are concerned? 160Building board relationships and a cooperative spirit 161Board and executive: The characteristics of a good partnership between? 162Exercise 73: Assessing the quality of the partnership between the board and the executive 163Who does what? 164Exercise 74: What could lead to a blurring of roles and responsibilities within an organisation? 165Exercise 75: An overview of boards for and from your classmates 166Further reading 166

CLASS 6 167

INTERNSHIP REVIEWS 167

Review 1: ‘What I have done in my internship?’ 168Review 2: Sharing goals 169Review 3: Making mistakes 170Writing a good CV 170What sorts of jobs are available in the non-profit sector? 171CV Guidelines 172Suggested layout of CV 173CV vs. Resume 174The difference between a CV and a Resume 174Exercise 76: Writing a CV and cover letter 175

CLASS 7 176

ALTERNATIVE FUNDRAISING STRATEGIES 176

Direct Mail 177Social media 177Facebook 177Twitter 177Managing social media 177Property 178TFA Course Pack January 2013 x

Special events 178Bequests and Planned Giving 179Endowments 179Encouraging donors to contribute to your endowment fund 180BEE, ED, SED … what do these acronyms mean? 181Exercise 77: What is the BEE scorecard and how does it work? 181Annual reports 181VAT 182Earned Income (from sale of services, sale of products) 182Exercise 78: A model of a non-profit where earned income is working well 183Shares 184Shareholding 184Social Investment Funds/ loans 184Exercise 79: The pitfalls of social investment or funding 184

CLASS 8 185

PUBLIC SPEAKING 185

A formula for writing a speech 186

CLASS 9 187

SOCIAL ETIQUETTE 187

Social/Business Etiquette 188Why is etiquette important? 188Meeting with a potential funder; some more dos and don’ts 189Exercise 80: The funding applicant from hell. 190Exercise 81: Homework – Summaries 191Telephone dos and don’ts 191Writing rights and wrongs 191The dos and don’ts of dining out 192The dos and don’ts of job interviews 192Business Ethics 193I. Main principles of Business Ethics (with examples) 193a. What are Business Ethics? 193b. What are main principles? 193c. What are issues that come up commonly in SA around business ethics?

194Exercise 82: Using CSI to ameliorate previous questionable practice. 194

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II. Generally Accepted Codes of Conduct – Fundraising Sector (how related to business ethics) 1941. Just like with a business, fundraisers must comply with a set of ethics.

1942. Many different fundraising bodies, all with codes of conduct/ethics. Similar to all: 1943. Review Southern Africa Institute of Fundraising Code of Professional Ethics 1944. Compare with (all attached) 195Exercise 83: Sourcing relevant information 195Exercise 84: Fundraiser remuneration 195III. Importance of Code of Ethics for Fundraisers (examples of benefits)1961. Review Donor Bill of Rights (from Association of Fundraising Professionals) 196Donor Bill of Rights 196Exercise 85: Why is this Bill of Rights important for fundraisers? 197IV. Impact of Unethical Behaviour on Organisation and Staff 197a. If you act unethically, people will not trust you or your organization 197b. Possible impact 197

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Class 1Core Fundraising

Principles

TFA Course Pack January 2013 1

The key principles of fundraising

- Building personal relationships- Marketing - Professionalism- Time management - Seeing everyone as a potential donor- Realizing the value of the individual - “The ASK”- Tenacity- Learning that NO is not a personal attack

Building personal relationshipsPeople give money to people, not to projects. People appreciate your taking the time to be interested in them, finding out who they are, what their likes and dislikes, needs and wants are. If you take time to engage with the people as individuals, they will respond to you on an individual basis. A good fundraiser will learn to ask questions about the person they are talking to and build genuine relationships. Sometimes these relationships can last many years.

Exercise 1: Building personal relationships You will be working in a group for this exercise.

- Choose one person from the group. This person is your potential donor.

- Take it in turn to ask personal questions of this individual. You are hoping to receive specific answers. (Don’t forget to be polite; put your donor at ease before leaping right in to personal questions. Thank them for taking the time to talk to you, etc.)

ExampleA person loves very young kids. What sort of questions would need to be asked to produce this information?


If they love young kid kids, they might give to charities who work with young kids: crèches, education, schools, etc. What sort of questions would need to be asked to produce this information?

- As questions are asked, assess the answers carefully, making note of which ones produce the most relevant information.

- After everyone in your group has asked their questions, the group will decide what charities the potential donor is likely to donate to.

- The group now checks the answers with the potential donor. Is the final assessment correct?

- The group now assesses the process by comparing the questions asked and the information received:

o Did the group take the time to set the donor at ease? What sorts of questions are effective in this regard?

o What kind of question produced the best information? o What questions led nowhere, were misleading, or wasted too

much time? o How many interests and passions did your group pick up on?o What sort of questions elicited this information? o Did the group follow through with these questions, or give the

donor time to express him/herself on these?

This is a listening exercise. Listen carefully to answers and ask questions that lead to further expression on potentially useful information. Don’t cut the donor off with another question if s/he is showing passion about a certain topic. This is where their interests lie – these are the areas where they might be willing to donate.

After this session, go over the questions that were asked by your group, and the answers received. Can you think of questions that should have been asked but weren’t? Make a note of these. Be ready to repeat this exercise using a set of questions that you now know to be effective.

Exercise 2: Building personal relationships TFA Course Pack January 2013 3

Practice the question/answer/listening process on another person in your group.

Make sure that you keep the process on track, gently steering the conversation back onto the topic without being rude or impatient. (The potential donor could play the role here of being a difficult person to ask questions of, waffling, and wandering off the topic.)

After this session, go over the questions that were asked by your group, and the answers received. Can you think of more questions that should have been asked but weren’t? Make a note of these. Can you think of ways to phrase questions so that they produce more comprehensive, informative answers? Can you think of an order in which questions should be asked? Be ready to repeat this exercise using a set of questions that you now know to be effective.

Exercise 3: Building personal relationships - Practice the question/answer/listening process on another person in

your group. - By now, through practice, you should have a list of questions which

you know to be polite, effective and productive. Compare this session with the one you first participated in.

- Can you see the difference? - What has changed? - Can anything further be added to the process to make it more

productive? - Can anything be stripped from the process to refine it?

This is not a one-off exercise. It forms one of the most useful tools at your disposal. Keep your list of questions available. Review it frequently and amend it if you can think of ways of building personal relationships more successfully.


Marketing vs. Selling

In the previous sessions you discovered the personal interests of other members in your group. You understand them better – an important first step. Now you need to understand marketing better.

- People often confuse marketing with selling.- Marketing is not the same as selling. - Selling is giving people what you want. - Marketing is the practice of finding out what people want and need

and then devising a means of meeting those wants and needs. - Fundraising is about building personal relationships and finding what

personal interests people have. - Fundraising is also finding out what policies companies have and

meeting those needs as well.

Exercise 4: Marketing - As a large group, write down the funding criteria for four funders (i.e.,

the people who are going to donate funds to your fundraising campaign).

- Split into groups of two.- Through questioning, each group needs to ascertain whether group

members can ask the correct questions to find out the criteria of the companies and then meet that need.

Exercise 5: Marketing vs. Selling - Each person in the group will now take an item (as simple an item as

a pencil) and market it to the group. - By the time they have finished, through a process of asking questions

and listening carefully to responses before asking the next question, they must have created a desire or need in the group for the product


they are marketing. The group must see the product as something they want or need.

Example: An orangeIndividuals must ask the group questions that may or may not lead to them liking and purchasing an orange or orange-related products.

Individuals as potential donors In this session, you will be told two stories:The Story of the Large American The Story of the Boiled Frog

Chart Title

individuals

corporates

government

foundations and trusts

Donor Profile 85% individuals5% corporates5% government5% foundations and trusts

These two stories teach three very important lessons:- It is essential to keep in contact with the existing individuals in your

database.- It is essential to make new contacts and not keep relying on the same

sources of funding.- Individuals are usually your largest source of income.


If there are no individuals in your donor profile, then you are a boiled frog, or you will soon become one.

Discovering the potential of the mass market and marketing to itIn South Africa, there is a great misconception: the mass, or black, market does not donate. How can this be the truth when we know that vast numbers of this market give faithfully and regularly to their churches?

If this is the case, and we know that the mass/black market does donate, how can we get this market to donate to charities or other fundraisers?

- Remember that people give to people.- Visit possible donors in their homes.- Market and build relationships. - Be polite, ask relevant questions.- Enlist possible donors in your cause.- Work as a team.- There are few skilled black fundraisers, so a great opportunity exists

to get people working with you in a cause that is dear to their hearts.- Meet needs en masse.- Look at community-based projects that need funds and fundraising –

something that will benefit the community as a whole.- Set up a call centre.- Create a way of people being able to access information easily.- Thank yous and gifts are important.

Thank yous and politeness This is relevant to every person or company you approach for funds. Politeness and acknowledgment are important and show appreciation for efforts made.


The ASKYou have done the marketing and built a relationship, now you need to ASK.

It’s not easy approaching people for money, goods or services. Remind yourself constantly:

- You need not be afraid of asking.- You are working for a good cause.- You are not begging.- You are providing a valuable service.

Prepare yourself to do this and know how to ask the right questions. Good questions to have on your list of marketing needs are those which will help you to discover how much donors want to give and what their range is. An encouraging point here is that, many times, if you have done the work well (asked good questions, assessed their needs, found out what they want!) the donor will often ask what you want or need. This means that you need to be extremely well prepared.

- You need to have all the facts at your fingertips. - You need to be able to say how much you want and what the donation

will be used for.

Don’t be upset, or take it personally, if people say “No” when you finally get to the point of asking for donations. A useful statistic to remember is this: “You need to ask 10 people to get 1 person to say YES.”“You need to ask 100 people to get 10 people to say YES.”“You need to ask 1000 people to get 100 people to say YES.”

Once you realise that people do want to give, that it’s not as hard to ask as you thought it would be, practice asking all the time. Use every possible avenue that you can to ASK all the time:

- Emails - Thank-you letters and gifts


- Newsletters- Annual reports

When asking, it’s important to remember to always give options:- We need help for a, b and c – which would you prefer to help with?- You can give for x and y, what do you prefer?- Also, always remember that people give to people, not to large

faceless groups. Say “I want…”, not “We want…”.

The difference between fundraising and public relations

During this session you will hear the story of the Blind and Deaf organisations, all of whom were trying to raise funds, but only one of whom was well known. Which one do you think was successful? Off the top of your head, can you name 10 non-profit organisations in South Africa?You only probably named those you have heard of frequently, and maybe those named by your classmates rang a few bells. Would it shock you to hear that there are actually 100,000 non-profit organisations in South Africa? The story of the Blind and Deaf organisations proves that donors give to those they have heard of!

What does this mean in terms of fundraising? You need to remember that there is a vast difference between Fundraising and Public Relations. They should never be confused.

Example: 50,000 tools were given to Men on the Side of the Road thanks to an amazing Public Relations campaign. This never translated into individual donations (fundraising). However, thousands of cuttings poured in to Lavender in Lavender Hill thanks to an equally amazing Public Relations campaign. Now LiLH is following through and getting all the people who gave cuttings to become individual donors. What was initially a PR campaign is now being transformed into a fundraising campaign.


Fundraising is about - getting donors (through well thought-out and organized Public

Relations campaigns that target the correct market) AND- retaining donors (through thank yous and personal relationships,

upgrading donors, making them lifelong donors).

Different ways to build relationships

The different ways to build relationships are:- Face to face

o This is still the most successful way to fundraise. o Meet people face to face at breakfast, lunch, dinner, drinks, at-

homes, coffees, office meetings.- Email

o This is still the most regularly used form of communication, especially for follow up. However, we are becoming a generation who says “I’ll Facebook you”, rather than “I’ll email you”.

o Remember in email or Facebook conversations, to keep using “I” rather than “we”.

- Phone calls (both landline and mobile).- SMSing

o In South Africa there’s a large BlackBerry population, so don’t forget to ask about BBMing.

- Letters written on paper and sent by snail mailo People don’t do this very often so sometimes it is a nice, unique

touch.- Proposals

o Remember the point made during class about making mistakes. As long as these are acknowledged, mistakes can sometimes be


good things as they create a dialogue. (Sometimes you can also leave things out on purpose to create dialogue.)

- Taking prospective donors out to see projects is very effective and impactful. It’s equally powerful to take current donors out so that they can see the fruits of their contributions.

- Building relationships with PAs o This is very important. You will not get very far if you are rude

to the person who stands between you and a possible donor. - Thank yous

o Keep saying thank you.o Do this all the time.o It seems that thank you is not used enough in this country

(Maybe we need to start the Thank You Campaign).- Social Media

o Facebook is a powerful tool if it is used properly.o Twitter keeps your donors abreast of what is happening and

creates awareness of new campaigns.o Blogging is a way of expounding on what’s new, posting

photographs, communicating personally via messages and comments.

o Linked In helps you to join likeminded groups. (Preaching to the converted can be a way of learning useful tips.)

The fortune at the bottom of the pyramid

Earlier you saw the pie chart of a donor profile. This can also be looked at as the “fortune at the bottom of the pyramid model” which was explained in class.

Imagine a triangle. At the tip are the 15% of donors who are mostly white, corporates, government, etc. At the base are 85% of donors who are mostly black individuals.


0%10%20%30%40%50%60%70%80%90%

100%

Mostly black. In-dividuals

Mostly white. Corporates, gov-ernment etc.

In South Africa no one except the church has managed to get the base of the pyramid to give to charities. As mentioned earlier, this is a huge opportunity waiting to happen.


Class 2Financial Management


One of the main aims of all fundraising is to raise money. It’s wonderful when this aim becomes a reality. But money has to be controlled. You have to know how much money has come in to an organisation, and where and how that that money has been used. Budgeting is a vital element of financial management. No organisation can survive for long unless it husbands and uses its resources wisely. An organisation’s mission depends on the organisation having the resources it needs and on its managing its money responsibly.

The building blocks of Financial Management

- Budgeting Always check the budget before making payments. This will prevent overspending, or using money for the wrong purposes. This is an important control over spending

- Accounting Transparency is the key word here! Keep your books up-to-date and make sure they are open to inspection at any time. In this way you guard against fraud and accusations about the mismanagement of funds.

- Reporting


Accounting -Be

transparent

Budgeting - Check the

budget

Internal controls-

Protect and safeguard

Reporting - Review

financial reports

Constantly review your financial reports. In this way you’ll pick up errors and spot inconsistencies in good time.

- Internal controls Devise a good system of internal control so that every aspect of your organisation is monitored.

An organisation needs to be financially sustainable. The following core competencies need to be in place for this to happen:

- A stable and diverse funding base. - An organisation which nurtures relationships with donors and

potential donors. - Money which is used wisely: each cent has to be tracked and

accounted for. Control systems have to be implemented which minimize the risk of fraud.

- Control systems have to be in place to allow for the effect, of unexpected crises.

- The organisation needs to be forward thinking, creative and practical when approaching and addressing issues.

- The organisation cannot operate in isolation. It should look to partnerships and activities with businesses and/or other organisations.

- The organisation monitors itself constantly, regularly re-evaluating its business model.

You can’t operate on a system of scribbling information on scraps of paper, shoving receipts and invoices into a drawer, delegating responsibility to people who are not equipped to handle the finances. It’s essential that the finances of your organisation are well managed. Furthermore you need to be able to communicate financial issues to all who have an interest in the resources of the organisation. You need to be able to give a clear, concise report of the financial dealings and status of the organisation whenever this is asked for.

Financial management is a critical role in an organisation. During the planning process, leadership and staff of the organisation decide what the


organisation wants to achieve in any given period. This is costed and a budget is drawn up.

What is financial management?Financial management includes:

- Budgeting.- Ensuring funds are used as agreed to with donors.- Analysing income to predict shortages or over-budgeting.- Ensuring smooth cash flow so that the organisation can meet its

commitments; e.g., paying bills and salaries. - Making decisions about priorities in consultation with senior

management and directors.o Where should the money go first? Sometimes tough decisions

have to be made. - Overseeing the funds.

o What money is coming in?o What money is going out? o Is there a paper trail? I.e. are all transactions documented to

account for the movement of the organisation’s money? - Adapting financially to changing situations and needs.

o Will there be as much money this year as there was last? If not, are contingency plans in place?

o Has the organisation changed since the last budget meeting? What effect does this have on the finances of the organisation?

- Ensuring financial sustainability.- Planning for the future.

There are many important functions within an effectively run organisation, all of which are inter-related and impact on each other. Fundamental to all of these functions is strong, uncompromisingly honest financial management. This centres around:


- Good governance: The Governing Body is ultimately responsible for approving budgets and financial statements and ensuring that the organisation’s finances are well controlled.

- Clear tactical direction: Budgets for various activities cannot be drawn up unless there is a good plan in place.

- Good quality programme management which involves all beneficiaries: The degree to which beneficiaries are involved in the organisation and the value given to their opinions and feedback has an influence on the financial management of an organisation.

- Good human resources management: The manner in which staff is recruited and trained impacts on the effectiveness of your finance staff. This in turn determines the degree of accountability in the organisation.

- A firm belief and adherence to common values and an organisational culture that is conducive to the best possible achievement of the organisation’s goals: The standards that you set and the values you adhere to determine and direct your strategic track. This is shown in the way your organisation manages the finances.

Why do we need financial management? - We need financial management to ensure that our financial activities

are planned, controlled, recorded, monitored and reported upon. - We need financial management to ensure good management of the

cash flow of the organisation.- We need financial management so that we can speak to potential

funders, past funders, stakeholders, creditors, etc. and tell them the financial story of the organisation. To do this, we need to know what is relevant to each audience we address and give them the information in a way that they understand.

Elements of financial managementA good financial manager:

- Controls the financial environment, keeping it stable.- Records all financial details of the company.


- Makes sure that the books balance.- Prepares reports:

o Income Statement, o Balance Sheet, o Cash Flow, o Audit Report.

- Prepares and reports on the budget.- Acts according to the information received from all of the above. - Takes corrective action when funds need to be reallocated, - Prioritises the use of resources.

What are accounting records?Accounting records list details of all financial transactions:

- A description of the transaction.- The date on which transactions took place.- Money spent and money received. - A reference number for each transaction. For each transaction there should be a document, e.g:- a receipt,- an invoice, - a signed authorisation form, - a quote.

Why should you keep accounting records? It is essential to keep proper accounting records for your organisation.

- These enable you to prepare reports for managers containing significant information about the financial status of the NGO. Without such information it is impossible to:

o make wise decisions, o keep to budget, o avoid cash flow problems, o make plans for the future.

- Always make sure all receipts and payments are properly recorded.


- Always make sure that anything relevant to a financial transaction is filed in the correct place.

- Never find yourself in the position of having to say to someone that you don’t have the financial information that they need. (You never want anyone to think you have something to hide.)

- It is a legal requirement to keep accounting records if you are a registered organisation. And even if you are not, your donors and beneficiaries will probably insist on seeing your records.

If these good habits are maintained – if you are fully accountable and fully transparent in your financial dealings – you will always feel comfortable about showing your records to anyone who asks to see them: donors, other staff within the organisation, auditors and beneficiaries.

What is financial strategy? An organisation’s financial strategy goes hand-in-hand with the strategic plan, showing the financing procedures that will be put into place to meet its objectives. It looks at the future and identifies the organisation’s goals, usually for the next 3 to 5 years. A budget is used to forecast what these objectives are likely to cost; the financing strategy details how the organisation plans to raise this money. Financing strategy is vital; it plays a key role in deciding what opportunities should be pursued, what activities will take place. The questions to ask when drawing up the strategic plan are:

- What is the organisation’s current position? o Are we happy to be where we are?o What risks are we facing?o What risks might we need to take?o What resources do we have?o What opportunities do we have?

- What direction should we go in (or will we continue with current activities)?

o What are our financial targets for the period ahead? o How would we like to generate our funding?


o How dependent are we on our donors?o How much do we have in the way of reserves to continue

without any extra funding (how long can we keep going without extra funding?)

- What are our plans for getting there? o What actions will we take, and when will we take them, to

finance our strategic plan and achieve our financial targets?- Do we have polices in place for the future? (Often these are based on

what we have learned in the past).

Financial reports have to be prepared on time, and be precise and relevant. They should be easy to follow. Make sure that the people using them understand them and that they include information pertinent to the person reading them. It is important to communicate with users, ask what sort of reports they need and find easy to use. (E.g. While all stakeholders need a broad overview of finances, beneficiaries may want specific information that big businesses are not concerned with. Big business may need to know that x amount of money was spent on vegetables; beneficiaries may need a more detailed breakdown of this section of information.) Some users might need training on how to read financial reports.

What do financial reports do?Financial reports:

- Provide a summary of income and expenditure. - Allow the organisation (and all interested parties) to monitor the

financial position of the organisation.- Help the organisation to see whether plans for the next period of time

are viable, see whether it has the money to pay salaries, initiate or complete projects, fund travel, catering etc.

Who uses financial reports? Depending on the project and the type of organisation, financial reports may be prepared for different groups:

- Donors TFA Course Pack January 2013 20

o To let donors see how activities are proceeding; whether there is enough money in place.

- Beneficiaries o To ensure that money is being correctly spent, on real needs.

- Managers and staffo To track and analyse the movement of money in and out of the

organisation; make sure that funds are being correctly allocated.

- Trustees o To keep a check on everything.

- The government o To ensure that the NGO is acting legally and that all funds are

accounted for.

What sort of financial reports and statements? Different types of documents can be drawn up for different users, using the financial information that is recorded. During the course of the financial year, or during the time-span of a particular project, financial information (costs, expenditures, etc.) is pulled together into reports (often called Management Accounts) to be looked at with regards to the budgetary plans of the organisation. The ones most commonly needed and used are:

- the budget report,- income and expenditure statements,- cash flow, - balance sheets.

It is a good idea to set up your accounting systems and use specific accounting codes for different types of reports. Sometimes donors require you to use their own formats, and this can be complicated. Make sure you understand how to do this.

If you are not the financial manager, it is essential that you know what these codes mean, and that you understand how to read the various financial


reports and documents. If you don’t understand something, ask. It is far better to ask early rather than miss something vital that needs to be looked into.

The Budget

What is a budget? - A budget is a financial document. - A budget outlines an organisation’s financial and operational goals. - A budget is used to estimate and project future income and expenses

over a set period of time. - A budget helps organisations to estimate whether they can continue

to operate with projected income and expenses. - A budget is an action plan: by planning a budget an organisation

o sees where it can allocate resources, o can evaluate performance,o can look forward and formulate plans.

What makes a good budget?Budgets should be crystal clear. Anybody connected to the project should be able to pick up your budget and understand it easily. Always make notes which explain all estimates or assumptions you make. Use the same list of codes for your budget and your accounts.

When do we plan a budget? A budget can be planned at any time.- Usually, with more established organisations, planning a budget happens

annually:o The past year’s budget is reviewed.o Budget projections are made for the next three to five years.


- When starting out on a project, planning a budget plays an important role in determining start-up and operating costs.

What does planning a budget involve?Planning a budget involves

- listing the business’s fixed and variable costs (These are calculated on a monthly basis) and

- deciding on an allocation of funds to reflect the business’s goals.

Three core principles “Failing to plan is planning to fail.”Budget planning follows three core principles:

PlanningExercise 6: How to prepare a budget (PLAN)In class, choose an organisation that you know well, and discuss how you would go about writing a budget plan for this organisation. Before you start, discuss who should work together to write the budget.- Not every member of the organisation needs to have input here. - The two most important teams are the Financial Management team and

Programme team.o The Financial Management team’s job is to ensure that financial

resources are used efficiently and effectively. This must be kept in mind at all times!

o The Programme team’s job is planning, implementing and monitoring.


Plan

DoReview

o Can you see areas where there might be friction between the two teams?

- What should you start with when writing a budget? o Should you start with plans and goals, or with numbers? Why?

- What objectives is your organisation trying to achieve?- What activities will you undertake to achieve your objectives? - Look at resources.

o What resources will you need for these activities?o What is the cost of these?o Where will you get the funds from?

- Is everything looking realistic at this point? o Should you scrap some of the proposed objectives and activities

and start again?o Have you thought of something that might be more effective?o Have you identified any split in the way people think about

objectives, activities and resources?

DoingImplementing the budget is the task of the person known as the Budget Holder.The budget holder

- uses the budget every step of the way to guide all implementation.- checks that all items are budgeted for.- allocates expenditures within the budget. This is done before any

spending takes place. - tries to deliver within budget; doesn’t try to spend all the cash

allocated.- assesses over or under spending (either of these are acceptable within

reasonable limits) and makes sure there is a good explanation for these.

- reports back regularly to the Financial Management team.

Reviewing


Monitoring the budget should be an on-going process. Once the budget has been agreed upon and the activities are underway, frequent checks should be made, comparing the planned expenditure as set out in the budget with the outcome to see

- what has been learned.- what could be done differently next time.

Budget vs. Actual Report The results of reviewing and monitoring the budget are given in the Budget vs. Actual Report, also known as the Budget Monitoring Report. This shows where the money has actually gone and how much has actually been spent, compared to the initial budget. It is a very important report, referred to frequently by the Financial Management team.

Budgeting – Final Notes

Be organisedHave all budget-related information ready and accessible.

Set up a timetable.Start the process in good time. This could be as much as half a year before the budget is due, depending on how big your organisation is and what activities you hope to embark on, the size of your organisation and the approach you plan to take.Be aware of the stages involved in planning a budget:

- gathering information, - discussing activities with staff and beneficiaries, - estimating costs, - negotiating with funders, - having the budget approved.

Make sure everything is clearly written down and explained Your budget will be used by many different people. Every person who uses it should be able to understand what you mean, with no need for TFA Course Pack January 2013 25

explanation. Often staff changes during a project and so newcomers also need a clear picture from the budget. Keep notes on everything connected to the budget, showing how calculations have been made. Attach these notes to the budget.

Use the same headingsBudget items also appear in financial accounts and reports. Use the same descriptions for budget items and accounting records. This makes life much easier when creating budget monitoring reports.

Estimate costsYou need to be able to justify your calculations.

- Make lists, break down costs, and be as accurate as you can.- You can use last year’s budget (if there is one), but it might contain

inaccuracies; the financial situation might have changed drastically, etc.

Calculate contingencies, don’t fudge them- If possible, don’t add a bottom line percentage for contingencies. This

is not accurate and can be seen as sloppy. You must be able to justify every item listed in your budget. A bottom line percentage is almost impossible to justify and to check up on.

- Calculate and include contingency amounts for those items in the budget where this might apply. E.g.,

o If you think you might need to employ more staff if a certain project takes off, show the estimated cost of this.

o If you expect petrol increases to cause a jump in you fuel bill, show this.

Forgotten costs – don’t forget them! If you don’t include all items in a budget, you may land up short of funds!Have you budgeted for:

- Staff-related costs; e.g., training and benefits?


- Start-up costs; e.g., publicity and printing?- Core costs; e.g., rent, lights and water? - Transport costs; e.g,. travelling to outlying areas?- Vehicle maintenance costs? - Servicing costs; e.g,. maintaining equipment such as photocopier and

computers?- Catering costs; e.g., who will pay for lunch if you are taking donors

out for a meal? - Audit fees?

Get helpFind someone who will go over the draft budget with you, especially if this is the first time you have planned one. Ask a colleague or someone who has experience in another organisation.

The Budget Report Budget reports do not follow a predetermined structure; they use what is appropriate for the business or project for which the report is prepared. What is important is that the story of the organisation must be told.

Headings on the report are unique to the business or project. The time period covered is also appropriate to the project.

On-going budget appraisals should report actual performance (financial outlays and outcomes) against the original plan. Discrepancies or variances should be analysed and understood. The steps taken to manage them should be shown.

Budget reports should act as a point from which actions are taken or plans are revised. These are part of the management process.


Examples of Budget Reports


The Income StatementThe Income Statement Shows us how revenue (money received from the sale of goods or services) stacks up against the expenses incurred in getting there. It should be prepared at least monthly for management purposes. The Income Statement helps us to understand the trading activities of the entity. Gross profits are the foundation, which allows the business to pay its other expenses. Net profits are what are left after ALL expenses have been paid.


Chapters in the story about how operations are performing

What is missing? This only reports financial outcomes, there is nothing about non-financial

Also called a profit and loss or P&L.Covers a period of time, typically a year /month.Has comparative

Revenue – what we receive for the services we offer or the goods we sell.

The other expenses items are deducted from your operating income to arrive at

Cost of Goods Sold – What were the direct costs associated with generating the

Expenses of the business incurred in creating the revenue. Some of the expenses are not cash; example, depreciation. After deducting expenses

The Balance SheetThe balance sheet is a snapshot of the business at a particular point in time. It is normally prepared at the same time as an income statement. It shows us the assets and liabilities of the business and gives us a sense of how they interact with each other and the operations. The relationship between current assets and current liabilities gives you a sense of the capacity of the business to meet its immediate responsibilities to creditors (pay its liabilities). There are alternative ways to pay liabilities but these may require raising a loan or selling a fixed asset so it is less certain. It also gives you a sense of the assets utilized to generate the revenue reflected in the income statement. The way that fixed assets are financed is also revealed, which enhances your understanding of the obligations of the business.

Chapters in the story..


A snapshot at a specific date, a picture of the business at that time. Also has comparative information to facilitate understanding of how things are

Assets – Belong to the business. Generally they are the things that are used to generate revenue. They can also be investments that generate income. Assets are listed in order of liquidity and grouped into current assets (almost cash), fixed assets

Liabilities – money owed to others normally arising from operating activities and investment activities. These are also listed in order of liquidity (similar to

Owners’ Equity or shareholders’ funds is the difference between the assets and the liabilities. It represents the contribution of the owners of the business to the business. It is generally made up of money invested by the owners

Cash Flow Cash flow shows us how the changes in the income statement and balance sheet affect the cash position of the business. As we know, cash is king and to remain in business it is vital that cash is generated. This report gives you an understanding of how cash moved through the business. Cash flow is the life blood of any business, so it’s important to be able to understand how the business generates its cash.

Chapters in this story


Operations – The cash flow arising from the income statement. The information provided will help you understand the ability of the operations to generate cash. Businesses cannot sustain themselves if they do not get to the

Investing activities – generally cash investments in fixed assets required for the operations of the business or investments in other

Covers a period of time, starts out with cash at the beginning of the period and shows how cash was generated and utilised in the business.

Financing activities – where was cash obtained for the business other than from operations or investment activities? Cash could come from shareholders, loans from banks or others. These are also required to be


Budgeting – preparation, communication and reporting

Exercise 7: Prepare a budget for a proposalThis exercise prepares you to do two things:

- Present a budget proposal to a funder.- Give feedback on budget execution.

You will work in groups. As you have learned from previous sessions, budget planning and writing is not something that happens without investigation, collaboration and the application of sound, practical common sense.

You will be working with a project you are all familiar with – the Men at the Side of the Road employability program. You have been given a document outlining the objectives of the program and a draft budget.This class exercise will fall into four phases:

- First you will look at activities you would like to undertake- Secondly, you will look at what resources you have. - Thirdly, you will allocate your budget. - You will discuss new ways of raising money.- Finally, your team will present to the whole group.

Your peers will score you on: - Ability to present.- Whether your budget was easy to follow.- Whether you included all you were supposed to.

While you are planning your budget: - Make sure that you are constantly connecting your overall budget

with what you hope to achieve, with what your donors are expecting and with what your beneficiaries are hoping for.

- Make notes of all that is suggested. - Don’t forget to plan for the unforeseen.


- Create codes that will be used throughout the planning process. - Think about allocating money to new projects as well as established

ones.

- Think about new fundraising projects (don’t forget, unless you have wealthy donors, it also takes money to raise money.)

- Make sure you understand the numbers you are presenting. - It would be a good idea to run through your presentation and let your

group judge the presentation performance before presenting to the large group.

- As a group, try to anticipate all reasonable questions that you might be asked.

When your budget is complete, decide who is going to present it to the whole group, or whether you would like each member of the group to present a different section of the budget. - Explain to the large group

o where you found it difficult allocate funds, o how you estimated costs, o how you intend to keep an eye on spending – what checks will be

put in place. - Do not allow yourself to be side-tracked by questions from the floor. - Make sure you have all of your information readily available so that

questions can be answered briefly and accurately. - Do not become too involved with minute details when presenting – e.g,

when talking about office supplies and costs, you do not need to itemise the cost of each pencil and eraser.

- Keep the areas you report back on broad, but make sure you have all the figures with you should someone want a more detailed breakdown. (However, if this is asked for while you are in the middle of your presentation, answer politely, saying that if there is time at the end of the presentation, you will deal with this, otherwise you will make a plan to see the person asking the question after the presentations.)


- Do not contradict yourself. If a question is asked that another team member might answer better, refer that question to him/her.

Peer assessmentWhile each group is presenting their budget, members of the large group should be making notes on the presentation, according to criteria mentioned above. Be ready with these for the next class exercise.

Exercise 8: Reviewing performance- Review the performance of each team. - Reflect on the items or issues which teams should have known about,

but did not address in the presentation or preparation of the budgets (hopefully you will have nothing to say here).

- Discuss methods of presentation.o Which style of presentation seemed to work best?o Should different styles of presentation be used for different

groups? For example, if you were presenting your budget to your beneficiaries, how would your style differ from presenting to a large corporate sponsor?

o Did the presenters make eye contact? Were they relaxed?o Was there an appropriate (or inappropriate?) use of humour?o What tips do you have re presentation?

- Look at the content of the budget and how it was delivered:o Were budget items presented in the correct order? o Were the objectives and activities related to the budget

mentioned and clearly explained?o Did the presenters have a checklist that they followed?o Did they use a visual presentation? o Did they have copies of their budgets to hand out to the large

group?

Exercise 9: Moving beyond the budget to the implementation of activities:


Having discussed the budget for MSR, now it’s time to look at a second phase for this project. Working in the same groups: - Identify potential funders for an MSR employability roll-out plan. - Look at ways of taking the employability programme into the world.

- This is a specific project, operating within the larger overall plan for the organisation. Once you have a list of potential donors, prepare a budget for presentation, outlining how you would execute the ideas you have come up with.

- Remember all you learned from the previous exercises.o Be practical, creative and transparent.

When it comes to presenting your budget, remember to address the audience appropriately, clearly and concisely.

The annual report – including financial and narrative reportsThe term “reporting” refers to the information that an organisation makes publicly available regarding its activities and performance. Generally this information is delivered in an annual report, one that details the activities and fiscal situation of the organisation throughout the year. It comprises a narrative report and the financial statements. (The information contained in an annual report, as well as its format and presentation, will differ from organisation to organisation.) Non-profits have to present trustees and donors with reports of and their activities which explain how funds have been used. Non-profits normally present financial reports and narrative reports together, in formats often specified by the donor. It is important that financial reports are read alongside narrative reports, to build a picture of what has been achieved with funds and whether what is happening represents good value for money. Narrative and financial reports should match and complement each other and must reflect reality – not conceal the true situation.

The annual report provides a concise overview of an organisation: - Its strategic objectives.


- The challenges that it faces. - Any other information that stakeholders need to enable them to make

an informed assessment of an organisation’s ability to create and sustain value.

Many different stakeholders are interested in the information contained in such a report:

- members of the organisation,- beneficiaries who receive assistance from the organisation, - people who donate money and services to the organisation.

Important principles of reportingThe following key principles apply to all report writing

- Focus on the mission. Clearly articulate the organisation’s mission and objectives and relate performance and financial results to progress towards achieving the mission.

- Tell the story. Supplement, complement and integrate the information in the financial statements to tell the story of the organisation in a meaningful way.

- Have a strategic perspective. Focus on the organisation’s plan for achieving its mission and its outlook for the future and address risks that could affect that plan

- Account for stewardship. Report on management and use of resources with clear references to outcomes achieved.

- Meet stakeholder needs. Information should be complete, understandable, accessible and relevant to the needs of stakeholders. Be fair and balanced.

- Balance positive and negative information, take responsibility for shortfalls as well as successes, disclose risks and challenges as well as accomplishments.

Adapted from http://www.cica.ca/focus-on-practice-areas/reporting-and-capital-markets/item54324.pdf)


The financial reportAs shown in the class on financial management, the financial report includes figures of income and expenditure.

The narrative report Narrative reporting fulfils a very different role. Narrative reports are another tool fundraisers can use to build lifelong relationships with donors. The narrative report is based on activities that have taken place in the organisation as well as achievements, challenges, statistics and case studies if applicable. The more relative information you include, the better. Narrative reports should be focused, balanced, concise and relevant.

The importance of narrative reporting Effective reporting plays a key role in maintaining good relations with stakeholders, drawing volunteers, partners and funders to the organisation, and building and maintaining the trust of the community. Although financial information is a vital element of reporting, financial statements on their own don’t impart all the information that stakeholders are looking for, especially as far as non-profits are concerned. For example, volunteer contributions are not part of financial statements and nor is the effect that a non-profit may have on the community it serves. Elements like these are hard to capture in financial terms but are invaluable to the organisation, as well as central to understanding how an organisation performs. For this reason the annual report needs to tell the story of the company as well as showing its financial status. This story telling part of the annual report is referred to as the narrative report.

A narrative report or story is crucial because: - without being informed of circumstances and context, interested parties

may well draw conclusions that are erroneous and inaccurate based on limited information.

- it gives the organisation an opportunity to explain the bald figures shown in financial statements.


- it allows the organisation to show what key non-financial steps and measures have been taken and how these have affected performance.

What is the purpose of narrative reporting?Narrative reporting tells the organisation’s story, usually focusing on a set time period. The aim of such a report is to let stakeholders know, in an open, fair and balanced manner, how the organisation is delivering on its mission. Honesty is essential here; successes should be celebrated, failures acknowledged. The report looks at strategies and hopes for the year ahead, draws upon financial data, linking it to other important information about the organisation’s achievements and so presents an unambiguous and consistent picture of the past year’s performance and progress towards future goals. It also helps to explain what the financial statements show and fills in what they might not show. It provides a space where important trends and risks affecting the organisation can be discussed.

What should a narrative report include?

The organisation’s backgroundEvery story needs a setting. Early in the report, background information is presented, explaining the organisation and its operating environment. This background provides the setting for the organisation’s story. The report writer needs to be aware that not every reader will be familiar with the organisation and its circumstances. Relevant information includes:

- a brief background on the organisation and its activities, - an explanation of the geographical area or population served, - a description of the particular sector, - any significant implications of the regulatory framework the

organisation works within.This information doesn’t have to be all-inclusive; it serves to provide the reader with a general understanding of the way the organisation works.

The organisation’s missionTFA Course Pack January 2013 39

The organisation’s vision and mission should be should be central to the annual report. Once again, you need to think of the reader who may not be familiar with the organisation’s mission.

- The aims of the organisation should be clearly expressed so that the reader gets a clear sense of what success means for the organisation.

- The mission is referred to throughout the report, with the information being presented relating back to the mission.

- The report should explain clearly how activities and programs over the past year have moved the organisation closer to delivering on the mission or achieving its vision.

- Reference to measurable results and outcomes can show how much progress was made over the course of the past year. The financial information should also be related back to the mission, as the report can explain how the organisation’s financial results and the careful supervision of its resources support its ability to deliver on its mission.

A good question to ask here is:

Does the mission statement of my organisation still connect to current programmes and priorities?

The answer to this could well be unsettling and a careful assessment of mission vs. activities could lead a review of strategy, updating the mission statement or pulling programmes and activities that have suffered from “mission drift” back into line. If the link between mission and activities isn’t clear to those within the organisation, it will be even less clear to those outside it.

The organisation’s strategyAfter reviewing the organisation’s mission, next comes expressing how this mission will be achieved. This is the organisation’s strategy. Strategy has short-term and long-term components. The strategy should be discussed early in the report as it also provides background for the reader. The


strategic plan should include milestones and the means whereby management assesses whether progress is being made. Assessment of progress on strategy may be financial or non-financial and the emphasis should be on outcomes, rather than outputs.

The difference between output and outcome

This will be mentioned again during this course, and so there in no harm in making sure that you know the difference between the two.- Outputs are the quantifiable (measurable) services and products

produced by the activities of staff and volunteers. Outputs can range from writing a letter to issuing a cheque to running a race to holding an event.

- Intermediate outcomes are the immediate benefits and changes resulting from the outputs. For example: number of satisfied donors who received a well written letter, number of jobs found, better decisions made.

- Ultimate (or end) outcomes are final or long-term benefits and changes. For example, improved health could be measured in terms of a reduction in mortality rates due to HIV/AIDS, or safe streets as a reduction in the number drunk driving incidents.

Strategy involves:listing and enumerate on the activities embarked on which support the strategy, explaining how activities happened in the course of the year,discussing and explaining whether the activities undertaken met (or did not meet) expectations,discussing goals for the future.

The organisation’s goals and performanceReporting on the results of the past year is often the upbeat and positive part of the report. Here you have the chance to tell stories about successful programs, fundraising events held, improved community participation etc.


This key part of the report allows a powerful opportunity for the organisation to tell its story, and it is very important that these stories relate to achieving the mission. Performance can be shown in detail and put into context by explaining what the goals were for the past year, how those goals were related to the mission, and what progress was made in achieving them.

Here the report should also tie the activities of the past year to the organisation’s strategy, showing progress towards achieving organisational goals, which have been set in advance and measureable and can be financial and non-financial. Where relevant historical comparisons can be used to provide a useful means of tracking the organisation’s progress, showing how activities and performance compares to previous activities in previous years. (More successful? Less?)

Risks facing the organisationRisk and uncertainty are part of our daily lives and cannot be discounted. As such they should also be mentioned in the narrative report but many organisations are uncomfortable about mentioning them. However, good governance involves looking all possibilities and probabilities and being as ready as possible to deal with whatever arises. Effective reporting on risks and challenges is important and honesty and practicality in this regard helps to build trust with stakeholders. Not every potential risk the organisation faces needs to be listed. Only the most important need be addressed in the report. E.g:

- the relevance of the organisation’s mission in a changing environment,

- competition, - changes in demand for services, - changes in donation levels, - the ability to recruit and retain staff and volunteers, etc.

When discussing matters of this nature, it is important to make the discussion non-threatening and relevant by discussing the organisation’s ability to manage risk and outlining the steps being taken to diminish the


risks mentioned. Such an approach helps stakeholders assess the organisation’s strength and also encourages them as they realise that the organisation is resilient and well prepared to respond to adverse situations.

Drawing together all the facts, linking them to financial statements and reports, looking back over what has happened and forward to what is hoped for – all of this gives staff and management the chance to review and reflect on accomplishments, challenges, risks and, indeed failures. All that needs to be done is to pull it all together, write it well and present a document that is a pleasure to read and easy to understand – thus promoting a deeper understanding of what the organisation does, why it does it, how well it is doing it, what challenges and problems it faces, what it has achieved and what more it hopes to achieve in the future.

What questions should the Annual Report answer?- What is the purpose, mission and vision of the organisation?- What is the strategy to achieve the purpose/mission/vision?- What were the goals for the year? How did actual performance compare

with expectations?- What are the organisation’s risks and opportunities?- What were some of the financial and non-financial highlights during the

year?- What were the organisation’s fundraising methods and outcomes?- What is the organisation’s plan moving forward? What does it expect to

accomplish in the next year?- How is the organisation structured and governed?

Audits

What is an Audit? An audit is an independent inspection of your financial records and your organisation’s activities, which concludes whether all is in good order or not. Audits may seem intimidating, but they are very important.


- They allow an organisation to show that it is honest in all financial statements, and that all procedures set down are being followed correctly.

- They provide good opportunities for learning. Auditors are highly qualified people who have had experience in looking at all sorts of organisations. They give good advice on financial controls and systems and can show you how to investigate certain issues.

What is an Audit Trail? An audit trail is a step-by-step record by which accounting data can be tracked back to the source through an organisation’s accounting systems. This method is used for the reconstruction of transactions when questions need to be answered about validity or accuracy. An audit trial used to be constructed from paper records, but now it also refers to the record which shows who has accessed a computer system and what operations have been performed. Audit trails are a useful way of maintaining security and of recovering lost transactions and audit trails are now a built in component of most accounting packages and database management systems. Audit trails are also used to

- provide a basis for account reconciliation, - check original supporting documents,- provide a historical report to plan and support budgets,- provide a record of sales in case of a tax audit.

The four types of financial audit

External Audit An external audit is carried out by independent auditors who adhere to a recognised set of accounting principles (e.g. they could be GAAP certified and adhere to Generally Accepted Accounting Principles, an international convention of good accounting practices based on certain core principles) The auditors check that all is true and fair and give a professional opinion on financial statements after analysing a good cross-section of the organisation’s records. This professional opinion provides TFA Course Pack January 2013 44

evidence that financial reports are reliable (or, indeed, not, as is sometimes the case) and informs donors, beneficiaries and other stakeholders that all appears to be correct and in order.

Internal Audit An internal audit checks whether agreed policies and procedures are being adhered to. Such an audit may be performed by staff inside the organisation or by external specialists. An internal audit provides current information about how funds and resources are being managed.

Donor Audit A donor audit gives donors the assurance that their funds are being properly used and that grant conditions (if these were in place) are being complied with. It is separate to the standard year-end audit. It may be executed by the normal external auditors or by the donors themselves. Often, donors who are providing on-going funding require a successful audit before allocating further funds.

Investigative or Forensic Audit An investigative audit looks for evidence when there is suspicion of wrong-doing within an organisation (usually fraud or theft). Auditors are brought in and once they have established the facts and provided evidence, the organisation may choose to take further action.

Accountability and Control

What does accountability actually mean?Accountability is a word that is tossed around, and often people use it incorrectly, or are unsure of its exact meaning. ‘Accountability’ means:

- Explaining what you have done. - Taking responsibility for what has happened as a result of your

actions. - (This includes explaining how you have used funds.)


It is essential that all charitable, non-profit and non-government organisations – in fact any organisation that has been entrusted with resources to manage on behalf of others – understand what it means to be accountable and practise accountability.

The two types of accountability

Downward accountability- Organisations are accountable to the people they are helping. If

organisations ignore their beneficiaries and do not keep them in the picture, then they are not practising downward accountability and they are not operating effectively or to their full capacity and effectiveness.

Upward accountability - Organisations are also accountable to donors, trustees and upper

management within companies. These people provide funding and it is essential that they too are kept fully in the picture, so that they know that resources are being used effectively and correctly.

Organisations need practical tools to achieve accountability goals. These include:

- carrying out audits,- holding review meetings, - writing financial and narrative reports,- carrying out evaluations.

The Control Environment and Control Procedures

What are internal controls?Internal controls

- help organisations to manage everyday details and risks: mistakes, confusion or fraud and

- protect staff from the temptation to misuse funds and consequently from any accusation of wrong-doing.


SPACE A good Internal Control system is designed to:

- Safeguard assets,- Prevent and detect cases of fraud and error,- Accounting – keep records accurate, complete and up-to-date, - Comply with relevant laws and restrictions,- protect Employees, from themselves and each other.

An internal control system consists of - the control environment and - the control procedures within the environment.

While control has to be firm and incorruptible, it also has to be practical and fair minded. Your organisation has to be flexible and adaptable, able to make decisions at all levels. Procedures have to balance keeping control with encouraging flexibility.

Control environmentThe control environment includes

- the management style: o Does management lead by example? o Is recruitment fair? Is there nepotism?

- organisational values and culture: o Is priority given to induction, training and internal audit? o Are procedures written down and shared?

Control proceduresThere are seven main categories of internal control procedures.

- Physical verification - Limited access - Standard documents - Segregation of duties - Checks and balances


- Approval and authorisation - Reconciliation

Exercise 10: Homework: Understanding Terminology- The more you work within the NPO, NGO and charity sectors, and the

more you meet representatives of big business, the more you will be exposed to jargon and catchphrases used in these groups. But do you know what the words you use mean?

- Research each of the terms above in the context of control procedures within an organisation and present them to your classmates. Make sure that your explanations use plain English and that you do not cloud the description with words that are fluffy and distracting. Explain clearly and simply.

Building a glossary – catchphrases, buzz words and special jargon.Every time you come across a new word that you don’t understand, make sure to make a note of it and add it to a list of words connected to fundraising. Often words are used in a different context within this environment. Make sure you understand what they mean. Are some words so tired of being used that they aren’t even worth of being called clichés anymore? See if you can devise new ways of saying the same old thing.

All about Tax

It is well worth your while to consult with a tax lawyer if you do not have a tax expert within your organisation. Registered NGOs and NPOs are legally responsibility to know and comply with tax laws. If you become involved in financial management within the organisation, you should educate yourself and make sure you know exactly what the situation is in terms of taxes. It’s a tricky area and one which you need to understand. If anything seems odd, or a bit dodgy, ask to have it clarified.

The following are the sort of things you will come up against when dealing with the financial operation of an organisation.


Tax for Non-Profit Organisations - A registered NPO does not pay tax on income. - Donations to registered NPOs are tax deductible.

PBO registrationTax exemption is now only granted to organisations that qualify as a Public Benefit Organisation (PBO).

What is a PBO?A PBO is any organisation that has the sole objective of providing one or more of Public Benefit Activities (PBA) in a no-profit manner as defined by the Minister. Provided that 85% of its activities, both in terms of time and money, are carried out in South Africa, it may either be:

- A Section 21 Company.- A Trust.- An Association of Persons established in terms of a constitution.

Exercise 11: Homework – Researching PBOs and PBAsResearch the following for class feedback: (You may work in groups if you wish, and divide the research, as long as each group member makes sure that his/her peers have a copy of the research and understand what has been given to them.)

- What are PBAs and how are they categorised?- What are the requirements for registration as a PBO?- What are the requirements for registering as an NPO?- What are the benefits of registering as a PBO?- What if a non-profit organisation does not register as a PBO?- Where can we get more information or obtain the prescribed forms for

registration?- With which government agency does a PBO register?- With which government agency does an NPO register?


S 30 of the income tax actAccording to S 30 of the income tax act, a Public Benefit Organisation (approved in terms of s30(3) of the Income Tax Act) is exempt from paying dividends tax.

s18a certificates - s18a certificates are issued in respect of donations! Donations are

defined, and they must be made without any strings attached. If given in kind, they must be valued based on the cost, not the replacement value.

- An s18a certificate must have o a reference number, o the date of the receipt of the donation, o the name and address of the PBO, o the name and address of the donor; o the amount or the nature of the donation (if not made in cash)

ando a certification to the effect that the receipt is issued for the

purposes of section 18a of the Income Tax Act, 1962, and that the donation has been or will be used exclusively for the object of the public benefit organisation, institution, board or body concerned.

Tax Deductibility of Donations- Taxpayers get a deduction from their income when making a

donation. An s18a certificate is needed for this. There are limitations – make sure that the donor is aware of these.



Class 3

Introduction to Donors and the NGO Sector


What is a donor?Sometimes the best way to understand how the mind of a donor works is to start with the person sitting right next to you.

Exercise 12: Getting to know you - Turn to the person next to you, introduce yourself, and ask for his/her

name.- Give your name and ask the following question: If you had a million

rand to give away, what would you do with it? - Listen carefully to what your partner says to you. - Make notes as s/he speaks. - See whether anything s/he says resonates with the way you think. - If your partner is stuck, encourage them to speak further with a

question that shows you have been thinking about what they have already said.

- As your partner speaks, see whether you can, in the back of your mind, work out what sort of charity or project s/he might be persuaded to donate money to.

- Introduce your partner to the group and explain what his/her passions are.

Once again, this is a listening exercise. Through listening carefully, you learn what sort of person you are interviewing. You can make note of when their tone of voice changes, what animates and excites them. As people discuss their feelings about a topic like this, you’ll notice that you too have strong opinions. Now is not the time to voice these, but it is worth making note of them, as all exercises like this are designed to help you to learn more about yourself as well.

Exercise 13: What is a donor? - Write a short description of what you think a donor is. - Read this aloud to the class. - Listen carefully to your classmates’ answers as they read them aloud.


- Jot down important facets that you might have missed.

What is a donor?A donor is an individual or group of people who gives money, goods or services to a certain cause. The monetary amounts of contributions can vary from R1 to millions of rand. Donations can also be made in kind (food, clothes, equipment). Donations can be once-off or on-going.

Different types of donors- Individuals- Corporates

o Corporations are the most common form of business organisation. They usually have a budget from which to disburse funds.

- Government o There are different levels of government funding: local and

national o Funds are given to different sectors: arts, labour, welfare, etc.

- Trusts o These can be set up by and for families and/or individuals.

- Foundationso There are different types of foundation: e.g., operating or

grantmaking, local or overseas.

Individual donorsIndividual donors are an important resource as they can become a source of on-going revenue.

Databases of individual donors. - Databases of individuals can be built by the organisation through

events, fundraisers, or services rendered. There are also some companies that sell databases (Make sure these are relevant to your fundraising needs.)


- Different types of databases exist or can be built which suit different organisations. E.g., a database of mothers would be useful if one were working with or for a charity that works with children.

Classifying your organisation/project and its needsBefore you approach a donor, you need to think carefully about how you would classify your organisation and its particular needs. In order to do this you need to think about the categories your organisation might be seen as falling into. (Remember, as well as knowing how you perceive yourself, it’s important to make sure that you understand how your prospective donors perceive you. According to their philosophies and life view, they may see you differently than what you were expecting.)

Exercise 14: Listing common categories that organisations and projects fall into within South Africa.

- List as many of the common categories that you can think of that organisations and projects fall into in South Africa (e.g. HIV/AIDS).

- Before we get feedback from the rest of the class, circle the three categories which you think need the most funding.

- After you have finished your lists and compared them with the rest of the class, check the lists against your class notes. Did you have some or all of the following?

o Arts & cultureo Care for the elderly o Childcareo Community serviceso Community upliftmento Crime prevention o Education o Employment opportunities for disadvantaged groupso Environmental protection/conservation


o Equal employment opportunityo Food security o Health careo HIV/AIDS o Housing o Job creation o Leisure and recreationo Mobility o Peace & reconciliationo Poverty alleviation o Recycling o Skills development o Waste management

- Which of the categories did you circle as needing the most in the way of funding?

- Which did your fellow students circle? - Do you agree with their choices?

It is important to know about these categories before you approach individual funders. If a donor mentions that she is passionate about healthy eating and decent nutrition, you then know that she could be a potential donor for a health related project, or, for that matter, she might be willing to donate to a project that focuses on poverty alleviation by encouraging people to grow their own food. By knowing these categories, and about organisations similar to your own that operate within them, you know how you fit into the bigger picture, and whether a potential individual donor will fit into it as well.

Exercise 15 Homework: BEN: The Bicycling Empowerment Network - When you get home, look up BEN on the internet,

http://benbikes.org.za/- Refer to the list of categories that you drew up in class.- What were the categories in which BEN originally aimed to operate?


http://benbikes.org.za/

- Has the organisation moved beyond these categories to encompass other areas of need?

- What sort of people do you think would be drawn towards donating to a project like BEN? What might their interests or passions be?

- What would they see as being a way to build a better world? - If you have time, browse a little further and explore two or three other

organisations operating in South Africa. What sort of donors would these attract?

- Be ready to share your findings with the class.

Exercise 16: Looking at donors more closely - Without stopping to think, scribble down at least five reasons why you

think donors are important to NGOs and to fundraisers. - Take two minutes to expand on these thoughts.- In your group, one by one, each of you give one of the reasons on your

list. If other people give a reason you have already got on your list, put a tick next to this. If other people give a good reason, one you wish you had thought of, jot this down at the bottom of your list.

- Class feedback: o What were the reasons most people thought of? o Were some of the reasons given unique and creative; worth

further discussion?

Exercise 17: On-going Homework: Opening your eyes - Pay attention to your surroundings. - See if you come across any donors as you’re out and about. - Look for names on plaques, on billboards, on websites, etc. - Make a note of these to give feedback to your classmates.

One of the things you need to remember if you wish to get the most value out of these classes is that everything you learn in class has a practical application in the outside world. The sooner you start practicing what you learn in class, the faster you will grasp concepts and the more creative your


thinking will become. Once you start thinking beyond the four walls of the classroom, you will start seeing and hearing all sorts of things you had previously been unaware of.

In many of the sessions in this course, we will briefly recap what we have already learned before moving on, either to new ground, or to exploring certain aspects of fundraising more deeply.

We have already established that the three different types of donors are: - individuals,- businesses and- foundations.

We already know that individual donors are an important resource as they can become a source of on-going revenue. However, before even starting to look for and approach individual donors, it is essential to understand the needs of the organisation or project for which you are trying to raise funds.

The needs of an organisation or project These needs can be classified according to

- Size- Urgency and duration- The type of campaign

What is an annual campaign?- The annual campaign is the building block for all fundraising. Through

this, an organisation starts and adds to a base of donors that can support the organisation in a number of ways

- A successful annual campaign provides a steady flow of income for the programmes, services, and activities it provides for the community.

- Without an established and reliable annual campaign, an organisation often finds itself involved in crisis fundraising. With a successful annual campaign, this will not be the case. Instead there will be a


carefully thought out, planned, and implemented approach to raising necessary money in an orderly and timely manner.

What does an annual campaign do?A few of the aims of an annual campaign are to:

- Solicit and secure a new gift (in the case of new donors), repeat the gift (in the case of previous donors) and upgrade the gift (in the case of previous donors).

- Build and develop a base of donors. - Establish habits and patterns of giving by regular solicitation. - Seek to expand the donor base by soliciting gifts from new prospects. - Raise annual unrestricted and restricted money. - Promote giving habits that encourage the contributor to make capital

and planned gifts. - Maintain the habits of politeness and gratitude by thanking donors for

their contributions.

In addition to the annual campaign, which can be relied upon to maintain the organisation’s expected costs, there is sometimes the need for an organisation to solicit funds for a capital campaign.

What is a capital campaign?A capital campaign is a time-limited effort by a non-profit organisation to raise significant money for a specific project, such as:

- the acquisition, construction, or renovation of a building. - the establishment of an endowment for the future. - an extraordinary expenditure; e.g., an expensive piece of equipment.

Capital campaigns have a beginning and an end, but can often span several years. A capital campaign employs all the usual means of raising funds such as direct mail and direct solicitation. Capital campaigns require extraordinary preparation and skilful execution.


Who are individual donors?It’s easy to identify companies who might be interested in helping your organisation or project with funding. All one needs to do is to research them on the internet… but what about individuals? How does one recognize them?

- Philanthropists come in all sizes and from all walks of life; often when you start talking about your passion to serve in a particular way, you’ll discover that the person you are talking to would also like to contribute something.

- People who care about the project will make the effort to contact you (and don’t forget, if they care, their friends and family probably do too – people of like minds often gather together.)

- People who care about you will want to know more about what you are doing. When they see how passionate you are about a project, they may very well be encouraged to participate or donate in some way.

- Your old school friends, university or college colleagues: these people are often invaluable – either as a direct source of donations, or as a means of networking and building your contact base.

- It makes sense to approach the friends and family of beneficiaries of your project or organisation. They will probably be delighted to be given the opportunity to express their gratitude, and to put you in touch with more people whom you might be able to approach. The same applies to beneficiaries or past beneficiaries themselves. Once again, these people would probably be grateful for the chance to make some sort of contribution to an organisation that has given them support and encouragement.

Approaching individual donorsThere are several ways in which individual donors can be sourced and then approached:

Direct-Mail campaigns - These can be sent out on a regular (e.g. quarterly) basis.


- Source or create a suitable database. - A letter of appeal should be written professionally, using emotional

content and tone. (E.g. tell a story about a mother in need, stirring a pot of water, telling her hungry children that soon the meal of porridge will be ready … until they finally fall asleep.)

- Don’t forget to include a response card giving banking details and options for payment: once off, on-going debit order, cheque, electronic bank transfer, etc.

- Institute a computer system whereby all donations are captured, and all details recorded.

- Send thank-you letters immediately.- It is vital that an accurate is kept of all donations

Telephone appeals- Source or create a suitable database with telephone or mobile

numbers.- Think of a good catch line to hook your listener in. Practise this line so

that it sounds easy and natural.- Be professional and articulate. - Be prepared for a tedious and sometimes disappointing session. It can

be disconcerting when people don’t have time for you or cut you short.

Fundraising eventsSend invitations in good time to your specific databases informing them of fundraising events such as dinners, fetes, auction, etc.

Newsletters Send out regular s, informing individual donors of the progress and developments taking place in the organisation.

Where do you find individual donors?- Networking! The importance of networking cannot be stressed

enough. Someone will always know someone, and that person will TFA Course Pack January 2013 61

always know someone else, and chances are the fourth person in the chain will be the one who really wants to make a significant contribution. Never underestimate the power of putting people in touch with others who might want to help them, and asking to be made part of other people’s networks.

- The database of the organisation itself is an invaluable tool – but only if it is kept up-to-date. Make sure that you have the means of gathering information about people who attend events, get their email addresses and telephone numbers. If you have a website, make sure you have the means whereby people can subscribe to you online.

- It’s also possible to buy lists of names from other companies, but be careful about this. Many people become extremely irritated when they learn that their personal information has been passed on to an organisation.

- More and more, social media is becoming a highly effective way of adding to your database. Facebook, LinkedIn, Twitter – all of these are valuable sources – but don’t bombard people with so much information that they become sick and tired of your name.

- Research causes similar to your own. Look them up on the internet. See who their funders are. Companies often sponsor more than one good cause of a similar nature – so there is no harm in approaching them to help your organisation too. Make sure, though, that you know when they allocate funds to these causes. There is no point in approaching them when all the monies have been donated – and doing so also shows that you haven’t done your homework.

- Ask your supporters to forward emails to people who might be interested in your cause; ask them for the names and contact details of people whom they think would be willing to hear from you.

- Be visible in the community. o Take stands at local craft fairs. o Hand out leaflets. o Ask for interviews in community papers. o Ask community newspapers and radio stations to advertise your

functions and highlight the good work you are doing.


o Take out ads in local papers (for free whenever possible) and make sure that whatever you are doing is known about in as many places as possible.

- Find local celebrities who espouse your cause and get them to speak on your behalf.

- Visit schools and ask if you can speak to the students about the work that your organisation does. Remind students that even if they cannot donate money, they can always donate their time.

- Don’t forget to show your appreciation for what your donors do for you. Thank them personally wherever possible. Always thank them promptly.

- Take people to VIEW your work. Many donors don’t have a clue where their money is going. If you can take them to, for example, a nursery and show them toddlers playing on a jungle gym that they have helped to buy, or eating a healthy lunchtime meal that their donation helped to pay for, they will be all the more willing to donate to you again.

Once you have the name of a potential donor, particularly if s/he is someone who might make a large contribution, the next thing to do is to Google that person to find out something about them. Follow leads, look up companies they are connected to, see how much information you can gather about them.

Additional ways to research individual donors- Search local media for stories about people who have prospered in

their professions and are active in civic affairs and charitable causes. Your public library probably has databases which will allow you to search many news sources at once.

- Network with your prospect’s acquaintances. This may yield valuable information, perhaps even an introduction.

Exercise 18: Meeting with a prospective donor- Imagine that you are a prospective donor. - On the worksheet you have been given, you have been asked to fill in

details about yourself. TFA Course Pack January 2013 63

- Once you have done this, exchange worksheets with your partner.- Read your partner’s worksheet carefully. It is filled with the sort of

information you might have gleaned had you done an internet search on your partner. It will also indicate the potential donor’s (your partner’s) areas of interest.

- Once you have read this, make a quick list of the sort of questions you will now ask your potential donor. You should have at least five questions on your list.

- A selected pair will now do the following:- Interview the potential donor in front of the whole class, in a role-

play. (Remember to take some time to put your donor at ease and thank him for his/her time both at the beginning and end of the session.)

- While the role-play is taking place, the rest of the class will do the following:

- Make a note of the questions that elicited the best responses.- See which questions did not work well.- Make a note of other questions that should have been/could have been

asked.

After the role-play, there will be class discussion about what did and did not work, looking in particular at:

- What questions should have been asked?- How the conversation could have been steered to elicit the best

response.- How to ask questions that do not show that you have researched the

candidate before meeting him/her.

If there is time in this session, another pair can volunteer to do another role-play, using the information gathered from the feedback session.

- The group will then discuss this role-play – did it work better than the previous one? Once again, all questions asked (and the responses to them) will be analysed.


Other ways in which individuals might donate fundsOften, the lines blur between types of individual donors. For example, many funds in community foundations or small family foundations are “donor directed”. Here, what happens is that individuals deliver their charitable contributions to a foundation and they then have a large say in determining how this contribution will be used, and which organisation or project should receive assistance from the donor directed fund.

In some cases you may approach a CEO of a corporation for a personal donation, and s/he might decide to make a contribution, not personally, but through the company or company foundation.

Your research on different donors should also give you an indication of the size of donation you might expect from them, and how frequently they might be able to donate to you. (This is very useful information: when a donor asks, “So what do you need?”, as often happens, you will be able to give a reasonable answer based on your research. )

With major individual donors, you might need to organize more than one meeting. Be prepared for these, have all the information about your organisation at your fingertips. Remember that the individual donor’s time is precious. Make your meetings with them enjoyable and productive.

Key principles to remember when raising funds from individuals- People give to people. Face-to-face with a prospective donor is the

best possible way of making contact. - Remember, you are giving of your time, your creativity and your

energy – all in a very good cause. But you should also donate financially to the organisation so that you are on an equal footing with your prospective donor. You are talking donor to donor.

- The higher the contribution you seek, the more personal the contact needs to be. (Maybe?)

- The larger the contribution sought, the longer the cultivation time. (Maybe?)


Exercise 19: Why maybe?It’s not always a given that you will devote the majority of your time and energy to seeking big individual donations. There are times when it will be worth your while making a big effort for a smaller gift.

- Why might you put in the time for a smaller gift? (Hint: Do all rewards have to be monetary?)

- What are some of the benefits you might reap from a good association with a smaller donor?

Individual donors: A Review - Know your needs. We will stress this over and over again. Be

prepared, do not waste anyone’s time. Make it your aim never to have to say, “I’ll get back to you on that”.

- Use your database (sourced from the organisation itself, built from an event, bought from an agency that sells databases, etc.)

- Do your research. Once again, this keys into being prepared. The more you are familiar with, the better the impression you will make, the more impressed the potential donor will be, the better your chances of receiving a good contribution.

- Narrow your prospect list. You cannot make contact with everyone. Using the criteria you have established, create a list of potential donors who are the most likely to donate to your cause.

- Schedule a meeting! Act decisively in this regard, without harassing the donor. Find a time that works for both of you. Your primary goal here is only to set up a meeting.

- It’s useful if you have a contact who can make the introduction between both of you.

- If you do not have a mutual connection, it is still possible to get to the point where you can actually schedule a meeting with the donor. This is where getting to know the donor’s PA can prove to be invaluable. She can advise you on the best way of approaching the donor: should you email them c/o the PA (should you email attachments to them); should you make an appointment to speak to him/her by phone or by cell phone, and set up a meeting from there?


- If the donation process is likely to be a long and involved one, make sure you go with your diary. Don’t leave your meeting unless you have another one scheduled.

- Before going into your meeting, review your research. - Make sure you are neatly dressed and well groomed before going into

the meeting. First impressions count and your prospective donor is not going to be impressed by someone who is sloppily dressed.

- Smaller donors may not need to be met face-to-face. You can meet these by inviting them to events, by emailing them, mailing them or contacting them over the phone.

Businesses as Corporate Social Investment (CSI)Before even starting to look at approaching businesses as donors, it is vital to explore the meaning of something called Corporate Social Investment (CSI). It is very important that you understand what CSI means in the context of South African business and society. We will be using the CSI handbook extensively in this course, looking at projects and linking them to possible donors, according to relevant criteria. Make sure you have a copy of it.

Exercise 20: What is Corporate Social Investment?- Look at these three words carefully. - Write a short description of what you think Corporate Social

Investment is. - Read this aloud to the class. - Listen carefully to your classmates’ answers as they read them aloud. - Jot down important facets that you might have missed.

Companies help their communities through Corporate Social Investment, setting aside money, time or expertise to benefit and uplift communities and help to provide solutions for major social problems. Generally, corporations try to find a match between social investment and their mission and vision. In this way, when their contributions are worthwhile and successful, this


reflects back on the company in a positive way and so enhances the reputation of the company and its brand.

Features of CSI

FoundationsCompanies who set aside money for CSI often establish foundations. They receive certain tax benefits in exchange for their contributions to non-profit charitable organisations.

Cause marketing Another way in which companies invest in alleviating social problems is through ‘cause marketing’. E.g., if a product carries a significant logo or symbol (like the red Aids ribbon) the consumer knows that the company donates a small amount per article to AIDS research or care.

Sponsorships Sponsorships are another way in which companies invest in the community. They might sponsor an event, the proceeds of which will go to a non-profit organisation. For example, a large corporation might choose to contribute funding to an organisation such as the Sunflower Fund to facilitate a run or a bicycle race, and by so doing help to give all South Africans diagnosed with leukaemia and other life-threatening blood disorders the chance of life. Alternatively, they might pay to have their logo appear on the website of an NPO, on a poster, or an advertisement.

Community service Community service is another form of CSI. Companies encourage their employees to become involved in community service, in places like schools, thus finding individual employees whose skills can help the NPO.

How to learn more about CSI on the Internet- Visit the company website.


- Look for “Community Involvement,” “About Us,” “Corporate Social Investment,” “Company Sponsorship Information” or “Foundation”.

Corporate Social Investment and Corporate Social Responsibility

People often confuse CSI with CSR (Corporate Social Responsibility). You need to be prepared for this, and to know the difference between the two.

CSR This reflects a company’s value system. According to Deloitte, Corporate Social Responsibility (CSR) addresses how a firm manages its business processes to generate stakeholder value while having a positive impact on the community and minimising any adverse impact on the environment. [http://mycareer.deloitte.com/mt/en/life-at-deloitte/benefits-and-culture/corporate-social-responsibility] Thus a company’s CSR enhances the morale of employees and the immediate situation of surrounding communities of a company, but it still relates to the income generated by a company.

CSI CSI, on the other hand, is defined by Trialogue as “any social development activity that is not undertaken for the purpose of generating business income”. [ http://www.ngopulse.org/article/csi-or-csr-are-you-learning-npo] This means assistance (monetary or otherwise) given to people, organisations and communities that are external to the business.

More about CSIs- A guiding principle of CSI is that business does not operate in

isolation to society, but is part of it, and therefore has certain responsibilities. In South Africa it is widely accepted that business is an important agent of social and economic development.


http://www.ngopulse.org/article/csi-or-csr-are-you-learning-npo

http://mycareer.deloitte.com/mt/en/life-at-deloitte/benefits-and-culture/corporate-social-responsibility

http://mycareer.deloitte.com/mt/en/life-at-deloitte/benefits-and-culture/corporate-social-responsibility

- Originally the extent of CSI was determined within each company and the degree to which it was practiced was dependent on internal company policy. CSI has since evolved from voluntary philanthropy to an actual requirement for doing business in South Africa.

- Over the past 10 years the amount spent on CSI has escalated to over 4 billion rand.

- In 2007, BEE Codes of Good Practice were gazetted. The Codes required companies to become BEE compliant, and, among other stipulations, said that companies had to donate specific amounts of their earnings to gain CSI points. [The South African government launched Black Economic Empowerment (BEE) to redress the inequalities of Apartheid by giving previously disadvantaged groups of South African citizens economic opportunities not available to them beforehand. BEE includes measures such as Employment Equity, skills development, ownership, management, socioeconomic development, and preferential procurement.]

CSIs and fundraising programmes- The offices of the people who work as CSI representatives can be

found in the marketing departments of various companies. - As is the case with many charities and good causes, the objective of

CSI is to strive to develop programmes which address pressing social needs and which promote sustainability.

- There is often confusion around the terms Social Investment, Public Relations, Cause Related and Sponsorship. Make sure you know the different definitions for these, and that you are completely certain of the definition of CSI.

- CSI practitioners often look for partnerships that will serve the interests of a community well, or which will promote a worthwhile cause, often one that is close to the company’s heart. It is key to a CSI’s success that it chooses effective partnerships.

- CSIs put part of their resources towards measuring the impact of the programmes they have become involved in. Often the rate of progress is slow, particularly when the CSI has had to start at ground level and


work upwards. Achieving the goals of the CSI can be a slow process in the field.

- It is important that the progress made by a CSI is monitored and evaluated. Any monies disbursed by the CSI are carefully tracked as it is important that the money they donate towards causes and programmes be seen to be effective and is not squandered.

- In South African companies, CSIs make financial and cash contributions and may be approached for funding as they are entitled to voluntarily select projects and developmental sectors they wish to support.

- Generally speaking though, CSIs of large corporations tend to align themselves with government priorities.

- Thus education has been the most supported development sector as well as community development, job creation, health and HIV/AIDS.

In 2002, a government gazetted law obliged corporations to disburse a certain amount of profits to social development projects.

Within the South African context, corporate social investment has a pivotal role to play in bringing about meaningful transformation to the benefit of all. The social needs facing our country are substantial and it is a moral duty for big business to make a difference by supporting projects that benefit historically disadvantaged sectors of our society. http://www.total.co.za/os/ossouthafrica.nsf/VS_OPM/8FFBB62525E454DAC1256F240030F80D?OpenDocument

Exercise 21: Researching CSI There are several very good articles on the internet which talk about CSI. Many companies, in their profiles, include a page on what sort of Corporate Social Investment they are involved in. In addition to this you will be given copies of an article which discusses the role that CSI plays in SA: alleviating poverty and socio economic development. TFA Course Pack January 2013 71

- Read this article carefully, and educate yourself further by researching CSI on the internet.

- Through your research, try to determine whether CSI is taken as seriously as it is supposed to be.

Approaching a CSI for fundingWhen approaching a CSI it is vitally important that you have done your research carefully. Most CSIs are only interested in funding if there is a good fit between the ethos of the company and the sectors of the community it supports and develops through its CSI programmes. Remember this when approaching a CSI: this process is all about finding suitable partnerships and good “fit” scenarios where the CSI criteria match the fundraising group’s focus areas.


How to tap into CSI fundingExercise 22: Funding criteria: finding a fit

- Look at the following list and see whether you can match the areas of development with organisations or projects which are working in a particular area.

Area of Development

Organisation/Project

Job creation Learn to Earn (non-profit skills development and job creation organisation, working with unemployed people)I Care (non-profit Christian organisation, creates meaningful and sustainable solutions for street children)The Big Issue (non-profit, job creating, non-governmental organisation) launched in Cape TownCan you add to this list?

Education

Skills development

Health

HIV/Aids – preventative treatment

Peace & Reconciliation

Mobility

Arts & Culture

Welfare

Food security


Usually the areas of social investment and responsibility that companies become involved in align with the nature/core of their business. (E.g. The food company, Nestlé, aligns with food security/nutrition.) In some cases, several areas of development might overlap. For example, Nestlé also aligns with unemployment issues and tries to promote environmental awareness.

When it comes to approaching CSIs for funding you need to be very sure that your organisation or project is one that will fit well with the CSI criteria of the company. It is very important to make the right match between project and company.

Researching CSI to find correct/suitable partnershipsThe Trialogue annual CSI Handbook is South Africa’s authoritative resource on developments in the corporate social investment arena. The handbook is highly regarded for its in-depth primary and secondary research and independent editorial content. In particular, the handbook assists those seeking to partner with other interested stakeholders in order to achieve greater developmental impact. http://www.trialogue.co.za/pub-csi.html

When researching a company, it’s a good idea to look up news about them on the internet. This can save you time, and possibly, embarrassment. There’s no point in phoning a company that’s about to go into receivership. But it’s well worth your while contacting a company that says it is branching out into a certain field if this new direction gels with your project.

Exercise 23: Finding a good fit between CSIs and your project - Identify a project that you relate to. Perhaps it’s one which you are

already involved in; perhaps it’s an organisation that does work in an area of development that is close to your heart.

- Look carefully at the specific areas in which this project/organisation needs funding and the criteria they are looking for in funders.


http://www.trialogue.co.za/pub-csi.html

- Now work through the Trialogue CSI handbook and see whether you can find companies that could be potential partners with your chosen project/organisation.

- Bring your findings back to the group and discuss.- Does the group have any further suggestions of companies you could

approach?

How to make contact with a company As when approaching individual donors, the very first thing to establish when looking at approaching businesses for funding is what your project is about.

Exercise 24: What is my project about? Describe your project, its aims and what it needs in one short paragraph.

It is useful to formulate a short description of your project that encapsulates what it is and what it does simply and succinctly. You will be in contact with many people from whom you are trying to receive donations and the simpler and clearer you are about your project, the better. Have a look at how other organisations and projects describe themselves and see if you can get ideas from their descriptions.

Here are a few examples to get you going:LifeLine/Childline Western Cape is an organisation of skilled lay counsellors who are there to assist callers and clients facing a crisis in their lives. The role of LifeLine/Childline Western Cape is to create a safe space for people to share what is happening in their lives.

The Bicycling Empowerment Network (BEN) South Africa was established in Cape Town in 2002. The main mission of BEN is to address poverty and mobility through the promotion of the bicycle in all its forms. BEN imports used bicycles from overseas and distributes them to low income areas, trains recipients of the bikes in safety and maintenance, establishes Bicycle Empowerment Centre’s (BEC’s) and encourages cities to implement bicycle


planning and infrastructure. BEN also assists the planning of events to help promote the use of the bicycle as a form of mobility – also known as active transport.

Exercise 25: Finding a company that matches your project - What categories does your project fall into? - List all the possible categories that your project could fall into: e.g,

poverty alleviation, education, child welfare.- Now, with the information you have gathered in this session,

introduce your project to your class in a few simple short sentences. Tell them what categories the project falls into and ask them which companies they think you should approach.

- The class response should be based on your description and on their knowledge of the ethos of these companies and what they have been known to support.

Ways of approaching a company

NetworkingSuccessful networking plays an important role in fundraising. The expression “it’s not what you know, but who you know”, is very applicable. Look at your database and your personal contacts. Is there anyone might be connected to the company in some way, or who might be able to give you an introduction? Don’t be shy to use your contacts. And remember, if you ask politely with no pressure, the worst that can happen is that the answer will be no. If you can connect directly with someone inside the company, your task will be that much easier. If possible, ask for an introduction to the CSI Manager, or the Grant Manager (if you have done your research, you will know who these people are).

Phone calls- If you don’t have any contacts within the company, then follow the

same system as you did when trying to find individuals to approach. Make contact by phone. Remember the value of talking politely to PAs; they often act as gatekeepers and will be more inclined to pass


your messages on if you approach them with courtesy and good humour. Remember too, that while you never (ever) want to harass anyone when you phone; there is no harm for asking for leads within the company. So, for example, if you get through to the head of one department, and if s/he says s/he cannot help you, ask politely if there is anyone else within the company whom you should approach. You could even ask if s/he knows of anyone outside the company who might be interested in learning more about your project.

- Once again, it is vital that you have a short succinct description ready: who you are and who you wish to make contact with. Explain where you’re calling from, and say that you believe you fit with the company criteria. At this point, it might be worth your while to ask for an appointment. If this is not possible, then continue the conversation graciously, asking for information about the application process:

o Is it acceptable to make an unsolicited application? o Is there any information available on applying for a new

partnership? o Is there a deadline for applications for funding etc.?

- Ask specifically about:o Whether there is a specific format for funding.o If they would like you to send an email, is it acceptable to send

attachments e.g. annual reports, AFS, photos?o Grant sizes, and which you should apply for if there are different

ones available.

If you don’t have a personal connection, it’s best to phone to make contact. Often you will be asked to follow up your call with an email. Make sure that you have one ready to send immediately after you put down the phone. Never forget to thank people for taking the time to talk to you.

Exercise 26: Role-playingGet into groups of three.

- Person 1 is the caller (seeking a donation)- Person 2 is the Personal Assistant (PA)


- Person 3 is the contact you are hoping to be able to talk to about receiving a donation.

- Your task is to get past the PA. The person playing the PA must remember that his/her task is to protect her boss from unwanted annoyances. What will his/her manner be? What sort of questions might help to thaw him/her a little?

- What questions will you ask?- Depending on how clear, polite, determined you are, the PA either will

or will not put you through. - Once you have been put through, have your questions ready for the

potential donor. (Don’t forget to try to organise a face-to-face meeting as soon as possible.)

- If you did not get through the first time, get your group to look at the questions you asked and suggest others. Try again, letting the person who should have played the role of the contact you were hoping to talk to, play the role of the PA instead.

- If you feel that your role-play was particularly successful (or spectacularly unsuccessful, and therefore filled with room for improvement) offer to repeat it for the whole class.

EmailIf you cannot call, then approach the company with a carefully worded, polite email. Do not include attachments in their first letter – ask instead if you can follow up on your email with another one with attachments.

Approaching a CSI for funding – a final checklistMake sure that you have exhausted all possibilities in your search for the company that best fits your funding needs. Use the internet, CSI handbooks, databases and newspaper advertisements.Research the company you wish to approach. Do their policies and philosophies match yours? Is there another company better suited? Make a short list and evaluate each company carefully.


Prepare to approach your prospective funder. Practice catch lines and what you will say in a phone call; write sample blurb for an email. If you are contacting the funder by email, make sure that your letter is polite, clear, confident, professional and, above all, well written. If you are contacting the funder by telephone, make sure you are calling from a quiet space. Practice your opening lines. Do not hesitate. Speak politely and make sure that this is a good time for you to be calling. Inject a note of enthusiasm and confidence into your voice. Thank the person you have called for taking the time to talk to you. After making a phone call, write a follow-up e-mail introducing your project further and enquiring about funding criteria and information required.Make sure you have gathered all the important documentation the CSI will require you to have: an NPO certificate where applicable; the constitution of your NPO where applicable, your section 18A tax certificate, audited financial statements.

Exercise 27: Homework – What to know about a company before approaching them for funding?In a previous session, we looked at projects and made suggestions as to what sorts of companies might be worth approaching with a view to looking for funding. Now it is time to take this investigation further.

- Refer back to your answers from the exercise where your class mates helped you to identify companies that would be good potential dono rs. Look this company up on the Internet.

o How much can you learn from the company from the website?- Once you have the name of a company, it is time to do your research

and familiarise yourself with the company. Obviously, we will be most concerned with the company’s CSI/CSR policy, but it is also well worth your time to research the company more thoroughly. You can learn a great deal about a company by researching them on the internet and looking at the ‘History’ and ‘About Us’ and other company background pages on the website.

Once you have chosen your company, see if you can ascertain the following:- When was the company founded?


- How has it grown?- Is it affiliated to, or part of another company?- Is it listed on the JSE?- What is the company philosophy?- What are the company’s purposes?- What are the company values?- Is the company part of an international corporation? - What is it about the company that makes it unique?- Does the company run any sort of training or mentoring programme?

E.g. A graduate training programme.

Exercise 28: Homework – Finding out about the company’s CSI/CSR policy (This should become an on-going exercise)

- Once you have gathered this information it is time to look further and see whether the company has a CSI/CSR section on the website.

- You are looking for the following specific information:o What is the company philosophy when it comes to CSI? o What is the focus of the company’s CSI/CSR?o Does the company have a separate foundation which

administers the CSI funds? o What is the company’s mission statement? Does it fit with the

vision of your project? Could this fit? - Could your project

o benefit the company’s bottom-line? o show them in a favourable light? o help the company to realise its goals and with regard to

corporate values or PR?- Instead of a straight donation, can you see an opportunity for

sponsorship from the company? (This might involve the company in a long-term relationship with your project.)

Example On the Truworth’s website it states: “Instead of merely handing over a cheque, our philosophy has always been to engage with the leaders of each TFA Course Pack January 2013 80

project in an attempt to understand the needs of the people involved. In our experience, this approach builds trust and mutual respect and has enabled us to learn more about the people themselves. “It is also vital to us that we are hands on with all our key projects and that we meet with project leaders regularly, either in our offices or on site, to discuss their requirements, share knowledge and follow up on progress.”Looking at Truworth’s CSI policy once again, we learn that the company’s primary focus is on:grassroots and youth education,health and social development,sport,arts and culture,and that they encourage: capacity building, job creation, skills development.

Thus if your project was mainly concerned with Peace and Reconciliation, Truworths would not be the correct company to approach for CSI funding. It is also interesting to note that Truworths makes a point of saying: ‘For us it is a case of doing fewer things better, and many of our projects have been running for up to 10 years.’ (My italics) Reading between the lines, this might mean that they already have programmes in place and getting them to take on new projects could prove difficult.[http://www.truworths.co.za/corporate-social-responsibility]

Exercise 29: Homework – Looking for funding From the list below, choose one charitable organisation or project whose goals and vision appeals to you.

Men on the Side of the Road http://www.msr.org.za/Shanduka Black Umbrellas http://

www.shandukablackumbrellas.com


Bicycling Empowerment Network http://benbikes.org.za/The Institute for the Healing of Memories

http://www.healing-memories.org/

Zama Dance School http://www.zamadance.co.za/ Career Planet http://www.careerplanet.co.za/Growing Sports Foundation Trust http://www.growingtennis.co.za/

- Imagine that you are looking for companies to donate to this project, or to sponsor it.

- Which companies do you think are likely to support you, and for what reasons?

- Make a list. - Now, following the same pattern of research as in the previous

homework exercise, research one of these companies. - This time, make sure that your research includes a newsworthy

item which shows that the company is committed to supporting the kind of project you have chosen.

Feedback on companies that have been researched

- What did you discover? - Could you see an opportunity for funding?- Having done your research, did you find any areas of research that

could have been done, but were not listed as part of your homework project?

- Did you come across any news items of interest?

Researching businesses – a review- Know your project and understand the needs of your project.- Look at criteria of potential funder- Does their mission fit with yours? - Could there be a way for them giving to you to directly benefit their

bottom line?


- Make sure there’s a good match between your project’s needs and the company’s ethos.

- Look at the company’s website, annual reports, news and other current information.

- Do they have a CSI section? - Do they have a separate foundation?- If you are unsure, contact them!- Before calling, see if you have any connections to them.- When you make contact

o explain who you are, o explain clearly that you believe there is a fit between company

and project, o ask if you can make a time to speak about potential funding

opportunities.- They may discuss with you then but try to set up a meeting.- During phone conversation, and prior to (hopefully) meeting, ask

specifically about: o format for funding,o attachments allowed,o deadlines,o grant sizes.

Non-Profit Organisations (NPOs)

- Non-Profit Organisations have become a huge sector in South Africa.- Whereas before they were established to deal with crises that needed

swift and often emergency relief, they have now become more established, professional organisations which function like businesses.

- There is a strong social development focus in Non-Profit Organisations, and it is essential that their gaols, vision and objectives are clear and unambiguous.


Exercise 16: What do the words Mission, Vision, Objectives and Goals actually mean when it comes to NPOs?In the course of your research, did you find examples of certain words used by NPOs? Do all NPOs live up to the words they use?

ExampleVISION: to ensure a South Africa where no child goes to bed hungry, MISSION: to provide children with the food they need to grow and thrive, OBJECTIVES: establish community kitchens, provide low cost meals, GOALS: encourage entrepreneurship in communities

Inputs are the activities that go into realising a vision; outputs are the outcomes and results. To realise the above Vision, Objectives and Goals, what would the input have to be? What might be the final output?

In the above, are the words VISION, MISSION, OBJECTIVES AND GOALS simply buzz words? Have they lost their value?

Be careful not to bandy words around unless you really mean what you say. It’s all too easy to fall into the habit of corporate speak, and debase the strength of words that should be very powerful.(Can you think of other words that have become clichés in the business and NPO sectors?)

- NPOs need to ensure that their programmes are constantly monitored and evaluated. It is vital for organisations to have internal and external evaluations to make sure that programmes are achieving relevant outcomes and making impact. This also means that no fingers will be pointed or accusations made of funds being squandered.

- Equally important are regular strategic planning sessions. In this way the NPO can assess progress of programmes, and the impact they are


having. Relevant adjustments can be made, according to feedback and the evaluation of programmes.

- As an NPO, it is important to assess how your fundraising efforts are perceived by organisations. Will you be able to encourage people on board, either in the role of funders or in in a more managerial capacity, taking the role of director?

- Once again it is essential that you have all of your paperwork in order: Documentation: NPO certificate, constitution, Section 21-tax clearance, annual audited financial statements, annual report.

Non-Governmental Organisations (NGOs)

From Wikipedia: A non-governmental organisation (NGO) is a legally constituted organisation created by natural or legal persons that operates independently from any government. The term originated from the United Nations (UN), and is normally used to refer to organisations that do not form part of the government and are not conventional for-profit business. (In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status by excluding government representatives from membership in the organisation.) The term is usually applied only to organisations that pursue some wider social aim that has political aspects, but that are not overtly political organisations such as political parties. Unlike the term “intergovernmental organisation”, the term “non-governmental organisation” has no generally agreed legal definition. In many jurisdictions, these types of organisation are called “civil society organisations” or referred to by other names.

The phrase non-governmental organisation came into use with the establishment of the United Nations in 1945 with provisions in Article 71 of Chapter 10 of the United Nations Charter [1] for a consultative role for organisations that neither are governments nor member states.The number of internationally operating NGOs is estimated at 40,000. National numbers are even higher: Russia has 277,000 NGOs; India is estimated to have around 3.3 million NGOs in year 2009, which is one NGO


for less than 400 Indians, and many times the number of primary schools and primary health centres in India.

Because the label “NGO” is considered too broad by some, as it might cover anything that is non-governmental, many NGOs now prefer the term Private Voluntary Organisation (PVO).

Globalization during the 20th century gave rise to the importance of NGOs. Many problems could not be solved within a nation. International treaties and international organisations such as the World Trade Organisation were perceived as being too centred on the interests of capitalist enterprises. In an attempt to counterbalance this trend, NGOs have developed to emphasize humanitarian issues, developmental aid and sustainable development.

From www.nonprofitexpert.com: The evolutionary stages of development of NGOsAccording to Korten (Kumarian Press, 1990), the three stages, or generations, of the evolution of an NGO evolution are:

- Focus: Focusing on relief and welfare, delivering relief services directly to beneficiaries.

- Orientation: Being oriented towards small-scale, self-reliant local development. At this evolutionary stage, NGOs build the capacities of local communities to meet their needs through ‘self-reliant local action’.

- Sustainability: ‘Sustainable Systems Development’. NGOs try to advance changes in policies and institutions at a local, national and international level; they move away from their operational service providing role towards a catalytic role, transforming and reshaping.

The three main types of non-profit organisations are:- Voluntary associations,- Trusts,- Section 21 Companies.


http://www.nonprofitexpert.com/

The type you choose to become involved with affects the constitution and or legal founding documents.

Exercise 30: Researching NGOs In the first stage of its evolution an NGO focuses on relief and welfare, delivering relief services directly to beneficiaries. - Can you think of examples of NGOs that have started in this way in South

Africa?

Exercise 31: Homework: Researching NGOs In class you will be divided into three groups.

- Each group will be assigned a different type of NGO to research: Voluntary associations, Trusts and Section 21 Companies.

- As a group, you will then present your findings to the class.

What is the difference between an NPO and an NGO?Many people do not understand the principles of, and the differences between NGO and NPOs and often mix them up, referring to an organisation as an NPO when it is in fact an NGO, and vice versa.

Exercise 32: Homework: What is the difference between an NPO and an NGO?- Find good definitions for both terms on the internet.- Make sure you understand these definitions for yourself.- Next, research the difference between these two types of organisation.- Make a list of the differences between them.

Small businesses

“Small businesses are an incredibly important part of a vibrant economy,” says Luke Mckend, head of Google’s South African operations.


“The numbers in South Africa bear that out,” says Taddy Blecher of South Africa’s Human Resource Development Council. Blecher says small businesses employ 65% of the 13.8 million South Africans with jobs.http://www.sowetanlive.co.za/news/business/2012/01/20/google-helps-south-african-small-businesses [20 Jan 2012 | Sapa-AP]

Up to this point, when we have spoken about approaching businesses, we have been referring to large businesses, companies and corporations. However, there are several small- to medium-sized businesses operating in South Africa, many of who are very willing to become involved in projects that benefit their community.

Reasons to approach small businesses- These are often easier to approach than large corporations. - They may be able to give donations, sponsorships, or in-kind

donations. - It might be quicker to get a response from them. At the same time,

you should remember their involvement in the project could well be of a shorter duration – they might not become long term donors.

- Another very good reason to establish good relationships with small businesses is that each of these holds the potential to become a bigger business, and even to join the ranks of the big corporations listed on the JSE. Have a look at the information and Fruit and Veg City (now also known as Food Lovers Market) below.

From Small to Big

Fruit & Veg City was started in 1993 by brothers Brian and Mike Coppin …The brothers’ vision was to create a store that would resemble a marketplace of old, where farmers brought their fresh produce from their farms to be sold to the public. This was how their first store in Kenilworth, Cape Town was run, and this is how every Fruit & Veg City store that has opened since is also run.


http://www.sowetanlive.co.za/news/business/2012/01/20/google-helps-south-african-small-businesses

http://www.sowetanlive.co.za/news/business/2012/01/20/google-helps-south-african-small-businesses

…Today there are more than 100 Fruit & Veg City stores throughout Southern Africa, and even as far afield as Australia and the Middle East. [http://www.fruitandvegcity.co.za/company-history.html]

Since 2006 Fruit & Veg City has been partnering with Foodbank South Africa, a registered non-profit organisation that focuses on redistributing good quality food – that would have otherwise gone wasted – to those who need it the most. They provide between 12 and 14 million meals per year, and we are proud supporters of this initiative. This year, Fruit & Veg City and Foodbank have launched the Care 2 Carry campaign, in which colorful, re-useable shopping bags are sold with 10 different designs painted by some of Feedback’s beneficiaries at Luzuko Primary in Gugulethu. The designs poignantly depict their dreams and aspirations, and R2 from every bag sold in Fruit & Veg City stores will go towards Feedback. [http://www.fruitandvegcity.co.za/social-investment.html]

Unlike big businesses, those listed on the JSE, smaller businesses might not have CSI programmes in place, as they are not obliged to do so. However, this does not mean that they are unaware of, or unwilling to acknowledge their social responsibilities. It’s good PR for them, and also good for the morale of the business.

Exercise 33: Researching Small Businesses- As a group, make a list of all the small businesses you can think of. - Which of these would you rank as being the top three? (Different

members of the group might choose different businesses, and there is no harm in this. It might very well be an indication that you are gravitating towards businesses which would be likely to support your sort of project.)

Exercise 34: Homework – Researching Small Businesses- Research the three businesses you have chosen and see if there is the

potential to approach them as donors.- Make a list of the sort of areas of social upliftment and community

involvement they might be willing to become involved in.TFA Course Pack January 2013 89

- How would this involvement benefit them as small businesses?- How would their support benefit your project?- In your search, did you come across any other companies that might

be worth adding to the list you created in class? If so, make a note of them and add them to your list during feedback.

ResourcesRemember, the notes you make in class, especially ones like the list that was generated in this exercise, are not simply ‘notes’ to be filed away and never used again. They are useful resources, the beginning of databases which you can build on and investigate more thoroughly. Keep them fresh and dynamic. When you get home, type up lists like this one. Start a Fundraising file. File this list under ‘Small Business, Company names’. The more you transform what you are given into practical tools, the closer you are to realising your goal of becoming a fundraiser.

Feedback from research on Small Businesses

In your large group, share your findings from your homework assignment. Discuss the following:

- Did you all discover pretty much the same thing about the companies you had chosen?

- How much information was available? Less, the same as, or more than was available on the internet about big businesses?

- From what you learned about the businesses you researched, do you think they would be easier or more difficult to approach?

- Who would be the correct person to approach within this company?- Is there any aspect of the company history that you can tap into when

approaching them as donors? (For example, if you had been approaching Brian and Mike Coppin in 1996, as the owners of a few small vegetable stores, what would you have said to make them feel sympathetic towards your cause?)

- Apart from the above, what else emerged as being valuable points to add to your list when researching small businesses?


Internships

Part of this course will involve doing an internship. What you learn in this course will be implemented in an internship.

What is an internship?An internship takes place out of the usual classroom setting. It is a focused, practical learning experience in which students develop skills and gain experience by applying what they have learned in the classroom to professionally run projects. Internships run for a fixed period, during which time students learn first-hand how organisations operate. Most internships provide an opportunity to learn and observe, to become closely acquainted with the organisation. As an intern, you can begin to build a “network” of contacts that will prove valuable.

Remember! Those organisations which offer internships are doing you the favour. An intern might be asked to do things that are menial or seem unimportant. But if you keep your eyes open, and take in as much as you can, your time will never be wasted. Furthermore, if you perform the given tasks with a willing smile and ask what else you can do, you may well be in a position to be given greater responsibility. If you execute tasks well, you will be given a glowing recommendation at the close of the internship.

Exercise 35: Researching internshipsYou have been given a list of organisations that offer fundraising internships.

- Which of these would you rank as being the top three? (Different members of the group might choose different internships as being in the top three, and there is no harm in this. It might very well be an indication that you are gravitating towards internships in your chosen field.)

Exercise 36: Homework – Researching internships


- Research the three internships you have chosen. - What areas of social upliftment and community involvement are they

involved in?- Where are they located?- How large is their staff?- Do they have a fundraiser on staff?

Foundations

What is a foundation?- A foundation is a non-governmental, non-profit entity that is

established as a non-profit corporation or a charitable trust, with a principal purpose of making grants to unrelated organisations, institutions, or individuals for scientific, educational, cultural, religious, or other charitable purposes.

- It has a principal fund managed by its own trustees or directors.This broad definition encompasses two main foundation types: private foundations and grantmaking public charities.

A private foundation - derives its money from a family, an individual, or a corporation. - maintains or aids charitable, educational, religious, or other

activities serving the public good, primarily through the making of grants to other non-profit organisations.

o E.g. The Ford Foundation.


The Ford Foundation

The Ford Foundation was established on Jan. 15, 1936, with an initial gift of $25,000 from Edsel Ford, whose father, Henry, founded the Ford Motor Company. During its early years, the Foundation operated in Michigan under the leadership of Ford family members. Since the founding charter stated that resources should be used “for scientific, educational and charitable purposes, all for the public welfare,” the foundation made grants to many kinds of organisations.

Since then the Foundation has grown enormously, and now has initiatives all over the globe. Its slogan is: Working with Visionaries on the Frontlines of Social Change Worldwide

In Southern Africa the goal of the Ford Foundation is to ‘Reduce socioeconomic inequalities and HIV/AIDS vulnerabilities by working with civil society and the public sector on a variety of fronts to integrate good governance, educational opportunities and asset mobilization.’ To this end, the work of the Foundation focuses three issues: – Poverty – Race- and gender-based inequality and discrimination, which underlie social and economic problems as well as sexual and reproductive health vulnerabilities; – The spread of HIV/AIDS. The Foundation supports efforts to: – Strengthen transparency and accountability in governance,– Build sustainable livelihoods and economic opportunities for the rural and urban poor; advancing social and economic rights, – Address HIV-related stigma and discrimination,– Tackle factors that undermine sexual and reproductive health, – Promote postsecondary education for those typically excluded. To learn more about the Ford Foundation and to see the sort of work done by a large global Foundation, visit [http://www.fordfoundation.org/]TFA Course Pack January 2013 93

Grantmaking public charityBy contrast, a grantmaking public charity (sometimes referred to as a “public foundation”) derives its support from diverse sources, which may include - foundations, - individuals and - government agencies.

Most community foundations are also grantmaking public charities. - Although some public charities engage in grantmaking activities, most

conduct direct service or other tax-exempt activities. - A private foundation, on the other hand, usually derives its principal

fund from a single source, such as an individual, family, or corporation, and more often than not is a grantmaker. A private foundation does not solicit funds from the public.

Grants - come from trusts and foundations, public bodies and the corporate

sector,- are gifts of money that do not have to be repaid but may come with

conditions:o They are to be spent on a particular activity or within a specific

time line.o They are to be used for particular results.o If there is under spending, the balance may have to be returned. o A report-back may be required.

Donations- generally come from individuals or companies, - may be one-off donations or a regular source of funding,- are raised through solicitation, event, will, etc. and- can be general or donor directed.


Show Me the Money Presentation

Researching foundations

Matching the criteria of your project with the work carried out by a foundation

Where to find information about foundations The best place to look for information about foundations is online. Use the internet and Google - Fundsforngos.org;- TheFundingSite.co.za;- Foundationcenter.org and- other similar organisations

NetworkingThis is another great opportunity to network, using who you know to establish new connections. Find out who is on the board of what foundation. Then ask around. Does anyone know this person? At first, when you are new to fundraising, your chances of personal introductions may be slim, but as you find your way around and meet more people, you’re likely to be more successful.

Approaching Foundations- In the same way as you looked for matches with your organisation or

project earlier on, prepare your prospect list. o Which foundations echo the beliefs, values, vision and objectives of

yours? o Which reap the best results? o What have you read about them on the internet that shows them to

be effective and well managed? - After you have found a good match, spend some time looking at your

prospects and needs and prioritise. It’s all very well to look for funding for textbooks for students, but textbooks will mean nothing if children


are too hungry to learn. Address your needs and prospects in order of importance.

- Ask around. Has anyone contacted this foundation before? Do people in your organisation know anything about the foundation you are approaching? (Sometimes it can be important to know what didn’t work if someone has approached the foundation before you. There’s no point in making the same mistake twice.)

- Initial approach:o Obviously a personal, face-to-face meeting would be ideal. If

appropriate, utilize those who could facilitate an introduction.- If this is not possible, look to see what your approach is going to be.

o Will you contact the foundation by phone? o Will you write a letter or email? o Will you apply online? o Will you drop off a full proposal to their offices if they are in the

same town as you? - Before doing anything, call first to check the fit of the foundation to your

organisation.o Introduce your organisation and project.o Make clear the connection to the funder’s interests.o If possible, get an immediate reaction to your project.o Secure a meeting if possible.

- Prepare your talking points before contacting anyoneo Have all information about your organisation at your fingertips.o Have all information about the special project you are working on

(if there is one) at your fingertips.o Know what you hope your project’s outcomes will be.o Have details of other beneficiaries available.o Make sure your budget is up to date, and that projections have

been made.o Have the details of the leadership of your company available. o Let them know very clearly why you have chosen their foundation

over others.- The possible results of the initial contact will be


o You will be invited to a meeting.o You will be invited to submit a request (make sure you know to

whom this should be addressed). o You will be told politely that this is not a good time for the

foundation to be taking on new projects.o You will be told politely that your project is not a good match for

the foundation. - Whether you have a face-to-face meeting, talk over the phone or apply

online, if the foundation is interested in your project, the next step will be being asked to submit a full proposal. Once your proposal has been submitted:

o Call to make sure it’s been received and directed to the correct person.

o Check in on the review process (without harassing anyone).o Offer to answer questions.o Make contact again if you have new and important information to

share (like an updated AFS or information about new funders).o Offer them an opportunity to visit your project, if it is already up

and running. If they take you up on this offer, ask what they would like to

see and be prepared so that they see the best the project has to offer.

- Submit thank-you notes after all steps!- If your proposal is rejected:

o Thank them for their kind consideration.o Ask if there was a reason for the rejection. o Find out if they would be interested in assisting with other

projects, or if it would be possible to approach them some time in the future, if other projects or a future time would be better.

- If your proposal is funded:o Say thank you to all involved in the process!o Clarify expectations – it’s very important that both parties know

exactly what is expected before anything commences. A meeting


should be set up to discuss this, and this should be followed by a clearly worded letter.

o Be responsive at all times to requests and all communications. Submit reports on time. Send progress reports and updates as needed. Invite members from the foundation to key events.

Donor, or philanthropist?

Exercise 37: What is the difference between a donor and a philanthropist?Divide into two groups and read the following articles:- Are you a donor or a philanthropist? Joanne Fritz

http://nonprofit.about.com/b/2009/01/02/are-you-a-donor-or-a-philanthropist.htm

- Active Philanthropist or Passive Donor http://www.philanthromedia.org/archives/2005/10/active_philanthropist_or_passi.html

- Is the $5 donor a philanthropist? Kari Saratovsky http://www.socialcitizens.org/blog/five-dollar-donor-philanthropist

- When you have finished these, discuss in your group what you consider a donor to be and what you consider a philanthropist to be.

o Are there similarities? o Are there differences?

- Each group presents their findings.

Philanthropist: A person who seeks to promote the welfare of others, especially by the generous donation of money to good causes.

Philanthropy is the act of donating money, goods, time, or effort to support a charitable cause, usually over an extended period of time and in regard to a defined objective.


http://www.socialcitizens.org/blog/five-dollar-donor-philanthropist

http://www.philanthromedia.org/archives/2005/10/active_philanthropist_or_passi.html

http://www.philanthromedia.org/archives/2005/10/active_philanthropist_or_passi.html



Philanthropy is “the love of humanity“; love in the sense of caring for, nourishing, developing, or enhancing; humanity. The word comes from the Greek philos, meaning loving, and the Greek, ánthrōpos, meaning human being or man. In modern, practical terms, Philanthropy is “private initiatives for public good, focusing on quality of life”, balancing the social-scientific aspect emphasized in the 20th century with the traditional and original humanist core of the word’s ancient coinage. Thus, philanthropy is caring and sharing, giving and serving. It is our individual response to the human need. Your opportunity to get involved. The philanthropic act of doing is the voluntary giving by an individual or group to promote the common good. This formulation distinguishes it from business (private initiatives for private good, focusing on material prosperity) and government (public initiatives for public good, focusing on law and order).

Donor: A person who donates something, especially money, to a fund or charity.

Class Discussion: Philanthropy vs. Donation- Discuss these definitions.- What amount of money is available to donors?- What amount of material or services are available to donors?How does this affect fundraising?

Read over the article about the relationship between foundations and organisations they fund.- What is your opinion on this?- Do you feel it keys into everything we have learned thus far?- If you had been asked to write this article, is there anything more you

would have included? - Is there anything specific you would have added about being a fundraiser

in South Africa?


http://en.wikipedia.org/wiki/Government

http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Ancient

http://en.wikipedia.org/wiki/Humanism

http://en.wikipedia.org/wiki/Century

http://en.wikipedia.org/wiki/Quality

http://en.wikipedia.org/wiki/Public

http://en.wikipedia.org/wiki/Modern

http://en.wikipedia.org/wiki/Humanity

During this course you have amassed a great deal of information about donors, much of which has come from your own research and that of your fellow classmates. You know the difference between the different types of donor, what their areas of interest are, what capacity they have to give, whether your organisation fits their criteria (and vice versa) what their areas of interest are, how they operate, whether they work through foundations, etc.

Now you need some system of keeping all of this information under control so that it is easy to access, cross-reference and share.

Prospect Research 1. pros·pect n. 1. Something expected; a possibility.2. prospects a. Chances.b. Financial expectations, especially of success.3. a. A potential customer, client, or purchaser.b. A candidate deemed likely to succeed. Prospect research is another name for the work that you have been doing all along: finding out about prospective donors and what their interests are; establishing whether they would be a good match for your organisation; networking; making contacts, etc.

The more people you contact, the more information you gather, the more you will need a system of keeping all of your information about them in order. One of the best ways of doing this is to create what is known as a Prospect or Prospecting Worksheet for each donor. These can then be filed separately in different categories: individual, big business, foundation, etc.


Prospecting worksheets for institutional and individual donors will help you capture the right information about funders whose priorities match those of your organisation.

Creating a Prospecting WorksheetExercise 38: What items should be included on a prospecting worksheet?- This is a good question for the whole class to discuss. By now you know

what categories your prospective donors fall into. You know what information you need from all donors; you also know that different types of donors will have information specific to them (e.g., an individual donor vs. donors in the big business sector).

- Below is a list of items that could be included on a Prospecting Worksheet. While contemplating the list, keep these points in mind:

o Which do you think are the most important? o Are there some items here that are specific and which should only

be included on a particular type of worksheet? - Has anything been left out?

o Contact information o A photo o Gender/Birthdate if possible (this may affect what they care about)

Career/job o Length of involvement with the organisation and roles o Other community involvement o Outside connections o Educationo Financial information – property, stock, gifts to other organisations o General bio – if available o Personal information – spouse, children, parents, birthday,o Additional information – even things like hobbies or pets can be

useful to know o Has money been donated to other causes? How much? (If this

information is available) o Community awards (E.g., Business Woman of the Year 1999)


o Personal history with the organisation’s services (E.g., Volunteer 2000, 2001)

o Employed or retired? o Special interests, including sports (A good golfer would be well

suited for chairing a charitable golf tournament.) o Educational affiliationso Particular area of interest in serving (after dinner speaker, special

events, etc.) o What are they passionate about?

There are several prospecting worksheet templates available on the internet, but it’s a good idea to draw up one that includes all the information you need for each category of donors.


Class 4Writing for Fundraising


What is an inventory?An inventory is a detailed, itemized list, report, or record of things in one’s possession, especially a periodic survey of all goods and materials in stock. When you take an inventory, you make a list, report, or record of such goods. The quantity of goods you have on hand is called an inventory.

Besides being an itemized catalogue or list of tangible goods or property, the word inventory can also be used to describe the intangible attributes or qualities of your organisation. Thus you may very well have more than one inventory to compile – listing, for example, human resources as well as the value of goods and materials. Before embarking on any internship with an NGO or any other sort of non-profit organisation, one of the best ways to familiarise yourself with the workings of the organisation is by scrutinising any available inventory. If these are kept up to date, they will provide valuable information about the way in which the organisation operates.

Writing for Fundraising

Why is writing so important to fundraising?

- Through writing we can communicate ideas, often more clearly, concisely and with better effect than if/when we are talking.

- When you write something, you have the chance to read over what you have written and see if it says what you intended. You can ask others to read it too and make sure that what you have said is not ambiguous or badly written. This allows you the opportunity to get your ideas across in a measured, balanced way.

- Often there isn’t time in a meeting to say everything that needs to be said. In many situations you’ll hear the words “Can you get that to me


in writing?” or “Please send me an email explaining this further.” This gives you a great opportunity to market your organisation and its needs, but whatever you send has to be well written and instructional.

What sort of writing will I do?When you are fundraising, you may well be asked to write

- proposals, - case statements, - direct-mailing content, - emails and- material for websites.

Grant Proposals

What is a grant?Before going into the details of grant proposals, it’s important to know exactly what a grant is. Each year, governments, private foundations and public corporations offer billions in funding to individuals and organisations to be used for specific projects. This funding is called a grant. It does not have to be repaid, as long as it is specifically used to fund the project for which the grant was allocated. Who can apply for and receive grants?Grants can be given to

- individuals, - non-profit organisations,- non-government governmental organisations,- charitable organisations, - educational facilities.

However, in order to receive a grant, a formal request has to be submitted. This request is called a grant proposal.

How do I submit a grant proposal?Grant proposals can be submitted in a variety of ways. TFA Course Pack January 2013 105

- Some organisations prefer you to fill in their own application forms.- Some organisations require a written document: This is called a full

grant proposal. - Usually each company will have a set of criteria which you can use

when preparing the grant proposal.

A successful grant proposal has to be carefully organised, planned and written. Often, various members of a team may be asked to write separate sections with one person pulling together the final product. It is essential that every grant proposal is written carefully, read and edited, paying attention to content, formatting and clarity.

The success of grant proposals depends on: - The quality of your organisation. - The originality or vital importance of your project. - The appropriateness of the funding source or and/or the

competition level in a particular grant-giving cycle. (I.e., the skill of the proposal writer in building a compelling case).

Careful targeting of a funder and careful preparation of a proposal can distinguish success from failure. Applicants must assess the following in a realistic fashion:

- The level of service that they currently provide. - The strengths of their track record. - The likelihood that a given funding need will be attractive to

grant-giving institutions.

Vision and Ambition It is easy to become overwhelmed by the complexity of guidelines and the many requirements of a grant proposal. But remember, the first requirement for obtaining outside funding is simply representing an exceptional organisation and conveying your passion for the organisation’s mission. Many funders prefer the authenticity of a highly involved dedicated staff person to the polished prose of a professional grant writer.


Let your prospective donors see your VISION, how your passion for the mission leads to a concrete program to improve the human condition or cause change. Every proposal, no matter how simple the goals or modest the amount required, should reflect an ambitious vision. Let donors see that your sense of philanthropy ties in with theirs. You should first identify a grant-giving institution that shares your vision and has the resources to become a funding partner. Once you have established this – how you write your proposal becomes key. Your vision needs to be translated into concrete terms with clear goals, measurable objectives, and specific outcomes. Next, show that you want the grant-giving institution to know all there is to know about you by submitting your proposal for evaluation. And finally, if the grant is allocated to your organisation, show in your proposal that you have plans for the continuation of your organisation, and for future charitable activities that should grow out of this initial success, hopefully including the current donors. If your proposal is denied, all is not lost. If you have submitted a good proposal, you will be remembered favourably should you wish to apply again for a different project. Furthermore, the hard work you have put into this proposal will never go to waste, as you will have gathered a vast amount of material that you can use to apply for other grants. However, be careful! Do not send the same old, same old proposal to a random list of foundations and donors. Always do extensive research into the prospective donor’s priorities and tailor the proposal to fit what you learn from this.

The inquiry letter

It should be noted that some funding agencies are now asking for a short letter of inquiry from prospective applicants before receiving an invitation to submit a full proposal. This is to ensure that the goals of the applicants match the vision and objectives of the donor. The inquiry letter saves organisations from spending an excessive amount of time assembling application material for unlikely projects. On the other end of the funding


process, foundation staff can quickly scan letters for appropriate projects and only request additional information when funding is a strong possibility.

Letters of inquiry provide a valuable method for testing project ideas with potential funding sources. Remember, however, that you must research the foundation’s priorities first. Respect the funding source’s stated preferences for geographic region, type of grant, and program areas. Otherwise, expect rejection letters to arrive quickly if your project is clearly unsuitable. Your letter should establish a connection between your project’s goals and the foundation’s philanthropic interests. The secret to a successful letter of inquiry is condense, condense, condense. Generally, a letter of enquiry should only be two pages long. Each sentence has to be scrutinized when editing. Focus on detail, clarity, and conciseness, but also remember to convey passion for the project. The following is also important when sending an enquiry letter:

Timing You should identify prospective donors well in advance of your project start date. Allow donor staff ample time to request a full proposal, and allow yourself time to prepare the grant proposal, which is a much longer document.

Contact Person Identify the appropriate foundation officer for submissions in your target funding category or program area. Small family foundations often ask that submissions be sent directly to the foundation president or board chair. If you have found names online or in an annual report or publication, call the foundation to double-check that the officer is still on staff.

Mailing


Letters of inquiry should be sent timeously and through regular first-class mail. Several foundations have become annoyed when high-cost overnight delivery services are used for a deluge of last-minute submissions.

Letter of Inquiry

Introductory Paragraph The following is a sample of the first paragraph of an introductory letter:

We take pleasure in requesting support for Happy Children’s facility expansion, which will increase our feeding programme for 150 hungry children in Masiphumelele and allow for the refurbishment of two of our play school facilities. Happy Children seeks a grant of R90 000, to be disbursed as your organisation sees fit from xxxx (name of foundation). R70 00 of this money will be used to renovate and furnish the two selected play schools. In addition, a very exciting part of our scheme is for kitchens to be built in both schools, where our volunteers will prepare lunch and take-home meals for the families of the play group children. The remaining R20 000 will be split into quarters and used over four months to buy food and keep the feeding scheme going. Once the kitchens are ready for use, they will be used out of business hours to bake and cook food that will be sold to local businesses to support our on-going scheme.

Synopsis This first paragraph provides a synopsis of the project and the requested funding amount. If the funding agency is interested in your proposal, they will probably use this as a project summary on internal documents. Whenever possible, quantify project services, such as the number of participants who will be served.

Impact


Make sure that the content of your letter focuses on philanthropic needs. The example above identifies the target population as being small, hungry children and their families. Even if you are seeking funding for administrative equipment (e.g., a new computer system) make sure to show how this will benefit people in need.

Be Positive Assume that your application will be seriously considered and eventually lead to your receiving the requested assistance. Use the word ‘will’ rather than using vocabulary that implies that you might not get funding (remember this for your grant proposal as well).

Compare the impact of these two sentences:If we receive the grant, then hopefully we will be able to implement a scheme whereby we will train volunteers to cook meals which might then be sold to businesses in the area. This would support our on-going feeding scheme. The sentence above carries far less authority and certainty than a definite statement: Once the buildings are prepared for occupancy, they will be used out of business hours to bake and cook food that will be sold to local businesses to support our on-going scheme.

Ownership Refer to your project as “our programme” rather than “the programme”. This brings you closer to your donor, and shows yours to be an organisation made of people, not a faceless entity.

Gift TermsIf you are asking for a large grant, suggest payment periods, or ask for these to be stipulated. Grants that extend over more than one year are sometimes easier for foundations to allocate. Multiple payments also allow


additional opportunities for your organisation to cultivate the foundation with thoughtful thank-you letters and project updates.

How to increase your chances of being funded

Do your homeworkThis advice has been given before, and you will hear it again. And again and again. Do your research and match your project with an appropriate funding source. If you do this, then half the battle is won. You will be approaching a donor with the same beliefs, vision and goals as yours. You will not be showing yourself as being ill prepared by approaching the wrong people. Invest your time wisely and strategically by identifying appropriate funders. If you do your research, then you will know exactly what your funder requires of you when you submit your grant proposal. You need to know- deadlines, - funding priorities ,- proposal format,- required content, - desired attachments, - page length restrictions.

If a foundation’s annual report or website indicates that a cover form must be completed and an audited financial statement is required, then obey these instructions.

Customize and recycle Don’t use a generic, one-size-fits-all master proposal which you send off to all and sundry in the hopes that this scattergun approach will reap rewards. Proposals like this are easily recognized and often aren’t even acknowledged. Obviously you will not have to generate new information each time you write a grant proposal, but what you do need to do is adjust each submission to meet the requirements of the donor you have carefully selected. It’s good to have a flexible fundraising approach that can be


adapted to each donor’s specific funding interests (education, business leadership, social entrepreneurship) and funding requirements (case statement, concept paper, proposal). Each application will also be somewhat different depending on what type of information is looked for and the motivations for providing funding. While this tends to be labour intensive in the beginning, once you have a set of funding materials in place, they can be modified as needed later on. Although each proposal should be customized, paragraphs from previous grant applications can provide the building blocks for future submissions. Develop different versions of standard grant components – mission statement, service description, organisational history, etc., in two-sentence, one-paragraph, and one-page formats. Circulate these among staff and get feedback to ensure that they are accurate and word perfect. This text will make the preparation of massive applications much easier, because less time will be required for basic organisational descriptions.

Condense beautifully The hardest part of writing a grant proposal is managing to take your organisation’s wonderful, idealistic and noble vision and translating it into concrete language that explains objectives and quantifiable activities while simultaneously including a plea for cash or resources. This will not happen easily, and a grant proposal often has to be written and rewritten. With each draft though, you have the chance to tighten the language and let details convey the project’s worthiness rather than depending on empty adjectives. (Fluff is just that – fluff. It doesn’t impress anyone and proposals that have been padded with fluff are tedious and easy to dismiss.) Each component of your proposal – from the need statement through the budget – must be specific and clearly worded.

Show respect to your donorStaff of particular foundations have become experts in their areas and interact regularly with grantees. For example, a potential funder interested in child welfare will have gathered an intimate knowledge of related legislation, political issues, model programs, and national movements. If the


foundation you are approaching has already funded other AIDS services agencies, then the staff will know whether your proposed project offers an inventive approach or fills a gap as opposed to duplicating programs already in existence. Respect this expertise. This will keep your proposals focused, realistic and specific.

What has to be included in a grant proposal?The Covering Letter Although this comes first in a grant proposal, it should be prepared and written last, when you have a clear overall picture of what you wish to present.

The first paragraph - indicates why the project is a good match for the funder’s guidelines,- refers to any relationship with the funder:

o Did you meet with a programme officer? o Do you know a board member? o Did you hear a foundation representative speak at a conference?

If applying to a company - indicate how many employees volunteer for your organisation, - say whether an executive with their company serves on your board of

directors.

The second paragraph - gives a summary of your project and the “ask amount”,- is suitable for the programme officer to use in internal documents that

list all pending proposals,- states the need you are attempting to meet, - shows the population targeted as beneficiaries of your efforts,- states the outcomes you hope to achieve, - states the activities you are proposing to engage in, indicates the

people involved, - introduces your organisation,


- summarises any recent communications you’ve had with the funding organisation,

- promises an evaluation of your efforts to measure the success of the programmes,

- estimates the cost of the entire project, - asks for the amount of funding that you are requesting.

The third paragraph - notes your organisation’s enthusiasm for the project, - offers, if appropriate, based on your funder research, to host a site

visit or provide additional information or to call the funder in two weeks to check the proposal’s status.

The last paragraph- indicates the person in your organisation who should be contacted

about the proposal; this might be different from the Executive Director or Board President who signs the letter.

Your covering letter is the first piece of writing your donors will read. Try to actively engage your readers and not bore them. Keep it short and snappy – remember all the minute details are covered in the pages that follow.

Sentimentality, or not?

Should your cover letter include an emotional story about a homeless child, an illiterate adult, or a person living with HIV? Some grant proposal writers advocate doing this, but this approach might very well be considered too sentimental by your targeted donors and turn them off your project. Once again, this is where research comes in. If you know that the foundation you are approaching is one that responds to this approach (a family foundation that publishes letters of appeal written by children on their website, for example), then by all means include a story that pulls at the heartstrings . Generally though, it’s wisest to show deep passion and commitment without becoming too sentimental.TFA Course Pack January 2013 114

Table of contents If your proposal runs over five pages, it’s a good idea to include a table of contents. If it runs longer than ten, then a table of contents is a must. Even if the narrative section of your proposal is brief, a table of contents is very helpful to guide readers if multiple attachments or appendices are included. All attachments should be page-numbered sequentially. Always use headings and subheadings that are bold, logical and comprehensive throughout. For example, simply listing “Appendix A” in the table of contents is uninformative. “Appendix A: Timeline for Feeding Scheme Implementation” tells the reader far more.

MS word and TOC Microsoft Word includes methods for building a table of contents using built-in heading styles, applying outline-level formats, using customised heading styles and including embedded headings. It’s much easier than it sounds. Use the Help feature to teach yourself how to compile a table of contents.


If a funder gives you a specific proposal format, make sure that the table of contents follows it.

Abstract Although this comes first in your proposal, as with your covering letter, it too should be written towards the end, after you have gathered all of your information together and assembled it in the best way possible. The project abstract should present a concise summary of your project. If possible, it should be no longer than a page; at the maximum, one and a half pages. It should include: - The primary service of your organisation. - A brief history of your organisation, describing its purpose, activities and

accomplishments.- The applicant’s background and qualifications.- The need for the project:

o Describe the issue or problem to be addressed with grant funds.- The population it will serve:

o What geographic area does your organisation serve? o Describe how participants are involved in program development

and organisational decision-making. - A brief description of the project:

o The project’s goals, objectives and activities. - The amount of funding that is being sought. - A mention of how the program will be evaluated to measure its success.

The Problem Statement or Statement of Need The problem statement, or statement of need, provides the motivation for what you are proposing to do. It describes the problem that has created the need for the programme that will be funded by the requested grant. It is the key element of every grant proposal and the strongest impression the reader will have of your project and funding request. The problem statement or statement of need must make a clear, concise and evidence-supported statement of the problem you are addressing and wanting to


solve. In order to write this section you must have a distinct idea of what the problem is and be able to state it succinctly. This requires clear thinking and discussion. Ask yourself the questions – Is this really the problem? Is this really what is needed?

The problem statement describes- The problem that the project will attempt to address:

o Why has it become an issue? o What is the history of this problem and who is the problem

affecting? o Why is it your organisation’s problem to solve?

- The population that will be served by addressing this problem: o Who is your target population? o Who is your target constituency and how will they benefit from the

project? o Describe the social and geographical context of your target

population.o What are the needs of these beneficiaries?o What is the economic and social impact of this problem? o What is the cost of this problem to the target population and the

community as a whole?

The problem statement provides evidence - that the proposed project will contribute to a solution to the problem

or will reduce the harmful impact of the problem. - that the problem exists by supplying data and information.

How did your organisation come to realize that this problem exists? - Here you will present concrete data to support your claims, showing

the size of the problem, who it affects and why. You will also show whether similar problems exist in other areas.

o Where did you gather this from? A good way to document this is to a needs assessment within your community. They will definitely be aware of the problem you are planning to address in your grant proposal. Local and state government, local


universities and colleges, local health systems and schools may all be able help you with the data you need to support your claims.

The problem statement highlights - media and government publications suggesting that the problem is a

high priority, - the opinions of decision-makers showing that the proposed solution is

one that they support and believe in. The problem statement specifies

- what, if any, previous actions have been taken to deal with this need. o Was this action undertaken by your organisation, or by another

one? o What were the results?

It is important that the reader who finishes this section knows exactly why your programme should be funded over others.

The Project Description (also known as the Programme Narrative) The Project Description varies in length, depending on the size and scope of the programme to be funded and the amount of funding being sought. It lists the steps you will follow to accomplish your objectives, states your plan of action, your anticipated timeline, and the roles and responsibilities of staff and volunteers.

The project description should show- a detailed description of the programme, - the goals of the project and how they will be achieved, - what services you promise to deliver to what population and what results

you expect to bring about,- the duration of time during which the funds will support the project, - how success or failure will be measured and evaluated, - information about the staff who will work on the project, their experience

and qualifications to perform the activities that will be funded.


Approach Simply state the approach you are going to take to address this problem.

Benefits Simply state what you hope to achieve if the project is funded, and over what time.

Plan of OperationThis is the very core of your proposal. It contains - your proposed solution to the needs,- the project design,- what action you are planning to take.

Project design This gives a broad picture of what you propose to do and expect to accomplish. It clearly presents your solutions to the identified problem.

Project structure Here you show what you plan to do, step by step, highlighting your goals, objectives, activities and timelines.

Goals Your goals are a broad statement of what you hope to achieve and the long-term benefits you hope will result.

Objectives Objectives are far more specific. Describe the objectives of the project in measurable terms that address the specific needs. These state what the desired outcome is, and identify the intermediate stages and milestones along the route to achieving these outcomes.

ActivitiesActivities are the methods you will employ and the specific activities you will engage in to achieve each objective on your list. Often the same activities will occur for several objectives. When describing the project


activities, you should give a reason for each and indicate the order in which they will happen.

Timelines Timelines are an essential part of any project. - When will you start? - When do you hope to finish? - How many stages can the operation be broken down into? - What is the timeframe for each activity?

Using your Project Description, provide the reader with a timeline that shows the chronological order in which the activities listed under each goal heading will be undertaken and/or completed. Also include information about how/when funds that are awarded will be spent to support each activity. A good timeline shows that you have a plan in place that has been carefully thought through and that the objectives are achievable within a certain space of time.

A Summary of the plan of operation This should form the last part of this section. Use charts where you can, graphs, or any other visual representations that make things clearer and easier to understand.

Management PlanAs well as an operations plan, you also need a Management Plan.This shows how your project will come together: - It details the qualifications of your staff ,- It identifies responsibilities for each staff person,- It states whether staff or consultants will be hired, - It indicates the time commitment allotted for each staff person.

PersonnelThis section shows the relevant experience, education and background training of those currently chosen to work on the project and shows the qualifications of those yet to be hired.TFA Course Pack January 2013 120

- It is essential to show:o your staff has the skills and qualifications necessary for the proposed

activities. o how much time each member of staff will be spending on the project.

(This should match the activities as closely as possible, bearing in mind that it might change once the operation is underway.)

- Is your staff profile properly representative?

- Are members of previously disadvantaged groups on your staff? - What about minorities, women, and those with particular challenges?

Will they be considered for inclusion in the project?

To illustrate your management plan, it’s useful to use an organisational chart.

Organisational chartsYou can download organisational chart templates from any number of places on the internet and fill them in according to the structure of your organisation. It’s good to do this; it helps you to see what the chain of command of your organisation is, whether it is too formal (or informal) and who has what responsibility. Organisational charts give a pictorial representation of how the management structure of your organisation functions, the hierarchical system and the levels of responsibility in an organisation. It is relevant to present an organisational chart because it gives a quick, bird’s-eye view of your organisation. An organisational chart is an important part of your donor proposal. Many donors want to know how your organisation is structured and how roles and responsibilities of various staff members are distributed. (The chart that has been filled in below is an MS Word SmartArt Graphic, taken from the Hierarchy section.)


BudgetThe reader will need a table with categories of expenditures that will be funded by the requested grant, detailing how much funding will be required for each category, and how much of that funding will come from the grant request.

EvaluationA section on evaluation is the last part of the narrative. Here, you present a plan for establishing the effectiveness of the programme.

Programme evaluation can affect the decision of a grant funder to either approve or reject the request for funding assistance. A key question any grantor will ask of an organisation applying for funding will be, “How will you know your idea worked?” Programme evaluation will help the applicant


Board Mambers

Director

Programme Manager

Project Coordinator

(health)

Field Worker Field Worker Field Worker

Administrative Officer

Project Coordinator (Education)


Accounts Officer

Project Coordinator

(Housing)


and the prospective grant provider measure the success of the proposed project. Thus, being able to evaluate what worked and what didn’t will be crucial for your funding and for your project.

Exercise 39: Programme Evaluation – is it forced and contrived, or a vital part of my project?Many organisations are resistant to programme evaluation. - Why do you think this is?- Why do you think they could fear programme evaluation?- How could they be persuaded to see programme evaluation as being a

positive aspect of their relationship with funders?- Discuss this question in class before moving on.

Programme evaluation: the positives

By embracing evaluation and incorporating it into your grant application and development process, you will strengthen your whole proposal. You’ll develop more compelling needs statements, create stronger goals and objectives, and write better narratives. Your proposals will be more fundable and, once funded, the grant programmes will be more successful. Your whole organisation will benefit, because evaluation is becoming more important not just to grant proposals but to all aspects of operation. The organisations that survive and thrive will be the ones that understand, measure and work to improve themselves and their programmes – through programme evaluation.

Programme evaluation in grant proposals- Programme evaluation provides a framework for improving both your

grant proposal and the project you’re seeking funding for, by providing measures to make your goals and objectives more meaningful.

- Programme evaluation provides a way to involve key stakeholders and direct service staff in programme planning, increasing buy-in in your


programme. A positive evaluation can help your organisation attract new staff, volunteers, funders and collaborators.

- Doing your own evaluation reduces the chances of funders or other outsiders undertaking their own evaluation of your programme, which might be less informed and thus prove detrimental. After all, who knows your programme and the desired outcomes better than you do?

- A strong scientifically based evaluation can turn your innovative project into a research study, and could lead to it being named an “evidence-based practice”.

Evaluation in programme operations After you get funded and while the project is in operation:- Evaluation gives immediate feedback, allowing you to identify and fix

problems in existing programmes while you still have grant funding to implement the changes.

- Evaluation provides a means for getting feedback from your client/participants about their perceptions of your organisation and project, and is a way of letting them know how the project is working. An evaluation showing that your programme works can motivate your existing clients and attract new ones.

- Evaluation provides valuable information for your organisation to use for longer term strategic planning and programme improvements.

- Evaluation provides solid data for disseminating information about your programme, and for educating others who may want to replicate it elsewhere.

- By looking at what works and doesn’t work in a programme, evaluation can be used to improve your services. Evaluation also helps you learn “for whom, where and under what circumstances did it work?”

More positive reasons to embrace Programme Evaluation - Funders, management and governing boards are looking for results. The

lack of good programme evaluation is worse than finding things that need improvement. If you design your own evaluation, you can have control over it, rather than ceding the control to others (like funders).


- If you do a good evaluation, it will help your organisation improve its programme improve services to your clients, meet the funder’s needs and help you attract future funding.

- Evaluation doesn’t have to be expensive, and sometimes has separate funding.

- A positive evaluation can help you raise more funds in the future.- Evaluation can improve services and outcomes for your clients, making

direct service dollars more effective.- While evaluation was once heavily statistical, programme evaluation is

increasingly moving to qualitative measurement which looks at people’s actual experience and the impacts of programmes on their lives.

- Getting clarity about the uses of data and intentions for using findings in advance can help both the evaluator and programme staff do a better job.

- A good evaluation process is designed to include programme staff, and a good evaluation report is written for laypeople to understand.

- Evaluation data collection will take some of your programme staff time – but how much depends on the evaluation design; it need not be excessive.

- Staff time spent on a good evaluation will improve their work lives and the lives of their clients.

- Doing an evaluation may lead to change and may be uncomfortable, but it’s worth it if the resulting improvements are real.

- With new information, you will often discover better ways of operating.

Doing the evaluation

Evaluation tips - Make sure you are doing the evaluation for the right reasons, not

because you ‘have to’.- According to Carlson and O’Neal-McElrath, (Winning Grants, Step by

Step, John Wiley & Sons, 2008) evaluations can accomplish six purposes:o To find out if the hypothesis was right. Did you actually do what

you set out to do?


o To determine if the methods specified were used, and if the objectives were met.

o To find out if an impact was made on the identified need.o To obtain feedback from the people served and other members of

the community. o To maintain control over the project (which is why evaluations are

done at various points in the project).o To make changes in the programme mid-stream, if necessary, to

insure the programme’s success.

What is the purpose of the evaluation?Keep the following in mind as you develop the evaluation section of your proposal:- Make sure the evaluation component of your proposal connects

extremely well with the proposal’s objectives and methods. Furthermore, if your timeline is carefully planned, and you know the desired outcomes of your project, it will be easier to design your evaluation.

- How will you use the findings?- What will you know after the evaluation that you didn’t know before?- What will you do as a result of the evaluation that you couldn’t do before

because you lacked the relevant information?- How will the clients and community served be better as a result of the

programme?

Research methods: Quantitative or Qualitative? Determine which methods you will use to collect your data: quantitative research, qualitative research or a mixture of both?

Quantitative or Qualitative? In quantitative research, researchers tend to remain objectively separated from the subject matter. This is because quantitative research is objective in approach in the sense that it only seeks precise measurements and analysis of target concepts to answer its inquiry. Quantitative research TFA Course Pack January 2013 126

focuses more on counting and classifying features and constructing statistical models and figures to explain what is observed. It generates numerical data or information that can be converted into numbers. Only measurable data are gathered and analysed in this type of research. Quantitative research makes use of tools such as questionnaires, surveys and other equipment to collect numerical or measurable data. Quantitative research is often used towards the end of a project when figures need to be analysed and numbers crunched. In quantitative research, what will most likely appear are tables containing data in the form of numbers and statistics.

Qualitative research is primarily subjective in approach as it seeks to understand human behaviour and reasons that govern such behaviour. Researchers have the tendency to become subjectively immersed in the subject matter in this type of research method. Qualitative research generates non-numerical data, its primary aim being to provide a complete, detailed description of the research topic. It focuses on the gathering of mainly verbal data rather than measurements. This gathered information is then analysed in an interpretative manner, which can be subjective, impressionistic or even diagnostic.

Qualitative research is often ideal for earlier phases of research projects. It gives the researcher a clearer picture of what to expect in his research as s/he uses individual in-depth interviews, structured and non-structured interviews, focus groups, narratives, content or documentary analysis, participant observation and archival research of data. Qualitative research takes the form of words (from interviews) and images (videos) or objects (such as artifacts).

Each method has its own strengths and weaknesses, and their use should be determined by the type of project that needs to be evaluated. If you need answers based on numerical evidence, then you should make use of the Quantitative Research. However, if you wish to explain further why something happened, then you should make use of Qualitative Research. Often, in projects like the ones you will be involved in, it is more sensible to TFA Course Pack January 2013 127

make use of both Quantitative and Qualitative Research, allowing the two methods to complement each other.

The final part of the grant proposalAfter the narrative, the final part of the proposal is the attachments section. In this section, you present the programme and organisational budgets and a series of standard attachments that most funders expect to see.

Exercise 40: Homework – Preparation for Grant Proposals- Read through the course notes on Grant Proposals. - Make sure you know exactly which sections should be included in such

proposals. - Jot down the titles of the main sections.

Exercise 41: Grant Proposals- Go through the proposal outlines you have been given.- Taking it in turns, each read a section of this outline. - Imagine you are a prospective donor and this proposal is being presented

to you. Discuss in class and make brief notes on the following: o Is it a good proposal? If so, why? If not, why?o Is anything missing from the proposal? If so, what?o Would you be inspired to donate after reading this proposal?’

- Go around the class. Each person choose one section that didn’t work. Including all of the points from class discussion that you agreed with, rewrite this section.

- Read your revised version out to the class. - Ask the class for feedback.

o Have you covered all the points correctly?o Have you explained this section of the proposal clearly?o Can anyone suggest what should be added?

Exercise 42: Writing a summary/abstract - Switch proposals with the person sitting next to you. - Do not read the summary (cover it up!).


- Read the proposal. - After you have finished reading it, write a summary/abstract for this

proposal. - You may refer back to your notes to see what should be included in a

summary. - Compare your summary with the original. - With a partner, assess how your summary and the original differed.

o Which is better? Why?

Funding for NGOs

Exercise 43: Other outlines of proposal grants You have been given another example of a proposal grant. Divide into pairs.Each pair will be allocated a section of the proposal to read and discuss together. You should refer back to your notes about this section to see whether it contains everything that it should.Your task:

- You are Mr or Ms X, a teacher at the The Fundraising Academy. - Your class is confused about grant proposals. They are not sure what

should be included in which section. - They need you to go through each section carefully.- It is very likely that they will have questions for you.- Once you are sure that you both understand the section, decide who

will be the teacher and who will be the teacher’s assistant. - Teach the class the section you have prepared.- Remember, a class will fall asleep or misbehave if you just read

something to them, so make your presentation more personal and interesting. (Guess that’s easier to say than to do!)

- Use the board to write down key points.- How will you handle questions?

o Will you stop what you are saying and answer these or will you ask for questions at the end of the lesson?


- What will the teacher’s assistant do?o S/he could write up the points on the board,o S/he could look though the notes to find answers to class

questions.

Exercise 44: Homework – Good examples of grant proposalsAt the end of this session you will be given two sections from good examples of grant proposals.Following the pattern of teaching to the class, you will be asked to teach the class about your section of grant proposals, using the good examples you have been given, and also using your notes.

Lively language: Active Vs. PassiveWhat do you know about the active and passive voice?

Passive ActiveCaesar was stabbed by Brutus. Brutus stabbed Caesar.R7 000 000 was donated by the Money Fund.

The Money Fund donated R7 000 000.

The chairman was thanked by the committee.

The committee thanked the chairman.

The sandwiches were made by several volunteers.

Several volunteers made the sandwiches.

There is a considerable range of expertise demonstrated by the task force.

The task force demonstrates a considerable range of expertise.

It was determined by the committee that the report was inconclusive.

The committee determined that the report was inconclusive.

We were invited by the minister to attend the conference.

The minister invited us to attend the conference

Groups help participants realize that most of their problems and secrets are shared by others in the group.

Groups help participants realize that others in the group share most of their problems and secrets.

The proposed initiative will be bitterly opposed by gay rights

Gay rights groups will bitterly oppose the proposed initiative.


groups.The same history, oppression, and transformation were shared by both political groups.

Both political groups share the same history, oppression and transformation.

“The passive voice is convoluted; it takes the energy out of your writing and makes your message flaccid. It is absolutely homicidal – it kills the people in your prose … The passive voice invariably comes across as pontificating, patronizing, talking down. It sounds insincere, even dishonest, and it makes the reader uncomfortable, not trusting, though usually the reader cannot put her finger on why.” ~ Henriette Anne Klauser, Writing on Both Sides of the Brain

When you are writing a grant proposal (or doing any writing, for that matter), you don’t want your grantors to fall asleep, or become tangled in heavy clunky sentences. Keep an eye out for the use of the passive voice, and where possible, change passive to active. Avoid using static words that have no movement (am, is, are, be, being, been, had, have, has, do, did, does, could, should, would). Look for overused verbs too (get, went, put). See where these are lurking and replace them with more precise active verbs. You’ll be amazed by the effect this has on your writing.

Start a list of active verbs that will add colour and movement to your writing. Using these will also help you to shorten your text: sentences written in the passive voice are usually much longer (and clumsier) than those in the active voice. Here are some to get you going:achieve allow analyseannounce appeal apply assemble

constitute contain contrast coordinate create decide

excel exemplify exhibit experiment explain extend

investinvestigate involve know lack lead learn

prevent produce prohibitpromote provide pursue realize receive

send show signal specify start state suggest support


assess assist balance become begin believe belong bring change choose clarify coach combine comparecompose conclude connect

define demonstrate depend design develop diagnose differ discuss distinguish educate elevate engageensure entail envision equal establish evaluate

find focus form givehelp hinderidentify illuminate illustrateimplement include indicate inform inspire instruct intend introduce

invent

maintain make manage modify motivate move negotiate

need observe occur offer operate organize perform plan portray prepare

recognize refine reflect rely remain remindreport research restore result return require reveal review sample search

survey synthesize taught teach tend test translate try understand use validate verify wish work write wrote

Sometimes, you have to use the passive voice, as some sentences will sound strange if you do not. Don’t indiscriminately exterminate passive construction at the expense of the writer’s voice or intent, but do try to bring colourless prose back to life. On the whole, keep your writing lively and concise.

The Case Statement

What is a case statement?It is probably easier to first define what a case statement is not.

- A case statement is not an annual report. - A case statement is not a long-winded grant proposal.- A case statement is not a list of the organisation’s financial needs.


- A case statement is not the history of a non-profit.- A case statement is not everything there is to know about a specific

program.- A case statement is not something the board uses to show off its

talents.

So what is it?A case statement (Case) is the core document of your organisation. It sits at the centre of your plan and strategy. The Case explains to your potential donors what need your agency addresses, how you address it, what makes your organisation unique, and how others can help, whether through time or money. It also shows what the benefits will be if the donor gives to your cause. It’s a short, compelling argument for supporting the non-profit that can be presented as a brochure, a one-page information sheet, or a glossy folder filled with factsheets, photographs, budgets, or charts. It should be professional, factual, and short enough that readers will read it all the way through. It forms the core of your organisation’s website and presence on the internet. Case statements can be used in any fundraising campaign.

What does the Case Statement explain and contain?The Case Statement tells the story of your organisation.

The Case Statement sets out - The Mission Statement of your organisation:

o Why you exist. o The need that exists and how you will address it.

- The Goals of your organisation:o What you will do about your mission. o What you will accomplish.

- The Objectives of your organisation: o In what specific way you will accomplish your goals.

- The Programmes of your organisation: o What services you provide, and through what activities.

- The History of your organisation: TFA Course Pack January 2013 133

o What is the background of the organisation. o Most importantly, presents a track record of accomplished

objectives and successes. - The Structure of your organisation:

o An explanation of the governance of your organisation and how it functions.

o Who your Board is and how it is structured.o Your staff: Who carries out what work.

- The Location of your organisation: o Where you are based.o Where other branches of your organisation are situated

(Geographic reach).- The Finances of your organisation, current and projected:

o Fundraising plans, financial statements.o A budget showing present and future plans. o Proof of wise money management and realistic expenses.

- The Future of your organisation: o How are you preparing for the future?

A well prepared and comprehensive case statement provides the basis for all your other published materials. The message you generate in the case statement speaks for itself through presentations, brochures, newsletters, annual reports, and more. The tone, flavour, style, and focus of this information, carried from one piece to the next, helps to build the identity of your organisation. This information, used across all kinds of media and communication, carries the message of consistency. A good-looking case statement leaves creates a good impression. You can’t always be present to represent your organisation. Sometimes you don’t have the time to explain your organisation properly, but you can leave your printed materials with clients. A well-written and attractively produced case statement gives the potential donor important knowledge about your organisation. It serves as a reference to the donor, reminding him of salient facts.


The case also provides a list of ways the donor can help your organisation. The donor can – and hopefully will – look through the materials to find out more about you, your mission, your programs, your history, and your plans for the future.

Thus, here is more of what a case statement is:- A clear statement of the need your agency addresses, how you address it,

what makes you unique, and how others can help.- A document you can use in drafting all your other publications and

presentations.- An item that requires your board and staff to communicate with each

other, thus leading to a crystallised vision of the organisation.

A case statement should be- clear and concise.

- complete – tell all the details of who, what, when, where and why.- interesting – tell stories, give examples.- crisp and well written, not flowery or effusive.- accurate and well researched.- a summary, not a long-winded description. - a call to action, rallying supporters to your organisation’s cause.

How a case statement is usedA good case statement can be used in many ways:- After talking about the agency with potential donors, leave behind a copy

of your case statement for them to consider.- When phoning a potential donor, keep the case statement close at hand

as a reminder of the key points to make about the agency.- When mailing or e-mailing a fundraising letter, borrow wording from the

case statement or include a copy of the case statement with the letter.The backbone of your fundraising campaign is a strong case statement.

Exercise 45: The case statement- Read through the handout you have been given.


- What have you picked up from reading this?- Discuss this handout point by point in class, noting the main subject

headings of the case statement.As you saw when reading the handout, this brief document provides a compelling argument to prospective donors as to why they should donate to the organisation. It explains:

- Who the organisation is, what it does, and why. - Why it is worth supporting.- How it is unique. - What would happen if these services weren’t provided.

It essentially answers the question: Why should I support your organisation?

Exercise 46: Homework – The case statementStart working on a case statement for your chosen organisation. *** NBYou will be given plenty of time to complete this assignment, but whatever you do, don’t leave it until the last minute. It’s a vital part of your course and your commitment to it will be a strong indication of how committed you are to becoming an effective and dedicated fundraiser. You will be given opportunities to discuss your progress in class, and to raise any problems you might have. You will also be able to gain editing advice from your classmates and lecturers. However! If you don’t do the work, it cannot be assessed and you will lose out on a worthwhile process that will add greatly to your fundraising toolbox.

Writing a cover letterRefer back to your notes on the content of a cover letter and the reasons for writing one. The best way to learn about how to write a cover letter is to practice writing a few. This applies to all aspects of writing for fundraising. Remember, your first attempt at any of the writing that needs to be done, from cover letters to case statement, is only a first draft. It can be added to, shortened,


edited for spelling and grammar mistakes, checked for adherence to the format, and, not least, reviewed by several members of your non-profit. So don’t let fear of writing stop you from applying for grant opportunities. Take the first step and write! That’s the hardest step. Everything that follows after that is easy.

Tips and reminders before you start writing your cover letter Some of these basic details may seem to be nit-picking and trivial, but it is absolutely essential that the work you do is perfect in every way. Never forget that you are not going to be the only applicant. You will be in competition with scores of other people, all with legitimate and worthy causes that need support. Your success could very well depend on your attention to detail. Your cover letter should be no longer than a page, with three or four paragraphs, maximum. It summarises your proposal, introduces your organisation and s recaps any recent communications you’ve had with the funder.

It’s essential that your cover letter is strong and well written. Do not underestimate the importance of a good cover letter. You are introducing your organisation and you need to make a strong statement that will engage your readers. This is your first and most important chance to let the funder know that you understand their goals and that your grant fulfils their requirements. Bring your project to life in the cover letter and actively engage your reader.

- Use your organisation’s letterhead. o If you don’t have a letterhead, make sure that your address and

other contact details are clearly and correctly written on your letter.

- Make sure your dates are correct. o The cover letter and all of the other parts of the completed

grant application should be dated on the day the application is sent off.


- The cover letter should be addressed to the correct contact person at the foundation or corporation you are applying to. Give this person’s name and title, followed by the address, city, state, and postal code.

o This address goes at the top left-hand side of your letter. o These details can change, so make absolutely sure that you are

addressing your letter to the correct person. - Your letter should be addressed directly to this person, not to ‘To

whom it may concern’. - Introduce your organisation politely, including a sentence or two

about what you do and how.- Clearly state how much money you are requesting, the population it

will serve, and the need it will help solve. o Cite one point (if you need to mention one more, then do so,

very briefly) that illustrates this need. - Declare your purpose and show that this fits well with what the funder

does. - In your final paragraph

o Summarise briefly, with a mention of what this means to your organisation.

o Give your personal contact details here so that you can be contacted directly if need be. (E.g., If you need additional information, please contact me by phone at (27)21 788 8888, on my mobile at 072 7272727, or e-mail me at [email protected])

o Remember to say thank you. - Your closing salutation should be ‘Yours sincerely’ (lower case s, not

capital S) followed by your signature, (your first name, middle initial, last name), job title and other contact details.

- Your letter should also be signed by the director of your organisation or the board president, or both. Below these signatures, type the signers’ first name, middle initial, last name, and job title.


As this is the cover letter for your whole draft proposal, indicate this by typing the word “ENCLOSURE” (in capitals) at the very bottom of your cover letter.

Exercise 47: Writing the first draft of your cover letter. NB *** When you have finished this letter, you will be giving it to a classmate for review and editing. Please don’t squash your letter. You need to leave space between the lines for changes to be written in. Please also leave a margin on the right-hand side of your page which will allow your classmate space for comments and questions. (Before writing this draft, you might want to look ahead to exercises 11a and 11b to see what grounds this draft will be assessed on.)

- Look at the sample cover letters you have been given in class. - Read though these carefully. As you are reading, think about your

internship site.o If you were writing these covering letters for your internship site, what

would you say?o How would you say it? o What examples and facts would you give? - Do the sample cover letters incorporate everything they should?- Are they well written?- Are there any spelling, grammar or punctuation mistakes?- Are they logical in their progression?- Are they the correct length? - Is everything truthful? Overstating for sympathy can result in poisoning

your programme.

Once you have scrutinised these letters, write the first draft of a cover letter for your internship site.

- Write this letter to a foundation or organisation with whom you have had previous contact.

o Perhaps you submitted a letter of enquiry to them and were invited to submit a grant proposal;


o Perhaps they have funded one of your previous initiatives. - Bring this with you to class as we will be working on polishing these up

together.

Exercise 48: Checking your partner’s cover letter for formatRead your partner’s letter carefully.Refer back to all of your notes on cover letters. Look at the sample letters.You will be giving your partner a mark for this letter, based on format not on content. (Content will be assessed later.)Is the name, position and address of the funder correct? (5 marks)Is the opening salutation correct (Is the letter addressed to Dear Mr/ Ms/Doctor, etc.?)

(2 marks)Does the letter consist of three main paragraphs with lines between them and a closing paragraph? Use your discretion; deduct marks if the letter is too long or if it is too short.

(8 marks) Does the closing paragraph include contact details if needed? (5 marks)Does the closing paragraph say a polite thank you? (3 marks)Does the letter end with Yours sincerely? (2 marks)Does the letter have a letterhead with the name of the organisation, its address, email address and telephone number (and possibly cell phone number) on it? (If so, 5 marks) If not, is the name of the sender, the position of the sender, the name of the organisation and address of the sender clearly stated?

(5marks) Total marks 30

Exercise 49: Assessing the content, tone and quality of your partner’s cover letterTFA Course Pack January 2013 140

Using the example letter, your notes on cover letters and the tips you have been given, assess your partner’s letter.

- First, look at content. Does the letter say everything it is supposed to?

o Has anything been left out? If so, what? Make a note of this in the margin.

o Is the letter too long? Does it include any unnecessary detail? If so, cross this out and comment in the margin.

- Now assess the tone of the letter. Comment on all of the following in the margin:

o Is the tone appropriate? Friendly, but not too casual; informative, but not boring?

o How do you feel after reading the letter? o Did your partner engage your interest? o Would you like to read further and learn more from the grant

proposal? o Were you put off by the way in which they s/he said anything?

- Now look at the quality of the writing and comment in the margin. If you notice small mistakes, (eg, spelling) cross these out and fill in your correction above. If a whole sentence needs to be rewritten, mention this in the margin and say why it needs to be changed.

o Are the sentences well-constructed? Does the letter flow well?o What about grammar, spelling, punctuation? Have any mistakes

been made?

Exercise 50: Cover letters – your next attempt- Look at your partner’s assessment. - Do you agree with everything s/he has said? - Discuss his/her comments, changes and suggestions with him/her.- Once you are happy with the revisions made, rewrite your cover

letter.

Writing a thank-you letter


The reasons for writing thank-you letters

Exercise 51: The importance of a thank-you letter

- Jot down, as quickly as you can, five reasons why you think that it is

important to write a thank-you letter, whether or not your grant proposal has been successful.

- Take it in turns to present and elaborate on your reasons.

Hopefully this short exercise will show you that the importance of a well-written, sincere thank-you letter cannot be underestimated. In fact, one might even go so far as to say that it is the most important letter you will write in connection with your grant proposal, no matter whether you have been successful or not.

If you have been rejectedIt does hurt to be rejected, especially when you have spent hours and hours putting together a thoughtful, detailed grant proposal. But a rejection need not be seen as something final and depressing. Rather look at it as an opportunity to strengthen your ties with the foundation or corporation you applied to for a grant. The next time you apply to them, you will not be a complete stranger. Never complain or do or say anything that might threaten future chances or call the name of your organisation into disrepute.

Put yourself in the grantor’s shoesReading through and assessing grant proposals is a time-consuming job. It’s also a very difficult one; every grantor would like to have the funds and capacity to help all the worthy causes that approach them for assistance, and turning down good solid applicants can often be a tough thing to do. By accepting rejection gracefully and acknowledging the grantor’s time and effort, you are showing yourself to be mature and well mannered. You leave


a good impression and when your organisation’s name comes up again, it will carry good connotations.

Learn more about your proposalAnother reason to write a thank-you note is that you can use it to find out why your application failed. You can ask for constructive criticism, which may lead to your learning something crucial that will lead to your next proposal being successful. You might even get referred to other foundations and corporations who are more suited to your projects. Never miss an opportunity to say thank you.

The phone call before the thank-you noteOften, before writing a thank-you note after you have been rejected, it’s a good idea to call first and say a verbal thank you to the people who took the time to consider your proposal. You can then follow this up with a few questions, if the person you are speaking to has the time to spare. Don’t complain about being rejected; instead ask:

- Was there anything we should have done differently?- Is there another funding cycle? If so, when?- Would it be worth our while to submit another proposal to you then?- Are there any other bodies we could approach with our proposal?

After your telephone conversation, follow up with a graciously worded note, thanking the foundation for the time they took to talk to you, the time they spent reviewing your application, and for affording you the opportunity of conversing with them. You can even ask them if they would be interested in seeing the work your organisation does, and add them to your mailing list to be invited to future events.

If your proposal has been accepted It seems obvious that the first thing you should do if your proposal has been accepted for funding is write a thank-you letter. Believe it or not, an


alarming number of organisations (some sources say this is as high as 70%) do not follow up with this gesture of basic courtesy.

Exercise 52: What happens when you don’t send thank-you letters?- Jot down, as quickly as you can, what you think the fallout would be if

you did not write a thank-you letter.- Take it in turns to present and elaborate on your results.

Hopefully this short exercise will show you the impact that bad manners can have on your organisation. There’s no excuse for not saying thank you. Don’t even think about pleading lack of time or a frantic schedule. Taking the time to write a thank-you letter should be given more importance and receive higher priority than any other task you have to do. If you don’t, you will be seen as rude, ungrateful, and unworthy of future funding.

People like to be thanked in a way that shows you have taken the time and consideration to properly show your appreciation. Almost as rude as not sending a thank-you note at all, is sending a scrappy email or a thank-you note where it is obvious that your funder’s name has been inserted into a standard thank-you note template. Take the time to write a proper note, signed (and in some cases even written) by hand, on real paper or a card. Show your donors that you appreciate them. Without them you would have no organisation …

Remember, many people are involved in the writing of a grant proposal. Don’t forget to thank them too.

How to write an effective thank-you letter

Alan Sharpe offers the following advice and example of a thank-you letter in his online article, ‘How to Write a Fundraising Thank-You Letter’.

Thank-you letters are one of the most important letters that your non-profit mails to donors. They remind donors that they made


the right decision in supporting your organisation. They show that you are grateful for the donor’s gift. As a bonus, thank-you letters increase donor loyalty, strengthen relationships with your donors and increase your chances of receiving more gifts in the future. So here are some pointers for writing effective thank-you letters.

Be personal.Address your thank-you letter to your donor by name. Don’t say “Dear Friend.”Say thank you, thank you, thank you.Show your gratitude by repeating, in a few different ways, that you are thankful for your donor’s gift.Be specific if possible.Mention the size of the gift, or the date that you received the gift, or at least say “Thank you for your recent gift.” Donors are busy people who need to be reminded that they responded to your appeal.Show how the donor’s gift is being used successfully.Reinforce in your donor’s mind that sending a gift was a wise investment in the work of your organisation. Describe a recent success that was made possible by the donor’s generosity. Or show in other specific, tangible ways, how or where the donor’s gift is making a difference in the lives of the people that your non-profit serves.Thank the supporter, not the donor.Somewhere in your letter, acknowledge that you value your reader as someone who supports your organisation and believes in your mission. No one likes being treated like an automated banking machine.Encourage dialogue.Show a genuine interest in your donor by inviting them to write you, or phone you, or visit your website, or drop by your mission, or in some other way strengthen your relationship. Be soft in asking for more funds.


Your thank-you letter should say thanks. If you follow your thanks with an immediate and aggressive appeal for more funds, you may cheapen your thanks and offend your supporter. So be gentle, and soft-sell the request for another gift.Strive for originality.Be fresh. Make your letter unique. Avoid language that sounds like it was churned out by a bureaucracy.

An example of a successful thank-you letter.

Below is a thank-you letter that Doctors Without Borders (MSF) mailed to donors who responded to their appeal letter for their work in Afghanistan.

Dear Alan

In response to your recent gift to MSF (Médecins Sans Frontières), I join with the people of Afghanistan in saying shúker, thank you, for your generosity.

As I write, the security situation in Afghanistan is changing by the day, improving in some areas of the country while deteriorating in others. At MSF, we are particularly alarmed at the number of civilians who are being killed or injured in the bombing campaigns.

On one day alone, we transported 72 dead and 15 wounded to the hospital. Many of them were women and children. Among the casualties was a family whose father was killed, mother critically injured, and four children wounded. A six-year-old boy lost one eye and had to undergo partial amputation of one arm and a full amputation of his other arm and one of his legs.

We are seeing increasing evidence of an unacceptably high toll on civilians due to the military operations in Afghanistan. We


are calling upon the parties involved to minimize the consequences of the on-going conflict on the civilian population.

The good news is that, thanks to your generosity, our 60 international staff and over 400 Afghan staff are back to work in the country again, offering medical help without discrimination and regardless of race, religion, creed or political affiliation.

I join with all of them and the staff here at MSF Canada in wishing you a prosperous and safe Náwey Kaal, or New Year.

Yours sincerely

[signature]

Leslie Shanks, MD, CCFP President – Médecins Sans Frontières-Canada / Doctors Without Borders-Canada

About the authorAlan Sharpe is a professional fundraising letter writer who helps non-profits raise funds, build relationships and retain loyal donors by using creative fundraising letters. Learn more about his services, view sample fundraising letters, and sign up for free weekly tips like this at http://www.fundraisingletters.org.© 2005 Sharpe Copy Inc. You may reprint this article online and in print provided the links remain live and the content remains unaltered (including the “About the author” message).Article Source: http://ezinearticles.com/?How-to-Write-a-Fundraising-Thank-You-Letter-For-Example-(Includes-a-Free-Sample)&id=56712

Exercise 53: What makes a good thank-you note?


http://www.fundraisingletters.org/index.php

http://www.fundraisingletters.org/index.php

- Read the articles that you have been given in pairs. Divide into pairs and read the articles that you have been given.

- What is it about these letters that makes them examples of a good thank-you letter?

- Once you have agreed on all points, one member of the pair will present the reasons you have found to the class.

- Does the class agree with you?- Can they spot anything that you have left out?

Exercise 54: Writing a thank-you letter for assessment- Thank-you letters should be carefully tailored to suit the donor. - Each member of the class will be given a different donor, to whom they

should write a thank-you letter. These are: o a new individual donor,o a new foundation,o a new corporate sponsor,o a repeat individual donor,o a repeat foundation,o a repeat corporate sponsor.

- Once you have finished your thank-you letter, pass it to the person sitting next to you to read aloud to the rest of the class.

- While each letter is being read aloud, the class should listen quietly, make notes and then give feedback on each letter, as per your notes and the tips given by Alan Sharpe.

If there is not enough time to go through each letter, we will finish these in the next session.

Exercise 55: Homework – Case Statement study – on-going assignmentRemember to keep working on your Case Statement. Let your lecturer know if you are having problems.

Practising your writing – more thank-you lettersTFA Course Pack January 2013 148

Exercise 56: Writing three more thank-you letters- If need be, finish presenting the thank-you notes to the class.

Now that all the letters have been read, it’s time for a class discussion.- What are your thoughts on this exercise as a whole?

o Were the thank-you letters well written? o Were there any common mistakes?o Was there anything that was particularly well done?

- Do you feel your class is ‘getting the hang’ of fundraising writing?o Why do you think this is?

Obviously, feedback about your writing is vitally important. But what is equally, if not more, important is practise. The more you practise writing for fundraising, the easier it will become. The more you ask for feedback on your writing and apply changes as you see fit, the better your writing will become. Above all, the more you do writing exercises like the ones you have already done, the less daunting the idea of writing for fundraising becomes. So welcome any opportunity you are given to practise, practise, practise! Write, write, write!

Exercise 57: Homework – Writing three more thank-you lettersChoose any three recipients from the list below and write a thank-you letter to each of them (three letters in all). Remember to apply all you have learned from your classmates’ feedback and from your notes on thank-you letters. These will be read together and edited together in class.

- A new individual donor- A new foundation- A new corporate sponsor- A repeat individual donor- A repeat foundation- A repeat corporate sponsor

Exercise 58: Feedback on thank-you letters


- Pass your three thank-you letters to the person sitting next to you and take his/hers.

- Read all three letters and choose one to read to the class. o This letter will be chosen either because it is the best of the

letters, or because it is the worst of the three.- Read the letter aloud and explain to the class why you chose it.

o Comment either on what was very well written, or on where the letter failed.

o Also comment on format, use of language, tone, etc.- The rest of the class will then give additional feedback, as per notes

and the tips given by Alan Sharpe.

Making your own notesUp to this point your notes have been detailed and comprehensive. However, you need to practise researching and making notes. This is an important aspect of the research and writing you will do when fundraising. It is very likely that you will be asked to research a certain company, for example, or find out more about a programme that is similar to yours in a different part of the world.

It’s easy enough to go onto the internet and cut and paste reams and reams of notes. But what do you do once you have found these? You cannot simply regurgitate them. You need to be able to select what is important from various sources, condense these notes and, most importantly, use your own words to write or present what has been asked for. You also need to be able to choose carefully when looking for sources. Some internet sites are filled with useful, well-written material. Others are not so fussy when it comes to maintaining high standards. The more you browse, the better you will become at discerning what sites are good and which are terrible or mediocre.

FavouritesIt’s a good idea to keep tabs on the site you have created. Often we move away from a good site and then cannot remember what it was called, or


where we found it. It’s a good idea to get into the habit of adding sites to your favourites. In your favourites menu, create a new folder for each aspect of fundraising you are working on. If you come across a particularly good site, add it to the appropriate folder in your favourites.

Researching

Making notes about and presenting a lesson on direct mailing to the class

SofiiThe Sofii website is one of those sites you will find very useful. As it explains in the ‘About Us’ section of the website:

“The SOFII collection aims to be the most comprehensive, best organised, and most inspiring collection of fundraising-related content from around the world … The collection consists of three types of content:Exhibits: well documented examples of fundraising campaigns - get inspired by touring the halls and showcases.Articles: written material on the art and science of fundraising - peruse the reading rooms and dig in.


http://www.sofii.org/

Resources: a variety of useful links, interactive content and other resources.”

Read more about Sofii by visiting their website. http://www.sofii.org/

Exercise 59: Homework – Researching and making notes on Direct MailHere are four links to sites that give you information about direct mail.

- http://www.sofii.org/showcase? id=17&utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=388628&utm_campaign=0

- http://www.malwarwick.com/learning-resources/articles/10-most- important-things-about-dm.html

- There are links to other useful articles on direct mail at the end of this article. Follow these too.

o How direct mail can benefit your organisation.o Take the test: Is direct mail right for your organisation?o What your organisation needs to know (by the ADRFCO).o 5 strategic uses of direct mail.

- http://nonprofit.about.com/od/fundraising/a/steptodirectmai.htm - http://www.asmallchange.net/simple-solicitation-letters/

Your task is to visit each of these sites.You will be looking for answers to the following questions:- What is direct mail?- Why is it important?- What part does it play in end-of-year appeals?- How often should you launch a direct-mail campaign?- How can you evaluate the success of a direct-mail campaign?

Once you have completed your research, you will be assigned a partner.- Between the two of you, go through the research you have done and

find simple direct ways of answering the questions you have been given.


http://www.asmallchange.net/simple-solicitation-letters/

http://nonprofit.about.com/od/fundraising/a/steptodirectmai.htm

http://www.malwarwick.com/learning-resources/articles/10-most-important-things-about-dm.html

http://www.malwarwick.com/learning-resources/articles/10-most-important-things-about-dm.html

http://www.sofii.org/showcase?id=17&utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=388628&utm_campaign=0



http://www.sofii.org/

- Each partnership should be ready to present their answer to any of the questions on the list.

- You will be chosen to stand in front of the class and present your answer to a certain question.

o (Until the day of the presentation you will not know which section you will be presenting, so make sure you are prepared for anything.)

While you are presenting your answers, the class should take notes on the following:

- Were the questions well researched?- Was the research well presented?- Were the presenters using their own words?

o (Could you recognise words taken directly from the articles you were asked to read?)

- Was the presenters’ style easy and relaxed?- Were the presenters able to present without having to refer too much

to their notes?- Did the presenters use any visual aids (such as point form notes on a

white board) to get their points across?

Exercise 60: Before you write your fundraising letter Review the tips from Jerry Huntsinger in Tutorial 1 (creating fundraising letters and packages), then start thinking about writing a fundraising letter for your organisation. By now you should have all the details that you need about your organisation at your fingertips. Now it’s a case of using them in an effective way in a well-written, engaging and informative letter which you will mail directly to your mailing list. It’s difficult to tell you exactly what should be included in your letter. The content will vary depending on what kind of charity or non-profit you’re writing about. Other factors that will influence your direct-mailing letter are the approach you decide to take and your originality and creativity as a writer. Once again, don’t finalise this piece of writing before asking someone to check it for you and give you feedback.


A few more reminders before you write your letter

Remember, you’re not writing a letter that you expect people to read over and over again. What you’re aiming for is a letter that will catch your readers’ attention and keep them reading long enough to inspire them to give to your organisation. So, think hard about the recipients of your letter. Ask yourself these questions:

- Are they people who like to read?- Are they able to read well?- Where are you sending your letter to?:

o A home address? o An office?

- Do people react differently to receiving letters in different environments? If so, how?

o Who opens these letters? A Personal Assistant who screens her boss’s mail or a busy mom who has just arrived home with a carful of hungry kids?

- When will your letter be read? - How receptive will your mailing list be to your request?- What about the economic climate in your country? ( Or in other

counties if you are approaching donors abroad.) - Is the attitude different of people living in a country experiencing a

recession? - If so, how will you encourage people to give? - What stressors are people being exposed to on a daily basis? War,

crime, hunger, poverty, health care, education, political leadership… the list is endless.

- What makes your letter worth reading in the midst of all of this?- Think also about other letters your potential donors may be receiving

from other non-profits. - What will they be asking for? - What makes your appeal unique?

So what? TFA Course Pack January 2013 154

Put yourself in the shoes of the person reading your letter. Imagine you are receiving your letter. The first thing that is likely to come into your mind is, so what? Why should this affect me, or mean anything to me? What’s it got to do with my life, my children/ school/ husband/ pets/ community/ next of kin/ neighbourhood …? Once again the list of what might engage people or put them off reading is endless. If you manage to answer this question effectively, you’re halfway there. But you have to jump the next hurdle, which is the question:

What now?It’s essential that your letter offers a solution to this question, provides clear and simple information and doesn’t make the reader scrunch it up and throw it in the rubbish bin.

Format, language and style- Look at your letter again.

o How long are the sentences in it? o Can they be read in a short amount of time? o If they are long and convoluted and include information about

more than one thing and don’t carry a direct message and don’t include the information that is needed about funding or how to send a donation or even how to apply for a tax exemption on a donation, then it’s likely that you will lose your readers’ attention and they may even discourage others from donating to you because they might think there are other charities more worthy than yours.

- Look at the last sentence above. o Do you see how long it is? o How many messages does it contain? o Did you even get to the end of it?

- Keep your sentences short and punchy! - You can even get someone to time you as you read aloud.

o If you’re heading towards the 20-second mark, see if there is any way in which you can shorten your sentences, or break one sentence into two, or even three.


- Reading aloud is useful for other reasons: o You’re more likely to pick up mistakes when you do so. o You’ll be able to hear whether what you have written sounds flat

and boring, or lively and engaging.

Exercise 61a: So what?/Now what? What about me? Before you write your letter.

- When you assess your letter, see whether you are addressing your reader as if s/he were sitting in a chair opposite you. People like to feel as if they have been included in your plans. They like to be treated personally, as if what they say, do, think and plan is important to your organisation. So ask these questions in your discussion:

o What do you know about your readers? o Do you care about them, or are they simply faceless folk with

(you hope) healthy bank balances?o Will giving money to you make them feel good? o Have you taken the time to see whether they have donated

money to your organisation before this, and have you acknowledged this in your letter?

Use the word “you” when you write your letter. Draw your readers in. If they have already donated to you, refer to them even more often; make them feel as if their contribution meant something to you, show that it has been used in a meaningful way. Affirm your readers’ sense of self-worth. Make them feel important to you. Doing this isn’t a false or sentimental thing to do. Your potential donors do mean a great deal to you. Without them, your organisation would be struggling, or non-existent.

Exercise 62: Assessing the direct-mailing sample lettersLook at the sample letters and use the following points in your class discussion:

- What is it that makes you want to continue reading them? - Go around the class and get feedback on who likes what parts of the

letter the most.


o What parts of these letters did you enjoy reading? o Did others in your group prefer to read other parts? o Why?o Notice how different people react to different messages and

styles. Discuss:

o Would an engineer react differently than an artist? o How would parents react? o What about teachers?

You’re each just as much a possible donor as the people you will be writing for. What made you read? What made you stop reading?

Did you know? Some interesting (and vital) facts about fundraising letters

60% of readers will decide to donate to you based on: – Your opening paragraph (so beware – a long opening sentence is likely to kill their desire to read further stone dead.), – Your closing paragraph, – Your post script.Most of the remaining 40% will only skim the rest of your letter.Only a very small number of people will read your letter the whole way through.It makes sense, then, to make these three parts of your letter dynamic and attention grabbing.

Exercise 63: Class Discussion – Engaging your reader, how can you do this?Consider this statement: “People buy with their hearts, but justify with their heads.”

- How can your opening paragraph tap into this?


- It’s likely that you will choose to tell a story in your first paragraph. But there are numerous stories to tell, all connected to your organisation. What sort of story is best?

o A story about someone your organisation has helped? o A story about a situation your organisation has improved or

changed?o A story about the readers themselves?

- How will you avoid being sentimental? Or too melodramatic?

The Opening Paragraph- How long should these stories be?- Do the people in your class already have stories connected to your

non-profit? Could any of these be used? Which ones? Why? - How can the reader become part of these stories?- When should the organisation’s name be mentioned in the stories?

The body of the letterThe body of the letter:

- explains your philosophy and describes the work you do. - tells more stories. - gives statistics.- repeats your need for support.

Your whole letter is usually two to three pages long. This allows you space for pictures and other graphics, wide margins and easy-to-read spacing between the lines.

The Closing ParagraphThe last paragraph of your letter needs to be direct, straightforward and specific. Read through it carefully, several times, to make sure it is not ambiguous in any way. It tells people what to do (it doesn’t ask them) so it must include:

- How to donate (in some cases how much).- How they can do this.


- What to use to do it :o An enclosed envelope, a telephone number, a website address.

The PS (post script).The PS brings the reader back to the main thrust of the appeal. Either it tells another very short story or offers them an incentive for acting immediately.

You are now ready to write your direct-mail fundraising letter.

Exercise 64: Homework – Write a direct-mail fundraising letter

Direct Mailing: Is it worth it? How much power does a direct mail fundraising appeal really have? If we go by statistics and look purely at the monetary return from your direct-mailing campaign, it would appear that the campaigns aren’t worth doing. But money isn’t everything (and we do have other means of raising funds).So what else do direct-mail appeals do?

- They educate the public.- They raise consciousness about your organisation. - They show how and why you deserve support.- They help you to gain new donors.- They expand your network.- If they are effectively written and presented, they gain respect for

your organisation and show it to be worthwhile and well managed.


Class 5Board Governance


What is Board Governance?

Why does Board Governance matter for fundraisers?

We talk about boards frequently when discussing business matters. But do you know exactly what a board is, what it does, and how it is made up? Before going any further, let’s look at a few definitions and some basic information.

What is a board?NGOs, NPOs and other charities come into being because they wish to be of help and assistance to a chosen group of beneficiaries. But an organisation cannot simply run itself. It needs a governing body, a group of people who oversees the organisation on behalf of the beneficiaries and takes responsibility in all spheres: legal, moral, and financial. For this reason, because they have been entrusted with the care of the organisation, members of a governing body are often called trustees and as such, they represent and protect the interests of the beneficiaries.

This governing body can be called by different names: board of trustees, board of directors, executive council, executive committee, etc. Its structure varies from organisation to organisation, and permanent or temporary subcommittees are often organised according to function, to deal with Finance, for example, or Personnel. Depending on the project and how much support may be needed for it, advisory committees are often set up for new programmes or projects.

What does the word governance mean?Quite simply put, governance is the act of governing. In the case of a non-profit organisation, governance means managing, creating strategies and policies, giving guidance, working on processes, and making decisions that determine how authority and control is exercised within an organisation in order to create results.


Overall, according to Carver, [http://www.policygovernanceconsulting.com] it’s a case of making sure that “the organisation achieves what it should and avoids unacceptable situations.” Put together then, the two words, board governance, mean the role played by a group of people specially chosen to oversee policy making and to steward (take care of) the organisation’s finances.

What do Board Members do?Board members are not really supposed to be involved with the day-to-day running of an organisation. However, they do need to be aware of what is happening in all areas. Their main roles are: To ensure that funds are correctly and effectively used. This means

- making sure the organisation has effective strategies in place so that they are ready to respond to problems.

- monitoring to ensure that the organisation is doing the best possible job, putting correct strategies into practice and getting value for money.

- approving an annual budget for expenditures, based on realistic costing.

- keeping tabs on internal controls and accounting systems to make sure that funds are properly and effectively used.

- making sure that internal controls are actually followed, by carrying out internal audits and other checks.

- being present when needed (as in internal controls) as necessary, e.g., being there to authorise a big expenditure.

- keeping a good eye on financial reports, such as o the income,o expenditure statement, o balance sheet.

- making sure that the organisation is fully accountable in all spheres. For example, is it presenting accurate feedback to its beneficiaries?


To ensure that the organisation is never short of money and resources, by

- checking and approving the income section of the annual budget.- keeping an eye on income received.- figuring out means of keeping the organisation sustainable. Part of

this process is to approve a financing strategy.- checking up on relationships with donors, by making sure reports are

well presented and submitted in good time.- watching over the balances in the fund.

To ensure that the organisation is being well managed, from the head down. This involves

- recruiting a Chief Executive who has excellent financial management skills, and who continues developing these skills within the organisation,

- giving the Chief Executive full support to cultivate a culture of good financial management; this means leading by example; encouraging all branches of the organisation to communicate with each other and to work together (E.g., finance and programme staff.)

- ensuring that ability and experience are properly distributed by seeing that the most senior finance manager is a member of the most senior management team,

- encouraging a culture of open co-operation; one that pinpoints problems, recognises their significance and learns from them,

- making sure that all members of the organisation are held accountable for their actions, and this includes senior managers who have to take responsibility for the actions they take and the projects and programmes they commit resources to.

To ensure that the organisation behaves in a legally and morally responsible way and breaks no laws, by

- understanding legal requirements: o Labour laws,


o Tax laws ,o Health & Safety legislation, etc.

- ensuring that all legal requirements are met in good time; e.g., filing tax returns and annual reports timeously.

- appointing reputable external auditors and being there to oversee the audit.

- approving the audits and annual reports.- filing reports with government departments in good time.

To ensure that the board itself is well run, knows what its responsibilities are and handles these well, by

- appointing a Treasurer, who has the knowledge and skills to carry out specific financial management tasks.

- checking that the board understands its financial management responsibilities and, where necessary, helping them to develop skills to understand such matters.

- making sure there are no conflicts of interest between the organisation’s operations and the work or business interests of any board member. This is becoming increasingly important in a society where fraud and corruption are commonplace. If your reputation suffers, your organisation will have to work incredibly hard to win back the trust of its beneficiaries and donors (if it ever does).

- making sure that sufficient time is allocated at board meetings to deliberate over and decide upon the implications of all major financial management decisions.

In smaller organisations which do not have paid staff, the board is often more involved in supervising programmes and services. When a smaller organisation needs to employ and add staff, the board is responsible for selecting, overseeing, and even terminating staff. In larger organisations, the board is more of a partner to management staff, helping to ensure that the organisation meets its goals and commitments.

Exercise 65: The importance of a board and of good board governance- Go through the article you have been given in class.


- This reiterates the role that the board plays in the organisation.- What strikes you most about this article?- Was there anything mentioned in it that was not in the notes about

the role of the board as described above?- If so, make a note of this.

So we can see that, broadly speaking, the work of a board of directors is to run theorganisation effectively, making sure that it operates within the law, that it earns its money honestly and spends it wisely, and that it adopts programmes and plans that suit the vision, mission and objectives of the organisation. Board members are responsible for the on-going funding and continued good financial health of an organisation. The board must protect the assets of theorganisation, set the vision and mission for the organisation and express the broad policies and strategies.

Now that we know the roles played by the board, and the importance of these roles, the next question to ask is:

What are the main fundraising tasks of the board?In most organisations, board members are asked (or even required)

- to give a personal gift each year to the organisation. - to help solicit funds for the organisation from their own network of

family, friends, and colleagues. While this might sound simple, in reality it as far removed from simple as it is possible to be. There are those who believe that board members should never be approached for money. There is a link to a good article on this point below these notes, which should lead to a lively discussion. But for now we will look at the standard procedure with most boards and look at what these two tasks mean and what they entail.

Exercise 66: Why are board members reluctant to fundraise and solicit?


(A point to remember here is that not all board members are mega-businessmen rolling in piles of cash and filled with the spirit of philanthropy. Often they are ordinary people, battling to pay the bond or get money together to educate their children.)

Discuss the following in class:Put yourself in the shoes of a member of the board.

- What reasons would you give for not wanting to donate money to the organisation?

- Why would you be reluctant to solicit funds?Now put yourself in the shoes of the development staff and financial staff off your organisation.

- Why would you see it as essential that the board members donate money and solicit funds?

- How do you see members of a board? At what level should they become involved?

Increasing the fundraising role of your board

Explain Often board members aren’t absolutely clear about the financial aspects of their organisation: what the resources are, what is needed, how funds are generated, etc. Make sure you have a fundraising plan that is well written and easily understood. Explain your budget and provide step-by-step details about what is needed and why. Show what role the board could play in contributing to these efforts.Inspire Keep the board on board. Keep them enthusiastic. Keep them in touch with what is happening. Share the joy of successes, small and large. Tell them stories about the people they are helping: help them to see beneficiaries as real people who are being assisted by the organisation. Arrange visits for them to see the fruits of their hard work. Appreciate


Take the time to find out exactly what it is that your board members are able to do and what they feel comfortable doing. Some might be willing to become involved in fundraising; others might be just as useful in different roles: advertising, public relations, planning new programmes, financial organizing. Be SelectiveRemember, though, when recruiting new members, that they need to understand that fundraising is a very important component of their role as a board member. Try to enroll members who have this skill and are happy to use it.

Thank It’s easy to concentrate on shortcomings, and when we do this we often forget to look at what people are doing. Never forget that membership of a non-profit board is usually voluntary. Thank your board for the hard work they are doing on behalf of the organisation. Make them want to do more.

Exercise 67: Homework – Getting your board members to be willing fundraisersYou will be given 4 articles from the Social Velocity website to read: http://www.socialvelocity.net/2012/01/9-ways-board-members-can-raise-money-without-fundraising/http://www.socialvelocity.net/2012/01/overcoming-board-fundraising-excuses/http://www.socialvelocity.net/2010/03/7-things-board-members-can-do-to-raise-more-money/http://www.socialvelocity.net/2012/01/financing-not-fundraising-jump-start-your-board/

Your first task is to read through these articles , and using what you have learned from them and from your notes, prepare a 5-minute presentation on how you would inspire the members of your board to become active and happy fundraisers.


http://www.socialvelocity.net/2012/01/financing-not-fundraising-jump-start-your-board/

http://www.socialvelocity.net/2012/01/financing-not-fundraising-jump-start-your-board/

http://www.socialvelocity.net/2010/03/7-things-board-members-can-do-to-raise-more-money/

http://www.socialvelocity.net/2010/03/7-things-board-members-can-do-to-raise-more-money/

http://www.socialvelocity.net/2012/01/overcoming-board-fundraising-excuses/

http://www.socialvelocity.net/2012/01/overcoming-board-fundraising-excuses/

http://www.socialvelocity.net/2012/01/9-ways-board-members-can-raise-money-without-fundraising/

http://www.socialvelocity.net/2012/01/9-ways-board-members-can-raise-money-without-fundraising/

You will need to list:- The problems,- The reasons for the problems,- The solution.

Once you have done this, create an elevator pitch, inspiring board members to fundraise by setting an example. In your pitch, show why fundraising is important to you and why you are willing to fundraise and solicit for fundraising.

What is an Elevator Pitch?How would you explain your business and make a sale if fate placed you in an elevator (a lift) with your dream prospect and you only had the time it takes to get from the top of the building to the bottom to sell yourself in the liveliest, most engaging, most informative way possible?

An Elevator Pitch gives you 30 to 60 seconds to describe what you do and why someone should be prepared to join forces with you.

30 to 60 seconds, you say? That’s easy. Not really.

– You must be pitch perfect.– You should know it off by heart. – You need to be prepared to put a decent amount of time and energy

into creating the perfect pitch. – You need to make a powerful first impression. – You have 30 seconds before your target audience’s mind starts

wandering. – You need to grab them quickly or lose them forever.

A Great Elevator Pitch – Concise. No longer than 30 to 60 seconds.– Clear. Use everyday, simple language. Fancy words don’t make you

sound smarter. Inflated vocabulary could cause you to lose your opportunity to hook your listener.


– Powerful. Use words that are powerful and strong. Ba da da Boom! Grab their attention!

– Visual. Create an image in your listener’s mind. – Tells a Story. A good sharp short story that will stay with your

listener, and that underscores what it is that you do. A story about a tragedy or the solution to a tragedy is usually a good story to tell.

– Targeted. Target your pitch directly at your specific audience. You might need to create more than one for different audiences.

– Goal Oriented. What do you want the outcome to be when you have finished your pitch? (In this case you want to create an audience of board members who are falling over themselves to get fundraising.) You might need to create different pitches for different objectives.

A Great Elevator Pitch Has a Hook. You grab your audience’s attention from the very first word. Hook them, then reel them in. Don’t let them wriggle away. Hold them spellbound for the minute you have to share with them. Make them want to know more. Make them want to act on what you tell them.

Crafting Your Elevator Pitch– Write it down. Not just once, several times and in several different

ways. Write it at least 10 to 20 different ways. Just scribble. Don’t stop to think. Don’t edit yourself (you can do this later). Generate ideas. Don’t hold back. Ideas can be off-the-wall, serious, wild, funny, or conservative. It doesn’t matter. Get as many ideas as possible down on paper.

– Write a very short story that illustrates what you do for people. If necessary, the story can be long. You will boil it down later. Paint a picture with words.

– Write down your objective or goal for this pitch. Do you want to gain a prospect, enlist support for an idea or something else?

– Record yourself. Use your cell phone or your computer. – Leave it for a while. Come back to what you’ve written with fresh

eyes and ears the next day or later on in the same day.


– Highlight the good stuff. Highlight the phrases that hook you with clear, powerful, and visual words. Trim as much as possible, but make sure you still make sense.

– Put all the best bits together. Write several versions of this tighter pitch. Hit the key areas:

o What do you do?o Why do you do it?o Why should anyone want to work with you?o Use your own story if you can.

– Record again. – Do a final edit. Cut as many words as possible. Rearrange words

and phrases until your pitch is just right. – Read it aloud to friends and family and to the mirror. Get

feedback. – Done for now. Take your final elevator pitch and write it down.

Memorize and practice it until it just slides off your tongue naturally.– Keep it alive and dynamic. Over time, always be ready to make your

elevator pitch better. And then test it out, starting it from scratch as things change: you, your organisation, your goals, and your clients’ needs.

– Talk to people. Remember, you aren’t talking to a blank wall. Engage with your audience. Make eye contact. Smile. Make your approach (and your Elevator Pitch language) friendly and chatty.

A Great Elevator PitchConcise & ClearCompelling & CredibleConceptual yet ConcreteConsistentCustomised Conversational

Exercise 68: Homework – Friendraising


Read Hildy Gottlieb’s article ‘Boards & Fundraising: Why Board Members Don’t Want to Do It and What They Can Do Instead’ http://www.help4nonprofits.com/NPLibrary/NP_Bd_FriendRaising-EngagingFriends_Art.htmThis article is worth reading because it gives another perspective entirely.

Exercise 69: The composition of a boardBrainstorm the following ideas in class, using the whiteboard to jot down key words and ideas about the following:

- What should the composition of a board be?o For a small organisation?o For a bigger one?

- How should the board be structured? o If you were a board member, how would you like to see the

order of command and the flow of communication organised?o Draw up a model which shows what you would regard to be an

effective board structure. List all the functions within a non-profit organisation. See where these functions fall in the order of things. Decide how they could be organised into an organisational

structure.


Models of Governance and Leadership and Accountability

Tripartite system

This is a conventional organisational system, with the chain of command going from top to bottom. The board has the ultimate authority, but even in as traditional a structure as this, this should not mean that the board should have complete control; its role should rather be that of a facilitator, organising matters so that the executive can perform its role effectively. In turn, the executive should facilitate matters so that the staff can function effectively. The threat here is that the board can become too strong and dictatorial. There has to be a good balance of power in a tripartite system. After all, the word means three parts – not one part and two others. There should be a strong board, a strong executive and a productive, well-informed staff.

Carver’s Policy Governance® ModelAn alternative model is John Carver’s Model, a policy-focused framework or governance-theory model.

In the early 1970s, John Carver, determined to learn more about board leadership and governance, discovered that a framework was missing. He then spent years creating a new model to reflect his concept of how non-


Board

Executive

Staff Staff

Executive

Staff Staff

Executive

Staff Staff

profit boards should operate. When he first expounded his theories, his ideas seemed radical, but today his Policy Governance Model is widely accepted as a legitimate alternative to the traditional way of defining the board’s role.

According to Carver, “Policy Governance® is a radical redesign of board leadership that makes new sense of the board-staff relationship, planning, evaluation, and all other aspects of the board job … a conceptually coherent model, intended as a complete replacement of the deeply flawed traditional wisdom about boards” Rejecting the traditional concepts, Carver goes on to say that “most board training is merely teaching boards how to do the wrong things better than they did them before … Policy Governance, as its name implies, is about governing by policy, but it is policy of a more sophisticated nature than policy as we have heretofore loosely defined it … boards should be more involved in some things and less involved in others.”

One of Carver’s beliefs is that while the board has the authority to govern, individual board members do not. The authority legitimately is wielded by the board as a group. Thus a CEO is bound by what the board says, but never by what any board member says. A board should pledge to its CEO that it will never hold him or her accountable for keeping board members happy as individuals and will never hold him or her accountable for any criteria except those expressed officially by the full board. In other words, the board as a body is obligated to protect its staff from the board as individuals.

What are the implications of this for NPOs, NGOs and charities? In these institutions, the “one voice” aspect of governance is often lost.

- Board committees run about involving themselves in issues that have, on paper, been delegated to staff.

- Staff members end up taking direction from segments of the board. - Common committee roles do damage to the integrity of CEO

delegation. Personnel, finance, programme, publicity, and other such committees are the prime offenders. TFA Course Pack January 2013 173

The solution, according to Carver, is that - the board should not have committees either to help or instruct staff. - board members can serve on staff committees, but only if asked

(removing their board hats in the process). But foisting unwanted and unsolicited board help and advice, at best, makes a mockery of the board-CEO relationship and, at worst, renders the CEO no longer a CEO.[Taken and adapted from John Carver’s (Carver Governance Design) Website (www.carvergovernance.com) circa 1999].

You need to look up Carver’s model and read as much as you can about it. Go to his website and explore it more deeply, and then browse to see what the people who have adopted his Policy Governance® think about it. Several people praise it; several think it does not work at all. In the meantime, here is an overview:

10 Universal Policy Governance® Principles [from vtvsba.org]

1. Govern proactively through explicit statements of values, rather than reactively or through event-specific decisions. Boards must be at least as disciplined as they expect their staffs to be. 2. Using four categories, address values about: Ends – what results/benefits/changes for which people/needs are worth what cost. Staff Means – unacceptable practices and circumstances. Board-Staff Linkage – how power is passed and accountability evaluated. Board Process – how the board will govern and on whose behalf. 3. Spend most board time addressing Ends with a long-term perspective. This is the board’s major contribution to long-range planning. 4. Address Staff Means only in a negative or constraining way in order to leave maximum freedom, but within clear limits. 5. Always resolve value issues starting from the largest, granting the Chief Executive authority to decide all further (smaller) issues. 6. The board’s job contributions or products must include: TFA Course Pack January 2013 174

Linkage with the ownership, Explicit governing values (policies), Assurance of executive performance. 7. The Chief Executive position exists solely to accomplish Ends without violating the constraints on Staff Means. 8. Routinize the monitoring of staff performance against all board policies on Ends and Staff Means, recognizing this measurement as the evaluation of Executive performance. 9. Official board committees, if any, are there to help with the board’s job, never with the staff’s. Their best contribution is to prepare policy options (with implications) for board deliberation. 10. Use board time to create the future more than to review the past, to stimulate debate on Ends rather than Means, and to look beyond the organisation more than within.


Looking at Carver’s theories in a diagrammatic form is useful.

POLICY GOVERNANCE® MAP [http://www.vtvsba.org/pg/resources/b.html]

OWNERSHIP Trustees

BeneficiariesCEO

Programs

Programs

Programs

Programs

FeedbackFeedback Feedback

Input: Are we doing the right things?

Feedback: Are we doing things right?

InputInput Input


http://www.vtvsba.org/pg/resources/b.html

Cyclical Board ModelAnother model is the Cyclical Board Model, where the board follows a set pattern of behaviour over and over again. This begins with a nonrecurring Founding Period (incorporating a Collective and a Sustaining phase), which is then followed by three distinct operating phases: Supermanaging, Corporate, and Ratifying. From stage to stage, the board becomes less and less involved in the mission and activities of the organisation, and then something happens to shake them out of a rut, a transformative change precipitated by an internal or external crisis, and they start afresh with a new founding period, followed by the superintensive board involvement, which becomes less intensive, etc. And so the process repeats and repeats and repeats. Each new cycle is different and the board’s response to these will often be different too, because since the last phase, the membership of the board, the circumstances of the community and very likely the staff and executive of the organisation will have changed. TFA Course Pack January 2013 177

Founding Phase

Collective Phase - Board members serve because they are inspired by the mission. - In early days, there might be no executive. - After funding, an executive is hired. - Funding flows in …There is a shift to the next phase.

Sustaining Phase - Organisation is well regarded. - Paid staff, good programmes in place, well-funded, etc. - Board members leave because model is stable, with adequate

resources.


Founding phase: Can last several years.Two main phases: Collective and

Sustaining

Collective Phase

Sustaining Phase

Supermanaging Phase

Phase

Ratifying Phase

Cyclical Board Model Cyclical

- New, committed members take their place, but rely on executive to raise funds, develop programmes, analyse needs, set organisational direction, etc.

It often takes a crisis of sorts to shift to the next phase.

Supermanaging Phase - Crisis of some sort has occurred (often financial). - Board has not questioned the state of affairs, or provided direction. - To deal with the crisis or new vital need, board members with specific

skills are recruited. - New recruits are corporate planners: bureaucratic and rational. Also

committed, but seeing position on board as a way to serve both altruism and their own professional goals.

- These in turn recruit new members for their skills and networks. - Board questions the executive, doesn’t automatically ratify executive

decisions and proposals. - Committees are engaged and active. - Board supplements information from executive with other information

from informal sources: stakeholders, funders, community, committee members, etc.

- Board is increasingly involved. - Power shifts from executive to board. - Tensions emerge. - Board members who now play dual role may be seen as being

unprofessional. - Board redefines its role, to stewardship, expects accountability from

executive. As this process ends, a new shift takes place.

Corporate Phase- Some board members leave and new professionals are recruited. - New board and executive now have to make decisions (often to

stabilize a diminished organisation).


- Board committees meet regularly and work closely with staff. - The board initiates a strategic planning process, formally reviews the

executive, attends meetings frequently and regularly.- There is a shift in allegiance from the executive to the organisation,

board members focus on the organisation’s success (which reflects back on them).

- Board questions the executive’s actions, intervenes if board members feel it is necessary, and even overrule the executive’s decisions. The board becomes the organisation’s manager.

Once situation is under control, board members - manage less, - work more on board development and- create systems to ensure crisis will not be repeated.

Advantages of corporate phase for non-profits- Committees meet regularly. - Board is focused on mission and oversight. - Decisions are made based on clear, valid information provided by the

executive and leadership staff,- Board makes policy decisions and staff members implement them,- Board receives accurate reports on progress re policy decisions and

goals outlined in the strategic plan,- Board may also receive additional internal and/or external input re

effectiveness and needs from consultants, researchers, and stakeholders, etc.

- Board-recruitment efforts focus on developing a board with more community, financial, and social clout.

- The operations of the board and organisation become more professional.

- Power flows from the board to the executive.

Disdvantages of corporate phase for non-profits- Sustaining this state can be taxing.


- Difficult to keep the board well-informed and engaged.- Hard to maintain balance and make sure board leads rather than

manages.- Difficult to engage the passion of the board for the mission of the

organisation, tap into skills and expertise, and at the same time not over-inform them.

- Under-informing board makes members feel irrelevant or unnecessary.

Executives can manage this balancing act by asking:- What does the board need to know?- What does the board want to know?- What is my purpose in communicating this information to the board?- How can I get the board’s best thinking to assist the organisation?- What board decision, action, or outcome do I wish to achieve?

Eventually this balancing act fails and in most situations there is a move to the next phase.

Ratifying Phase- The board’s oversight and strategic decision-making functions

diminish.- Meeting attendance becomes sporadic. - Recruitment of new members often focuses on how much time a

prospective member has to contribute to the organisation, not on his or her desire or ability to advance the organisation’s mission.

- Board discussions become less robust. - Organisational leadership falls into the hands of the executive and

leadership staff members.At this point the board moves into the next phase.

Ratify:To approve and give formal sanction to; confirm. To give formal approval or consent to Approve and express assent, responsibility, or obligation


Validate, formalise, declare or make legally valid To approve and agree to formally and officially, especially in writing.

In the ratifying phase the board is functional but largely disengaged from the organisation.- Boards tend to meet less frequently for shorter periods. - Convenience and practicality is important, as the board comprises more

and more busy individuals of high status. - Information comes almost exclusively from professional staff members, - Agendas for board and committee meetings are created by the staff, and

these are followed by board or committee chairs. - Power falls into the hands of the executive, who manage the board. - The board is not involved, informed or connected to the main core of the

mission and values and performs its duties in a cursory manner.- The board is not likely to be as cohesive a group (as it was in previous

phases) and members may not know each other very well. - Board members spend much less time thinking about the organisation.

And again and again and againIt’s time to move to the next phase. A crisis occurs; a new cycle begins and continues with other crises that move the board from phase to phase. Each movement will still be precipitated by a new need that calls for a substantially different response from the board.

All of the above models, and others you will encounter, have their own advantages and disadvantages. And all of them lead us to question the organisational structures within different organisations. One of the most important questions we need to ask is:

Should the board be a leader or a manager?Conventional wisdom says that the board should be the leader, leaving management of the programmes, etc., to the executive, to staff managers and to their staff, but there are problems with this.


- In reality, both board and executive are leaders and managers in some way.

- Whatever structure is in place may have to change in times of crisis.- There are bound to be disagreements over what is a major policy

issue or not.- If the board is ‘vision-centric’ and they don’t see the executive as

needing a sense of vision, this could lead to the board looking for an executive body with no vision … Obviously this is highly unlikely to happen.

o Someone looking to work for a non-profit in a top position is hardly likely to not want to embrace the organisation’s vision (otherwise they would be looking for jobs in other sectors).

o In reality, board, executive and staff should have some role in envisioning the organisation’s growth and progress.

Reactive management vs. proactive leadershipBoard agendas too often focus on reactive management instead of proactive leadership. Change can occur rapidly and often. In many organisations change takes place because of new leadership, in response to a new opportunity or to avoid a threat. Change is difficult for both management and employees. One of the biggest issues associated with change is whether responses to it are reactive or proactive.

Proactive and reactive responses to changeProactive change Actively attempting to make alterations to the workplace and its practices.Trying to avoid a potential future threat by acting before it happens.Capitalising on a potential future opportunity.

Reactive change


Making changes in its practices after some threat or opportunity has already occurred.

If the board becomes too involved in management, there is a danger that it will slip into micromanagement.

Micromanagement

How to identify the micromanaging boss:- Have communications with you and your boss become limited and

strained? - Does your boss manage everything down to the smallest detail,

looking over your shoulder, completing your tasks before you have finished them?

- Does your boss make you give feedback on every step of your project?- Have you stopped offering input or suggestions to solve problems? - Does your boss ever talk about the larger picture? And how all the

small tasks fit into it? - Does your boss listen to you?- Do you feel like going the extra mile, making a few sacrifices if called

upon?- Do you feel like your boss holds all the power and is responsible for

everything?- Do you feel as if your boss doesn’t trust you?- Do you resent your boss?- Are you the only one who feels this way? What about other people

who work for him/her?- Do you feel like you go to work to put in time, but not much more?- Do you feel as if your skills haven’t been honed, and that you haven’t

learned anything new?- Do you feel confused? Angry? Unsure of yourself?- If you could find another job, would you take it? (Are you looking for

one right now?)


If you can feel your blood pressure rising as you answer these questions, it’s highly likely you are being micromanaged. Good luck with that.

What does micromanaging do?Micromanaging adversely affects

- supervisor–employee communication,- creativity, - productivity, - problem-solving,- flexibility,- trust,- feedback,- openness and- company growth.

Exercise 70: Why do bosses micromanage?Discuss this question in class.

- Have you been in a position where you have been micromanaged? (At home, in the work place, socially.)

- How has this made you feel?- Why do you think people micromanage in the workplace?- What sort of people micromanage?- What is their behaviour saying to their employees?- What reasons do they give for micromanaging?- What might happen if a person is over-managed?

How to end Micromanaging

Questions a boss needs to answer: - Do I spend hours showing my employees how to do a job correctly by

specifically telling them what to do? - Do I spend hours overseeing the projects of my subordinates?


- Do I become irritated when subordinates make decisions without first consulting me?

- Do I sometimes wish I were back in my previous, lower-level job? - Do I prefer to direct employees or empower them? - Do I spend more time with business operations instead of planning the

organisation’s growth?Can you begin to see that you might be a micromanager?

Who, what, when, where and why - Who or what you are micromanaging?

o Is it an individual, several individuals, a team, a work process, a special project, or some other entity?

- When is this taking place?o Is it on-going or only at certain times of the day, week, or

month? - Where is this taking place?

o Does this happen in a particular area or location? - Why is it occurring?

o Identify the root cause. o Be completely and brutally honest with yourself. Look at the

underlying reasons for your behaviour.Once you have done this, ask yourself this question: Would I like to be one of my own employees?

Can this be stopped? Micromanaging can be stopped. It’s a case of learning and then practising new behaviour. The change won’t happen overnight, but you should start to see an improvement in your employees’ attitudes almost instantaneously.

- Acknowledge that what you are doing has a negative impact on your employees.

- Acknowledge that you cannot do all the work by yourself.- Delegate a little at a time,; accept the fact that things do not always

go as planned:


o Schedules seldom work out as planned ,o Many variables are involved in identifying and executing tasks

in a work plan, o It’s human nature to underestimate the time and resources

required to accomplish anything from the smallest task to the largest task.

- Focus on fostering better communication with your employees :o The next time you discuss a job or project issue with employees,

start by asking a question and then listen.o State the problem and then listen to the employees’

suggestions. o When employees offer input, accept it.o Be careful when making a suggestion and let them know that

they should follow through if they so choose.- Know when to lessen your direct supervision:

o As a new employee grows more confident in his/her role, reduce your direct supervision of her/him.

- Avoid the “set up to fail” syndrome.- If you continually feel negative about a particular employee’s

performance, you will only notice mistakes and overlook successes. - Try to implement these four alternatives into your managerial style :

o Track assignments electronically to manage productivity and evaluate the performance of employees. Enter tasks on a spreadsheet and set a deadline for each task based on an estimate of the time it will take to accomplish it.

o Conduct an occasional hands-on test to observe and rate an employee’s activity or non-activity at randomly selected times during the work day. Use the information to evaluate the performance of the employee, in addition to making sure they are busy.

o Cross-train employees so that they are able to perform duties in multiple positions.

o Outsource technical support and menial jobs to increase the productivity of in-house staff and to become more cost-effective.


The above description and solutions to micromanaging have been adapted from an article by Kenneth E. Fracaro [http://www.ncmahq.org/files/Articles/ECB0A_CM0707_C01.pdf], which was written about micromanagement in a company context. Whatever the case, whether the people you are managing are paid or working voluntarily, the lessons are still the same:

- If you are going to give someone a job, then let them do it.- Keep your eye on the large details; make sure everything is falling

into place as you had planned.- Praise people for doing a good job. - Look out for the warning signs that show they are not.

AccountabilityAccording to Andrew Meikle, “Accountability has three components: measures, pleasure and pain. If I’m measured and I achieve the wanted result, I get rewarded with pleasure. If I’m measured and I don’t achieve the wanted result, I should experience consequences or pain.” [http://www.ceoforum.com.au/article-detail.cfm?cid=7904&t=/Andrew-Meikle-The-Meikle-Files/Accountability-in-action]

This is one definition of accountability, but there are many others. - To some, it’s something you make people do, as in “holding people

accountable.” - To others, accountability means accepting responsibility, but only after

it’s too late to fix things. - In reality, accountability should be present during the tasks we do; we

should be answerable or responsible for what we do as we do it. We should take responsibility for our work and the results of our daily activities.

Before a board or the executive members of a company talk about accountability, they should have a very clear idea of what they understand


accountability to be, and this understanding should be shared with all members of the organisation.

Ideally, organisational accountability should be part of the DNA of your organisation, whereby each individual, linked by trust, takes personal and group responsibility to forward the mission, vision and strategic position of your organisation by:

- taking responsibility for behaviour, - doing what’s right consistently,- demonstrating personal integrity, - actively participating in activities and interactions that support the

strategy of the organisation.

You cannot make people accountable. Being accountable has to be chosen, accepted and agreed upon by the people within your organisation. If you choose to be accountable:

- you learn to be responsible. - you earn more freedom.- you earn trust.- you understand your role and become committed to making things

happen.

Demonstrating accountabilityYour organisation is required to be accountable, and to demonstrate this to stakeholders. Who is your organisation accountable to? The actions and decisions taken by the board and management affect many people:- Donors- Insurers- Funders- Members- Service users- Staff- Statutory agenciesTFA Course Pack January 2013 189

- Volunteers- Other individuals, groups or organisations affected by your

work/activities

It simply isn’t enough to say that things are being done. There must be tangible, demonstrable evidence through all of the organisation’s systems that show accountability. Exercise 71: Accountability studyLook at the example you have been given about the Church shelter in a middle class suburb.- Make a list of all the people this organisation should be accountable to.

o Divide this list into primary stakeholders and secondary stakeholders.

o To what degree should your organisation be accountable to these two groups?

- Now decide how this accountability should be demonstrated.o How will activities be reported?o Will information be offered, or asked for?

- What else should the board do to make sure that it remains fully accountable?

- What sort of things should the board keep up to date with?

Board structure, leadership and organisation

StructureEach board usually has - a Chairman,- a Vice Chairman,- a Treasurer, - a Secretary and- a certain number of board members, depending on the size of the

organisation.


The more simple the board structure and the more clearly delineated the lines of communication are, the better the organisation will run. The structure of the board should create unity, not division. Most board members serve on one of the committees that are set up to manage the various projects that the organisation is involved in, or on the committee of a newly established programme. Each board member should understand exactly what his or her responsibilities are. Every board is responsible for creating the structure that suits the organisation it serves, developing policies to support the vision of the organisation and formulating procedures that support good governance.

Effective board organisationOrganising all of this involves a variety of tasks, from such routine matters as preparing a schedule of board meetings to developing a policy about terms of service:

- Prepare written job descriptions for all board members.- Draw up an annual schedule of meetings, determined a year in

advance if possible.

Meetings- Circulate information, including an agenda, to all members two to three

weeks before each meeting.- Keep accurate minutes of all meetings. - Keep meetings as focussed as possible.- Encourage participation from all members of the board.

Committees - Request that board members serve on at least one committee. - Prepare written statements of committee and task force responsibilities,

guidelines and goals, approved by the board chair, and reviewed and revised regularly (depending on function, structure and objectives of committee change).


- Match work assignments on committees to background, expertise, and schedule of each board member.

Work- Distribute committee tasks fairly among members.

o Let all participate. o Don’t overload any one member.

- Create a system to monitor committees and make sure tasks are completed on schedule.

- Assign an appropriate staff member to work with each committee.

Never forget to say thank youAcknowledge members’ accomplishments and contributions- in the organisation’s newsletter,- at functions,- at meetings and- in minutes.

The size of the boardThe organisation’s structure and needs determine board size.

- A small board is regarded as being 12 members or less.- A medium board is regarded as being 13 to 30 members.- A large board is regarded as being 30+ members.

The organisation’s needs also determine the number of specialised members who will be approached to serve on the board. If a board is too small, members may be overworked and unproductive. If a board is too large, members may lack the opportunity to participate actively. Size varies from board to board. A board of five might be perfectly suitable for a small non-profit organisation, but far too small for an international one. Size depends on:- the type of non-profit and the nature of the work,- mission and purpose,- asset size,


- board structure,- the culture/traditional size of the board and- requirements for fundraising.

It’s not a bad idea to look at your board and see if it is working as efficiently as it could. Ignore the way things have always been done and see if making it larger or smaller could increase effectiveness.

General opinion seems to indicate that the minimum size of a board should be five members, following the reasoning that

- diverse groups make better decisions and- a minimum of five people is needed to achieve a range of perspective.

Some believe that small boards do not represent the broad public interest, lack required skills and other resources. However, it is also believed that very large boards may take longer to get down to business and make decisions, and may need to be spilt into an executive committee.

Determining the size of your boardWhat is your mission?What does your board need to do to fulfil your mission? What kind of work does the board do at its meetings? Is the board a policy board, a hands-on “working” board, or a combination of the two? What skills does the board need to meet its goals? How would expanding or shrinking the board affect its culture, communication and work style?

***Did you know? Some non-profits deliberately choose an uneven number of board members. This helps avoid tied votes.

Small Boards – the advantages and disadvantages


Advantages DisadvantagesBoard members feel more ownership and responsibility for the work.

Small numbers limit opportunities for diversity and inclusiveness.

Communication and interaction may be easier and more flexible.

Fewer skills and perspectives are represented at the table.

Board members know each other as individuals, creating unity.

Fewer people are available to serve on committees; heavy work load may create burnout.

Every person’s participation counts. Fundraising becomes a burden on the shoulders of a few.

Board members may gain more satisfaction from their meaningful involvement.

The board has less continuity in times of leadership change.

Fewer staff are required to support the administrative functions of the board.

Large Boards – the advantages and disadvantages

Advantages DisadvantagesLarger numbers allow for more opportunities for diversity and inclusiveness.

Members may feel less individual responsibility and less ownership of the work.

More seats allow for inclusion of legal and financial advisors, community leaders and funding area experts.

Cliques or core groups may form; deteriorating board cohesion.

Work can be shared among the group; more people are available to serve on committees.

Some voices may not be heard; a few activeboard members may dominate proceedings. Feeds the danger of herd mentality where a few lead and


the rest follow.Fundraising may be easier because there are more people on the board with more connections.

Bigger boards may not be able to engage all members, which can lead to apathy and loss of interest.

More board members help maintain institutional memory in times of leadership change.

Meetings are more difficult to schedule; more staff time is needed to coordinate board functions.

Large groups may hinder communication and interactive discussion.

Committees A board does a great deal of its work through its committees and task forces. Committees allow for the board’s work to be parcelled out so that the board’s time is effectively used and not taken up with the mundane.

- The Executive Committee is set up to act on the board’s behalf.- Other committees recommend action to the full board for discussion

and action. Most boards have a few standing or permanently set up committees; beyond this, special programmes and task forces are appointed for specific purposes.

Committees usually include some of the following:- a Governance Committee,- an Audit Committee,- a Finance Committee,- an Executive Committee,- administration,- liaison work,- study committees and- project committees.


The first four are usually standing committees; the remainder can be standing or ad hoc committees, depending on the nature and size of the organisation

Every board member should serve on at least one but preferably no more than two committees or task forces. Members are appointed by the chairperson of the board in consultation with the Governance Committee. The size of each committee depends on the needs of the organisation and on how many people are needed to do the work.

As far as board members are concerned, they should serve on the committees that are suited to their skills and interests and the time they have available. Board committees may include people who are not board members.

The Board’s WorkBroadly speaking the duties of the Board of Directors are:

- clarification of the mission,- interpretation of the mission to the public,- establishment of goals, long-range and strategic plans,- setting policies and other major guidelines for operation,- protecting the organisation’s financial stability,- hiring/supporting/assessing and- evaluating the performance of the organisation and of the board itself.

Board OrientationAnyone new to any organisation needs to be introduced to their surroundings, to meet their colleagues, to be informed about organisational rules and regulations and to be told what his or her job entails. The same applies to board members, each of whom needs to be informed about the unique aspects of the organisation. Every newly elected member of the board needs to be oriented to his or her role and to the expectations of the board. TFA Course Pack January 2013 196

- In addition to being vital for new members, board orientation is a good way of keeping current members up to date. Board orientation also enables team building among board members as new members mingle with old.

The content of the orientation depends on the organisation. Board orientations give board members an understanding of the organisation they will be helping to govern.

What happens during board orientation? - New members are introduced, informed about the organisation and

further inspired about their decision to join the board.o The mission, vision and values of the company (or organisation) are

reiterated.- An overview is given of the organisation’s products and services,

including:o current operations and programmes,o strategic plan,o annual goals,o financial status,o top issues ando budget/ funding sources.

- There is a discussion about board governance and a review of various board policies and the roles and responsibilities of the board are fully described and discussed in terms of:

o Bylaws/Articles of Incorporation,o board manual,o policies,o board role & responsibilities,o board/ staff relationship,o committees,o fundraising programme/ events,o major projects ando board calendar.


- New board members are assigned to committees so that they become productive quickly.

- Opportunities are created for board members to meet clients and observe programs.

- There is a celebration of the organisation’s successes.- Dates are agreed upon for meetings.

Exercise 72: What are the realities as far as boards are concerned?It’s all very well to talk theoretically about what a board should and shouldn’t be involved in, how it should operate; the role it should or shouldn’t play. But in reality, the best way to gain solid information about a board’s role in an organisation is to look at some in action.Share experiences about the following in class:

- What have you seen at your internship? - How big is the board?- What does the board there do?

o Is it effective? o Is it hands-on? o How often does it meet?

- Are minutes of board meetings available?- What is the orientation procedure?- What do your supervisors say about the board?- How well do you think the board functions?

Building board relationships and a cooperative spirit

Noncooperative approaches . . . almost always involve duplication of effort, since someone working independently must spend time and skills on problems that already have been encountered and overcome by someone else. A technical hitch, for example, is more likely to be solved quickly and imaginatively if scientists (including scientists from different countries) pool their talents rather than compete against one another. ~ Alfie Kohn from No Contest: The Case Against CompetitionTFA Course Pack January 2013 198

http://www.amazon.com/exec/obidos/ASIN/0395631254/

Do not hold the delusion that your advancement is accomplished by crushing others. ~ Marcus Tullius Cicero

Great discoveries and improvements invariably involve the cooperation of many minds. I may be given credit for having blazed the trail, but when I look at the subsequent developments, I feel the credit is due to others rather than to myself. ~Alexander Graham Bell

Competition, which is the instinct of selfishness, is another word for dissipation of energy, while combination is the secret of efficient production. ~ Edward Bellamy

The only thing that will redeem mankind is cooperation. ~Bertrand Russell

It is through cooperation, rather than conflict, that your greatest successes will be derived. ~Ralph Charell

Both the board and management should work constantly on enhancing their working relationship, striving for strong leadership with a spirit of cooperation and collaboration between board and management and within the organisation as a whole. Confrontational or toxic relationships among board members or between the board and other sectors of the organisation affect productivity. Some organisations spend time on organisational leadership and forget their board leadership. And even in organisations where there seems to be a good balance, the introduction of new members, the need for diversity and other unforeseen challenges can strain the dynamics of the organisation. Both the board and the executive must be empowered in their roles, sharing skills, talents and, above all, learning to compromise and cooperate with each other.

The board needs to provide strong and capable leadership and also needs a strong executive leader to guide the organisation. But what about the balance of power between these two entities? Does it foster a spirit of TFA Course Pack January 2013 199

cooperation, or is there an imbalance? Problems can arise if the board has all the power or if the executive staff has all the power. Both need to pay close attention to the division and sharing of responsibility and power. The board needs to take its role of owning ultimate responsibility seriously, by making sure that it knows what is going on in terms of the organisation’s systems. Generally speaking, the executive should be allowed to take care of daily tasks and responsibilities without interference from the board. A strong executive should be able to work amiably with a strong, passionate, involved board.

When it comes to assessing the relationship between them, both the executive and the board need to communicate with each other and ask questions of each other that demonstrate a respect for the role that each fulfils

Ideally, there should be a partnership between the executive director and board, even though the board’s position is slightly more powerful as it is the “boss” of the executive (or should be), and holds the ultimate power. The mutual goal of both the executive director and board should be to have the best, strongest partnership possible, according to the structure of the organisation and its goals.

Board and executive: The characteristics of a good partnership between? Each party should know what it is supposed to do.Each party should work out a course of action that will allow it to do this in the best way possible.

- There should be balance: Sometimes, depending on circumstances, this may swing more in the direction of one party than the other, but there should be a sense of equilibrium: the knowledge that the balance of power will be restored.

- There should be respect: each party should hold the other’s ability and capability in high esteem.


- There should be mutual trust: each party must be assured that the other will always act with integrity, working for the best interests of the organisation and its mission.

- There should be clear understanding of roles and responsibilities, of what each party does (this is discussed below).

- There should be accountability: this will engender mutual respect and trust. In any partnership, both parties must be accountable and receive accountability in return. If there is no accountability, what is there?

- There should be shared ownership (and, by implication, shared goals) A partnership exists because both parties share the same vision and are passionate about wanting to create something and do something that they cannot achieve on their own.

- There should be shared leadership: As mentioned earlier, this is a delicate balancing act. Both parties must, first of all, be willing to share. Beyond that, they need to be able to acknowledge the superior strengths of the other and step back when needed, and by the same token, take up the leadership when needed.

- There should be communication: Talk to each other. It’s that simple. Keep the lines of easy, open and honest communication uncluttered by power plays, games, and pettiness.

- There should be appreciation: As we’ve said before, never, ever, miss out on the opportunity to say thank you and to show your gratitude.

Exercise 73: Assessing the quality of the partnership between the board and the executiveThis is a useful form to have, both now, as you are learning to look out for such things, and for the future, when you will be in the position of having to assess the nature of your partnerships in the organisation you are involved with.

For now, though, use the form below to assess the partnership between the board and the executive in your organisation.


It’s interesting to give an assessment form like this to both sides of the partnership and get both to fill it in without consulting with the other. Often the impressions and assumptions of one party may not be anything like the other’s. If this is the case, a simple assessment like this can jolt one group or the other out of its complacent mind-set and be a good way of getting them to sit down and talk things through.

Assess these characteristics on a scale of 1 to 10, where 1 is almost beyond redemption, and 10 is excellent. Circle the number that corresponds with your assessment. Make notes in the space underneath your assessment if necessary.CHARACTERISTIC

1 Appalling might not be fixable2 Very poor3 Poor; needs a great deal of work

4 Barely acceptable 5 Tolerable, but needs improvement6 Okay, but still needs work

7 Satisfactory, but not perfect8 More than satisfactory9 Extremely healthy, very little to worry about10 Excellent

Balance 1 2 3 4 5 6 7 8 9 10

Mutual respect 1 2 3 4 5 6 7 8 9 10

Mutual trust 1 2 3 4 5 6 7 8 9 10

Clear understanding of roles and responsibilities

1 2 3 4 5 6 7 8 9 10

Accountability 1 2 3 4 5 6 7 8 9 10


Shared ownership and goals

1 2 3 4 5 6 7 8 9 10

Open communication

1 2 3 4 5 6 7 8 9 10

Shared leadership 1 2 3 4 5 6 7 8 9 10

Appreciation 1 2 3 4 5 6 7 8 9 10

Who does what? It’s important that the board and the executive know exactly what their duties are. Is there a clear understanding of roles and responsibilities? This has been said before but it bears repeating:

- Is there an overlap? - Is one doing more work than it should be? - Is the board becoming too involved in the executive’s duties? Has the

executive taken on the board’s role? This can be one of the biggest obstacles in establishing a partnership that works well for both sides, but fortunately it’s one of the easiest problems to fix.

- Does the board know which jobs it is supposed to be doing? - Does the executive know?

All that is needed here is another conversation, although this one might take more preparation.Compile a form similar to the one below and give it to each member of the partnership to fill out in advance of a meeting. Ask them to refer back to the


organisation’s strategic policy, the board manual and other sources of information.

Task Work involved Who is currently doing this job?

Whose job should this be?

Mission identificationStewardshipFinancesRevenue developmentDecision-makingMarketing, etc.

It becomes quite simple after this: You sit down. You both have a conversation. You agree, in a civilized fashion, about the new distribution of work, and often, long-held grudges and tension dissipate.

Generally speaking, although this may vary from organisation to organisation, the executive director should not be making policy decisions and asking the board to simply ratify them; instead, he should be providing important information to the board that will lead to collaborative discussion between the executive and the board, with the board making the final decision and the executive director managing (or executing) that decision.

There has to be clarity, and agreement, about who does what and when. If there is a lack of clarity, this is something to be addressed in your conversation.

Exercise 74: What could lead to a blurring of roles and responsibilities within an organisation?The situation described above, where there is no clear delineation between the roles in an organisation, can happen more easily than one might think.

- What could be the reasons for this happening?TFA Course Pack January 2013 204

- How can this situation be put to right??- How can we be assured that this solution will be a permanent one?

o Is there any way of formalizing agreements?

Exercise 75: An overview of boards for and from your classmatesThis is a fun class exercise. Each person starts with a piece of blank paper.Your lecturer will call out a subject.When you hear the subject, write as much as you can, as quickly as you can, about what you’ve learned at internship sites about boards. When the time is up, pass your paper on to the person sitting next to you and be ready to write on the next topic called out. At the end of the session, you will have a summary of interesting information about

– size,– structure,– relationship between board and staff,– how the board is chosen,– the giving level, – the board’s involvement in fundraising,– the board’s involvement in projects, – committees,– orientation and– the relation between the board and the executive.

Further reading

If you can, you should read and subscribe to the following:

Fundraising Success Magazine [http://www.fundraisingsuccessmag.com/[Foundation Center Bulletin [http://foundationcenter.org/]Funds for NGOs [http://www.fundsforngos.org/[Funding Site: The Greater Good [http://www.fundsforngos.org/]


Class 6Internship Reviews


During these sessions you will have a chance to discuss issues as they arise during your internship. You can ask questions about the jobs you’ve been given to do and share stories: of successes and of mistakes.

It’s important to speak up honestly about your mistakes as well as your successes. You and your classmates will benefit from seeing what went wrong, why it went wrong and what you can do to avoid a similar thing from happening in the future.

Review 1: ‘What I have done in my internship?’Take a few minutes to think about where you are at this time.

- How do you feel about your internship? - Are you satisfied with your performance? - Are you satisfied with your working environment?

Jot down thoughts as they come to mind.- When you feel ready, start to compile a list entitled ‘What I have done

in my internship’.- Once you have completed this list, take a moment to reflect on it,

asking yourself:o Does it seem like I have done a lot?o Does it seem like I have not done enough?o How am I working with my supervisor to assess what I am

doing?o What have I done well?o What mistakes have I made?

- Once you have completed this, take it in turns in class to discuss what you have written and how you are feeling about your internship.

o If others in your class have done things you would like to be doing, make a note of these.

o If others in your class seem to be experiencing the same sort of difficulties, make a note of this and raise it as a point for discussion.

There are two more months left in your internship.


- Taking into account all that has been discussed, write a list of 5 goals for the remaining two months.

- Finally, write a list which details what you want to have accomplished by the time your internship is over.

- Put these tasks in order, and look at how and when you might hope to have achieved what you want to do.

o How long would each task take? Are there some jobs there that can be achieved quickly

and immediately? Will some take longer and need more planning?

o What sort of planning should you do in advance? Does anything need to be set in place before you can

achieve certain tasks? If so, include these as ‘things to do’ steps in your list.

- Now create a task timesheet, giving yourself a reasonable time in which to complete these tasks.

o Don’t set yourself up for failure by cramming too much into too short a space of time.

o Be realistic. - Make a copy of this list of 5 goals to hand in to your lecturer and keep

a copy of it for yourself, to refer to when you think you might need it.

Review 2: Sharing goals Before moving on to new material, do a status check with your classmates.

- Did anyone use their timesheet? How did this work for them?- Had they set themselves a realistic amount of time in which to do the

work?- Did they feel better organised? - Has anything else happened that they would like to give feedback

about? Ask questions about?

Refer back to your list of goals from last week and share these with your classmates.Take note of goals which are similar to yours.


If there are goals which are different to yours, but which you think are excellent ideas, add them to your list.

Are there any goals which seem unrealistic and unattainable? Make a note of these too. Ask permission of the classmate whose goal seems unrealistic to discuss this goal with the class. Ask him/her how he plans to achieve this. Once you get a sense of what it is that s/he wants to do, see if anyone can come up with a goal that is similar, but more achievable.

Sometimes hearing other people saying things clarifies what you might have been thinking, but were unable to fully express. Acknowledge this. Be as willing to share your ideas as you hope others will be when you ask if you can share theirs. This is a good exercise for collaborative thinking and engendering a cooperative attitude. It’s also a good exercise in tact. You don’t want to hear yourself saying, ‘That’s a ridiculous idea.’ However, you could say something like: “I really liked what you were saying about x, y and z, but I wonder if this is something that could be scaled down a bit? It’s a great idea, but I worry that …” etc. Share your thoughts on what works and what doesn’t. Share your thoughts on mistakes. Learn as much as you can from each other, in an open, generous forum. (We will be talking about mistakes in a later session.)

Review 3: Making mistakes- Refer back to the list you made: ‘What I have done in my Internship’,

and look again at the mistakes you made. o Choose the one which you think was the worst and write this

down on a piece of paper. Do not put your name on the paper. This mistake will be discussed by the whole class, so give details.

E.g., I promised to phone someone back about a donation, but forgot to do so. By the time I remembered, the deadline had passed. I didn’t tell my supervisor about what I had done. S/He hasn’t said anything to me about it, so maybe s/he has forgotten.

- Collect all the pieces of paper and make a pile of them.TFA Course Pack January 2013 209

- Take it in turns to choose a piece and read the mistake written on it for the whole class to hear.

- The class will then discuss this mistake and say what the person who made the mistake should have done, what the consequences of the mistake should have been, what the person who made the mistake should have done to show that he/she was aware of the consequences, etc. (Remember your notes on accountability? Do you think they are relevant here?)

- The person who made the mistake can then say what happened afterwards, or what s/he plans to do to show accountability.

Writing a good CVThe letters CV stand for Curriculum Vitae, or Path of Life. Generally speaking, a CV details your experience, your qualifications, your interests and recognition of your talents (awards, etc.). As a potential fundraiser, working for a non-profit, your CV needs to take a different approach than the conventional.

Did you know that over 220,000 people logged on and used http://www.charityjob.co.uk in March 2011? Your CV needs to stand out. A good CV speaks volumes for you. It makes people want to know more about you. It’s the first step in the job application process, and if you write it well, it will lead to the second step, the all-important job interview. No matter how good you are, how many times others tell you that a certain job is tailor-made for you, if you submit a poor CV, no one will want to learn anything more about you.

What sorts of jobs are available in the non-profit sector?There’s a wide range of jobs available in the non-profit sector, including:

- Administrator/office assistant,- Fundraising assistant, - Marketing/communications assistant, - Campaigns assistant,- Direct marketing,- Corporate fundraising,


http://www.charityjob.co.uk/

- Major donors,- Events, - Communications, - Database management and - Research and analytics.

You could be asked to do any or all of the following:- Media and marketing:

o Creating press, television, radio and poster appeals to attract donors.

- Corporate fundraising: o Arranging company sponsorship. o Setting up schemes for staff or customers to donate.

- Trust and legacy fundraising:o Persuading companies or individuals to set up trust funds

or leave money in their will.- Organising events:

o Charity balls, galas, sport events, etc.- Organising street or door-to-door collections.- Direct mailing to ask for donations.- Overseeing trading operations. - Charity shops or mail order sales.- Recruiting and managing volunteers.- Managing budgets and reporting on fundraising performance to

the charity’s trustees and donors.- Giving talks and writing press releases.- Meeting targets for the amount of money raised.

If you work for a larger non-profit, you might only fulfil one or two of the above roles. If you work for a smaller non-profit, you might find yourself being called upon to do all kinds of fundraising as well as managerial work.

Some of these are entry-level jobs, others require more experience. Usually, to gain an entry-level role, you’ll need experience, with volunteer work particularly valued. The more volunteer experience on your CV, the better TFA Course Pack January 2013 211

your chances. Your potential employers may often be more interested in your commitment to working in the non-profit sector than in your formal qualifications. It’s a good idea to spend some time doing pro bono work for non-profits, which offer experience in the same fields as you are interested in. Doing an internship, as you are doing in this course, is also an extremely valuable addition to your CV.

CV Guidelines

Concise and focused Most CVs are about 2 to 3 pages long, although some organisations ask that they be longer, and some ask for shorter. Don’t reduce font size or spacing to squeeze more in. That’s just irritating and won’t advance your cause. Be kind on your reader’s eyes. Remember, yours isn’t the only CV they will be reading, especially if the job has been advertised in the newspaper.

Match your experience, achievements and skills to the organisation and the role. Not all fundraising jobs ask for the same skillset. Look at what a job description asks for and make sure that you demonstrate your ability to fill these needs.

Although, generally speaking, CVs are static documents and are used for a variety of applications, when it comes to fundraising, it can pay to tailor your CV to a specific job, rather than firing off a generic CV. For example, one non-profit may need someone to work in events management. Another might want someone to approach donors. The first job would require good time management skills, good organisation abilities and communication skills; the second would need fantastic people skills, good record-keeping and attention to detail.

Don’t be shy about highlighting your fundraising successes in a particular role, letting your future employer know what your income target was and how you succeeded in reaching it. Make a bulleted list with some impressive figures – and in this case, numbers will talk louder than words. Show your prospective employer that you have excellent organisational TFA Course Pack January 2013 212

skills, good presentation skills, that you can work under pressure and meet deadlines, that you have budget management skills. Demonstrate any role you played in raising funds, recruiting donors, working with volunteers, project managing – anything that fits the job description.

Of course, it’s essential that everything you say in your CV is true and can be verified. Don’t inflate your abilities or your achievements. Be honest and direct and let your achievements speak for you.

Don’t neglect to make good mention of your ‘soft’ skills: your ability to listen as well as to communicate; your ability to empathise and to key into people’s motivations and aspirations. State that you are a good judge of character, that you are intuitive, that you are committed to the vision of the organisation. Say that you’re good at making a plan, thinking on your feet, working to deadlines and under pressure. Show your reader that you are creative and imaginative, that you have excellent written and spoken communication skills, drive and enthusiasm and the ability to motivate and manage others.

Obviously, it stands you in good stead if you are proficient with computers, and beyond that, that you understand the importance of social media and know how to use Facebook, Twitter and the like, if need be. Show that you realise why these skills are important; that you realise the need to keep in touch with younger audiences Young people often have highly developed and idealistic social consciences.

Qualify your achievements and abilities. Saying that you have certain skills is all very well. Being able to show how you have used these can make all the difference.

Suggested layout of CV

Name/contact details


Heading: The job title you’re applying for, followed by a short sentence describing what you have done that is relevant to this. Skills sectionTry as far as possible to link your skills to the job you are applying for. Include PC and software skills, particularly if you are applying for technical jobs.

Experience When it comes to a fundraising CV, your volunteer experience is just as important and valuable as any paid employment. Many would say even more so, as volunteer work demonstrates your commitment to a particular cause; you don’t find many people giving up their Saturday mornings to walk dogs for TEARS, or their Friday evenings to assist at a youth centre. Give the dates of your voluntary contributions and a brief paragraph about the organisation, your responsibilities there, and a list of your achievements and impact. If you’re moving from one job in the non-profit sector to another, then split this section in two, listing your paid and voluntary work in two separate sections.EducationYour formal education should be listed here, starting with your most recent qualifications. Don’t forget to give details of other relevant training courses, giving dates and details of the institutions. Cover letterInclude a brief cover letter which explains your special motivation for working for this organisation.

The above is a suggestion as to how to set out your CV. But generally, as long as it is well written, informative, neatly set out and doesn’t use any weird and wonderful fonts and effects, there is no right or wrong way of going about it. Microsoft Word offers some very neat and professional-looking CV templates.

Once again, remember, this is often the first impression an organisation will receive of you. Do everything in your power to make it a good one.


CV vs. Resume Although many people use the two terms CV and resume interchangeably, they are not the same. A CV gives a full record of your career history and a resume is a brief, targeted list of skills and achievements.The difference between a CV and a ResumeA CV often covers areas of your life that a resume doesn’t. It gives the employer a high level of detail about your achievements and creates an in-depth picture of you as a person as well as a worker. It is more than just a career biography. It covers your education as well as accomplishments like publications, awards, honours, etc. It can also list your interests and hobbies.

A resume is a brief, to the point, fact-by-fact listing of your educational and professional life. It makes an individual stand out from the competition.

A CV is usually organized chronologically, making it easy to get an overview of an individual’s full working career.

A resume doesn’t have to be ordered chronologically, doesn’t have to cover a whole career; it is like a highly customizable document.

A CV is static and doesn’t change for different positions; the difference is in the cover letter, which states why you are applying for a particular post.

A resume should be adapted to every position you apply for, tailored to the needs of the post.

A CV can be anywhere in length from 2 to 5 pages, depending on the amount that has to be included and what the employer asks for (some employers actually ask for a long CV, others stipulate that it must be shorter).

The shorter, the better; resumes are usually about one page long.

CVs are generally preferred in the UK, Ireland, New Zealand, and

Resumes are generally preferred in


mainland Europe. the US and Canada.

In Australia, India and South Africa, the terms resume and CV are used interchangeably and it is up to the applicant’s discretion to decide which to use. (It would be interesting to ask your supervisors which format they think would be best used in the non-profit sector in South Africa.)Have both documents ready so that you can apply to either market. (Remember, non-profits are often funded by other countries than your own. Make sure which they would prefer when applying.)Make sure you have certified copies of all documents that are asked for, typically your ID, degree certificates, matric certificates, references, etc.

Exercise 76: Writing a CV and cover letter- You have been shown examples of good fundraising CVs and cover

letters. - Use these as models and draw up or update your own CV. - We will be looking at these in class. -


Class 7Alternative

Fundraising Strategies


Direct MailRead over your notes on direct mailing.

- Letters written for a direct-mailing campaign should be written on proper notepaper with a letterhead.

- They need to be well written, following a carefully worked out formula.

- Many companies employ specialist writers to compose direct mailing letters.

Social mediaUse social media inventively.

Facebook- Make sure that your organisation has a Facebook page. - If you don’t have one, offer to set one up, and invite other members of

the organisation to manage it with you. - Link your website to your Facebook account. - Make as many friends on Facebook as you can for your organisation.

Get people to see you as a cause worthy of support.o Join other organisations that are similar to yours on Facebook.

See what they are doing. Support their events and invite them to support yours.

Twitter- Start tweeting about events and news. - Tweet about events that affect your organisation directly and about

events of related interest. - Get people to follow you on Twitter. - Follow causes and organisations similar to your own and see what

they are doing and see who they are following.

Managing social media- Through Twitter and Facebook you can build a good database of


people and organisations to contact, some of whom you might not have been able to access through regular, more conventional channels.

- However, don’t forget that in order to use Facebook, Twitter and other avenues of social media effectively, you need to maintain a constant presence on the internet. This need only be as short as half an hour a day, or every two days, but if you let this presence lapse, people will soon tire of visiting your pages and seeing that nothing is happening.

- The same applies to your organisation’s website. Make sure it is dynamic and updated regularly.

- Use all three forms of social media to advertise events, call for support from fundraisers and to give follow-up information about your organisation.

It’s all very well to ask for funds; it’s great when you receive funding. It’s only polite to let people know how your projects are going and what their funding has been used for. You can do this through regular channels, but don’t forget to keep your followers, friends and visitors on Twitter, Facebook and your website up to date too.

Many people believe that social media is the future of fundraising – that soon this is the only way in which we will communicate with donors, beneficiaries and other interested parties. This may well be true to some extent. However, don’t forget the importance of personal relationship building: meeting people face-to-face, taking them out to see your projects in progress, talking to them on the telephone, seeing them at fundraising events.

Property- Does your organisation own its own property or properties?


- Are you renting at an exorbitant rate when you could be putting that money into the bond on a property?

- Do you know exactly what your organisation’s asset base is in terms of property? Is this being used effectively?

- Are there creative ways of using this property so that it can generate more income for the organisation? For example, is your property being used in the evenings as well as during the daytime? A free evening space can be used for evening classes, as a social gathering spot, for after-hours conferencing.

Often organisations don’t know what their asset base is and how to leverage that.

Special eventsWe all know what the Kite Festival is, or the Argus Cycle Tour. The thing to remember is that these annual events didn’t spring up out of nowhere. Someone had a great idea and decided to try to implement it. When it was a great success, they decided to try it again a second year in a row, and then a third, until suddenly occasions like these became annual fundraising events that corporates and the public were happy to support. So get your thinking caps on. What could your organisation do? What fun event could you institute? One thing that isn’t being done by every other organisation, that the sponsors and the public haven’t become bored by or tired of.

If you have a great idea … take a while, stand back, and look at it from all angles.

“I know! What about an annual hike up Kilimanjaro for a select number of sponsors and the first to the top pledges a million rand to the organisation?” “Great idea! And we could get their colleagues and friends to sponsor them – say R20 per kilometre. We’ll make piles of money for KidzOutdoorz…”

Great idea. Until you look at the costs of visas and air tickets. Until you look at the practicalities of getting a group of twenty high-powered businessmen


away from their desks for a minimum of a week, as well as making sure that they are following a fitness regime before departing. Until you look into the costs of climbing Kilimanjaro: hotels, guides …

Suddenly it’s not such a great idea.

Be creative – but be practical too. Don’t embark on a fundraising scheme that is going to cost your organisation more than you manage to raise.

Bequests and Planned Giving- When a donor dies, the transfer of part or all of his or her wealth via a

will or a trust is called a bequest. And to continue support of a non-profit, many people simply name the non-profit as a beneficiary in their will or trust. There are often terms in the will that state how such a bequest is to be used (to provide scholarships for children from a certain township; to generate income for a feeding scheme, etc.).

- Some donors name a charity or non-profit as the beneficiary of their retirement funds or retiremrent annuities.

EndowmentsEndowments are those parts of your fund that are made up of gifts and bequests. In most cases the principal amount of money is never touched, only the interest that accrues from the original amount is used. Not all of the interest is used (usually only about 5%) with the remainder of the interest being reinvested so that the principal amount grows, thus generating more interest. Usually the principal remains untouched forever, sometimes for a specified amount, sometimes until enough money has been generated to be used for a defined purpose.

- Endowments add stability to your organization, ensuring that you will always have a core amount of money that will generate income for future projects and plans.

Encouraging donors to contribute to your endowment fund


- Explain your endowment fund carefully. - Why has it been set up? - How do you plan to use the endowment and its earnings?

o Show in every way possible that this is a legitimate fundraising endeavour and not a scam.

- Make sure you have all the answers to all the questions. Set up a general Q&A section on your website and in your printed material that answers questions like:

- Who is managing your endowment? - How do other companies operate: do they also have endowments?

o Showing that other organizations have endowments is of great benefit. It demonstrates that what you are doing is standard practice and legal.

- How have funds generated thus far been used and/or reinvested?- Build trust by showing that adding to your endowment means that

your organization will continue for many years. - Make sure that potential donors to an endowment fund see this is an

added fund. - Show that you are meeting your current fundraising needs from your

annual budget. - Show that you have a contingency fund set aside for emergencies (and

that your endowment fund will never be used in an emergency).- Look carefully at your current donors and see who would be good

prospects to approach re donating to your endowment fund. o Long-term donors are usually good candidates; they’re often

people who want to help to ensure that the organisation they support will be looked after in the future; they’re also often people who want to leave a legacy of good works and goodwill behind them after they die.

- Make your endowment campaign a recognised part of your fundraising programme.

o Start a planned giving campaign, and devise good, persuasive marketing strategies for it.

o As well as seminars, public events and direct mailing, don’t forget word of mouth – if one wealthy donor mentions his bequest to your organisation to his friends, word will spread …


Even if you only start small, don’t delay in setting up an endowment for your organisation. Many potential donors will want to know if you have an endowment in place and how it works. It takes time and effort to get one into place, but it’s time well spent, and it ensures stability in the future.

BEE, ED, SED … what do these acronyms mean?All of these groups of initials mean a possible source of funding for your organisation. As fundraisers we are used to looking at the conventional sources of corporate donation for projects: sponsorship and Corporate Social Investment. However, there are other places to look too.

Exercise 77: What is the BEE scorecard and how does it work? This exercise involves careful research and the ability to give feedback to your class in such a way that everyone knows what the BEE scorecard is, how it works, how much work is involved in taking advantage of it, and which companies would be good potential donors according to their need to score points for their BEE scorecard. It should also show that, instead of asking for donations, that an organisation can offer something to corporate sponsors.

- Class will be split into three groups. o In the first feedback session, Group 1 will be asked to explain to the class

exactly what a BB scorecard looks like, what the categories on it are and what each category means. They should also know the difference between BEE and BBBEE

o Group 2 will provide feedback on the significance of the BEE scorecard for a non-profit organisation. How is this a means of encouraging companies to donate to a non-profit? Group 2 will also need to explain what a preferred procurement partner is. Group 2 should be able to explain the significance of the Socioeconomic development (SED) and the Enterprise Development(ED) sections of the BEE scorecard.

o Group 3 will then give feedback on how to align an organisation’s development programme with BEE scorecard elements. Where is there a


natural fit between certain organisations’ projects and the BEE elements? How much money can you access from a company if you can show a clear fit? What are the implications (long-term and short-term) of finding a good fit? What are organisations offering corporate sponsors in terms of the BEE scorecard? What sort of development projects are not a good fit?

Annual reportsEvery non-profit organisation has an annual report. At the back of these is a list of donors. - Check the reports from the last few years and compare these to your

current list of donors. o Are all individuals and companies still donating to your organisation? If

not, it would be worth your while to find out why. First ask within the organisation and then, with permission, approach these donors again.

o Check the Annual reports of other organisations – especially those that are similar to yours.

Have a look at their donors. Research these individuals and corporations. If you feel they provide a good match with your organisation,

approach them as potential donors

VATDoes your organisation have a tax specialist? If not, it would be worth your while to consult with one. Many organisations are not registered for VAT and they don’t calculate their VAT back correctly. There are specialists that can help with this.

Earned Income (from sale of services, sale of products)Many organisations sell products. However, most are not profitable. This does not need to be the case though. Explore this aspect of adding to your organisation’s funds, assess it carefully and see whether it is something you can embark upon in a profit-making way.


Several non-profit organizations such as thrift shops (e.g., the TEARS thrift shop and secondhand bookshops) museum gift shops, hospitals and schools sell goods or services to supplement their income, and do so successfully. However, many non-profits fear that earned income or the sale of services will

- diminish the mission of the non-profit,- destabilize the organization, - be too difficult to set up, organize and manage and- earn too much money and so put them at risk of losing non-profit

status.

If earned income is badly managed, all of the above can happen. It also isn’t the way for all non-profits. However, it is worth exploring, to see whether it’s something that could work for your non-profit. Before looking at it, though, be aware that earned income won’t provide an instant solution to much needed cash and so set an organisation back on its feet again. It needs to be seen as another means of fundraising, not the only means. Your organisation needs to be stable, well organized and well managed before you look at this alternative method of raising funds. It can also take some time to get such projects off the ground and for them to start making a profit. This doesn’t happen overnight.

Look at your organization carefully and answer the following questions in thinking about earned income. If you answer “yes” to a majority of these, you might consider earned income as potential new revenue source for your organization:

- Is the organization financially stable?- What assets do we have that could be used to generate cash through

the sale of products or services? (E.g., if you are an animal centre, could you produce beautiful animal postcards? Could you get children to draw these? Could you approach a famous animal artist and ask him or her to run classes, teaching people to do life drawings of animals?)


- Is there a market for these products and services? If the answer to this is no … you have two choices: Give up, or create a market – make people realize that they want what you are offering.

- How much work is this going to involve? How many man-hours? How much money to set this up? Will your mission benefit from the exposure, good press, etc?

- How does your staff feel about this? This could be quite a big risk. It’s an experiment too, one that might fail. Are they enthusiastic? Resistant to change? Should you get a change management consultant in to speak to them?

From there it’s a case of - deciding what to sell,- looking at the competition,- looking at potential customers,- running a test or pilot,- working out a good business plan and- getting the show on the road.

Exercise 78: A model of a non-profit where earned income is working well Look at the English at Work website. http://www.socialvelocity.net/2010/06/bringing-small-nonprofits-to-scale/

Discuss the following in class: - What service is being offered? - What is English at Work hoping to achieve in terms of earned income

and their budget?- Does this service fit their mission?

Now, in class, look at the organisation where you are doing your internship. - Put it on the table. - Let everyone have a good look at it. - Don’t think conventionally. - Look at all angles of what the organisation offers. - What service could you offer? What product could you sell? - How many yeses would you get to the questions asked above?


http://www.socialvelocity.net/2010/06/bringing-small-nonprofits-to-scale/

If your organisation decides to go ahead with an earned income process and makes a profit, make sure you ask a tax advisor to help, especially regarding your non-profit status.

SharesNon-profits can purchase shares as a future form of income and investment. This requires the advice and expertise of a legal team and a reputable investment company.

ShareholdingSome non-profits are able to negotiate a shareholding in large corporates. Once again, this requires the advice and expertise of a legal team and a reputable investment company.

Social Investment Funds/ loansThis is the new kid on the block for fundraisers. Donors, looking to make a return on their investment, will offer loans that need to be repaid. This assumes that the organisation will actually make a profit, and this in turn means that it will, which means it needs to sell a product or a service. It’s quite a seductive idea – receiving a loan to fund a project that will generate income. The income will be used to sustain the project and repay the loan.

Exercise 79: The pitfalls of social investment or funding Class discussion: why does this concept need to be approached with care?What are the possible pitfalls? What preparation should be embarked on before social funding is applied for? What organisations have already received funding? This is worth researching. Find out how they are managing. Have any defaulted on their loans?What are the advantages of this? What sort of organisations would be good candidates for this? What about your organisation? Would it be worth investigating this as an option for funding projects?


Class 8Public Speaking


A formula for writing a speech

Every speech should follow the simple formula set out below.

- Topico Give the name of your topic.o Tell an introductory story or joke.

Outline or summarise that you will be speaking about the following 3 points:- One-line description of point 1.- One-line description of point 2.- One-line description of point 3.

Start the talk with point 1- Point 1

o Break down point 1 into a story and some information.

- Point 2o Break down point 2 into a story and some information.

- Point 3o Break down point 3 into a story and some information.

- Conclude o End with a pertinent comment that refers back to the main

topic, but don’t summarise everything you have talked about. o Sometimes quotations are effective here, or another short joke. o End with a smile.

By using this formula you can make your speech as long or as short as you like by adding in new information or stories.


Class 9Social Etiquette


Social/Business EtiquetteThe definition of etiquette is: “Appropriate behaviour and interaction in a social or professional environment”.

Why is etiquette important?- First impression are usually lasting impressions, so you want to make

sure that people carry a pleasant picture of you away in their heads when you part company. The last thing you want them thinking is, “Well, heaven preserve me from having to deal with her again” or “What a rude man. Did you hear the way he spoke to his wife?”

- When you meet people in a business environment, or at a social function connected in some way to your business, you are immediately going to be involved in networking and relationship building. You want the CEO of a large company to remember you as the one who took the time to listen to what he had to say, and to ask intelligent questions that showed you had heard him. You don’t want him to remember you as the person who was so busy thinking about what you wanted to say that you constantly interrupted him.

- Dos and don’ts are vital. You need to know what sort of behaviour is appropriate and what is not.

Here are some pointers to see you on your way:

- Look neat and tidy and dress appropriately. You don’t have to wear expensive clothing but it must be modest and professional. Avoid vulgar designs and logos, revealing clothing (e.g., skirts that are too short, tops that are too low), torn clothing, dirty clothing.

- Be confident, but not arrogant. Say what you want to say pleasantly and clearly, and then invite a response. Give time and respect to that response; don’t treat people as if they are stupid if they don’t agree with your point of view. Don’t be arrogant. (“Well, of course you would say that – You’ve never been exposed to working conditions in Russia. I, on the other hand … This sort of arrogant attitude will put people’s backs up.)


- Be friendly but not overfamiliar. Show a polite interest in your colleagues’ lives, and in in people whom you meet in a professional capacity. But don’t get too personal or friendly. (“I love your perfume; where did you get it? On that special at Edgars?” This is fine for a conversation with friends, but not with a business acquaintance whom you will be approaching for funding.)

- Avoid conflict, remain polite even if the other person is rude and unfriendly. Walk away if someone is abusive. (“I’m sorry you feel that way” is a great way of turning a conversation back on the person who is being rude or unfriendly. “Everyone is entitled to their own opinion” is another good phrase to have ready to use. “I’m sorry, but you’ll have to excuse me for a minute” allows you to walk away without being seen as impolite and hostile – even though you’ve used it to escape someone who is being just that!) Maintain your dignity, keep cool and calm. Smile … even when you feel like being rude back.

A good first impression will increase your chances of receiving funding. If a funder likes you, s/he will often be more favourable to the project you are representing and promoting. It will alsoopen up networking opportunities through referrals and increase business opportunities and lay the groundwork for a good on-going relationship with a funder or business partner.

A bad first impression will jeopardize those funding opportunities and decrease any chance of building an on-going relationship and opening networking opportunities. It will leave a bad taste in the mouth and damage the reputation of your organisation.

Meeting with a potential funder; some more dos and don’tsBefore you even go into the meeting, make sure your cell phone is on silent. There would be nothing more embarrassing than having to scramble to turn it off just as your potential funder is about to tell you how much his/her company would be prepared to allocate to your budget for the next year! TFA Course Pack January 2013 232

When you enter the room, greet the funder with a handshake and introduce yourself, saying: “Good morning/afternoon, I appreciate the time you have taken to meet with me.” Continue with small talk and keep the conversation flowing smoothly for a minute or two. You can talk about the weather; make a comment about the city you are in, etc. Remember, though, you are meeting with an important, busy individual. So don’t spend too long talking about trivialities. After a minute or two, get to the focus of the meeting. Mention the project you are representing by giving a brief summary of the project; don’t go into too much detail. Don’t blurt it all out in one long sentence. Allow spaces in the conversation for questions. Ask the potential funder if s/he has any questions or if s/he would like you to go over anything again. During the meeting, make good eye contact and read cues and messages from your audience. If someone is looking at his watch, it’s time to wrap things up. If someone leans forward, or makes a note, it’s time to step up the tempo as you have their attention and interest.

Make sure your posture is good and your behaviour is impeccable. Sit comfortably, but without slouching. Don’t fiddle with objects. Keep your hands loosely and comfortably in your lap, unless you are making notes. Never be forceful, too personal and never beg or plead for funds or anything else. If during your meeting you are offered tea and biscuits, drink without slurping or spilling. Eat with your mouth closed, and don’t gobble down all the biscuits on the plate.

At the end of the meeting, conclude graciously. “Thank you so much for your time. I’ve enjoyed meeting with you.” If it seems like a good idea, you can suggest another meeting: “It would be great if we could meet again to discuss this further. If you have promised to send information, you can repeat your intention to do so. “I’ll send you the information you asked for as soon as I get back to the office; would you like to see a copy of our proposal too?”

Exercise 80: The funding applicant from hell. This is a fun class exercise. TFA Course Pack January 2013 233

- Role-play meetings with corporate funders where you have been invited for a meeting at their offices. There are three people involved in this role-play. 1. The applicant who has been invited to meet the funders. This

person is loud, badly-dressed and rude. From the moment he walks into the reception area, he makes a noise. Take him through the meeting from greeting the receptionist until he says goodbye. Exaggerate all the worst character traits you can think of!

2. The receptionist who cannot believe how uncouth this person is. Let there be some sort of interaction here. What is the most inappropriate thing this person can do?

3. The corporate funder. Think about how this person should behave and do the exact opposite. How will the funder react?

Now choose three more people to role-play The perfect funding applicant. Repeat the exercise and let everything run smoothly.

After this second role-play is completed, let the class crit the performance of the applicant. Did s/he forget anything? Was there anything s/he could have done better? What did s/he do particularly well?

Exercise 81: Homework – Summaries Write a summary which explains the core business of your organization in a clear and attractive way.

“Acceptable, courteous and respectful” are good watchwords to keep in mind when thinking about how one should behave.

Telephone dos and don’tsGood etiquette when speaking on the phone is as important as speaking to someone in person.


- Always answer the phone by the third ring.- Identify your business and yourself.- Don’t keep someone on hold for more than 30 seconds.- Return calls on the same day.- If you ask someone to return your call, leave your phone number.- Make sure your voice mail works properly when out of the office.- Your voice message should be short and positive.- Don’t read your e-mail or work while on the phone; pay attention to

the person on the other end, and listen carefully to what they are saying. (You might think that just because someone can’t see you, s/he doesn’t know what you are doing, but it’s very easy to pick up when someone is distracted, and very annoying to hear a keyboard tapping in the background!)

- Use a greeting such as “good morning”,” good afternoon”; never say “bye” when ending a business call.

Writing rights and wrongsThe way in which you send an e-mail message, write a memo or business letter says something about you.Remember the following:

- Women should be addressed as “Ms.” regardless of their marital status.

- Always check for typing errors and spelling mistakes.- Always use correct spelling and grammar. - Don’t use cellphone speak or abbreviations. - No smiley faces. doesn’t make people happy in business

correspondence.- Be concise and to the point.

Remember: Conducting yourself in a professional manner will prompt others to treat you as such. Treat others as you want to be treated.

The dos and don’ts of dining out


Don’t order the most expensive item on the menu. Try and fit in with what others are ordering, except if you are vegetarian or have specific dietary requirements. For example, if the majority is having a light meal and a salad, stick to a light meal too.Make sure you know what cutlery to use for each course: starter, main and dessert. If you are not sure about this, don’t be shy. Ask someone to show you before you go out. It’s too late when you get to the restaurant! - Place your napkin/serviette on your lap. If you are pouring water, offer

others first. Before taking bread, offer this to others first too. Unless you are asked to start eating, wait until everyone has been served before you start eating. Be polite to the wait staff, say please and thank you to them.

- Eat with your mouth closed, and don’t speak with your mouth full of food.

- Place your cutlery neatly together on your plate when you have completed your meal.

- Eat slowly. Don’t gulp down your food in a hurry, but at the same time, don’t eat like a snail.

- Whatever you do, don’t burp!- Offer to contribute towards the bill.- If the funder has paid the bill, remember to say thank you, and to thank

the wait staff.- If there is a mishap and something gets spilt or messed, politely excuse

yourself from the table and go to the bathroom to clean up.

The dos and don’ts of job interviews- Introduce yourself and give a short, clear description of yourself. - Do your research on the company or organisation. Know its mission,

its objectives, where it has succeeded, what inspires you about it.- Learn the names of key personnel. Know the history of the

organisation, when it was founded, whether it has grown. - Be prepared to answer any question related to your qualifications and

why you are suited to the job.- If you have had previous jobs, be ready to talk about them, why you

liked them; why you moved.


- Know what sort of salary you hope to earn.- Don’t repeat your name. - Speak clearly, don’t whisper.- Try not to be shy, even if the surroundings are overwhelming. (The

better prepared you are, the less nervous you will seem.)- Don’t slouch and fidget in the chair- Don’t lie about yourself – be honest!

Remember the importance of making a good impression.

Business EthicsI. Main principles of Business Ethics (with examples)

a. What are Business Ethics?i. According to Wikipedia (all information in “I”

quoted from site): Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.

ii. Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporations promote their commitment to non-economic values under headings such as ethics codes and social responsibility charters.

iii. Business ethical norms reflect the norms of each historical period. As time passes norms evolve, causing accepted behaviors to become objectionable. Business ethics and the resulting behavior evolved as well. Business was involved in slavery,[4][5][6] colonialism,[7][8] and the cold war.[9][10]

iv. The term 'business ethics' came into common use in the United States in the early 1970s. By the mid-1980s at least 500 courses in business ethics reached 40,000 students, using some twenty textbooks and at least ten


http://en.wikipedia.org/wiki/Business_ethics#cite_note-10


http://en.wikipedia.org/wiki/Cold_war



http://en.wikipedia.org/wiki/Colonialism




http://en.wikipedia.org/wiki/Slavery

http://en.wikipedia.org/wiki/Professional_ethics

http://en.wikipedia.org/wiki/Applied_ethics

casebooks along supported by professional societies, centers and journals of business ethics. The Society for Business Ethics was started in 1980. European business schools adopted business ethics after 1987 commencing with the European Business Ethics Network (EBEN).

v. Firms started highlighting their ethical stature in the late 1980s and early 1990s, possibly trying to distance themselves from the business scandals of the day, such as the savings and loan crisis. The idea of business ethics caught the attention of academics, media and business firms by the end of the Cold War.[12][17][18] However, legitimate criticism of business practices was attacked for infringing the "freedom" of entrepreneurs and critics were accused of supporting communists.[19][20] This scuttled the discourse of business ethics both in media and academia.[21]

b. What are main principles?i. Top answers include

1. Integrity2. Honesty3. Transparency4. Strong management (e.g. ability to make a profit)5. Openness (to new ideas, etc.)6. Community involvement7. Accounting controls8. Law abiding

c. What are issues that come up commonly in SA around business ethics?

i. Corruption (e.g. a chairman who lies about a company’s profit in order to keep more for himself)

ii. Labour issues/employment practicesiii. Environmental impactiv. Historic factors

Exercise 82: Using CSI to ameliorate previous questionable practice.Think of a company you know of that has in the past engaged in questionable behaviours. How have they used CSI as a way to ameliorate this?





http://en.wikipedia.org/wiki/Communist

http://en.wikipedia.org/wiki/Entrepreneurs



http://en.wikipedia.org/wiki/Business_ethics#cite_note-a1-12

http://en.wikipedia.org/wiki/Cold_War

http://en.wikipedia.org/wiki/Savings_and_loan_crisis

II. Generally Accepted Codes of Conduct – Fundraising Sector (how related to business ethics)1. Just like with a business, fundraisers must comply with a

set of ethics. a. This is all the more important in the non-profit sector

because you are using donated funds to conduct your work.

b. The community and, specifically, your donors must be able to trust you as a fundraiser and you must act ethically and professionally at all times.

2. Many different fundraising bodies, all with codes of conduct/ethics. Similar to all:

a. Need to respect confidentialityb. Need to act in best interest of donor and organizationc. Need to be transparent and honest about where funds

needed and used 3. Review Southern Africa Institute of Fundraising Code of

Professional Ethicsa. We will associate only with organisations and agencies employing ethical

fundraising methods, pursuing worthwhile purposes and meeting needs demonstrably valid and consistent with the enhancement of human welfare.

b. We will provide our fundraising services only for a salary paid to us as employees of an organisation or agency on whose behalf we work to raise funds or as retained consultants on the basis of a specified fee determined prior to the commencement of the fundraising endeavour in respect of which our services are retained.

c. We will encourage and give our full support to the provision of education and training of the highest practicable standards for those responsible for fundraising activities and do our utmost to improve technical and other performance standards within the profession; we will foster the sharing of ideas, experiences and practices so as to contribute as we can to the common pool of fundraising knowledge, to the good of organisations and agencies on whose behalf fundraisers work, and to the success of the causes and the welfare of the people such organisations and agencies seek to serve.

d. We shall, among other things in respect of any organisation or agency we professionally serve: form predictions of fundraising results only on the basis of prior professional assessment of the particular circumstances and their bearing upon considerations important to such results; respect and safeguard the confidentiality proper to a professional relationship; unremittingly pursue our professional responsibilities placing before our own personal interests the best interests of the organisation or agency, its cause and those it endeavours to serve; recognize and discharge obligations to the organisation or agency in giving counsel and assistance in respect of the fulfilment of subscription, recording and other aspects of internal fundraising management.


e. We will in good faith co-operate with fellow practitioners in curbing malpractice and eliminating unethical and undesirable conduct within or impinging upon the fundraising profession and in particular will oppose and will not be party to:

i. (a) Misrepresentation in any form including exaggerated claims of past achievements or offers or promises to raise unobtainable sums of money;

ii. (b) Contracts or undertakings for fundraising services on the basis of a guarantee in respect of results or compensation in any form for the non-achievement of declared financial objectives, or involving: hidden costs to the organisation or agency recipient of the fundraising service; fees or payment for service as a percentage of or commission on amount raised, or any payment as a premium for achieving a prescribed financial result.

iii. (c) Payments in cash or kind made to an employee, officer, trustee or advisor of an organisation or agency as a compensation for using influence in respect of the engagement of fundraising counsel.

4. Compare with (all attached)a. Fundraising Ireland, b. Institute of Fundraising (England/Wales)

http://www.institute-of-fundraising.org.uk/guidance/code-of-fundraising-practice/

c. Association of Fundraising Professionals (USA)

Exercise 83: Sourcing relevant information Divide into three groups. Have each group read either 4a, 4b, or 4c and make any notes of information that is found in these that is not in the guidelines presented in #3. Share with class and discuss.

Exercise 84: Fundraiser remunerationWhy do you think 3b speaks about need for fundraisers to be paid a salary/fee and not work on commission?

III. Importance of Code of Ethics for Fundraisers (examples of benefits)

1. Review Donor Bill of Rights (from Association of Fundraising Professionals)

Donor Bill of Rights

All donors have the following rights:


I

To be informed of the organisation’s mission, of the way the organisation intends to use donated resources and of its capacity to use donations

effectively for their intended purposes.

II

To be informed of the identity of those serving on the organisation’s governing board and to expect the board to exercise prudent judgment in its

stewardship responsibilities.

III

To have access to the organisation’s most recent financial statements.

IV

To be assured their gifts will be used for the purposes for which they were given.

V

To receive appropriate acknowledgement and recognition.

VI

To be assured that information about their donation is handled with respect and with confidentiality to the extend provided by law.

VII

To expect that all relationships with individuals representing organisations of interest to the donor will be professional in nature.

VIII

To be informed whether those seeking donations are volunteers, employees of the organisation or hired solicitors.

IX

To have the opportunity for their names to be deleted from mailing lists that an organisation may intend to share.


X

To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.

Exercise 85: Why is this Bill of Rights important for fundraisers?If you are following these, it is a step in knowing you are acting ethically as a fundraiser. Why does it matter if you act ethically? Beyond your personal desire to act ethically, you are an extension of your organisation. The way you behave impacts its reputation, future, and most importantly, those it seeks to benefit.

IV. Impact of Unethical Behaviour on Organisation and Staffa. If you act unethically, people will not trust you or your

organizationb. Possible impact

i. Negative reputation (of you and organization)ii. Decreased donationsiii. Inability to provide the services the organization sought to

provideiv. Can harm donors (e.g. using confidential information you

have from/about them)v. Can result in fines, jail, etc. depending on extent

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Documents

Class 1 - DGMT Web viewII.Generally Accepted Codes of Conduct – Fundraising Sector (how related to business ethics)194. ... is the key word here! ... risks and, indeed failures